Foreclosure Prevention

Desperate times call for desperate measures and those fearful of loosing their homes to foreclosure are certainly feeling the breath of desperation being expelled from their lungs on a daily basis. If you are feeling the panic and want to contact a housing counselor to help you with foreclosure, there are some things to know about the process.

A housing counselor is a specialist who can advise clients on everything related the housing industry and how it would apply to you. If you have questions about buying a home, renting, default, foreclosure, credit issues or reverse mortgages a housing counselor is a viable source for gaining advice on knowledge regarding your particular situation.

If you are thinking that foreclosure may be in your future, the government has recently set up a HUD sponsored housing counselor program to provide you with advice on what steps to take to help prevent this from occurring. Their services are either low-cost or free, depending on your particular financial situation. The services of a housing counselor should be rendered when you are 30-60 days behind on your mortgage payments as then they have more tools to help negotiate a new deal for you with your lender.

A seasoned housing counselor knows the ins and outs of the housing industry and has the skills and connections necessary for helping you negotiate the scary terrain. Before contacting one make sure to organize all your paperwork, such as your last couple of mortgage statements, foreclosure documents and all communication from you lender regarding your loan situation. By providing them with all the proper documentation you can help them navigate a path for you more easily.

When working with a housing counselor to help avoid foreclosure, it is vital that you find one who works in the nonprofit sector. Unfortunately in these trying economic times, there are unscrupulous people willing too profit off of your misfortune. Research your housing counselor thoroughly and good luck!

If foreclosure has ever been a part of your experience then in addition to affecting your home, you may have wondered if it could affect your credit history the answer is yes. The information that can show up on one of the three credit bureau reports can vary, but its good to know that theres a strong chance that something regarding your situation can show up there depending on your stage in the process. Lets take a closer look at how this works.

Whats on Your Credit Report

As you can imagine, just about everything is now reported to the three credit bureaus, including charge cards, loans, judgments against you, IRS liens, bankruptcy filings, information reported by collection agencies (unpaid utilities, phone, and cable bills), company inquiries, and yes, foreclosure proceedings. But even before you reach this point, the late payments and default on your loan are likely to already be having a negative affect on your credit history and score.

How Bad is a Foreclosure on My Report?

Well, if you compare it to a bankruptcy, its not quite as bad, but close especially for future mortgage lenders. Theyd rather see a bankruptcy with no defaults on a home loan than a foreclosure that will leave them unsure of whether you can be trusted to pay a mortgage with them. And because it can be a part of your credit history for up to 7 years, it may take a long time to recover from this situation.

If you feel that youre in danger of foreclosure and how it affects your credit history is important to you then its a good idea to take as many steps as possible make sure you keep your home. There are federal programs available that may be able to help you if youve defaulted on your loan. Or you may be able to speak directly with your lender to work out new loan terms to help you get back on your feet.