Posted on: 05th Jun, 2009 02:34 pm
How bad will this effect my credit score?
Hi Maria, Im sorry about your situation. There is no set score of how many points it will take off. But it will be in the range of 100-150 points off it will put a good dent in your credit.
Hi Garysnober,
A foreclosure generally drops your credit score by almost 125-175 points. But if you have late payments prior to the foreclosure, it will have more negative effect on your credit. Thus the foreclosure, together with the late payments, can drop your credit by as much as 250 points. Moreover, if you have a foreclosure on your credit report, you will have to wait for about 2 years before you can qualify for a new loan.
A foreclosure generally drops your credit score by almost 125-175 points. But if you have late payments prior to the foreclosure, it will have more negative effect on your credit. Thus the foreclosure, together with the late payments, can drop your credit by as much as 250 points. Moreover, if you have a foreclosure on your credit report, you will have to wait for about 2 years before you can qualify for a new loan.
As far as borrowers are concerned, they'll have an unfavorable credit rating on their credit report for about 7 years from the foreclosure sale. Hence, they may not be able to qualify for home loans within a few years and even if lenders are willing to sign a deal with such borrowers, they are likely to charge high interest rates of interest.
As far as borrowers are concerned, they'll have an unfavorable credit rating on their credit report for about 7 years from the foreclosure sale. Hence, they may not be able to qualify for home loans within a few years and even if lenders are willing to sign a deal with such borrowers, they are likely to charge high interest rates of interest.