Posted on: 25th Aug, 2011 12:39 am
my husband and i bought a condo built by a company who went bankrupt and left the complex with 8.5mil in repairs. the properties were considered toxic assets improperly built. unable to sell, rent or refinance. after talking with our lawyers we decided to move out and let it go into foreclosure. no help for the property. we have lost our retirement savings in this process due to this situation. now, how bad will that look on our credit and will we lose our credit cards?
Your property will be foreclosed and you may be liable for the deficient amount. It will reduce your credit scores by around 250 points and it will remain in your credit report for the next 7 years. Apart from that, you won't be able to get a mortgage within the next 3-4 years. You may not lose your credit cards but it will be difficult for you to qualify for new cards.