Foreclosure – Credit Repair
Foreclosure is the process of taking possession of a mortgaged property as a result of someone’s failure to keep up mortgage payments.
This can happen when a homebuyer purchases a home on an Adjustable Rate Mortgage. If the client fails to repair or restore their credit and refinance the home before the mortgage rate adjusts, the homeowner may experience higher mortgage payments than usual.
This may cause the homeowner to experience difficulty making monthly mortgage payments. Payments may begin being 30 days late. Eventually, 90 days late may result in foreclosure.
A consumer may not purchase a new home until a foreclosure has seasoned for 3 years.