What are the credit implications of a foreclosure? Is my credit ruined forever?

By
Real Estate Agent with The Pitcher Group

A foreclosure can drastically upset your credit score and should only be considered as a last resort. Some who have gone through a foreclosure claim that the foreclosure dropped their score as much as 250 – 350 points.  So if you had a near perfect score of 790, your score could be dropped as low as 440, depending on other bill you may be behind on in addition to the foreclosure on your credit record.

A creditor will not offer you financing for 24 months or more after a foreclosure. This is not only regarding financing for a home, but for any kind of credit – i.e. a car, student loan, department store credit or major credit card of any kind. It may also hinder your ability to get into a rental option, such as an apartment or condo. Many landlords check your credit score to determine your ability to pay the monthly rent. Even getting a phone, cable or utilities can be a pain because they all run your credit.  Some employers also use credit score before hiring; especially banks, jewelry stores or any high dollar establishments who fear you will steal if you get into a bind with your bills.

To read entire post please click here: http://savemyutahhome.com/2011/08/what-are-the-credit-implications-of-a-foreclosure-is-my-credit-ruined-forever/

Remember you have options other than foreclosure. To find out which option is best for you please take a moment to download or free ebook “The Truth About Short Sales, Loan Modifications and Foreclosure” here http://savemyutahhome.com/

 

 

Comments (4)

Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Brian - two month after the foreclosure you can get a mortgage? Wow, I thought it is much longer

Aug 29, 2011 04:58 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I think the banks are going to come up with loan options for people that were in a distressed property situation. We won't see these for at least another year, but the banks are creating a whole class of people that can't buy a house for about 7 years. This is going to hurt the banks. They will come up with lending options for people who were in this kind of situation. Of course there will be a higher origination fee, higher interest rate, ect. The banks will capitalize on this situation, but they will make it work.

Aug 29, 2011 05:14 PM
John Michailidis
Real Property Management of Sarasota & Manatee - Sarasota, FL
Real Property Management of Sarasota & M

An interesting blog post that I enjoyed reading! Thank you for sharing!

Aug 29, 2011 05:31 PM
Brian Pitcher
The Pitcher Group - Salt Lake City, UT

Thank you for the feedback! I am glad that you enjoyed the article.

Debbie, I think you are correct with the banks. I think it may take longer than a year, but I do think that is what is in the works.

Jon, there are so many different options out there; you would be suprised at some of the situations that I have come across.

 

 

 

Aug 30, 2011 04:53 AM