What are the long-term financial consequences of a home foreclosure?

anyone been in foreclosure???


Asked by LYNN915 at 6:29 PM on Jun. 23, 2008 in Home & Garden

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Answers (8)
  • ummm no one will rent to you for a foreclousure on your credit for one. If you wouldnt or couldnt pay your own mortgage for your own home what makes you think a landlord will rent to you and get his rent? You can also expect to not be able to get a mortgage for quite a while! No new credit cards either and expect the cards you do have to legally raise the intrest rate on you for the foreclousure. This is just the tip of the iceburg. If your loosing your home because your mortgage broker lied on the application about your income then contact the local govt office handeling the fraud on this.

    Answer by vbruno at 6:56 PM on Jun. 23, 2008

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  • I would check out Dave Ramsey. His web-site is www.daveramsey.com

    Check it out....you might be glad you did!


    Answer by SAHMinIL at 7:35 PM on Jun. 23, 2008

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  • oK I am pretty sure that it's going to be on your credit for 7 years, but if you hurry to buy another house before you foreclose you'll be ok... I know plenty of people that have done this.. since the IRS hasn't posted it on your credit as foreclosure yet they went off and got a new house before it did... I am not foreclosed on our home but nearly did because dh didn't have a job and we couldn't pay the bills... buuuuttt... we worked it out with our mortgage co. and they set up a payment plan to catch up on our morgage.. it's too much of a hassle to foreclose.. totally not worth it IMO.. even if you can't get another house you can move into an apt. there are people out there with worse credit and drive hummers so whatever.. =) good luck to you!

    Answer by Joqui at 8:47 PM on Jun. 23, 2008

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  • I think all this hoopla about building your credit and so called home ownership is a hyped up illusion. We lost our home due to circumstances beyond our control. We were able to rent anywhere we wanted, and discovered simplicity and what was really important in life.

    Answer by letsgetreal at 10:42 PM on Jun. 23, 2008

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  • letsgetreal-- I understand your frustration! I may not share your same regards regarding homeownership/credit. However I NOW know that using credit cards to build credit is as you but it all HOOPLA and HYPED UP ILLUSION!! I'm working my out out of a whole right now, and the one thing I'm clear on I can't work my way out by digging out the bottom. (i.e. consolidation/rearranging the debt/home equality loan/2nd Mortgage etc)

    Answer by SAHMinIL at 11:34 PM on Jun. 23, 2008

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  • I would suggest before you just walk away talk to the mort comp about a deed in leu of foreclosure...it does not look as bad as a full blown foreclosure but will still effect your credit and chances of other oppurtunities. I filed chp 13 bankruptcy which is where you pay most or some of the money back and we still have serious consequences, we were looking to try to move to a house with smaller payments but found out after the fact that we cannot get another mort until 2 yrs after our bankruptcy was paid back....yikes. Thats 7 years. Good Luck to you!

    Answer by Anubis8733 at 10:21 AM on Jun. 24, 2008

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  • All I know is what my stepdad told me about his. He couldn't sell his house and he'd already moved out. He paid for a while, but couldn't keep it up. The bank said they were going to foreclose and were coming for the key, but he told them, "Don't bother. I'll mail it to you!" His regret was that he kept paying for several months when he was going to lose it anyway. That was more money gone that he didn't need to lose.

    Have you tried credit counseling? My husband and I did that when we were having trouble with paying the mortgage and other bills. Helped a lot and we didn't have to file bankruptcy.

    Answer by GwynCat at 12:56 PM on Jun. 24, 2008

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  • If you choose to walk away, you may be faced with a deficiency tax judgement which will follow you even after you leave the house.

    A deficiency judgement is a court order authorizing a lender to collect part of an outstanding debt from foreclosure and sale of the borrower's mortgaged property or repossession of property securing a debt, after a finding that the property is worth less than the book value of the outstanding debt.

    Visit www.foreclosure-er.com to find other alternatives.

    Answer by Foreclosure-ER at 7:32 PM on Aug. 10, 2008

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