Title: What Happens When You Let Your House Go Back to the Bank? | Home Guides | SF Gate
Headings: What Happens When You Let Your House Go Back to the Bank?
What Happens When You Let Your House Go Back to the Bank?
Losing Your House
Get the Best Mortgage Rate for You
Deficiency Judgments
Credit Post-Foreclosure
Mortgage Free Living
Your Next Step

Content: The first is that your credit score will suffer from the late payments leading up to the foreclosure. The foreclosure itself will usually decrease your credit score by around 100 to 150 points, and it will stay in your credit report for at least seven years. Furthermore, a foreclosure can make you ineligible to take out a mortgage for a period of time. For example, Fannie Mae won't underwrite a mortgage for you for seven years after you go through a foreclosure. Mortgage Free Living
One of the biggest benefits of losing your house is that you will usually enjoy a period of time during which you can live in your house without making any mortgage payments. While it might be tempting to spend the money you save, it's crucial that you use this opportunity to build up some savings. After all, you'll eventually have to find another place to live. Your Next Step
Losing your house has another benefit. It means that you no longer have to make monthly mortgage payments that you can't afford. You're free to move somewhere less expensive so you have more disposable income.