Author Topic: Foreclosure, not that bad.  (Read 4843 times)

0 Members and 1 Guest are viewing this topic.

Offline autox_IHB

  • IHB Users
  • *
  • Thanks
  • -Given: 0
  • -Received: 0
  • Posts: 63
Foreclosure, not that bad.
« on: November 30, 2009, 02:14:27 PM »
looks like FICO just published their scoring systems.

   

   http://finance.yahoo.com/banking-budgeting/article/108239/fICO-reveals-how-common-credit-mistakes-affect-scores?mod=bb-creditreports

   

   For the look of it, filing for foreclosure is not that bad.  Only a little worse than being 30day late on a payment.

   

   Seems like its a great finacial decision to not pay your mortgage, and live rent free for 1-2 years.

Offline SoCal78_IHB

  • IHB Users
  • ****
  • Thanks
  • -Given: 0
  • -Received: 0
  • Posts: 2427
Foreclosure Statistics of the Week
« Reply #1 on: November 30, 2009, 06:37:36 PM »
To follow up with that... as I was negotiating my lease renewal yesterday, the IAC leasing consultant tells me that they never used to accept someone with a foreclosure on their record and, well, now they do. I guess there's no need to worry about leaving a house before it goes into default now, is there. All the more reason to squat as long as possible.

Offline no_vaseline_IHB

  • IHB Users
  • ****
  • Thanks
  • -Given: 0
  • -Received: 0
  • Posts: 3999
Foreclosure Statistics of the Week
« Reply #2 on: November 30, 2009, 06:51:48 PM »
Of all the events to happen from this housing debacle, this one really pissed me off.

Offline Geotpf_IHB

  • IHB Users
  • ***
  • Thanks
  • -Given: 0
  • -Received: 0
  • Posts: 672
Foreclosure Statistics of the Week
« Reply #3 on: December 01, 2009, 07:41:57 AM »
Quote from: "no_vaseline" date=1259664708
Of all the events to happen from this housing debacle, this one really pissed me off.

   

   I agree.  If you have a foreclosure on your record, your credit should be completely trashed.  If I was in the business giving out credit, I would not want to lend to people who lost a house in foreclosure, at least not at standard interest rates.

   

   Edit: I just looked at the article.  A 85 to 160 point hit for a foreclosure is pretty large.

Offline Soylent Green Is People_IHB

  • IHB Users
  • **
  • Thanks
  • -Given: 0
  • -Received: 0
  • Posts: 209
Foreclosure Statistics of the Week
« Reply #4 on: December 01, 2009, 08:54:21 AM »
Most people in FC have already abandoned all other debt payments as well. They can't get a home loan for 3-4 years, perhaps longer if they don't reestablish their credit during their renting years. They can get new credit cards since their FICO scores will be reasonably high relative to what you would think the damage would be. That new credit debt will lock these people out of the home buying pool perhaps forever.

   

   At some point in time it's going to have to be made clear to people that owning a home is not your birthright as an American.

   

   My .02c

   

   Remember, Tuesday is Soylent Green Day.

   

   Soylent Green Is People.

Offline 25inIrvine_IHB

  • IHB Users
  • ***
  • Thanks
  • -Given: 0
  • -Received: 0
  • Posts: 734
Foreclosure Statistics of the Week
« Reply #5 on: December 01, 2009, 09:16:54 AM »
Yeah I don't see how anyone will be above 780 when a foreclosure hits their credit score.   To be in that situation, they will have to have a 30 day late payment before the get there which will bump you out of the 780 range.

   

   I'm guessing this stuff is cumulative?  So a foreclosure is really a 200 point or more hit since it combines with the 30 day late payment.

Offline muzie_IHB

  • IHB Users
  • **
  • Thanks
  • -Given: 0
  • -Received: 0
  • Posts: 283
Foreclosure Statistics of the Week
« Reply #6 on: December 01, 2009, 05:15:03 PM »
I guess you could call it FICO inflation. When everyone's a bad payer then being one amongst many isn't so bad.

   

   620 is the new 720. If you had 720+ you probably deserve 800+ now. Though probably no one's going to cater to this minuscule, low-margin sub-market, so there's no point in an extremely high FICO.

Offline Geotpf_IHB

  • IHB Users
  • ***
  • Thanks
  • -Given: 0
  • -Received: 0
  • Posts: 672
Foreclosure Statistics of the Week
« Reply #7 on: December 02, 2009, 07:13:26 AM »
Quote from: "25inIrvine" date=1259716614
Yeah I don't see how anyone will be above 780 when a foreclosure hits their credit score.   To be in that situation, they will have to have a 30 day late payment before the get there which will bump you out of the 780 range.

   

   I'm guessing this stuff is cumulative?  So a foreclosure is really a 200 point or more hit since it combines with the 30 day late payment.

   

   Some people let their property go into foreclosure on purpose.  That is, they are deeply underwater, but could easily afford to keep paying, but make a business decision to stop and go on the free rent program.  These sorts of folks usually have good credit and make all their payments for everything else on time consistantly-and on the house, as well, until the day they stop.

Offline 25inIrvine_IHB

  • IHB Users
  • ***
  • Thanks
  • -Given: 0
  • -Received: 0
  • Posts: 734
Foreclosure Statistics of the Week
« Reply #8 on: December 02, 2009, 08:57:10 AM »
I'm confused,.  Is there a way to let your house go into foreclosure without having a 30 day late?

Offline Geotpf_IHB

  • IHB Users
  • ***
  • Thanks
  • -Given: 0
  • -Received: 0
  • Posts: 672
Foreclosure Statistics of the Week
« Reply #9 on: December 03, 2009, 07:40:23 AM »
Quote from: "25inIrvine" date=1259801830
I'm confused,.  Is there a way to let your house go into foreclosure without having a 30 day late?

   

   No.  But you can be 30 days late on something other than your house payment.  It's also possible for you to have perfect credit (850), and then get knocked down to the 780 range due to the 30 day late on the house.

 

Talk Irvine Links

[Recent Posts]
[FAQ / Rules]

Site Supporters


Recent Posts

Re: The Meadows, Lake Forest by Toll Brothers by aquabliss
[Today at 01:05:00 AM]


Re: The Meadows, Lake Forest by Toll Brothers by ryan3398
[Today at 12:46:25 AM]


Re: coronavirus by irvinehomeowner
[Today at 12:42:16 AM]


Re: coronavirus by morekaos
[Yesterday at 10:36:53 PM]


Re: coronavirus by irvinehomeowner
[Yesterday at 07:20:42 PM]

SimplePortal 2.3.7 © 2008-2021, SimplePortal