How Bad Will Foreclosure Affect Future Home

As far as future home purchases foreclosure will affect your ability to buy a home for up to seven years. Mortgage lenders will especially be leery of a client with a previous foreclosure on their record. Once the seven year time period has elapsed there will be no record of the foreclosure.

Some mortgage companies, however, will lend to you after about five years of a clean credit history following the foreclosure. In this case you would have to prove a very stable work history, provide legitimate reasoning for the previous foreclosing, and have a stable credit history since the incident. If a loan is granted at that point, you can expect the interest rate to be very high; however you will have a chance to refinance your loan once the foreclosure falls off your record.

There are some immediate affects to consider when facing a foreclosure. Your credit score will be adversely affect immediately after your first missed payment. If the house that is being foreclosed is your primary residence you will need to find a place to rent to you once the foreclosure process has commenced. This may prove difficult as most landlords rely on credit reports to determine the reliability of their tenants.

The best course of action is to make sure you are current on everything except the mortgage payments. You can then explain to the landlord that your mortgage payments were way more significant than the rent you will be paying them. Seeing that you are responsible with all of your other debts may persuade them to give you chance. You may be turned down by several landlords so make sure you give yourself enough time to make other living arrangements.

By the way, by researching and comparing the best stop foreclosures services in the market, you will be able to determine the one that meet your specific financial situation, plus the cheaper and quicker options. However, it is advisable going with a trusted and reputable stop foreclosure specialist before making any decision, this way you will save time through specialized advise coming from a seasoned foreclosing advisor and money by getting better results in a shorter span of time. Meaning getting your house out of risk as soon as possible.

Hector Milla runs the Stop Foreclosure Loans website, where you can get immediate assistance from professionals serving your state. We have done all the hard work for you and selected the best 3 rated stop foreclosure services.