7 Reasons to Avoid Foreclosure

1. Foreclosure Follows You
You will always to disclose that you have had a foreclosure on any mortgage application as well as many job applications. This can have an adverse affect on your future mortgage rates. This is a credit item that is asked about specifically in credit inquiries. There is no 7 year time limit on this item.

2. Credit Score Negative Impact
Your Credit Score will be lowered by 300+ points. Among with bankruptcy, a foreclosure is one of the most devastating credit issues you can have in realtion to future credit availability.

3. Possibility of Deficiency Judgment
Your lender can seek a deficiency judgment against you and collect any amount they do not recuperate at the bank sale.

4. Ineligibility for a Government-Insured Loan
You will be ineligible for a government insured loan for 5 to 7 years. Only 2 years in a short sale. A foreclosure is the one credit report item that is almostimpossble to have repaired.

5. Negative in Employment Credit Checks
Many employers run credit checks on prospective employees. Foreclosure is one of the top items that will put a potential new hire in jeopardy.

6. Potentially Damaging in Your Current Employment
Many current employers run credit checks. A foreclosure can put a current position in Jeopardy.

7. Negative on Security Clearances
Security clearances and government positions, inclduing but not limited to military and law enforcement, can be jeopardized by a foreclosure. Revocation of security clearance can result in job reassignment or loss.

Step 1. Gather information to prove your financial insolvency.