How badly will foreclosure on my new home ruin my life?


Question:
recently bought a home with a relative, not to long ago he got fired and i have been making the payments now for 3months,he can't find a job and am tired, i asked him to move out.now am stuck, don't know what to do, my income isn't enough to facilitate my needs and the mortgage and am thinking of turning the home to the bank.
how will this affect me?

Answer:
Foreclosure will mess your credit up for a long time. Have you considered trying sell or refinance the house. You could possibly consolidate some of your other bills and get rid of some of your other monthly payments. You can refi as soon as 5 or 6 months after you buy a house.

Another suggestion would be to get a roommate or if you're not up for that, you could lease the house out and the rent would cover all or most of your house payment. There are many other options besides foreclosure. You don't want to mess your credit up like that, if you don't have to. Good luck.
A bankruptcy will stay on your financial records for ten years. When you do apply for credit or credit cards, you'll be charged a higher interest rate.

Get a room mate or two and put up with them till you can sell the house. Maybe you can sell to the roommates, if they live there long enough.

Try not to let your credit be ruined. Some employers do financial background checks and if they see a bankruptcy or a foreclosure, it could hurt you in getting a better job.
Not good. A foreclosure on your record follows you forever, and doesn't always get expunged after the ten year mark the other poster mentioned. And anyway, ten years is a long time. You cannot just turn the home over to the bank and expect all to be forgotten. They will file as a foreclosure, you will be expected to pay all real estate taxes (unless you declare bankruptcy). This situation is why it is NOT a good idea to buy property with anyone to whom you are not married.
Just don't pull that triger
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