This not the picture you want of your door. If you are in the midst of a separation or divorce, and money worries are among the top reasons marriages fail – the last thing you want to see on your door is this.
Because this is what foreclosure looks like.
There are somethings you can do, as you argue your way towards selling the house:
- TALK to your LENDER. Ask for time to make up the payments, or ask for the payments to be forgiven (which means they will add it to the end of the note).
- Change the terms of your loan – some lenders are willing to do this!
- Some Government loans allow for an additional and separate loan.
Want To Qualify For a Mortgage After A Divorce: Credit Issues To Watch For
The problem is when folks do NOT talk to the mortgage company… and this could be difficult if you are in a divorce… because you might, or might NOT be on the note! If you are going through a separation or divorce, make certain you have the account number and contact information for the mortgage lender. Contact them and be certain that taxes and insurance are up to date and current. Don’t let your good credit be destroyed because someone else is not willing to pick up the phone and face the problem.
A foreclosure will drop your credit score by 200 to 300 points. So if you have a 620 score, and that property goes into foreclosure, you are looking at a 320 score.
Once a Notice of Default is filed – your options are pretty much gone. Do not sit on an overpriced house and let it go into foreclosure. It is much better to get no cash in the sale of a property than to face foreclosure and 320 credit score!
Single Parent have some options too– so don’t get depressed about all of this – TALK to people and find out what YOUR options are!