Joe Hughes - 612-290-8232                    Justin Burvee - 612-221-4458

foreclosure information

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We will never charge an up front fee! Avoid anyone who is asking for an up front fee as it likely a scam! We only get compensated upon a successful closing.

10 Reasons to Avoid Foreclosure

  1. Foreclosure Follows You – Homeowners will always have to disclose that they have had a foreclosure on any mortgage application and many job applications they may complete in the future.  This can also have an adverse effect on their future mortgage rates.  Foreclosure is an item that is asked about specifically in credit inquiries.  
  2. Credit Score Negative Impact – Credit score will be lowered significantly.  Although it is impossible to predict with certainty, it is likely that the credit score impact of a short sale will be significantly less than in a foreclosure.  Along with bankruptcy, a foreclosure is one of the most devastating credit issues you can have in relations to future credit availability.
  3. Ineligibility for a Government Insured Loan – The homeowner will be ineligible for a government insured loan for 5-7 yeas (only two years in short sale).  A foreclosure is the one credit report item that is almost impossible to have repaired.
  4. Possibility of Deficiency Judgment – Your lender can seek a deficiency judgment against you and collect any amount they do not recuperate at the time of sale. In Minnesota, this only applies to 2nd or 3rd mortgages Etc., and there is no statute of limitations.
  5. Negative in Employment Credit Checks – Many employers run credit checks on prospective employees.  Foreclosure is one of the top items that will put a potential new hire in jeopardy.
  6. Potentially Damaging in Current Employment – Many current employers run credit checks.  A foreclosure can put a current position in jeopardy.
  7. Negative on Security Clearances – Security clearances and government positions-including but not limited to military and law enforcement- can be jeopardized by a foreclosure.  Revocation of security clearance can result in job reassignment or loss.
  8. Lower Tax Liability than Foreclosure – The tax liability in a foreclosure may be much higher than in a properly negotiated short sale since canceled debt will be higher in a foreclosure
  9. Distant future repercussions – There is no seven-year time limit on this credit item. A foreclosure is recorded at the county for eternity.
  10. Do Everything You Can – While it may not seem like it now, there will come a time when your current financial troubles will pass.  You will feel much better knowing that you did everything you could to avoid this devastating financial consequence that so many people face today.

“Note: This page provides general information and is not meant to be legal advice. Consult a competent legal professional for advice specific to your situation.”