Option #10: Let it go to Foreclosure

Sadly, a surprisingly large number of people who get foreclosed on do so in either complete denial of the problems’ seriousness, or have actually been horribly advised to believe that Foreclosure isn’t that bad.

We are here to tell you that it is the worst thing that can happen to you in your entire financial life. We put it at # 10 on the list because it is worse that all the other options in every possible way. There wasn’t a close second on this one. It will RUIN your credit for the next decade, making it impossible to finance a car or house over the next 7-10 years, depending on your state, without some horribly inflated rate that will equally destroy your finances for another decade or more after that!

Most credit repair agencies will tell you that they can get this one off your credit report, but then wind up unsuccessful. It is just that horrible.

Never ever let this happen to you, unless you take a life-long vow of poverty, and have a monastery to move into. Even then, if your loan & fees are larger than the properties’ worth, your lender will likely SUE you for the difference, as well!

Pros:

It can’t cost you more than you owed on the loan plus late fees and taxes. In some states, it could be off your credit record in only 7 years.

Cons:

There’s nothing worse than this financially. You’ll be kicked out of your house, your credit will be ruined for a good portion of your life, and of course your lender will want more money on top of the loan if your house isn’t worth enough to ‘satisfy’ it.

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