Why Not Just Let The Home Go To Foreclosure Sale?
As you probably know, nothing is that simple. A foreclosure sale does irreparable damage to your credit and your future. A foreclosure will prevent you from obtaining another home loan for quite some time and remains on your credit for up to 7 years. Homeowners with foreclosures on their credit record will not only struggle with obtaining a new home loan, but many cannot find a place to rent without significant collateral. Smaller purchases such as cars or furniture will also be difficult to secure following a foreclosure. This is only the beginning of the struggle caused by a foreclosure. Not only does a foreclosure do serious damage to your credit report and score, you may also face either a deficiency judgment or the equivalent tax liability for the difference between what the lender recovered and what you owe. If you would like to learn more about a deficiency judgment or tax liability, read below.
