Learn more about Idaho Short Sale and Foreclosure processes and how they effect you.
What is a Foreclosure?
Foreclosure is a legal process in which a bank or other creditor repossesses a home (or other real property) after the owner has failed to make their payments.
How long can I stay in my house?
This depends on where you are in the process. These days, a foreclosure can take at least 120 days from the time the sale date is scheduled. If you are involved in a bankruptcy or the trustee delays the closing, it can take much longer.
What will a foreclosure do to my credit?
A foreclosure reports as a derogatory payment and will remain on your credit report for 7 years from date of completion. Expect your credit score to drop anywhere from 50-250 points, depending on how high of a score you had to begin with. Unfortunately, those with higher credit scores will have farther to drop than those with an already low score.
Can I ever buy a home again if I do go through foreclosure?
Yes. Based on current FHA guidelines you must wait 3 years from the time the house is sold (or title is transferred to a new owner) to purchase a new home. Conventional lending guidelines require a 5 year wait. You must also have re-established credit during this time period and standard qualifying guidelines will apply. It is important to stay current on these guidelines because they can change.
What is a short sale?
In a short sale, the bank or mortgage lender agrees to accept less money than what is owed to them thus creating a short (the difference between what is owed and what they receive). A real estate agent experienced with shortsales can be your best ally in this situation. He or she will negotiate with your lender to accept less than what is owed on the property. Be aware however, that the lender has the right to approve or disapprove a proposed sale.
Can the owner sell the property while it's in foreclosure?
Will bankruptcy stop a foreclosure?
Bankrupcy will generally delay the foreclosure process, however it does not prevent a foreclosure. During this delay period, interest and attorney fees are still added to the total due. Filing for bankruptcy puts an automatic "stay" on the property. In order to continue with the foreclosure process, an attorney must go before the judge and ask that the property be released from the "stay". It can take anywhere from 1 month to 1 year to release the "stay" by a judge. Carefully weigh all of your options and consult an experienced attorney when considering banruptcy. Also, keep in mind that most mortgages won't consider a short sale if the homeowner is in bankruptcy because it is considered a collection activity and collection activities are prohibited in a bankruptcy.
Why are people contacting me?
After missing several payments your lender will file a legal document called a Notice of Default. This record becomes a matter of public record and can be obtained from various places.
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The Filbert Real Estate Group