Posted on: 05th Dec, 2008 10:57 pm
Hello: As a last ditch effort I'm considering foreclosure as an option based on my circumstances. I'm in the initial phase of trying to obtain a loan modification from my lender to stay in my home. In the declining housing market I've been unable to sell my home for the loan amount and as a result turned down 2 lucrative jobs. A loan modification may allow me to sell or rent. If that doesn't work, from what I have read so far a short sale only save 100-150 points on a credit score. My situation is no debt besides home and student loans. I have no delinquent bills. My credit score is 780. Is my logic flawed in that 2-5 years after a foreclosure I'll probably have my credit score back above 600? At the rate the market is going I figure the money I save through this entire process will overcompensate with respect to a downpayment if I ever want to purchase a home in the near future. I should add I live in a no recourse state.
Hi wjallen
A foreclosure will reduce your credit by at least 250 points. So it will take some time to improve your credit score. But there are certain things that you can do to improve your credit quickly. You can go for secured credit cards or pre-paid credit cards wherein you would have to put in a deposit. However these credit cards will have high rate of interest. You should also try to pay all the bills on time so that there are no late payments.
Thanks.
A foreclosure will reduce your credit by at least 250 points. So it will take some time to improve your credit score. But there are certain things that you can do to improve your credit quickly. You can go for secured credit cards or pre-paid credit cards wherein you would have to put in a deposit. However these credit cards will have high rate of interest. You should also try to pay all the bills on time so that there are no late payments.
Thanks.