If u go thru a foreclosure is your credit financially really gone?
Question:
Answer:
It's never completely "gone", but foreclosure is about as harmful as anything. It will make it really difficult to rebuild your credit, at least for the next seven to ten years. And you can pretty much forget about trying to buy a house for that length of time, unless you find a gullible seller who is willing and able to finance it themselves.
On the plus side, anyone who is trying to sell a house these days is probably willing to do anything they can to sell it, so if you find someone who is ABLE to self-finance it, and you can convince them that you're not as bad a risk as you look, maybe you can recover more quickly.
Not totally. check with your lawyer and make sure other debts are on time. You will have some trouble in obtaining some credit but look for ways to reduce or refinance. There are free credit counselors on line.
not completely... but its not going to help your rating.
7 years later if you manage your money responsibly your credit might have recovered
It's not gone, it's just really bad. In fact, it would probably be better if it was gone completely, or if you stopped using credit for any reason for a while.
After the foreclosure, you'll have a hard time getting any new credit issued to you, so you should take the time to pay off other debt, or clean up your credit report. You can get old negative marks removed, or clean up your inquiry history, and make everything look as decent as possible.
There's an off-chance you can even get the foreclosure deleted from your report, but the bank would have to agree to this, and they usually aren't that willing to do something like that.
Your first goal to get your credit back on track should be deleting some old negative information. This might take up to a year to complete. Then, open a few lines and make smart decisions and pay them off correctly for six to twelve months. That will establish a good recent payment history.
Within a couple of years, you should be able to qualify for a new mortgage loan, if you wish to purchase a home again. Also, if you are currently renting, make sure to pay by check every month and keep records of your cancelled rent checks. Lenders use this to determine your future mortgage paying abilities, so make sure you have 12-24 months of consecutive rent checks. Money orders or cash receipts also work if you no longer have a bank account or pay by cash.
Good luck.
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