What are the negative effects of forclosure?

Question

Aside from losing your home, what are the negative effects of forclosure? How long does it stay on your credit record? When would we be able to buy another home? We have a VA loan; what kind of ramifications are associated with that?

Answer 1

It stays on your record forever.  As long as people own a computer.  The credit agencies will use it against you as long as they think it matters.  Maybe 3 years; maybe 10 years.  No guarantees.

The negative effect is that you will pay 22% interest to buy your next car.  Even when the sign says "Zero percent interest for qualified buyers".  

You can buy a house 1 week after your foreclosure.  You will pay 9.75% interest when everyone else is paying 6.5%. so you can buy whenever you want.  

You won't be able to re-use the VA loan. Sorry.  I'm a vet.

The VA has the legal right to go after you for any money that they lose. They seldom do that.  You paid $2,000 into a "guarantee" pool when you bought the house.  That money will pay for the loss (along with all the other vets who paid into it).