More and More people are finding themselves faced with the decision to foreclose on their Temecula homes. Making the decision to foreclose on your home is never an easy thing to do. Usually a homeowner has found themselves in a financial position where they can no longer afford to keep their home.
So what exactly does Foreclosure mean? The dictionary states that it is the process of taking possession of a mortgaged property as a result of someone’s failure to keep up mortgage payments. Is this the right avenue for you to pursue? As with anything, it depends.
The process of foreclosure can critically affect your credit score. The time frame involved in foreclosure can usually be upwards of a year, sometimes two as the creditor takes the legal steps. Since you have stopped making your mortgage payment, your credit score will be tagged as 30, 60, 90, 120 days late and so on. So the real question is, Is this the best solution or are there other alternatives to foreclosure?
One alternative might be The Home Affordable Refinance Program (HARP) which allows homeowners to refinance into low mortgage interest rates even if the property has decreased in value. In some cases, it lowers the payment enough to make the monthly out go more affordable. Speaking to a qualified Loan Specialist would be a great place to start. If this doesn’t make the payment affordable enough you may want to consider a short sale.
So what is the advantage to a short sale versus foreclosure? Most times the process is much quicker and thus does not have as much of an impact to your credit. Since the impact on your credit should be less, you may qualify to purchase another house sooner.
If you are tired of being stressed out and want some answers to your questions, contact me. Why have another sleepless night? Want to know your options? Visit www.TemeculaShortSale411.com, call me, send me an email or fill out the form below. I want to help!
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