What are the ramifications of having a foreclosure?
Question:
Answer:
Duh-duh-duh
Well, you lose the chance to sell your home and get money out of it. You also runion your credit and may not qualify for another home loan. You also are told to vacate your house when the sheriff comes to auction of your house.
You can barrow money from your 401k or you can contact your mortage company to see what they can do to help. They have several options if you have been unemployed. you can also try to refinance.
Good luck.
Really, the biggest ramification is the impact it will have on your credit score. You can expect your credit to take a big hit which will make it much more difficult to obtain financing or credit cards in the future. If your house does go into foreclosure it isn't the end of the world (don't get me wrong - it's definitely bad), but it will take a few years to get your credit built back up. If you go to get a mortgage, most lenders will want a year to have gone by after the foreclosure before you can get approved, and at that point you'll likely need betwen 20% -30% down and you'll have a very high interest rate. Lenders like to see a 3 year history without foreclosure and responsible bill payment in order to get qualified on loans with little or no money down with better interest rates.
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