To keep your credit history intact, you need to do all that you can to stop foreclosure from happening. Foreclosure happens when an individual stops making payments on a mortgage or property tax lien that they have. When this happens, the bank or lender that holds the loan begins to work on taking possession of the home in order to keep from losing their own money in the process. Yet, the process of foreclosure does take some time. It only takes one or two non paying months to get the process started. Once this happens, you may have up to four to six months before they take possession of the home. During this time, you should do anything and everything that you can to stop foreclosure.
Why Stop It Anyway?
For some individuals, foreclosure doesn’t look to be such a bad thing. They may have lost their job or no longer can make payments on their mortgage for another reason. The end result is simple: just let the bank take it. The problem with this is that it will scar your credit history for up to ten years, allowing you to struggle for that time in obtaining any new credit or new loans. This is not something that you want to do, especially when you’ll want to purchase a new home in a few months or years.
Foreclosure on property is one of the worst things for a credit report because it shows that you can’t make even important payments each month, even if it’s not your fault. Secured loans, such as homes and vehicles, are more important to maintain in good standing for this very reason. But, what if you simply can’t make those payments?
Selling your home would be one option that you have. This would help you to avoid foreclosure and perhaps even give you some money in your pocket, assuming that you can sell it fast enough and for enough. Perhaps refinancing your home would be another solution for you. This could help you to lower the monthly payment on your home. There are many ways to stop foreclosure. If you don’t want to end up being limited in the loans that you can take out for the next several years, it’s imperative that you do all that you can to stop foreclosure.