Foreclosure rates are at their highest ever and this has inevitably led to a sort of desensitization of the general population to what a foreclosure means and the real damage it can do to your financial future. It may seem like the best option on the surface but it is essentially a huge red flag on your credit for the next seven to ten years and could preclude you from new employment, the ability to purchase a car, to the little things like even qualifying for a cell phone plan.

There is also a perception of foreclosure as the ability to live rent and mortgage free for months on end and then simply walk away from a home you can no longer afford or is too far underwater to sell when the bank gets around to it.In reality it is not that simple.Besides being forced to move, you will be faced with outrageous rental prices for the next three to seven years as you will not be able to qualify for a home loan for at least that long.

Further more, banks are entitled to serve foreclosed homeowners with huge judgments, which further damage your credit and leave you just as far in debt as you were when you were living in your home but now compounded with the necessity to pay rent.

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