Owner's Motivation If Already In Bankruptcy?
Newbie question here--I can see why people might be motivated to sign a LOA and sales contract for a SS if they are trying to find a solution to their current financial struggles/save their home from BR, etc, but I'm wondering....why would a homeowner already *in* BR be willing to do this? I guess I could just see him saying, "What's in this for me? Why should you get my house at this low price?" What would you tell this person?
Hope that made sense! Thanks.
I recently submitted an essay to TCI that might well address your question.... if it isn't posted, and/or you can't locate it, PM me, and I'll send it to you in Word.
Ask a mortgage broker - you can get a loan the next day after bankruptcy. Not true for foreclosure. Banks do not look kindly on a foreclosure. They are probably the single worse thing to have on a credit report. Give them the angle about if they ever want to own a home again (American dream) then they need to stop the foreclosure.
Brenda
If they can't afford the mortgage payment they are thrown out eventually. Bankruptcy has nothing to do with the obligation to make the mortgage payment (except it will stall a foreclosure). Alot of people are emotionally through with the house, and want out (many just walk away). I'm dealing with 1 now who has been thru chap. 7 and now foreclosure and just wants to move on.
Kelly(WI)
People file for bankruptcy protection for many reasons. A lot of these have nothing to do with items that are reported on their credit records.
Indeed, many actually come out of bankruptcy with credit scores well over 600, enabling them to get on with their lives.
Foreclosure will knock off at least 200 points of your score.
That is what they call a devastating blow.
And it remains on record for the longest time, limiting the person as to his options to new credit at decent terms.
I would think that that makes a pretty compelling story to someone who'd caught up in this situation!
Hope this helps.
[addsig]
How long does foreclosure stays on record? 7 or 10 years?
I believe the answer is 7.
Ryan J. Schnabel