We all have friends or loved ones that are feeling hopeless in their current housing situation, the constant collection calls, stress on family relationships and sliding credit scores. For most facing foreclosure or bankruptcy in the Greater Madison area the path to today started gradually, and ended suddenly. Whether the downturn in the housing market has put your homes value lower than your mortgage, you have lost your job or have incurred obscene medical bills making it difficult to pay your mortgage often there are a multitude of solutions available to you. The most important advice I can provide is, “Don’t live in denial.”

Don’t let time run out!

The earlier you contact our team, the more solutions that you will have available to you, many solutions will actually keep you in your home. Our strategic partnerships can also help you repair the damage to your credit score that is typically created prior to or after foreclosure. So before you invest your entire life savings, 401K or incur thousands in consumer credit debt as a hailmary to keep your home, give us a confidential call at 608.469.5199  for a free consultation. There is hope and it starts with your choice to call today.

Q & A of Foreclosure 

• What are the implications to my credit score?
  Following a successful short sale your mortgage may be reported on your credit score as either paid or negotiated, lowering your score as little as 50 points and affecting you for only 12 to 18 months. After a foreclosure, however, your credit score can lower as much as 300 and usually at a minimum of 250 points and affects your score for over three years.
  
• What are the implications to my credit history?
  A short sale is usually reported as paid in full and is not reported on your credit history. A foreclosure will remain on your credit history for 10 years or more and will remain as public record.
  
• What will be the effects on my future loans?
  For most mortgage lenders you will not be asked to declare or be questioned regarding a short sale on any standard loan application (1003). In regards to foreclosure, you will be asked on any future standard loan application (1003) if you have had a property foreclosed in the last seven years, therefore affecting your rate. Fannie Mae backed mortgages will be available to you following a short sale after two years. Fannie Mae backed mortgages will not be available to you for at least five years if you have lost your home due to a foreclosure.
  
• Does this effect my employment opportunites?
  A short sale does not appear on a credit report and will not challenge your current employment status. In comparison, if you have a foreclosure on your credit report, some employers consider it a reason for termination or reassignment since many run credit checks on employees for certain positions. A foreclosure can be extremely harmful to your chance of being selected for a new job if your credit report is taken into consideration.
  
• How does a short sale versus a foreclosure affect the deficiency judgment?
  If your short sale is handled successfully, the lender may give up the right to pursue a deficiency judgment against you. If the lender does pursue a deficiency judgment against you after a successful short sale, the amount will be considerably lower because your home was sold at a price closer to market value than that of an REO (Real Estate-Owned) sale. In all foreclosures, with the exception of those states without deficiency, the bank may have the right to file a deficiency judgment against you. Since your foreclosed home will have to go through the REO process if not sold at auction for a lower sales price, this results in a higher deficiency judgment against you.

 These days more homeowners are facing a tough decision about whether foreclosing is the only option they have left. Deciding to foreclose on your home will have implications on your family and your credit for the rest of your life.

When a homeowner can no longer make payments to a lender for a home, the lender may repossess a home in the process of foreclosure, usually with the purpose of reselling it, to recover the amount owed on the defaulted home. Homeowners facing foreclosure proceedings will face lasting implications. 

A few of the effects of foreclosure are:

1. Your credit scores will be significantly lowered, sometimes by more than 300 points. This is the single most devastating mark on your credit report and will affect all of your future credit possibilities.
2.  A foreclosure listed on a credit report is nearly impossible to have repaired and will most likely remain a permanent mark on this valuable personal report.
3. Any future application for a mortgage you apply for will require you to reveal a previous foreclosure, greatly affecting your mortgage rates.
4. Most employers will also conduct a credit check. With a huge drop in your credit score due to a foreclosure, this may also hinder your future employment opportunities. This is especially true of many government positions, including military and law enforcement agencies.
5. If your current employer runs a credit check, then a foreclosure may even put your current position in jeopardy.
6. In order to recuperate money they did not receive during a bank sale of the property, a lender may seek a deficiency judgment against you to obtain the balance.
7. Depending on your state law, you may be responsible for deficiencies after the foreclosure for an undetermined time period, placing you in a prolonged cycle of continued collections.
8. Your family will have to relocate. This is always a disturbance for children, marriages, careers and other important aspects of your life.

If we could help you move on with your life, make the calls stop and repair your credit, wouldn’t it be worth a confidential call to our team at 608.469.5199  or email pmeller@charter.net