It may not be a surprise how many times owners faced with potential foreclosure do not realize or understand that a ‘Short Sale’ is a possible alternative. Here’s some guidelines:
- The client will always have to disclose that they have had a foreclosure on any mortgage application, and many job applications they submit in the future and this can have an adverse affect on your future mortgage rates.
- Credit scores will be lowered by 300+ points and a foreclosure is the most devasting credit issue you can have in relation to future credit availability.
- A foreclosure is the one credit report item that is almost impossible to have “repaired”.
- Your lender can seek a deficiency judgmet (depending on the state) against you and collect for any amount they do not recuperate at a bank sale.
- Many employers run credit checks on progressive employees and foreclosure isone of the top items that will put a potential new hire in jeopardy.
- Many employers run credit checks and a foreclosure cna put a current position in jeopardy.
- Security clearances and government positions including but not limited to military and law enforcement can be jeopardized by a foreclosure.
