A foreclosure occurs when a bank repossesses a house, usually when the person who bought the house has not made mortgage loan payments over several months. The home owner must vacate the home and the bank sells it in a foreclosure. A foreclosure looks bad on a credit report and will make it more difficult for the person who lost the home to buy another one. Foreclosure is the legal action taken to extinguish a home owner’s right and interest in a property, so that the property can be sold in a foreclosure sale to satisfy a debt.
Deed in Lieu of Foreclosure Affects Credit Score
A landlord wants to sell her investment property and has trouble. While the property is rented, the rent does not cover the mortgage. The landlord wants to know the effect of using a deed in lieu of foreclosure on her credit score. She called the credit bureaus but could not get a direct answer. Ilyce says that the effect of a deed in lieu of foreclosure on a credit score depends on the individual because each person has different credit factors.
Title Search May Delay Deed In Lieu Of Foreclosure
Can a lender foreclose on a home before a deed in lieu of foreclosure can be finalized? A title search can delay a deed in lieu of foreclosure process. In addition, whatever the title company finds during the title search can affect the deed in lieu of foreclosure. How does having a name on a title but not a mortgage loan affect a title search? Another reason a deed in lieu of foreclosure may be delayed is that lenders are swamped with similar situations.
When Deed In Lieu of Foreclosure Is Good Option
If you know for sure you have to give up your home but you don't want to go through a lengthy foreclosure process, sign a deed in lieu of foreclosure. A deed in lieu of foreclosure transfers ownership of your house to the bank and allows you to move on without a foreclosure on your credit history. Learn who may be the best candidate for a deed in lieu of foreclosure and how it's usually used for investment properties.
Renting Out Property Subject To Foreclosure
Is it legal for a rental property owner to rent a property that may be subject to foreclosure? A tenant should be given notice that the rental property is the potential subject of a foreclosure lawsuit. The landlord should also be using the income from the rental property to pay his mortgage lender and keep the property from becoming subject to a foreclosure lawsuit.
How To Buy A Foreclosure
Foreclosure expert Ralph Roberts provides tips on how to buy a foreclosure in Ilyce's column. Becoming familiar with real estate documents is essential to know how to buy a foreclosure.
Foreclosures On Rise And Mortgage Lenders’ Solution
In early 2008 foreclosures were increasing which furthered the housing market slowdown, but what are solutions that mortgage lenders are coming up with? Foreclosures are forcing private mortgage lenders to pay out millions of dollars. Mortgage lenders are trying to help homeowners who are currently or about to face foreclosure.
Refinance Mortgage For Right Reasons Like Preventing Foreclosure
You may be wondering whether to refinance your mortgage now. Make sure to refinance your mortgage for the right reasons. Lowering taxes may not be a good reason to refinance. Preventing foreclosure may be worthwhile.
Talk To Mortgage Lender To Prevent Foreclosure
To prevent foreclosure you should pay your mortgage on time and in full every month. Preventing foreclosure should be a high priority because losing your home hurts your credit. There are steps you can follow to prevent foreclosure.
Foreclosure Last Option: Call Your Mortgage Lender If You Miss Payment
Many homeowners who struggle to make payments don't realize by calling their mortgage lender they may be able to avoid the foreclosure process. Contact HUD or your lender to learn about the foreclosure process and what you can do to avoid foreclosure if you can't make the payments. You may be able to avert the foreclosure process altogether if you speak with your mortgage lender and explain why you missed your mortgage payment.
Stopping Foreclosure
If you're having trouble making your mortgage payment you probably want to do whatever you can to stop foreclosure. Stopping foreclosure is possible if you take the right steps. The simplest ways to stop foreclosure is to reduce expenses and save money.