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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2863
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I MAY HAVE TO FORCLOSE ON AN INVESTMENT PROPERTY WITHIN THIS

Resolved Question:

I MAY HAVE TO FORCLOSE ON AN INVESTMENT PROPERTY WITHIN THIS NEXT YEAR. I PURCHASED A VACANT BEACH LOT TO BUILD ON AND FLIP ABOUT 4 YRS AGO. I HAVE ONE YEAR LEFT ON AN ARM-5 LOAN THRU BANK OF AMERICA. THEY SEEM RELUCTANT TO ACCEPT A SHORT SALE ON THIS, WHICH IS THE ONLY WAY I COULD UNLOAD IT IN THIS ECONOMY. I CANNOT AFFORD TO REFINANCE IT. MY CURRENT CREDIT SCORE IS EXCELLENT, AROUND 760. IN ALL OTHER FINANCIAL AREAS, I HAVE A STRONG HISTORY OF RELIABILITY AND STEADY WORK INTO THE FORSEEABLE FUTURE WITH AN ANNUAL SALARY OF 60K. IF I FORCLOSE ON JUST THIS ONE PROPERTY, WHAT AFFECT ON MY CREDIT SCORE AND CREDIT WORTHINESS WILL THIS HAVE?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 6 years ago.

Terry L. :

Hi and thank you for your question. In the future, you can request me to answer any further questions.

Terry L. :

This will obviously impact your credit (and future credit) for some time.

Terry L. :

The foreclosure can stay on your credit report for 7 years as a factual event on the public records section.

Terry L. :

Also, the lender may be able to collect a deficiency balance from you as well.

Terry L. :

You may have a harder time getting a future investment property in the future, higher interest rates etc.

Terry L. :

If you continue to do what you've done in other realms, paying bills on time, not overextending, your score should not be impacted too much, but it should dip a bit.

Terry L. :

Thanks for your question, good luck.

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