Home Sale Relief

Several million people face foreclosure today and the number is likely to increase. How can you protect your credit if you end up in foreclosure? How can you ensure that foreclosure credit points are not lost, resulting in a declining FICO score from foreclosure?

Recall that FICO scores are one type of credit score, although they are the most commonly used. Over 700 is decent and closer to 800 is great. Your credit score reflects a lot of things including how much debt you have in proportion to your available credit and your income, and your payment history plus things like any chargeoffs or judgments or bankruptcies.

What really destroys your FICO score are bankruptcy and foreclosure. Delinquent payments and chargeoffs are not as bad as these two. If you can, it is far better to do a short sale or a deed in lieu of foreclosure instead of a foreclosure. That way you can at least have some negotiating room with your lenders. You are helping them and in return they can help you.

I have written about short sale effects on credit score, which you should read if you are thinking about doing a short sale.  Also, please get instant access to my 25 page book Keep Your Home avoid foreclosure and I will email you very helpful tips that you will not find anywhere else. I never share your name with ANYONE and you can unsubscribe anytime.