Foreclosure, how will it effect your credit?


Question:
I have a mortgage wich only my name is on the loan, but both my wife and i are on the title. If i decide to go forclosure, will my wife's credit be ruined as well as mine? Will it effect my credit cards, which are in current and i want to keep them? Any suggestion?

Answer:
It won't affect your wife if only your name is on the mortgage.
Yes, it will affect you for the next 7 to 12 years. I know I have been there. We were able to sell the house, but had to file bancruptcy after. It is a difficult thing to do, try selling your house on a short sale and at least there is no foreclosure and the mortgage company is happy. good luck it is very hard to make that decision. It may make your interest rates go sky high on your credit cards. call your card holders and ask them.
Foreclosure will affect you but not your wife for 10 years in CA, and cause your credit rating to drop way low, which in turn will catch your card issuers' attention and they could raise your rates. What kind of mortgage are you carrying? Are you behind now? Have you spoken with a lender about alternative financing programs? A good lender may be able to help you keep your home, otherwise if it's way past that, get with a Realtor quick, and do a short sale. This is almost like doing a loan application along with submitting a letter explaining to the lender why you are now unable to meet your payments. This is better than foreclosure because it pays off the lender to an extent, and in most cases gets you off the hook financially and saves your credit. Email me if you have further questions, and good luck.
Here is a good article about the effects of foreclosure to your life.
http://www.badcreditresources.com/articl...
I hope this will be helpful to you.
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