There are ways to avoid investment property foreclosure and bad credit if you know how. Nothing is set in stone because you have received a notice of foreclosure on your investment property. Owning a property is one of the best investments that you can make in your life. Getting the chance to have a free and clear property with no debt is all that many people want in life. Borrowing money to purchase an investment property is a normal occurrence. Using the monthly cash flow that is generated from the property to pay down mortgage debt is a common practice. When problems happen or a tenant moves out, covering the cost of the investment is difficult.
Mortgage debt is often harder to deal with than unsecured credit card debt. Lenders are pretty ruthless when it comes to collection efforts. Very little time is given to you if you get behind on payments before foreclosure is filed. Regardless of how foreclosure happened, acting fast when you receive a notice that your lender has initiated the foreclosure process is one of the ways to beat it. You can forget getting help from a mortgage lender especially if you own an investment property. These are classified as passive income and are treated like a hobby. Filing a hardship letter will usually do no good unless you explore methods that a professional can provide.
How to Avoid Investment Property Foreclosure and Bad Credit
A short sale is an excellent option to avoid foreclosure. Even though you use the property as a business, the property can easily be sold for less than what you owe. This frees up your mortgage debt and will not affect your credit rating negatively. There will be a small window of time that could make it more challenging to receive a new mortgage. If you have a vacancy or not, your foreclosure will not affect someone that is or was renting from you. The loss of a tenant is actually better for you in the long-term because a mortgage lender or bank can agree to a short sale faster. The expense of relocating a tenant or extending the time for moving out can hinder lender decisions.
A short sale not only gets you away from an overdue mortgage. Short sales actually help your credit because some states are deficiency judgment states. This means that any debts that your lender or bank forgives can be pursued after foreclosure. This can affect your credit, educational loans and government assistance programs. The completion of a short sale can help you avoid investment property foreclosure and bad credit. A good thing about this type of sale is that you can always be free and clear to pursue another investment property to help stabilize your income without the fear of credit downgrades.
Get Free Foreclosure Help Toll Free
Our Avoid Foreclosure specialists know how to help you get rid of the fear of losing your investment property. Our network of expert counselors can find the right program for you to stop your foreclosure and maintain your good credit rating. You can avoid investment property foreclosure and bad credit with our expert help. Call toll free now at 1-800-589-4106 and speak with someone that is foreclosure educated and knows exactly how to help you.
“Avoid Investment Property Foreclosure and Bad Credit”