10 Important Reasons to Avoid Foreclosure
Arica Song
Harpole Real Estate Group
541-736-6314
1. As a homeowner you will always need to disclose you had a foreclosure on any and all mortgage applications you apply for in the future. This could adversely affect your future mortgage rates and approval for a financing with different lenders. This is also a credit item that is specifically asked on credit inquiries and does not go away after a set time limit.
2. Credit scores will drop roughly 300 points (per loan). Besides bankruptcy, a foreclosure is one of the most devastating credit issues you can have in regards to future credit availability.
3. Ineligibility for a government-insured loans- The homeowner will be ineligible for government insured loans for possibly 5-7 years (2 years for a shortsale). A foreclosure on a credit report is one of the most difficult items to repair on a report.
4. In some states a lender can seek a deficiency judgment against the homeowner to collect amount not obtained in the bank sale.
5. Negative in Employment Credit Checks- Often employers run credit check on prospective employees. This could jeopardize a job opportunity.
6. Potential Damage to Current Employment- Employers often run credit checks on their current employees. A foreclosure could jeopardize a current position.
7. Negative on Security Clearance- Government positions and security clearances- military and law enforcement can be jeopardized by a foreclosure.
8. Lower Tax Liability than Foreclosure- Tax liability may be higher in a foreclosure than a properly negotiated shortsale- canceling debit will be higher in a foreclosure.
9. You HaveAlternatives- As your local expert, I will explore every option with you and work towards the best resolution.
10. You Must Do Everything You Can- It does not seem like it now, there will be a time when your financial troubles pass. You will feel much better knowing you did everything you could to avoid the devastating consequences so many people face today.
Arica Song
Realtor
Harpole Real Estate Group
541-736-6314
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