Foreclosure - Know Your Options (part 6)

Foreclosure:  The legal process by which your lender obtains a termination of your ownership rights to a specific piece of real estate 

vAllowing the lender to foreclose is another option.  The counselors at the Arizona Foreclosure Help Line can explain the foreclosure process, call: 1-877-448-1211

Ultimately, only you and your attorney can determine if a foreclosure is the best option for you.  Attorneys who are State Bar certified specialists can be located at :  www.azbar.org/legalresources/findspecialist.cfm

vHow Does A Foreclosure Affect My Credit? 

§A Foreclosure Will Remain On Your Credit Report For 7 Years:

•Credit Scores typically drop 50-250 points

•If a tax lien is filed your credit score may drop an additional  100 points

vWaiting Period to Buy A New Home:

Fannie Mae & Freddie Mac guidelines state that the waiting period before you can buy another home is 5 years from the date the foreclosure is completed.  Some additional requirements after 5 years and up to 7 years from the completion date may apply including down payment requirements of 10% and

 credit scores of 680 or more.  Purchase of 2nd home or investment property not permitted.  If approved extenuating circumstances, such as loss of employment

, that caused the foreclosure shorten the waiting period to just 3 years.

Susan

"...all you need to know about Realt Estate"