Hi. My name is Joel Gurman with Quicken Loans and a question has been asked a lot about foreclosure and the effects that it has on people long term. When you talk about foreclosure it's something that has got to be a last resort. Banks are really willing to work with folks that are in situations where maybe they've lost a job and it's hard to make payments. They don't want to foreclose on you, so you want to do everything you can to avoid it.
Now the big issue is, moving forward what is a foreclosure going to do to you. I don't think anybody really knows the long-term repercussions of it. Make no mistake, it's going to have a negative effect on your ability to get future financing. Whether that's the next house you want to buy, whether that's the car you're going to need a year or two down the line, whether that's you co-signing for kids in three, four or five years for their student loans -- it's going to have an impact. And you have to take that stuff into consideration.
The other thing to really look at is the impact that it has on the people that you're around all the time. If you're house goes up for foreclosure it's going to affect your neighbors. So again, it's got to be a last resort. I do realize in today's economy there are people who run into situations where they can't make their payments but you have to think it through. A very wise man told me one time: What's easy to do in the beginning is tough to live with in the end. Even if you can make a few extra payments or if you can forgo a few other things -- it will behoove you to make your payments on your mortgage and not go into foreclosure. Because again, we really don't know the implications of a foreclosure or of a short sale where you're giving away the equity in your property.
If you can do anything -- make your payments. Stay in your house & work with your lender but avoid foreclosure because it's going to be bad to start with and who knows where it goes from there.
Music: Bright Wish - Kevin MacLeod
Quicken Loans is an Equal Housing Lender. Rates subject to change. Quicken Loans Inc. is a licensed mortgage lender. Arkansas -- Quicken Loans Inc., 1050 Woodward Avenue, Detroit, MI 48226-1906, (888) 474-0404; Arizona -- Quicken Loans Inc., 16425 North Pima, Suite 200, Scottsdale, AZ 85260, Mortgage Banker License #BK-0902939; California -- Licensed by the Department of Corporations under California Residential Mortgage Lending Act; Georgia Residential Mortgage Licensee (#11704) -- 1050 Woodward Avenue, Detroit, MI 48226-1906; Colorado -- Quicken Loans Inc., 1050 Woodward Avenue, Detroit, MI 48226-1906 (888) 474-0404; To check the license status of your mortgage broker, visit http://www.dora.state.co.us/real-estate/index.htm ; Illinois Residential Mortgage Licensee #4127 -- Department of Financial and Professional Regulation, 310 S. Michigan Avenue, Suite 2130, Chicago, Illinois, 60604-4278, (312) 793-3000, 1050 Woodward Avenue, Detroit, MI 48226-1906; Massachusetts -- Quicken Loans Inc., Mortgage Lender License #ML 3030; Mississippi Registered Mortgage Company; New Hampshire -- Licensed by the New Hampshire Banking Department #6743MB; New Jersey -- Quicken Loans Inc., 1050 Woodward Avenue, Detroit, MI 48226-1906, (888) 474-0404, Licensed Mortgage Banker -- NJ Banking and Insurance Department; New York -- Quicken Loans Inc., 1050 Woodward Avenue, Detroit, MI 48226-1906, Licensed Mortgage Banker -- NYS Banking Department; Oregon -- Quicken Loans, Inc. -- License # ML-1387; Pennsylvania -- Licensed as a first mortgage banker by the Department of Banking and licensed pursuant to the Pennsylvania Secondary Mortgage Loan Act; Rhode Island -- Rhode Island Licensed Lender; Texas -- Quicken Loans, Inc., 1050 Woodward Ave, Detroit, MI 48226; Virginia -- Licensed by Virginia State Corporation Commission, License # MC-1738; Quicken Loans Nationwide Mortgage Licensing System Number 3030. Other restrictions may apply.
© 2000 - 2012 Quicken Loans Inc., All rights reserved. Lending services provided by Quicken Loans Inc., a subsidiary of Rock Holdings Inc. "Quicken Loans" is a registered service mark of Intuit Inc., used under license.
Loading...
0:34
What is an FHA Loan?by quickenloans533 views
Link to this comment:
All Comments (0)