Housing.com News, Analysis & Opinion: Mortgage & Loan: Bad Foreclosure Advice

For those clients who face foreclosure, Daniell answers their question with a direct and simple strategy: Do whatever it takes to keep your home. "It's very hard for people to not pay their credit cards, but saving the home is the most important thing," Daniell said. "You can push credit card payments to a later date, and bad credit can be overcome."

No, no, no. This is just wrong. You shouldn't fall into the trap of thinking you can blow off one form of debt to service another. It's all going to look bad on your credit report, whether it's a foreclosure, a charge-off, or a bankruptcy, and given the tightening of credit standards, any one of these might hamper your chances of buying another home for a loooooooong time to come.

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From the Pensacola News-Journal: For those clients who face foreclosure, Daniell answers their question with a direct and simple strategy: Do whatever it takes to keep your home. "It's very hard for people to not pay their credit cards, but saving the home is the most important thing," Daniell said. "You can push credit card payments to a later date, and bad credit can be overcome." No, no, no. This is just wrong. You shouldn't fall into the trap of thinking you can blow off one form of debt to service another. It's all going to look bad on your credit report, whether it's a foreclosure, a charge-off, or a bankruptcy, and given the tightening of credit standards, any one of these might hamper your chances of buying another home for a loooooooong time to come. Before you let yourself go deeper into debt, talk to your lender. Many of them are increasingly willing to renegotiate your loan terms to something more favorable, just to keep that revenue coming in. Call the National Foreclosure Prevention Program and see what you can do to keep your head above water.