Yes it does, as it delays the foreclosure when the borrower is having financial problems. But this is only a temporary solution as if the borrower has very serious financial problem, this is definitely the solution.
It depends, if you are buying a house in cash, it won't of course. Else, it would quite affect as it would be part of the assessment on your credit and liabilities that the mortgage company will do.
If you can buy, definitely do that. That way instead of paying rent, you're paying off your mortgage. It depends on the relative cost of buying versus renting in your area. In many places it costs...
There are many houses that are for sale but choosing would be the most intricate thing. You need to look into details for the type of house you need, the space, as well as the location.
Take note of some ideas online and referrals. Be sure to look for a model unit that suits your budget as well as a place that you can live comfortable with.