How bad does a home foreclosure effect your credit rating? How long for it to take effect?
Question:
Answer:
It's bad and it takes effect immediately. The good news is that most mortgage companies don't look at it after seven years.
KMack - The question is "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?"
Your credit will not be ruined forever and you will be able to obtain another mortgage!
It is almost a guarantee you will not get another mortgage. That will be on your credit report legally for another 7 years but if a lender realizes it that will be your doom even after that time period.
A lot of loans now are not from your hometown bank. They are from third-party groups of investors with no empathy and a rigid set of rules they follow.
It destroys your credit and should be avoided at all cost. Yes, it is only on your credit for 7 years, but every mortgage application has a question on it (have you ever had a foreclosure) that you will have to answer honestly for the rest of your life.
It will certainly affect your credit score.
However, sub-prime companies allow mortgage financing after 1 year.
FHA and conventional financing will consider you after 3-4 years.
Best thing you can do for yourself now is to keep your credit clean from here on out. Make sure your future rent payments are paid on time and can be verified.
Save as much as possible for a future down payment.
here an article i found helpful to me.. about the effects of foreclosure to your life
http://www.badcreditresources.com/articl...
More Related Questions & Answers...