Short answer, 7 years. When your home goes up on the foreclosure list, the lender then sends your information to the credit bureau to report you on your non payments. Your credit report will show details of your failure to pay your mortgage to the lender. It will read that you were late in making your mortgage payments, and it will also highlight every time you were negligent in paying your mortgage for whatever months you did not pay.

A report ordered by a lender, a school, or a job from a credit reporting bureau will disclose your payment history or existing credit accounts. The credit report that was ordered will be used to help evaluate their risk in helping you. The fact that your credit is now in bad standing will effect your chances in receiving another loan. You’re now considered high risk, and many institutions that are required to evaluate your credit history will not take a risk with someone who has had their home foreclosed on.

Your foreclosed home will show up on your credit report history, and that history will be on your credit report for seven years. However, homes that were foreclosed some years ago will not have much effect on your credit score as a new home that has been recently foreclosed on. It is imperative to know that a home that has been foreclosed will show up on all three credit reporting agencies, which are Equifax, Transunion, and Experian. There is typically no going around the seven years hit on your credit.

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If you are experiencing financial problems, you may be wondering if personal bankruptcy is the right solution for you.  When considering personal bankruptcy, you should always remember that personal bankruptcy is an extreme measure, and it will profoundly negatively affect your credit rating – at least in the short term.  With that in mind, I would recommend personal bankruptcy only if you meet one or more of the following criteria:

1.    You owe more than $15,000 in unsecured debt.

This number is somewhat arbitrary, but it is intended to balance the benefits of a personal bankruptcy against the costs.  For one thing, personal bankruptcy is expensive.  If you file a Chapter 7, you can expect to pay about $2,000 in legal, filing, and other fees.  A Chapter 13 will cost more.  You also have to consider that a personal bankruptcy will stay on your credit report for 7-10 years depending on the type of case you file.  You really should not consider taking this step unless you are going to discharge a large amount of debt.

2.    You have made a genuine attempt to reduce your debt and have failed.

This is important.  If you can pay your outstanding debt by simply reducing your spending or perhaps liquidating some unused property, you should probably do this instead of filing for personal bankruptcy.  Before you consider a personal bankruptcy filing, you should prepare a detailed debt management plan.  This will allow you to determine whether personal bankruptcy is necessary or not.

3.      Your debt is increasing despite your efforts to reduce it.

Frequently, people find themselves making minimum payments on credit accounts but then having to use credit to pay for unexpected and incidental expenses, like new brakes for the car or that anniversary dinner.  If you are in this category, you may notice that your debt continues to increase.  It does not take much imagination to know where such a trend will end.  You can not keep it up.

4.    You are liquidating your retirement savings to make ends meet.

If this is your situation, you need to stop immediately.  Your retirement savings are protected in bankruptcy.  If you are spending this money to meet your regular expenses, you are not improving your finances.  You are merely delaying bankruptcy.  Under those circumstances, it is better to file now and preserve your retirement money than to spend it all and then end up filing for bankruptcy anyway.

5.    You are in danger of losing your home.

If you are a homeowner, and you are facing foreclosure, bankruptcy can help you keep your home.  As soon as you file for bankruptcy protection, an automatic stay attaches to any legal proceedings currently pending against you.  That means you will have stopped the foreclosure process.  This may give you the breathing room you need to get your finances together, make a deal with the bank, and save your home.

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Are you looking to buy a foreclosed home? If you are, buying a foreclosed home can be an intimidating process.  So, before you jump on the bandwagon, it’s very important to learn the different risks of buying at each stage of the foreclosure process.  Here are some tips to help you avoid the pitfalls of buying a foreclosed home and ensure your property is the right one for you.

Decide Your Exit Strategy – Are you an investor looking for Cash Flow? Or Are You Buying a Property to Live in?

While the plan of buying property on the cheap is appealing, you need to clearly understand your role and why you are interested in the property.  If you have decided to buy property as an investment, do your research on the rental values in the area.  This step can help you make a lot more money by increasing your cash flow and ultimately your bottom line.  However, if you are buying the property to live in, focus on the negotiating the right price for the property to make sure it fits into your budget with a mortgage you can afford.

Do Your Due Diligence

Before you buy a foreclosed home, you also need to research the property’s location and market value.  If a home is being sold by the bank, it doesn’t mean it’s a bargain. To ensure that you aren’t assuming an overpriced loan, conduct research of comparable home values in the area. This step alone can help you identify potential deals that you may have overlooked prior to your research.  It is also very important to consider whether the property is near schools, the police station, supermarkets and other amenities.  One thing to remember…never buy a foreclosure because it’s a “bargain”. Make sure the property is a good value for you.

Always Get an Inspection

Often times, properties have been left vacant or damaged during the foreclosure process.  It is important to understand that in some cases damage can work to your advantage in getting the best deal.  On the other hand, major repairs can end up costing you a fortune to bring the property to a rentable or sellable status.  So, it’s important to have a professional help you assess the condition of the house.  An inspection by a licensed professional is critical to determine whether the property is structurally sound and to alert you of any other problems. 

Avoid Foreclosure Auctions

Auctions can be a viable option for some but can also be a nightmare for a buyer if they are unaware of the possible pitfalls.  Foreclosure properties sold during an auction are often times in “as is” condition.  That means the buyer is responsible for any costs or repairs tied to that property.  Back taxes, liens, title issues are all the responsibility of the new owner in an auction.  If you are not a seasoned auction buyer, it may be wise to seek other options.

For more information please visit: http://www.floridalawattorney.com