So, you bought the home of your dreams on Lake Nacimiento and with the economy the way it is, you’re realizing your home on Lake Nacimiento is no longer worth its original value. It’s a hard pill to swallow when you think of improvements and other special touches you’ve put into your home, and now that your property is ‘underwater’; you’re tempted to just walk away from it and go into foreclosure. It seems like an alluring option to just count your losses since the economy could get worse before it improves, but there are valid reasons, as pointed out by CNNMoney.com, why going into foreclosure could ruin your chance of being a homeowner within the next few years.
Walking away from your Oak Shores home that you technically can still afford to pay on will ruin your credit and make it near impossible to get credit. Some homeowners feel that a bad credit score is the better choice as opposed to having a severely underwater mortgage. They may even think that afterwards, they can vamp up their FICO scores by paying bills on time and will eventually be approved for another home loan.
Of course there is leniency when it comes to those who’ve experienced job loss, a death in the family or divorce as these are extenuating circumstances. Even those that go into foreclosure for these reasons will have a hard time buying within five years. For homeowners that walk away; it could be up to eight years before being able to mortgage another home. “If you made a strategic decision to default on paying your mortgage, it will work against you,” said Bill Merrell of the National Association of Review Appraisers and Mortgage Underwriters.
There’s no way of knowing what the Lake Nacimiento Real Estate market will be like a year from now. Chances are, however, that lenders will still be much less giving with those that have walked away from their mortgage with no real reason other than their homes value. Those looking to buy may need a heftier down payment in order for banks to make back most of its money in case of another foreclosure. There are ways of avoiding a foreclosure.
What are your options? A short sale for your Lake Nacimiento home is a great alternative to foreclosure. If you have questions about your Oak Shores home or are interested in selling; please let me know! I have years of experience with underwater mortgages and can make the short sale process as smooth as possible. Let me know how I can help!
Your Oak Shores Real Estate Expert
Oak Shores Realty
Oak Shores Realty specializes in Oak Shores at Lake Nacimiento properties. Please contact us today to get more information on Lake Nacimiento lake homes. Oak Shores Realty can also provide you an insiders “Lake Nacimiento Buying Guide” with great information including maps and market information.
Please let us know how we can help!