Foreclosure
I lost my house to foreclosure, and I was wondering how long will this stay on my credit report, also do I still have to pay the differance from what the bank got from the sale if it wasn't enough to pay it off? :-(
I lost my house to foreclosure, and I was wondering how long will this stay on my credit report, also do I still have to pay the differance from what the bank got from the sale if it wasn't enough to pay it off? :-(
Hi elliemae40,
Some quick research I did said that Deficiency Judgments are allowed in Missouri. In fact, there are only a handful of states where they’re not allowed. So hopefully, if they sold it, they satisfied their debt and won’t file against you.
Are you sure it was sold at auction? If not, it would go back to the lender. It’s what’s known as an REO property.
If you wanted, you could check your county records to see what the status is, and/or what it sold for.
I wish I could offer some better advice. Or, at least something more encouraging. Maybe someone else will respond to your post.
Greetings elliemae40,
I believe it stays on your credit report for 7 years. And it depends on where you live whether or not the lender can file for a Deficiency Judgment to make up the difference. Each state has its own rules regarding that. Where are you located?
Keep in mind, many lenders will give you financing 1-2 years after the foreclosure. Some will do it sooner than that. They obviously want to see good credit for that period of time, and the rates will be higher – but you’ll still be able to get another home. So, do whatever you can to keep the rest of your credit clean.
Good luck!
I live in Missouri, and thank-you for your message. :-(