How Foreclosure Affects Your Credit

When your bank or mortgage lender forecloses on your home, your total debt and any debts incurred during the legal process of foreclosure are charged against your credit. Mortgage debt is not like a revolving credit card account. A charge off on a revolving account will remain for a few years and can be contested for removal. A foreclosure on your credit report will list the number of months that you did not pay your mortgage as well as the total amount your bank or lender lost by foreclosing on your home.

Many homeowners believe that banks only report the amount that was lost. Because of recent changes in tax laws, any creditor is allowed to send a 1099-C to the IRS and to you. This lists the total amount of debt that was canceled during the foreclosure. You will be responsible for paying taxes on this amount directly to the IRS. This creates a much larger financial problem. Credit bureaus will report that you have outstanding debt and the IRS will pursue you for uncollected taxes.

Preventing Foreclosure on Your Credit Report

Once a foreclosure is placed on your credit report there is little you can do. Your FICO score will drop making it harder to get a fair interest rate should you try to pursue another mortgage loan. Many lenders do not grant mortgages to homeowners with a previous foreclosure. An apartment lease, approval for higher education loans and basic utilities are harder to get with a foreclosure listed on your credit report.

You can try to renegotiate with your mortgage lender before a foreclosure notice is sent to credit bureaus. The normal period of time is 90 days or less from the start to the completion of a foreclosure. You may have already passed this time frame. A professional intervention from a foreclosure specialist can help you prevent foreclosure from going on your credit report. If you have tried to speak to you bank and have been denied, it is time to seek professional help to stop foreclosure.Watch Full Movie Online Streaming Online and Download

Call Avoid Foreclosure today at 1-800-589-4106 and speak with a foreclosure expert that can provide the help that you need to prevent foreclosure.

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Foreclosure Alternatives for Homeowners

1. Forbearance 

Contacting your bank or mortgage lender is one of the easiest things you can do if you have been notified of a pending foreclosure. You could ask for a little known loophole that is written into most mortgage deeds called forbearance. This is a direct negotiation with your mortgage holder that will give you extended time to make up any overdue mortgage payments before a foreclosure is started. Many times a lender will suspend monthly payments to allow you to catch up on your back payments. The frequency of your late payments and payment history will be a factor in granting forbearance.

2. Refinance

Regardless of the length of time you have owned your home, your home will have some equity that has been earned. A refinanced loan will cash out the equity that exists and pay you by check . This sum of money can be used to payoff your past due mortgage payments. This could help you stop foreclosure if your lender is willing to discuss refinancing options with you. You should know that refinanced mortgages can increase the interest rate that is linked to your new mortgage. If you have trouble paying your payments now, refinancing might not be the right solution for you.

3. Short Sale

If your bank or mortgage lender has already set a date of property sale, the first two solutions will not help you. The short sale is one of your strongest assets as a homeowner. By arranging the sale of your home before a lender sale, you can avoid payments and penalties that are often assessed during foreclosure. Your bank or lender might agree to a short sale and settle for less than the total balance of your mortgage. This allows you to walk away free and clear from your mortgage and still maintain your good credit.

Get Help to Avoid Foreclosure Today

Call Avoid Foreclosure at 1-800-589-4106 to get fast help and stop foreclosure on your property.

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It is important to understand the process of foreclosure to determine if bankruptcy is the best option. When you get behind on your house payments, your lender immediately takes notice and contacts its legal team to start the process of foreclosure. You are always the last to know when foreclosure has been filed. Depending on the state where you live your lender can expedite foreclosure making it harder to stop.

How Foreclosure Affects Bankruptcy

When foreclosure has started, lenders require the full payment of a mortgage not just what is overdue. This misconception rapidly routes homeowners into the foreclosure whirlwind and homes are sold fast. You must know the phase of foreclosure that you are in before you consider bankruptcy. You have likely done research on bankruptcy and already know how damaging bankruptcy is to your credit. The phase of foreclosure that you are in might not save you even if you file for bankruptcy to stop foreclosure from happening.

The type of bankruptcy that you are considering will affect foreclosure prevention. Chapter 7 has specific rules about the acquisition and sale of your personal property. Chapter 13 can extend payment arrangements to help you repay your debt including past mortgage payments. The timeline to prevent foreclosure with a bankruptcy is very limited. Banks and lenders keep track of every notice that is sent to you. Demands are typically made that include due dates you are required to follow if you want to stop a foreclosure.

How Bankruptcy Can Stop Foreclosure

The sale date of your property is the last notice that you will receive from a mortgage lender or bank during foreclosure. In order to prevent foreclosure, filing bankruptcy before the sale date is arranged and sent to you is key. Once a sale date has been set bankruptcy protection cannot help you. There are other ways to stop foreclosure without bankruptcy. The damage done to your credit during bankruptcy is severe. You will have extreme difficulty getting approval for any loan, apartment lease or credit card for nearly a decade.

Call Avoid Foreclosure at 1-800-589-4106 and get help to stop foreclosure without filing bankruptcy.

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