Real Estate Forclosure

[Anonymous]

How much will a foreclosure effect someone's credit score and for how long.  Lets say the person has a current fico of 750 and stops making payments on a property that has a 1st and a 2nd deed of trust.  How much will that score drop and how long will it take to recover? 

Also is there any difference if there is more then 1 property involved?  What if the 1st and 2nd bank are different lenders?

[sunrise]

Ouch...it will hurt!!  Have you tried a score simulator?  A mortgage foreclosure, I think, is like a lein & bk!!  They are treated very harshly!!  My scores were low 700's pre-bk...they dropped to 520's...and I still feel the sting and it was 5 years ago!!  Last spring, I had low 700's again, then I maxed out my cc's....I have them all but paid off now...and they are back in the upper 600's..700's better be around the corned by March!! 

I hope this helps?!  Others may have more info?! 

Good Luck!

May I ask...why you ask?  Do you have no other choice?  Like a reaffirmation of the mtg's?

[fused]

While I cannot give you advice on what to do, I can give you an idea of where you scores might go. A foreclosure reporting will have the same negative affect to scores as other public records, collections, charge-offs, 90+ day lates and etc. Having two might hurt more. If someone has scores around 750 and has two new foreclosures (recent serious derogs less than two years old) reporting I would expect a big drop in scores...could be well over 100 points.

[Anonymous]

Easily 100+++ points.

One or more derogs for the defaulted mtg TLs.

Possible Judgement (PR) for the FC itself depending on your state laws.

Possible Deficiency Judgement (PR) if you owe more than what the property sells for/auctions for.

Bad juju. Try to avoid it if any way possible.

GL

[Anonymous]

A FC public record or possibly 2

Plus 2 major derogs on mortgage accounts-

I have seen people lose 50 points for paying off their mortgage-

150 to 200 points.

[fused]

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Timothy wrote:

A FC public record or possibly 2

Plus 2 major derogs on mortgage accounts-

I have seen people lose 50 points for paying off their mortgage-

150 to 200 points.

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You could very well right especially if big balances report on the derog TLs (bad mortgage accounts). A better situation would be just two PRs and no derog TLs with balances but it's not likely it will report this way.