A foreclosure has historically been a complete disaster, but is it really the catastrophic situation it was just over a decade ago? The financial crisis has forced banks and lenders to reassess their standard bar for lending: what was once a minimum of 675 credit is now 620, and what was once a foreclosure blacklisting is now a bad mark not worth of a disqualification. Foreclosure in Fairfield, OH has changed and it has a lot to do with the financial crisis, but there are also things an individual can do now to salvage their credit score and save as many assets as possible during the foreclosure process.
Manage Credit Score Carefully
Every action will be reflected in the credit score, but it may take a few weeks to appear on the score. Monthly management of the credit score (or at the very least a quick monitoring) can keep an individual on top of how the foreclosure is impacting the score, so they can take precautions. For example, the score slips when the mortgage is getting behind; a foreclosure attorney can freeze the account, which would then not be reflected in the credit score until the foreclosure is finalized. That has another indirect cause. The individual may apply for a higher consumer credit card with a higher limit, and they can then make purchases with the consumer card and help bounce back some of that credit. Lastly, they are using a lower utilization because they were initially approved for a higher limit. The impact of the foreclosure can be minimized by building up consumer credit during the process.
The foreclosure will leave a serious dent in the credit score but it can be lessened. For example, a real estate attorney can discuss terms that would remove a foreclosure from the credit score or get the impact reduced. They can settle for a higher price on the home or attempt to pay off a portion of the mortgage directly.
Dean Snyder Attorney at Law has helped hundreds of people in the community around their demanding foreclosure problems. Contact him directly or visit deansnyderattorney.com for quick answers.