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My husband and I are facing a foreclosure on our rental property and we’re considering walking away from our primary residence, a condo, also. Would two foreclosures be just as bad as one?
My husband and I are facing a foreclosure on our rental property and we’re considering walking away from our primary residence, a condo, also. Would two foreclosures be just as bad as one?
As an added bit of info- we already pursued a short sale with the lender for our rental and they let 6 months pass and 5 buyers walk.
Our primary residence, the condo, has been up for sale for 6 months and we’ve had 2 offers that were too low for us to afford (we would have been owing money). We can’t rent the condo and break even on our mortgage and there are 10 others just
like it for sale with the owners having lots of equity to negotiate with (we used ours to buy the rental).
While we understand that the foreclosure means that we will be renting for a very long time, we’re wondering if we should just move before the condo’s interest rate goes up and we are paying WAY too much for a one bedroom condo just for the sake of avoiding another foreclosure.
Tags: Bedroom Condo, Foreclosures, Owing Money, Sake
Tags: Bedroom Condo, Foreclosures, Owing Money, Sake
June 13th, 2007 at 11:01 am
It’s going to ruin your credit for a while no matter if it’s one or 101. Bottom line is you can’t afford your current situation. Why worry about what you can’t control? Should you stay in your condo and live to pay a mortgage? Hell no! The credit ramifications are not something you can control at this point. So what!
You may not be able to purchase a home for a few years, but at least you will be able to breath. You are more than a number on a credit report.
June 13th, 2007 at 4:02 pm
I’d say that two foreclosures would be three times worse than one. You won’t be able to get another home loan for a very, very long time.
June 15th, 2007 at 10:07 pm
doesnt’ matter really. i’d try really hard to sell the house and the condo before walking away from them. i wouldn’t expect to make a profit in today’s market…maybe you could get the lender to approve a short-sale. at least you tried.
June 18th, 2007 at 3:05 am
Twice as worse, shows a lose of responsibility credit wise on not only an owned rental property but also with the primary.
June 18th, 2007 at 11:06 am
It’s like the difference between stepping one land mine or 2…
June 20th, 2007 at 1:47 pm
One foreclosure is bad enough, but two, yes, it will lower your FICO score among other credit indicators. If they are occuring at the same time, you are in luck because they are disappearing at the same time (7-10 years after the incident). I’ve seen credit scores dive up to 200 points after one foreclosure, I can only imagine what another foreclosure will do.
Good luck and if you want to learn more about foreclosures and how the process works (and how to invest in them in the future), read this book: Complete Guide to Real Estate Tax Liens and Foreclosure Deeds: Learn in 7 Days [ISBN 0978834682] by Don Sausa