the impact of foreclosure on credit scores
Post on 25-Jun-2015
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DESCRIPTIONhttp://www.aftexposed.com Initially, a foreclosure may cause your credit score to drop more than 200 points. How a foreclosure affects your credit history may vary based on your specific circumstances and how you manage your credit following the foreclosure. Credit repair may be needed, and is faster than waiting seven years for it to come off your credit report.
The Impact of Foreclosure on Credit Scores How a foreclosure affects your credit history may vary based on your specific circumstances and how you manage your credit following the foreclosure. The foreclosure typically stays on your credit report for up to seven years from the date filed. Initially, a foreclosure may cause your credit score to drop more than 200 points. The exact figure will vary based on other aspects of your credit history. This drop may make it difficult to obtain any loans or credit right after the foreclosure. However, if you continue to pay your other accounts and debts in a timely fashion you may not have to wait a full seven years to successfully apply for a new mortgage or installment loan. There are many factors for the creditor to consider during the application process Many mortgage companies won't approve a new mortgage for you for at least two years following a foreclosure, but thats not a hard and fast rule. If you have a hefty down payment and a low debt-to-income ratio you may be more likely to get an underwriter approval. So what happens after seven years? After seven years, make sure to check your credit report. The law generally requires credit reporting bureaus to remove the foreclosure from your record after seven years. Having this removed may not have an immediate impact on your credit score, but it will no longer play a factor in the underwriting process. Thank you.