There is six main reasons to avoid foreclosure. As a certified distressed property expert I am constantly talking to people who are facing foreclosure. Many people facing hard times have no idea the ramifications a foreclosure on their credit report can have. What's more surprising to me and the reason why I am re-posting my list is the fact so many people don't know there are other options such as selling their home as a short sale verses just letting it go. It is much like selling your home with equity and no one needs to know that you are actually upside down on payments or equity in your home in terms of neighbors and friends. The effects on your credit report doing a short sale vs. foreclosure are dramatic. Take a look at the six reasons and know you have options.
Six main reasons to avoid foreclosure
1. You will most likely always have to disclose on a mortgage application and many job applications you submit in the future. This is known to be the only credit item asked specifically and does not rely on what is on an individual's credit report.
2. Many employers run credit checks on prospective employees and foreclosures can put a potential new hire at the bottom of the list of excellent candidates.
3. Security clearances and government positions including but not limited to military and law enforcement can be jeopardized by a foreclosure.
4. Credit scores are usually lowered by 300+ points when a foreclosure becomes on the credit report.
5. A foreclosure is the one credit report item that is almost impossible to have "repaired". It may stay on your credit report for five - seven years.
6. Your lender can seek a deficiency judgment against you and collect for any amount they do not recuperate at bank sale.
If you need answers there is specialist that can help you. While it may not seem like it now, there will come a time when your current financial troubles will pass. During this devastating financial consequence that many people face today, there is help available.