Will Foreclosure result in cancellation of my credit cards?

Last year i had to move to a new town and i bought a home here but unfortunately my home in old town due to the low market never got sold and the condo association wont allow it to rent.

I have a decent income, but i can only pay mortgage of one house. So after paying for 6 months both houses. Now iam out of funds so i have stopped paying mortgage for old house and ready for a foreclosure or deed in lieu. Today i received a mail from Countrywide Mortage stating my old house is under default and if i dont pay them by feb, i will be under default and they will start proceedings. Something which iam now mentally prepared.

My main question was, now if that foreclosure hapens or deed in lieu happens. Will that automatically cancel all my credit cards,store cards,etc. Or i still can have them. my income is pretty decent to afford one house and all these. I just dont have another $2300 extra to pay for my old house monthly.

I will be waiting eagerly for your replies.

Foreclosures will not cause the credit card company to cancel your credit cards as long as you make the payments on time.

You need to check the terms and conditions of each card. Canceling your credit cards is not something that usually happens with a foreclosure, but some credit card companies review your entire credit history on a regular basis and any late payments or black marks on your credit report even to another lender other than the card company can have adverse effects on their terms or rate with you. If you don't still have the terms and conditions pamphlet for your cards, just give them a call and ask. Good luck.

Some of the answers you are getting are partially right and some just plain wrong. You need to check with each credit card company and ask them if they have something called "universal default." This means they can change the terms of your credit card (higher rate or even cancellation) based on how you paid someone else. If they don't have this they can't cancel your card. However, credit cards do pull your credit report from time to time to see if you have had significant changes to your credit score. If that is the case, you may end up paying a higher rate if your score dropped a lot. This is pot luck .They won't share if and when they do this with you. So, you'll have to adopt a wait and see attitude about it. My bet is you'll probably be okay.

no, it wont do anything to other current credit accounts, except to probably give them a reason to raise your rates as the horror stories have been told by the media, it does happen. however, it will make it hard to get new loans. now for more bad news. if u can arrange a deed in lieu of foreclsoure do it, because if they foreclose and there is a short fall between what u owe and foreclosure costs vs. what they sell the property for u are on the hook for the balance and they can and will come after it. if they get a judgement against u for the difference they can lein your new home for that amount. SORRY BUT THAT IS THE REALITY OF WHAT U R INTO. you should have thought of renting the condo as a lease purchase situation if it was possible just to keep the money flowing most associations will accept that. i did that in albany ny for 2 years with a condo association and finally sold it to my second set of tenants

The foreclosure will not cancel out any other debts, including the credit cards and the store cards.

You'll have to keep paying the credit cards if you want to keep them from being charged off and collection agencies calling trying to get money out of you.

Good luck.

I know you are tired and beat up with the situation on the former home. Take one more shot at the association. They don't want their property values to dump either. Tell them if the condo gets foreclosed, then no one will look after it and the rest of the value of the condos will drop. Foreclosure doesn't mean your credit cards will dump you, but any new lending will be a big issue. What if you need a new car or your company moves you? Utility companies look at your credit. What if you can't get electricity? Yes, they can deny you that credit. Try again with the condo association. Get an attorney to make some noise on your behalf.