Foreclosure has devastating long-term effects on a person’s credit. If you plan on going through with it, learn more about its potential consequences on your credit score before making a final decision.
How Foreclosure Affects Your Credit Score
A foreclosure will be a significant blow to your credit score. While every foreclosure situation is different, expect the drop to be at least 100 points or more. This especially applies to those who had good or excellent credit before, as they might experience an even bigger drop than those who already have a lower score to begin with.
Aside from lower credit, foreclosure could stay on a credit report for seven years from the date you missed your last payment. Having this on your credit record could hurt your chances of securing loans for the first few years. Each lender has specific rules regarding foreclosures, and some may outright reject you or give you a much higher interest rate.
However, with the right credit-building practices, you can rebuild your credit over time.
Speak To An Attorney Today
Don’t wait until it’s too late to protect yourself from losing your home and ruining your credit score. Our foreclosure defense attorneys at The Law Office of Todd Cushner & Associates are here to help you. Please contact us online or give us a call at (914) 600-5502 today.
