Foreclosure!

[#1investor_cream 5]

Whats up everybody,

My father and I have a friend that got behind on his mortgage payments for about four months. He was placed in foreclosure, but the mortgage company wants to work something out with him so he can catch up. But based on his present situation I truly feel that he is not going to get out of this problem. I believe that sooner or later he is going to have to sell his home. If he were to pay the mortgage company what he owes plus whatever the balance of his mortgage is before they take him to court or his property is sold at auction, would his credit report still show a Foreclosure?? If yes... WHY?

If the mortgage company collected their money why would a foreclosure still be on his CREDIT REPORT??

Thanks For READING.

STAY POSITIVE

C.R.E.A.M

[MichaelC 160]

Erik, if the homeowner is behind on payments at this point, his credit report would reflect just that: late payments. His credit report would not/should not reflect a foreclosure because one has not taken place. So if the property is sold, and the existing liens are covered in full, his credit report will reflect that.

[transactionsengineer 0]

Erik, if the homeowner is behind on payments at this point, his credit report would reflect just that:  late payments.  His credit report would not/should not reflect a foreclosure because one has not taken place.  So if the property is sold, and the existing liens are covered in full, his credit report will reflect that.

<{POST_SNAPBACK}>

 

MichaelC is correct. It would not appear as a foreclosure on the credit report. It can say that the loan is pending foreclosure. I've seen that listed on credit reports but that is easily removed once the entire loan is paid off. A simple verification request made to each of the credit bureaus will remove the entry.

 

Keep in mind that the entire amount is the back payments, the reinstatement costs, and the remaining balance of the mortgage note. Most people cannot pay that much in one shot. Your friend is fortunate to be able to repay the loan in its entirety.

 

 

Daniel

[Adam King (MI) 1]

I agree with Daniel and MC but also keep this in mind. If he's got 3 or more late mortgage payments on his credit he isn't going to be getting another loan anytime soon. That's almost as bad as a foreclosure to the banks.

Just my two cents,

Adam

[jtlab 0]

Whats up everybody,

My father and I have a friend that got behind on his mortgage payments for about four months. He was placed in foreclosure, but the mortgage company wants to work something out with him so he can catch up.  But based on his present situation I truly feel that he is not going to get out of this problem. I believe that sooner or later he is going to have to sell his home.  If he were to pay the mortgage company what he owes plus whatever the balance of his mortgage is before they take him to court or his property is sold at auction, would his credit report still show a Foreclosure??  If yes...  WHY?

If the mortgage company collected their money why would a foreclosure still be on his CREDIT REPORT??

Thanks For READING.

STAY POSITIVE

C.R.E.A.M

<{POST_SNAPBACK}>

 

Coincidence you mention this, I was just researching this topic. How is your friend paying off this morgage? out his pocket or refi? He should look into negotiating new terms for his current morgage. The lender wants to avoid forclosure just as much as he does, work with them to get lower interest rate, extend the amortization period, and put a few payments on the backend. In the end his goal should be to either get the payments low enough to a number he can afford and/or buy some time to sell his property. This is referred to as loan modification.

 

http://realtytimes.com/rtcpages/19990518_l...odification.htm