SAVANNAH, GA, Sep 13, 2011—“A foreclosure is more than just a spot on your credit,” says Connie Ray, President/Owner of Coldwell Banker Platinum Partners. “It is one of the most damaging things that can occur to your credit record.” If you and your family—like many homeowners in today’s market—are facing a foreclosure, knowing your options can buy you time and hopefully help save your home, or at least your credit history.
The first thing you should do when facing a foreclosure is talk with your lender. If you have recently had a large decrease in income, you may be able to arrange a repayment plan, suspension of your payment, or a temporary reduction of payment. “You can also talk over your debt refinancing options,” says Ray.
Additionally, look into talking to your mortgage insurance provider, if applicable. Sometimes insurers are willing to help homeowners by paying the mortgage with a temporary loan to be repaid later, notes Ray.
If refinancing or figuring out an alternate repayment plan is not possible, you may be able to make moves that will have less of a negative impact on your credit history than a forced foreclosure. According to Ray, a short sale, which occurs when the lender agrees to write off a portion of the loan that is higher than the value of the home, or a deed in lieu of foreclosure—where you voluntarily “give back” your property to the lender—is better for your credit, so look into those options.
“A foreclosure can be devastating for everyone involved,” says Ray. “Knowing your options can help you find an alternative route, if one is available.”
No comments:
Post a Comment