Will foreclosure on a rental effect my credit card interest

[Administrator]

Will foreclosure on a rental effect my credit card interest rate?...I have a mortgage on my primary residence (mobile home) and a mortgage on a rental house. Its getting harder and harder to keep tenents in the rental. What are the ramifications if the rental is foreclosed on and will it affect my credit card interrest rates? The state is Colorado.

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(Source: mortgagefit.com)

[MH-Loans.com]

If a mortgage foreclosure shows on your credit report there is no distinction made on the report as to whether this was your primary residence or a rental. In the bottom line, they are not wieghted any different.

If I was you I would try everything you can to avoid the foreclosure. Market the property both for sale and rent, consider renting it out for just enough to cover your mortgage and consider your continued good credit rating the profit you make, work with your lender on a short payoff if necessary, as I said do everything you can to avoid it.

If it happens and your credit card companies want to raise your rate, they likely can. I wouldn't call them and ask in advance, but if they tried it I would argue with them that if they leave the rate alone you will be able to keep making the payments on time. If they throw you into a default rate tell them you stand the very real danger of not being able to pay, what the heck you already lost your house. Put it to them in terms they would relate to.

One last note. If the choice were between defaulting on a mortgage that was on my credit and defaulting on all of my credit cards, there is far more damage to your credit score from the foreclosure. You might consider the very real possibility of paying the mortgage over your credit cards.