Reasons To Avoid Foreclosure

If you or someone you know is currently in or facing default on your home loan, there are several reasons to take action quickly to avoid foreclosure:

• A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years. You will also have to answer YES to question C in Section VIII of the standard 1003, when applying for a future loan, “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” If you still qualify for a loan, it will have an upward affect on your interest rate.

• Your credit score will be lowered by 250-300 points and a foreclosure is the most devastating credit issue you can have in relation to future credit availability.

• A foreclosure will remain as a public record on a credit history report for 10 years or more.

• Most employers run credit checks on prospective employees and a foreclosure is one of the top items that will put a potential new hiring in jeopardy. Your current employer may have the right to actively check your credit regularly if you are in a sensitive positions, and in many cases, is grounds for immediate reassignment or termination.

• A foreclosure is the most challenging issue against a person with security clearance outside of a conviction of a serious misdemeanor or felony. If you are a police officer, in the military, CIA, security or even a cashier at a store, in almost all cases, a foreclosure will result in a revocation of your security clearance which can  result in either immediate termination or reassignment.

If you or someone you know is having troubles making their loan payments or are currently in default, there are options out there to avoid foreclosure. I’m a Certified Distress Property Expert. I’m trained to help people in distress.  Call or email me, I would be honored to help.