Ninety days and seven years. Those are two of the biggest numbers to keep in the back of your mind when you find yourself facing foreclosure and trying to save your Iowa house. Ninety days – or three months – is the amount of time it takes the bank to initiate the foreclosure process if you’ve stopped making your mortgage payments. That’s not a lot of time. If you’re stretched thin financially, your inability to make these payments can snowball quickly. If you’ve missed even one month’s mortgage payment, you’re risking serious implications when it comes to your credit report and score. Great credit history is achieved through a long-term history of consistent payments, whether those payments are toward your credit card, your car loan, or your mortgage. If you miss a payment, your credit score will go down. If you start missing multiple mortgage payments, your score will go down exponentially and your financial life can spiral out of control.
Seven years signifies the amount of time a foreclosure stays on your credit history. Just three months of missed payments, therefore, can result in a seven-year penalty to your credit report. When you lose your house to foreclosure, you can also expect your credit score to plummet by at least 100 points. As you know, your credit score takes years to build up. Gaining back those 100 credit points isn’t going to happen overnight, and even then it wouldn’t erase the foreclosure from your credit history report. When you have bad credit, it makes it significantly more difficult to purchase a house or obtain a low interest rate. While it’s not impossible to buy another house after your previous home has been foreclosed on, it may also require you to make a large down payment. Simply put, your credit score and credit report will be greatly impacted if your Iowa home is subject to foreclosure, so what is the solution?
The overriding message here is that you should do everything within your power to avoid missing mortgage payments. Your home is likely your most valuable asset both financially and personally. When you make your mortgage payments, it’s good for your credit and ensures that foreclosure is out of the picture. If you do miss a payment, it is critical that you face the problem head on before hitting that ninety day mark that I mentioned earlier in this post. This is not a problem you want to let fester. If you’re missing payments on your mortgage, it also likely means that you have other debts that are weighing you down. When you find yourself in this sort of financial crisis, you may need to get help.
At Marks Law Firm, we help people from around Des Moines and throughout Iowa with their bankruptcy, debt, and foreclosure issues. Often, we help clients with all three of these things since they are so often intertwined. If you truly intend to keep your house and avoid foreclosure, you need to consult with us regarding your debt situation. If you have passed the three-month mark and the bank intends on foreclosing on your home, you need legal foreclosure defense that will act quickly and swiftly. While your credit score may not be the first thing on your mind during this crisis, it’s important to think in the short and long term when faced in a difficult situation. For someone who truly has your best interests in mind and can help you both now and in the future, contact Attorney Sam Marks of Marks Law Firm right now.