foreclosure in san jose

How Can Foreclosure Affect Me? – What Sellers Need To Know

We are going to look at how foreclosure can affect you and how you can ease the trouble.


Foreclosure Effects

  • Loss of your home – Pretty self-explanatory here. The major end result of a foreclosure in California is of course the loss of the home to the bank.
  • Decrease in Your Credit Rating – Your credit rating will be lowered by the foreclosure. How much? It depends on how high your current credit score is… but the higher your current credit score… the more your score will drop after a foreclosure. If you have a credit score of 680 or higher… you may see a drop of 100+ points.
  • Depression and Stress – Your mental health is at stake because of the high pressure situation. Going through a foreclosure is emotionally exhausting and frustrating to say the least.
  • House Values In Your Community – Another one of the big foreclosure effects in San Jose California is that they tend to lower the overall value of the houses in your neighborhood… especially if there are multiple foreclosures in the immediate area.


We mainly buy houses, but if selling your house isn’t in your best interest, then we can work to help you keep it. This is what sets us apart.


How You Can Ease The Effects Of Foreclosure

For the well-being of you and your family, you need to mitigate the effects of foreclosure as much as you can. The process can be frustrating and time-consuming, but there are people who can help you navigate your different options in the process.



  1. Call your bank and work with them:  Most banks are very willing and ready to work with you… if you can show that with their help you can get back on track and save your house.  This is called a loan modification. If you just want out but you owe more on the house than it’s worth then the bank may allow you to do a short sale.
  2. Talk with a local real estate expert, like Skye Homes: We know the San Jose real estate market well and are very experienced in the foreclosure process here in California.  Give us a call at and we can guide you toward the resources that can possibly help you. We have experienced staff members who have successfully negotiated dozens of loan modifications over a 15-year period. The best part is that our consultation is free and if we can’t help you then you don’t pay us a dime. Is your house worth saving?
  3. Sell your house: If you’d rather find a way to sell your house and avoid the foreclosure all together, great! We buy San Jose houses for cash… and can look at your situation and make you a fair offer on your house.  Just call us at or submit your information below


What’s worse for credit score — foreclosure, short sale or deed in lieu?

With the above knowledge on foreclosure effects, you can guard yourself by calling us and we shall assist you in the shortest time possible to sell your house.


Please note that our services and consultation extend beyond San Jose; we also help homeowners in San Francisco, Santa Clara, over in the East Bay such as Oakland, Vallejo, Concord or Pittsburg, and many other places.

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Jake Knight

Jake Knight has been a residential real estate investor since 2016. He specializes in acquiring and renovating houses in the Bay Area, Sacramento, eventually expanding to over 15+ states. Jake’s prior experience in lending, going back to 2003, laid the foundation for solving complex real estate issues.

Drawing upon his background in assisting sellers with the task of transitioning from a home they have lived in for decades, Jake launched a “senior move management” business in 2021. This company provides valuable support to seniors during the process of packing, coordinating their moves, and downsizing as they transition into senior living communities.

In 2022, Jake expanded his services by becoming a licensed real estate agent in California, providing comprehensive solutions to his seller clients.

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On the other hand, there are some sellers who need a custom solution due to either the property’s condition or the seller’s personal situation, or a combination of the two.

When the property is in really bad shape, they’re likely going to sell to an investor, so it may make sense to save money on commissions and find their own investor.

Some examples of personal situations that we can help with are: hoarding, pre-foreclosure or other financial issues that require a fast home sale, house with non-paying tenants or squatters, severely delinquent property taxes, homeowners who want to rent back the home longer than normal, or sellers who value privacy and/or are embarrassed by their home.

If your seller lead meets these criteria, you should propose the idea of making an introduction to me. You can simply suggest to them that your partner or colleague buys houses and ask if they are interested in speaking with me. Remember, you are not performing real estate agent duties. See our disclaimer below. The main thing to keep in mind at this point is to qualify them as a good fit or not. I can help you with the documentation and process things.