FORECLOSURE - It's Repercussions After You Lose the Home

[CA4Closure]

I have not seen any topics on this subject. I lost my home in 2011 and the damage is still affecting me today. I have rebuilt my FICO scores to 739 but no one can tell me how long this foreclosure noose will be around my neck. Credit reporting bureaus say 7-10 years. So what is it 7 years or 10 years?

According to my credit reports, the mortgage was 'paid' and account closed in May 2012. I presume the clock started ticking on May 2012 so that means at the earliest, that foreclosure will drop off my credit report in May 2019 or May 2022.

The foreclosure has affected my FICO scores and if I am lucky, my score goes up only 1-2 points. It has stayed in the 733-739 area for the last two years yet my Utilization is <1% and I have paid all my bills in full according to the credit agreements since the day I lost my home! What frustrates me is my FICO is reight below Excellent. I am at the top of GOOD but it never crosses that threshold into the excellent area!

[Anonymous]

A significant derogatory can affect your score for about 90 points on average it seems (if it isn't brand new and it's the only negative).  So you may see a maximum of 760s on FICO which is high enough to get approved for almost everything.

A foreclosure remains on your report for 7 years.  It hurts less after 4 years but still for a lot.  If you have your paper reports you can see when it will fall off (some bureaus list this on the paper reports).

[Anonymous]

I was in a similar situation.  I had a foreclosure showing closed in January 2012.  I was able to rebuild my scores up to the 715-720's and they remained in the low 700's until November 2017. Then two things happened within days apart.  I closed on a new home on 11/13/17 and my foreclosure fell off all of my reports.  I too was waiting 7 yrs (Jan. 2019) to see if it would fall off, but it fell off approximately 14 months earlier than expected.  My TU score jumped 31 points the other bureaus climbed 22 and 25 points.  It was a pleasant surprise for me.  Of course, it's a YMMW type of thing, but there is light at the end of the tunnel.  Good luck in your journey.

[CA4Closure]

As you can see by my tag line, I live in California where the average home price is $800,000. No way do I have enough for a down payment. I would need $140,000 down and my mortgage payment would be in the low $3,000 a month range. Then I need to consider property taxes which is ridiculous.

I wll have to move to Waco, Texas to afford a $250,000 home.

[EW800]

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@CA4Closure wrote:

I have not seen any topics on this subject. I lost my home in 2011 and the damage is still affecting me today. I have rebuilt my FICO scores to 739 but no one can tell me how long this foreclosure noose will be around my neck. Credit reporting bureaus say 7-10 years. So what is it 7 years or 10 years?

According to my credit reports, the mortgage was 'paid' and account closed in May 2012. I presume the clock started ticking on May 2012 so that means at the earliest, that foreclosure will drop off my credit report in May 2019 or May 2022.

The foreclosure has affected my FICO scores and if I am lucky, my score goes up only 1-2 points. It has stayed in the 733-739 area for the last two years yet my Utilization is <1% and I have paid all my bills in full according to the credit agreements since the day I lost my home! What frustrates me is my FICO is reight below Excellent. I am at the top of GOOD but it never crosses that threshold into the excellent area!

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You and I are in pretty much the same boat.  My wife and I went through a foreclosure in late late 2011/early 2012 as well.   I have done just as you have, less than 1% util and everything paid on time since those ugly days.  My FICO 8 scores have also been stuck in the 735-747 range for the last couple of years.  I will add as a side note that my FICO 9 scores are about 50 points higher, in the 785-795 range.  I would suspect yours might be as well?  

As far as what you asked about how long the score hits stay on, I am pretty sure it will be right up to the moment the foreclosure falls off.  It is a major derog, so the sting applies the whole time, although less so as time goes by.  Although we are being held down with the major derog, I am still pretty pleased with my current scores and it sounds like you have done great as well.  

My credit reports show that the foreclosure should fall off around July or August of this year, pretty much the 7 year mark.  I plan to ask for some EE love, and suspect you may want to do the same as time gets closer.  Not sure why you are seeing reference to ten years.  Everything I have ever seen is that foreclosures are seven years.