Ten Reasons to Avoid Foreclosure

1. Foreclosure Follows You

Homeowners will always have to disclose that they have had a foreclosure on any mortgage application and many job applications that they submit in the future. This can have an adverse affect on their future mortgage rates. This is a credit item that is asked about specifically in credit inquires. There is not seven-year time limit on this item.

2. Credit Score Negative Impact

Credit scores will be lowered by 300-plus points (per loan). Along with bankruptcy, a foreclosure is one of the most devastating credit issues you can have in relation to future availability.

3. Ineligibility for a Government Insured Loan

The homeowner will be ineligible for a government insured loan for 5-7 years (only two years in a short sale). A foreclosure is the one credit report item that is almost impossible to have repaired.

4. Possibility of Deficiency Judgment

Your lender can seek a deficiency judgment against you and collect any amount they do not recuperate at bank sale.

5. Negative in Employment Credit Checks

Many employers run credit checks on prospective employees.  Foreclosure is one of the top items that will put a potential new hire in jeopardy.

6. Potentially Damaging in Current Employment

Many employers run credit checks. A foreclosure can put a current position in jeopardy.

7. Negative on Security Clearances

Security clearances and government positions-including but not limited to military and law enforcement-can be jeopardized by a foreclosure. Revocation of security clearance can result in job reassignment or loss.

8. Lower Tax Liability than Foreclosure

The tax liability in a foreclosure may be much higher than in a properly negotiated short sale since canceled debt will be higher in a foreclosure.

9. You Have Alternatives

As your expert, I will explore every option with you and work toward the best resolution.

10. Do Everything You Can

While it may not seem like it now, there will come a time where you’re current financial troubles will pass. You will feel much better knowing that you did everything you could to avoid this devastating financial consequence that so many people face today.