Sometimes I feel like a parrot reminding families to do what they can to prevent foreclosure. It takes work, but it’s worth it.
Today I received two more articles reminding us of the consequences for foreclosure for families and the community around them.
Credit Consequences of Home Loss by Bob Hunt
Five years after a foreclosure, a consumer may be eligible to obtain a home loan. Of course, certain restrictions may apply. At least a ten percent down payment is required, and a minimum credit score of 680. Also, purchase of a second home or investment property is not permitted.
Years after Loan Default, Homeowners May Still Owe By Jim Wasserman
That’s because lenders have been quietly selling second mortgages and home equity lines left unpaid after foreclosures and short sales. The buyers: collection agencies, which in some states have years to make a claim. If they win court judgments, these collectors could have years to pursue borrowers with repayment plans, and even garnish their wages, said Scott CoBen, a Sacramento bankruptcy attorney.
Keep in touch with your lenders. They want to work with you for the most part. Try to sell before your credit is damaged for years to come. And please contact us if you have questions. We’re here to help.
