Does Foreclosure Hurt Your Credit?
It is not hard for a homeowner to find themselves at risk of going through foreclosure if they have recently struggled to make payments. While Fox Business informs us that a refinance is a great way to make a mortgage more manageable, this is not always a viable option for the home owner. When a bank or lender repossess a property and sells it to a new buyer this is foreclosure. Because of missed payments, a homeowner loses all of their equity and interest in a property. So how does this affect a borrower’s credit?
Will a Foreclosure Affect Your Credit Score?
The simple answer is yes, a foreclosure will damage your credit score. The impact of foreclosure on a home owner’s credit score is negative and long lasting. It is common for a foreclosure to stay on a homeowner’s credit score for 7 years, often longer. In most cases the foreclosure will fall off a credit report after 7 years but it can often take up to 10 years and if this happens, a borrower is able to dispute the error on the credit report. Of course the best thing one can do is avoid foreclosure all together, here are a few ways to do just that:.
How to Stop Foreclosure by Avoiding the Foreclosure Process Altogether
There are ways to prevent even being in the situation facing foreclosure and ways to stop foreclosure on your home if you are unable to prevent it from getting to that point.
- Lender contact is of the utmost importance so reach out to your lender ASAP. If you have missed a payment, immediately contact your lender. There is a good chance your lender is motivated to avoid the foreclosure process and will be more than willing to discuss possible ways to avoid foreclosure. A homeowner unable to pay their mortgage has plenty of options if they have fallen on hard times.
- Take advantage of the free resources available to you and reach out to a HUD-approved housing counselorfor a free consult. They want to help homeowners understand their options and get a better grip on their finances. These services through the U.S Department of Housing and Urban Development are free and there to use so you will want to call asap if you need help
- If you want to sell your home fast, then there is a more efficient option — sell it for cash to a home investor. Accepting a cash offer provides you with a number of benefits over a traditional sale, including a faster sale and reduced costs. If you are unsure whether to accept a cash offer or not, consider the advantages compiled here by We Buy Waco Houses
Avoid Foreclosure and Sell Your Home to We Buy Waco Houses
You can get professional help in a variety of ways when selling a home for cash in Waco, Texas. You can find a reputable broker to represent your interests and put the house on the market, handle showings, contract negotiations and more. This is a months long process. However there is an easier way, there are buyers who want to buy your home right now. They pay cash and close quickly. We Buy Waco Houses is one of those investors. We help homeowners through the process of selling their homes every day and we are happy to do the same for you. Just fill out our online form and we will be in touch. That is the easiest way to sell your Waco house quickly.
Call us Today if you have more questions 254-331-1316