Comments on: Effect of Foreclosure, Short Sale, and Bankruptcy on Your Credit Score

By: Shakespear/shylock

Shakespear/shylock — Sun, 07 Feb 2010 17:36:10 +0000

Thank God we live in America not in DUBAI if you cannot pay your debt there is a reason ? you are not crook or cheater maybe because of lost of jobs lost of business income you want to be a good and moral and decent person to pay your debt but these BANKSTER had put so much FEAR in you .You think you will be destroyed it is not true Believe me they will not work with unless you play POCKER with them do not pay them… UNLESS they reduce the price of the house in TODAYS market They are BROKE they are being like SHAKESPEARS SHYLOCK I WILL TAKE A POUND OF FLASH FROM YOUR BODY i am glad they can not take your KIDS and WIFE. that will be a reveloution. DO NOT FEAR. FEAR IS EVIL. HOPE IS FOREVER ( 1058- 1120 GAZAALI FEAR & HOPE ) READ IT YOU WILL BE STRONG

By: ILLUSURY

ILLUSURY — Sun, 07 Feb 2010 17:15:27 +0000

First of all anyone knows WHY we have NEW YEAR and WHO created it ? SUPERRIOR HUMANS WHO HAD LOTS OF HUMAN SLAVES not one race all races White / Browns / Yellow / Blacks, because we are all equals we all have same machine FACE HEART AND BRAIN only the colors of skin is different. BANKSTER created the new year to count there stocks and money and celebrated how much they made that year they always made money no matter what were the conditions that iis why Christainity and Islam does not allow INTEREST ( greek philospor said
DEBT IS THE SLAVERY OF THE FREE PEOPLE ) CREDIT IS EVIL, MAGIC AND ILLUSION, FOOLS YOU WHAT YOU DONT HAVE AND TRICKS YOU GO HEAD BUY IT YOU CAN PAY IT LATER MY DEAR FRIENDS STOP THESE SCORE CARDS. THESE SCORING ORGANIZATIONS BELONGS TO SAME BANKS IN OLD DAYS THEY USED TO BUY HUMAN LITERALLY. IN NEW MODERN WORLD TODAY THEY ARE DOING THE SAMETHING BUT THEY ARE USING THE MAGIC/ILLUSION. YOU ARE ACTUALLY A SLAVE. EFFECT OF THIS IS DESTRUCTION, DIVORCE,CHILDREN WITHOUT TWO PARENTS, MAN BECOMES IMPOTENT ?? THIS IS FACT THINK FOR YOURSELF I WILL GUARANTEE YOU 200% WITH THIS MESS COUPLE DO NOT MAKE LOVE ONLY BEST ENTERTAIMENTS IN THIS WORLD FOR MALE AND FEMALE. STAY AWAY FROM THE DEVIL DO NOT WORRY ABOUT THE SCORE THOSE ARE THE ONLE NUMBERS GO TAKE CARE OF YOUR WIFE AND KIDS EAT WELL AND ENJOY THIS BEAUTIFUL PLANET THIS IS FOR EVERYONE NOT FOR THAT ONE EYED ANTI CHRIST WHO IS LOOKING AT US AT ALL THE TIME.

By: Patrick

Patrick — Mon, 18 Jan 2010 03:31:29 +0000

I am in the same situation. I can’t figure out what to do. I’m in a fixed interest rate on a 30 year loan, but it’s interest only for the first 10 years. I bought the house for $335K but now it’s only worth $175K. Basically I would be tied to this house for the rest of my life, which is not what I had planned on. Is it better to do a Chapter 13 to get rid of the second mortgage (78k) and keep the house hoping that some day it’s gain it’s value? or should I just try a short sale and buy back into the market in 2 years knowing that prices will be low for quite a while?

By: Josephine

Josephine — Tue, 05 Jan 2010 03:59:12 +0000

I tried short sale, the bank said it came too late.
to save the hourse from foreclosure, should I file
chapter 13? or is it better to let it foreclosure?
I need in put on this matter. thank you all.

