South Florida short sales, loan modification and foreclosures are having a devastating impact on consumer credit scores. A Miami foreclosure defense lawyer can not only help stop foreclosure but can advise you on the best options for protecting your credit and the long-term financial future of you and your family. We can help you avoid foreclosure, stop foreclosure sales or assist you with determining whether a short sale or loan modification is right for you.
MSNBC reports that one-fourth of consumer credit scores are 599 or below. Twenty-five percent of consumers — or more than 43 million people — now fall below 600. Before the Great Recession, just 15 percent of consumers, or about 25.5 million people, fell below the 600 threshold.
Your FICO credit score ranges from 300 to 850. A 700 score was once enough to qualify for the best rates on most loans. That threshold has inched toward 750 during the recession. Consumers below 600 will be unlikely to qualify for auto loans, mortgages or even credit cards under the new tighter standards put in place by lenders.
Officials cite foreclosures and unemployment as the two main drivers of plummeting credit scores. A foreclosure can chop 150 points off a credit score. That means, a consumer with a 750 credit score — the score needed to get the best rates even under new tighter standards — could drop below the 600-point threshold as the result of a mortgage foreclosure.
Struggling Miami homeowners who opt for loan-modification or short sales can still face significant damage to their credit scores. A South Florida foreclosure defense attorney can help determine the best course of action for protecting your finances, your credit score and your future.
The Miami foreclosure defense attorneys at Barakat, Jacobs & Associates are dedicated to fighting for the rights of homeowners throughout South Florida. Call for a confidential appointment to discuss your rights. Call (305) 350-5055.