Handling Foreclosures

20 May 2017
Robert
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Category: Mortgage

Many people feel like they’ve been hit in the face when credit problems strike them. On a much larger scale, getting hit in the face is similar to some degree as getting your house foreclosed on or any credit problem.

How are you going to handle yourself or your credit after foreclosure happens?

Or for that matter after ANY credit crisis happens?

The number one thing I tell our clients is to make sure all of their other trade lines are positive. When you can isolate an incident on your credit it has less of an impact.

The common alternatives to foreclosure, such as short sales, and deeds-in-lieu of foreclosure are all “not paid as agreed” accounts, and considered the same by your credit score. This is not to say that these may not be better options for you from a financial perspective, just that they will be considered no better or worse for your credit score.

If you are considering bankruptcy as an alternative to foreclosure, that may have a greater impact to your credit. While a foreclosure is a single account that you default on, declaring bankruptcy has the opportunity to affect multiple accounts and therefore has potential to have a greater negative impact on your credit.