By: Jim

Jim — Fri, 04 Dec 2009 15:44:02 +0000

The impact foreclosure has on your future ability to purchase real estate is the real monster. If you can swing it, short sale is the best option in my opinion – less of a credit score hit than a bankruptcy, and you can qualify for a home loan much, much more quickly

By: Ericka

Ericka — Tue, 01 Dec 2009 21:47:50 +0000

I just did a short sale. I paid $245,000 for the house and we sold it for $238,000. The second mortgage is coming after me for 49,221.00. I obviusly can’t afford to pay it. I have been told that the bank is going to sue me. What can I do?

By: laura

laura — Thu, 26 Nov 2009 02:41:32 +0000

Christina, I absolutely 100% agree.

By: Christina

Christina — Wed, 25 Nov 2009 18:07:24 +0000

If one pays cash rather than accruing debt, one is not controlled by a score and doesn’t need to worry about it.

The miniscule discount on insurance one receives for having a GOOD score vs. NO score (not talking about a low score here) is not worth having debt.

And the whole debate of employers checking credit is different than requiring high scores (and P.S. a “no” score passes high level security clearances).

By: Kevin@OutOfYourRut

Kevin@OutOfYourRut — Mon, 23 Nov 2009 15:28:03 +0000

Have to agree with Mitch (6) here. While I don’t agree that credit scores are worthless, I do think most people make more of them than they should, especially in this economy, as Mitch points out.

If it’s a choice between feeding your kids, paying your electric bill, or paying a credit card, the credit card has to lose. If you’ve lost your job and can’t pay your mortgage, foreclosure may be the only out, and the affect on your credit score should be the least of your concerns. If bankruptcy is the only way to get out from under, your credit score will have to wait until a time in the future when you can do something about it.

Life is more important than a score, even if tracking it makes for good entertainment.

By: Dan

Dan — Sun, 22 Nov 2009 11:10:09 +0000

Those are interesting figures. Im inclined to agree with Christina that foreclosures would have a larger negative impact overall than bankruptcy, especially when you consider the months running up to the foreclosure w/ missed/short mortgage payments.

By: Mitch

Mitch — Sun, 22 Nov 2009 07:25:25 +0000

Very good information here. It’s good to see the actual impact, although I’ve been writing for months that I think credit scores are pretty worthless in this economy, good or bad. The statistic that came out last week saying that less than 4% of people who have gone for modifications of their home loans have been permanently approved, no matter their credit score, pretty much points that out.

By: Valerie V.

Valerie V. — Sat, 21 Nov 2009 13:56:21 +0000

Good information. A short sale vs. foreclosure involves more than just the credit score. According to today’s guidelines, one can purchase a home within 2 years of a short sale. After a foreclosure, however, a new home cannot be purchased in less than 7 years. It’s important to understand the differences and do a short sale if at all possible. Some lenders report lates on the mortgage and not the “short sale” which means a consumer could purchase a new home in 12 months or less. It’s worth it to consult with and use the services of a short sale expert who is experienced in negotiating short sale settlements with all the major banks. After all, the bank pays all the costs in a short sale.

By: laura

laura — Sat, 21 Nov 2009 03:55:41 +0000

I have a foreclosure on my credit from Jan 2007 and my FICO score is 690 to 720 depending on the company. Those scores above must not last very long.

By: nickel

nickel — Sat, 21 Nov 2009 00:56:50 +0000

Ron: Good question, and I have no idea as to the answer. It could be cost, it could be better perceived accuracy, or who knows what else.

By: Christina

Christina — Sat, 21 Nov 2009 00:19:04 +0000

While foreclosures wreck less havoc on the score than a bankruptcy (according to your post above) . . . going through a foreclosure has a much larger negative affect on your credit for future home ownership than a bankruptcy does.

One can purchase a home as soon as 30 days after a bankruptcy. After a foreclosure? It’s a minimum of 4 years and lately, I’m seeing underwriting push it to 5 and 6 years, regardless of how great your credit may be otherwise . . .

By: Ron

Ron — Fri, 20 Nov 2009 22:29:23 +0000

Why do you think those large mortgage lenders are switching over to Vantage? Does FICO information cost them more?