To date, there has been a total of 1,917,514 foreclosures nationwide. These numbers are frightening when you think about the number of families that have been displaced because of losing their homes. As a real estate broker and certified housing counselor, I have counseled many people during their time of financial strain. Families are hopeless and scared and often times lack a clear understanding of what they must do in order to “Keep Foreclosure off their credit report” in addition to saving their homes. People from all social back grounds are dealing with the issue of foreclosure mainly because of situations that are out of their control and the astronomical number of adjustable mortgages that increased. So you ask the question, “How can I keep foreclosure off my credit report” and maintain my credit score? Below are a few things you may want to consider in order to Keep Foreclosure Off
-Short Sale – A sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the current debtor. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrower.
-Loan Modification – An agreement between the lender and a delinquent borrower that changes the terms of the loan without refinancing the loan. This could mean that your mortgage payment are lowered.
-Deed in Lieu of Foreclosure – An agreement where a delinquent borrower gives the lender the deed and the keys and moves out of the property in exchange for forgiveness of the loan.
-Special Forbearance – A written agreement between the lender and the borrower which contains a plan to reinstate the loan that has been delinquent for more than 90 days. In this case, lenders will sometimes suspend mortgage payments to allow the borrower to recover from the cause of the default.