Jump to Navigation

Can you protect your credit during a foreclosure?

If you are one of the many residents of Washington, D.C. who are facing a foreclosure, you probably have many worries on your mind. Your credit rating is likely to be one of them. Will losing your home affect your credit?

There are numerous reasons many Americans lose their homes, states Bankrate. The most common include job loss or a high mortgage reset rate that can keep homeowners from being able to afford their payments. For whatever reason, a foreclosure will hit your credit report for seven years and can cause your score to drop at least 100 points. Are there any ways you may be able to keep a foreclosure from impacting your credit score?

You may decide to short sell your home. This option allows you to sell your home for less than what you owe on it, while the bank forgives the rest. If the lender agrees to tell the credit reporting agencies that the mortgage has been paid satisfactorily, it should not affect your rating.

It may be worth it to contact your lender to negotiate a rate you can afford or come to other terms that may allow you to stop foreclosure. Credit counseling services may also help. However, it is important to remember that some companies offer false promises or charge high rates for services you may have free access to. It is common for unscrupulous companies to take advantage of people desperate to avoid foreclosure.

The threat of losing your home can be stressful and frightening, but there are reputable services, including some types of bankruptcy, that may help. This information is intended to discuss certain points regarding foreclosure and your credit rating, but should not serve as legal advice.

No Comments

Leave a comment
Comment Information
Start Right Now

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Visit Our Bankruptcy Law Website Subscribe to This Blog's Feed
Office Locations

1115 Massachusetts Ave NW,
Washington, DC 20005
Phone: 202-559-1428

10512 Pohick Court,
Fairfax Station, VA 22039
Phone: 703-550-7030

6926 Seven Locks Road,
Cabin John, MD 20818
Phone: 301-890-4500

Toll-Free: 877-441-4076
Fax: 202-638-5858

Twitter link