Posted on: 27th Nov, 2012 10:01 pm
I am a homeowner living and I bought in 2009 for 130K with 10% down at 5% fixed. My home had already lost 50% of the value at the time I bought. The home is down to 55k now and still dropping. Unfortunately I am current on my payments and pay my bills so I am ineligible for any help from BoA with the new settlement. Is it a better move to take the hit on my credit knowing that it will likely take decades for my home to reach close to the purchase price? After 7 years I can purchase another home correct?
Hi Urin,
It will be completely your discretion whether or not you want to move out of the property and take a hit on your credit score. A foreclosure will lower your scores by around 250 points. After a foreclosure, you will have to wait for 3-4 years in order to get qualified for a mortgage.
Thanks
It will be completely your discretion whether or not you want to move out of the property and take a hit on your credit score. A foreclosure will lower your scores by around 250 points. After a foreclosure, you will have to wait for 3-4 years in order to get qualified for a mortgage.
Thanks
It is my experience that the real estate market is cyclical. Since the bottom of the market was in the last year or so, it won't be long before the real estate market gets back to its old value. I would stay in the house until its value returns. Also, if you live in an "anti-dificiency" state, the bank can come after you for the balance due after foreclosure.