A foreclosure is not something you’d want to joke about. It can significantly impact your credit history, and limit your ability to qualify for any new loan in Houston, Texas. We Buy Fast Houston Houses will today discuss this process, and how it can affect your for years to come.
What’s a foreclosure?
In Houston, Texas, you can either buy my home using cash or with the help of a mortgage. Making such a huge purchase using cash is not an easy feat for many potential homeowners and that’s why people turn to loans. Should you fail to pay back this loan, the mortgage lender is entitled to seize my house in Houston, Texas, so that they may recover the amount owed to them.
How long will my credit report be affected by a foreclosure in Houston, Texas?
Once the lender initiates the proceedings, it will take a month or two for the foreclosure entry to appear on your report. This entry will remain on that credit report for at least seven years. You should start counting from the date you missed the mortgage payment that led to it. After those seven long years, it will be deleted.
You’ll have to worry about foreclosure in Houston, Texas, if you’ve missed 3-4 months of your payments. Those missed payments will affect your credit score more than any other negative entry, so by the time a foreclosure appears on the report, it will have significantly dropped.
How do Houston, Texas, lenders see a foreclosure?
If you are not worried about the negative impact that foreclosure has on your credit score, you should worry about the negative light in which banks view it. Banks normally have their own lending criteria, and there’s no such thing as a universal rule about how they should handle a foreclosure with respect to this criteria. However, it’s safe to assume that all banks and other lenders view foreclosure as a derogatory event, second only to bankruptcy. In fact, we do have creditors who won’t even take you into consideration, if you have a foreclosure on your credit report.
How can a borrower get rid of a foreclosure?
Removing a legitimate entry from your credit report before the expiration date is impossible. You’ll just have to be patient, and wait for seven years. After that, it will automatically fall off on its own. But in case it doesn’t, or if your report has a foreclosure that never happened, you can have the error corrected through the credit report dispute process.
How can a cash buyer help with foreclosure?
You don’t have to wait for the bank to seize the house in Houston, Texas. Just reach out to a reputable cash buyer and ask for an offer. If they are good at what they do, you’ll close the deal in a matter of days and use the sales proceeds to pay off the debt.
We Buy Fast Houston Houses would love to help you avoid foreclosure in Houston, Texas. We can make you an all-cash offer on the spot, and help you close fast.
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