How Does Foreclosure Defense Affect My Credit?
A homeowner who is facing foreclosure and looking for options for foreclosure prevention may be wondering how foreclosure defense will affect one’s credit. Obviously, if a homeowner has missed mortgage payments, his or her credit score is already negatively affected. Once a mortgage is past due, a homeowner begins to see the impact of a diminishing credit score.
Seeking out and utilizing foreclosure defense from a qualified foreclosure attorney can actually help a homeowner’s credit score. Foreclosure attorneys help homeowners avoid foreclosure by working to implement workout solutions such as negotiating a mortgage loan modification, or a short sale. In turn, if a homeowner is able to take advantage of one of these solutions, they will prevent foreclosure and therefore, no foreclosure will be listed on the credit report. Since one of the single most damaging reports on a credit report is a foreclosure, it is something that a distressed homeowner will want to avoid. Even if the homeowner no longer wants to remain in the home, in order to minimize the damage to credit, it is important to seek out an experienced foreclosure attorney in order to avoid foreclosure.