Credit Repair
Preparing (and repairing) credit with a foreclosure?
Due to circumstances beyond my control, I will be defaulting on primary and secondary mortgage this month, and my home will be foreclosed soon. Out of curiousity, is there any preventetive measures I can take to minimize the impact of this on my credit? I know it's going to essentially ruin it, but I'm wondering if there are any letters I can write to credit agencies either now or after the fact to soften the impact, and make it easier for me in the years to come. Thanks, Ryan
Public Comments
- Have you tried to talk to your mortgage company about doing a "Short Sale?" A short sale is when the bank reduces the cost of your home to what the market is really worth and the difference they absolve you from it entirely. Example...You buy a house for $300,000 and then after a year you can't make the payments any more, your house is really worth $275,000 so the bank will let you refinance the house at the 275,000 price and lower your mortgage and completely absolve your $25,000 difference. It cost the bank a lot of money to do a foreclosure, sometimes as much as $50,000 so this may be a route you want to try. Do some research about short sales and make some phone calls to a few appraisers and you should be able to get some comphrensive information together!
