foreclosure?
I’m from louisiana when they foreclose on your home how long is the process? How do they go by selling do they sell it to the lowest bidder and if the do will I still owe the company? Or should I file bankruptcy and get it over with? Because doesnt it stay on your credit report for seven years when the foreclose on your home?
Posted May 3rd, 2010 in When To File Bankruptcy. Tagged: credit report, louisiana, seven years, should I file bankruptcy.
The process is 6 months long. Yes, they will likely auction the home in a foreclosure sale, if you default. The loan company will take posession. Usually the bank sells the loan to another company and they can do what they want with it. The foreclosure stays on your credit record for 10 years, not seven. Seven years is for regular stuff like credit cards and other loans. It’s like the DMV. They can go back even further when they want to, such as when you apply for a commercial license they don’t stop at the 3 year limit.
May 3rd, 2010 at 9:24 pmWhen you file for bankruptcy, it still takes a long time and will be stretched out past the foreclosure time, so that will not help your situation. You will still end up going into foreclosure. The key is that if your main goal is to keep the house, then you can let all your other bills go and as long as you pay the mortgage, they cannot take your home from you. At that point, you can file for bankruptcy and start again. Your credit will be trashed, but at least you still have your home and in 7 years you will be in pretty good shape credit wise, plus you will still have your home if you have kept making payments.
Now, if you know you cannot make the house payments, you would do the reverse strategy and pay all your bills except the house and hurry up and find someone to buy it from you before it gets foreclosed upon. This will save your credit. I hope this helps.
yes they will sell it to the highest bidder. Yes you will owe any remaining balance on your mortgage after the sale. Yes a forclosure will stay on your credit report. BUT so will a bankruptcy! Possible file chapter 13 and keep the house…..
May 3rd, 2010 at 9:24 pm