Six Things Foreclosure Can Do For You

Foreclosure for what ever reason can be an emotional, financial and family derailment.  It should try to be avoided at all costs.

Here is a few of the things that a foreclosure causes to happen:

1. You lose your home and have to find a place to stay.
2. It may not be easy to find a place to rent since you have a history of not paying you obligations.
3. You will not be able to get another mortgage backed by Fannie Mae for 5 years.
4. If you are an investor you will not be able to get a Fannie Mae backed investment mortgage for 7 years.
5. Your over all credit score will be drastically, adversely affected for a least 3 years or more.  That changes everything.
6. If you have a job that requires a security clearance, i.e. military, police, government, you will almost certainly lose you security clearance.

You may have several options to avoid foreclosure  including   executing a “short sale” if you lender agrees.  This is not a “get out of jail free” card and there may be other consequences to evaluate but they will not cripple you as much down the road as a foreclosure. 

If you are in danger of foreclosure, contact professional help quickly  as “time is not your friend.”