Exactly How Bad Will Stop Payments / Forclosure On My Home Effect My Credit?
I am suffering from job salary decrease and possibly job loss in near future. Everyone keeps telling me to stop making payments on my mortgage, save every penny I can. I listed it for sale and about to stop making payments. Can somebody please tell me exactly HOW BAD it will effect my credit? I have a 760 credit score never been late on anything in my life. Can I live with a forclosure? Please help.
Your score will drop 260 points, at minimum.
It already dropped as soon as you were late the first time.
your credit score is awesome , just call the bank and tell them you are in a jam and need to work something out ,
maybe refinance for 30 years then whatever your payment is will be lower because of your equity, or a home equity line of credit. people spend a fortune trying to get a credit score like yours , it would be unwise to let it get bad if you don’t have too.
If you fail to uphold your end of any credit agreement, you run the risk of having your credit rating lowered. Write or call the company involved, explain your reduced circumstances and see if you can come to an agreement to lower your repayments until such times as your financial status improves.