After foreclosure, you can expect your credit score to drop – by as much as 180 points. Even if your home is lost through short sale or deed in lieu of foreclosure, the result is the same – bad credit. Considering that you need a credit score of at least 580 to get a loan, a reasonable interest rate on a credit card, or even many apartments, the effect of foreclosure on your credit, and your life, is significant.
1. HOUSING: First, realize that after foreclosure, your housing situation is going to change. This may be somewhat obvious as you are losing your home, but consider the effect of foreclosure a bit deeper. You will not be able to purchase a home for at least seven years unless there were verifiable extenuating circumstances. Likewise, you may experience problems finding a new place to live as many landlords will not rent to people with bad credit (in many cases, property management agencies have strict guidelines prohibiting it). As such, it is in your best interest to apply for housing before filing for foreclosure (or at least spend time figuring out where you will live).
Credit Loan: After Foreclosure: The Consequences of Bad Credit...
1. HOUSING: First, realize that after foreclosure, your housing situation is going to change. This may be somewhat obvious as you are losing your home, but consider the effect of foreclosure a bit deeper. You will not be able to purchase a home for at least seven years unless there were verifiable extenuating circumstances. Likewise, you may experience problems finding a new place to live as many landlords will not rent to people with bad credit (in many cases, property management agencies have strict guidelines prohibiting it). As such, it is in your best interest to apply for housing before filing for foreclosure (or at least spend time figuring out where you will live).
Credit Loan: After Foreclosure: The Consequences of Bad Credit...
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