If you happen to be one of the distressed home owners who found themselves upside down on their mortgage or were forced to sale; please do not beat yourself up. Thousands of homeowners across the US are experiencing your same setbacks-you are not alone.
So what to do?? I suspect your credit may have been dinged a bit or alot -depending on who held your bank note or how you negotiated your deficiency with your lender. Some lenders will not report to the credit bureaus, but that depends on a number of factors and each institution is different. I wish I had a crystall ball, to tell you when the market will bottom out and home prices will start to rise, but I don't. And I don't know anybody that has that ability. Like any good investor or potential buyer, there are a few key elements to stay focussed on to watch the rise and fall of real estate. That is another article to come later.
If your mortgage company does agree to not report- please, please, please get it in writing no matter what!! Every mortgage bank is different, so it doesn't hurt to ask, beg or plead-that is part of the negotiations. Right now, everybody wants a quick fix and it doesn't happen over night.
So once you have your home sold or have been foreclosed on; you most likely will be renting until your credit score has been built up to qualify for a mortgage. Or you may think the correction of the housing prices has not bottomed out and you want to wait some more. In either case, you are a much more wiser consumer and will have a second chance if you play your cards right.
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