How much does your credit score drop when a foreclosure is added?
Question:
Answer:
The actual 'list' of score changes is a tightly guarded secret. If it got out, people would manipulate their scores favorably. A foreclosure is a major derogatory entry which will have a strong negative impact on your score. One hundred maybe? Maybe more. Foreclosures don't happen overnight. The mortgage company will also have several months of late payments which will drop your score on top of the forclosure itself. You're not 'choosing' to foreclose based on total credit drop, but would like to know how negatively it will impact you (I'm guessing). No one can say for sure. The bigger problem is trying to purchase another home with a foreclosure on your credit report. Some lenders have a mandatory 2 year cool off period where they won't lend money within that time. I've seen people with high 600's with recent foreclosures because other accounts are in good standing. I wish I knew more so I could help better. Good luck.
Will be in mid 500pt.
To be honest it's definitely going to be a few hundred or so. even if something simple like a credit card is reported as a late payment it drops like 50 points. i would def try to keep everything else afloat if there's no way to avoid the foreclosure. have you considered selling the house for more than the pay-off?
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