What are the credit implications of foreclosure and for how long?
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Answer:
Please contact your lender to discuss this issue. Do it before your property forecloses. If you don't already belong, join a credit union, their home loan dept. may have some innovative ideas. Whatever the case, please contact your lender ASAP. There are all kinds of creative refinancing ideas out there. Explore all of your options. Besides talking to your lender, check around.
Read this article:
The Impact of Short Sales / Foreclosures on Credit Reports
Sellers may wonder whether a letting a property go into foreclosure would be easier and smarter than going through a short sale. With a foreclosure, and depending on state laws regarding foreclosure, a seller could stay in the property, essentially rent free, for four months to a year before being forced to evacuate. But that fact alone does not mean a foreclosure is better.
Whereas a short sale involves offering the home for sale, generally listed through MLS. Potential home buyers will make appointments to view the home, some will make lowball offers, agents might hold open houses and, in general, a seller's life will be disrupted, all in the hopes that a buyer will buy the home.
Basics of a Short Sale
Short sales happen when a lender agrees to accept less than the amount owed against the home because there is not enough equity to sell and pay all costs of sale.
Continued at http://homebuying.about.com/od/4closures...
Foreclosure has a major negative impact on your credit history that will impact you for 10 years or more and imapir your ability to obtain other financing including mortgage financing for a number of years.
Call your lender and ask them about a "short sale". They may forgive the balance after the sale in order to avoid the time and expense of a foreclosure.
the best website:
http://www.foreclosureinfousa.net...
The problem is that 64k amount of negative equity you still owe even after being sold. I would contact the bank to see what can be done. Leasing the house to someone may be an option but you would have to be able to get the monthly note you now owe. Worse case scenario is you lose this house 7 to 10 years this will haunt your credit. Getting another house or an apartment is very difficult after a foreclosure. Try to work something out before that happens. But do not stop corresponding with the mortgage company. You will fair better when you keep the lines of communication open with them, or so I I've been told.
Speak with your mortgage company they may let you pay interest only for 6 months or so to see if your situation improves. Worth a shot
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