What happens if I foreclose on my mortgage?

Foreclosure isn’t fun for anyone. Having creditors call you and show up on your doorstep to tell you that you may lose your house is a nightmare for the average American. But the worst part is what happens after you lose the house – when the banks see to it that your credit is destroyed.

What do I mean? When you foreclose on a mortgage, that foreclosure is listed on your credit score, and it is the worst thing that can appear on your credit apart from a bankruptcy. There are numerous serious problems that result from having your credit damaged in this way:

  • Inability to open a new mortgage to purchase another home
  • Rejection from being able to rent a home, once the property manager sees your credit score
  • Inability to obtain credit cards or to lease or obtain a loan on a car
  • Once you are cleared to obtain a new mortgage (and most other loans or lines of credit), your interest rates will be significantly higher than the rest of the population and you will have to put down a higher down payment (probably around 20%).

The average length of time it takes for your credit to heal after a foreclosure is seven years, and that’s only if you do everything perfectly (i.e., keep up with all you credit cards, etc.) during that time.

Foreclosure is a serious problem and no one wants to end up living with their in laws because they can’t rent an apartment or get a mortgage. A better option is to sell your property to an investor, like Upstate House Buyers,  before foreclosing. We can buy the house quickly and renegotiate things with your bank to get you the best possible deal. Then you can move forward with your life, knowing that you won’t be in the credit doghouse for the next seven years.

If your mortgage is in trouble and you risk foreclosure, why not take a second to fill out our online form and let us contact you to discuss purchasing your home? Just taking those few minutes could save you years of hassle and heartache.

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