Maybe Foreclosure ISN'T Right For You!

A very interesting article hit my desk today from the Florida Association of Realtors. It concentrates on the impact on your credit and other risks of allowing the bank to foreclose on property you own that you cannot make payments on. It points out that a foreclosure can drive a person with a mid 700's credit score all the way into the 400's! And may in fact keep you from getting another loan, period. Worse than that - in some states banks have been "coming after" your personal assets after the foreclosure comes up short - even some folk's personal residence. While neither scenario is palatable, folks facing foreclosure might be FAR better served by approaching the lender MUCH earlier in the process and working with a savvy realtor to work out a short sale with the lender. See the earlier entry on Short Sale 101, but be sure to read the article linked below. - Mike W

FORECLOSURES

A growing number of investors are making the drastic decision to walk away from their properties and ultimately send it into foreclosure. But financial advisors say that walking away from a mortgage is almost always a bad idea: You may lose your ability to take out future loans, and the lender could come after your personal assets, depending on state laws and the terms of your loan.

Read the full story:

http://www.floridarealtors.org/NewsAndEvents/n5-102207.cfm