Foreclosures Present Problems and Opportunities
The number of foreclosures in the United States has swelled by 2,500 percent over the past four years. While this isn’t exactly good news, people looking to buy a home may have found a silver lining. The rates on loans are at an all-time low, making it easier than ever for house hunters to cash in on foreclosed homes.
“A combination of an enormous inventory of distressed properties and an unprecedented interest by home buyers to buy these properties boosted sales,” RealityTrac senior vice president Rick Sharga told iNewsConnect.
As soon as homeowners miss a 30-day payment, lenders report it to a credit bureau and inflict damage on the borrower’s credit score. After payments are more than 90 days late, the lender files a “notice of default” and can rightfully begin the foreclosure process.
With mortgage refinance rates at a historical low, homeowners are encouraged to explore the option while it lasts. Homeowners who wait until a notice of default is sent will face much more difficulty if they try to refinance. Foreclosure can be temporarily halted by filing for bankruptcy, and borrowers may be allowed to keep their original loan by making all late payments along with any assessed late fees.
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Date: July 19, 2010
Categories: Credit Score