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Foreclosure, defaulting on a loan, negative credit reports...

[Q=jessicaw272] So if the loan is paid in full, Westgate will foreclose and take it back. Is this correct? Will it still hurt my credit and show up on credit report? Also how long does the foreclosure and taking it back process take? [/Q] There is really no way to know for sure how long Westgate would wait after ongoing non-payment of maintenance fees before they would intitiate foreclosure proceedings --- that's entirely up to them. It would [b][i]likely[/i][/b] be soon enough after two consecutive years of unpaid fees (and some collections efforts undertaken) before they would foreclose, but it could possibly be sooner. There is simply no way to know. This has been addressed in detail already, but a negative credit report is a virtual certainty if / when defaulting on a loan --- [b]any[/b] loan. A negative credit report [b]can[/b] result after foreclosure alone (even with no loan default) but most developers generally won't bother to initiate a negative credit report solely upon foreclosure for non-payment of fees [b]*IF*[/b] there was [b]no[/b] loan default also involved. If there was no defaulting on a loan, they they will usually just recover full ownership through the legal foreclosure process and leave it at that --- but there are no guarantees. How long does a foreclosure take from start to finish? It varies, depending on the individual state. In many (but not all) states, an expedited "non-judicial foreclosure" option now exists, which makes the foreclosure process quicker, less expensive and less burdensome on the court system. I cannot itemize all 50 states, but Massachusetts, Florida and numerous others are among the many states in which non-judicial foreclosure is now available and routinely practiced.