Foreclosure on a credit report?
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Answer:
This is a hard question to answer with any kind of accuracy due to the complexity of credit scores.
If your credit file is long with several lines of good credit it will not take near the hit that it would if your file was short and this was one of the only major lines of credit you had..
In general, anywhere from 50-100 points depending on your credit file.
I'm not sure how much your score would drop, but a foreclosure is one of the worst things to have on your credit. Not to mention you will not be able to obtain another home loan for at least 7 years.
HOW MUCH IT WILL DROP IS NOT AS IMPORTANT AS RAISING THE SCORE -INQUIRE INTO CREDIT REPAIR, BUT, WITH VERY SPECIFIC REQUIREMENTS. USE ONLY THOSE FIRMS THAT HAVE APPROVAL, ONLY FROM THE DEPARTMENT OF JUSTICE, THAT'S RIGHT, THE DEPARTMENT OF JUSTICE(VERY DIFFICULT TO OBTAIN). BUT,THESE ARE THE ONLY FIRMS THAT CAN LEGALLY CALL THEMSELVES CREDIT REPAIR FIRMS.
Your credit score is generated from a software, mathematical algorithm that was created by Fair Isaac and Company. Only they could tell you (which they won't) but if you're going through Foreclosure you will be able to tell soon enough (not trying to intentionally be rude). There are some things you can assume like, you will have a hard time obtaining additional credit for awhile.
expect your score to be 500 or less. (poor)
Within a year of perfect payments.you may expect to see a rise of about 50-60 points.
DO NOT OPEN ANY NEW ACCOUNTS, UNLESS IT IS A SECURED CARD. Orchard Bank adn welsl fargo has good secured cards you can apply for to help rebuild quickly.Good luck.
Two ways.
The late payments leading up to the foreclosure will definitely drag down the credit score. The actual foreclosure will have a bit of an impact but most of the damage is done.
Second you will have a foreclosure. It is a public action. it will hang around for 7 years. Even if your score is OK the foreclosure is a flag to lenders that you will skip payments on a mortgage. Put a different way a foreclosure can scare off more lenders than the score. Lenders have criteria and the credit score is not the only factor they measure before deciding.
Best is to find a way out of the problem. A common mistake borrowers make it to wait too long. If you can not keep up with the payment then bail out by selling or otherwise finding a way to get the loan paid off. A subject-to deal can also be OK if the investor makes all the payments as promised.
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