Are you in the process of trying to stop foreclosure? Make sure you understand the effects of foreclosure in advance.
The effect of foreclosure on your credit score:
If you have a credit score of 680 you can expect the following impact on your credit score:
- Short Sale, deed in lieu or settlement with no deficiency balance: 610-630
- Short Sale, deed in lieu or settlement with deficiency balance: 575-595
- Foreclosure: 575-595
The effect of foreclosure on home equity:
When a home goes into foreclosure it will be sold at the minimum required for the lender to recover their money leaving no profits for the homeowner. In fact, if the lender is unable to recover the money owed to them they may try to collect the difference from the homeowner in the future.
The effect of foreclosure on children:
A foreclosure affects an entire family, children included. The situation may require them to move away from friends and change schools which can take both an emotional and mental toll on a child.
Losing your home affects everyone differently. Try to prevent foreclosure with these 5 tips:
- Don't ignore your mortgage problem
- Gather all your loan and financial information before contacting anyone for help
- Explore your options
- Do not fall victim to a foreclosure rescue scam
- Contact an experienced foreclosure attorney to assist you through the process
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The article above appeared in the Suburban Legal Group "Debt, Mortgage, Bankruptcy, Foreclosure Newsletter". Issue – 2 | January 2013
Learn how to get out of debt, stop foreclosure, and improve your financial future.
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