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Foreclosure Vs Score?

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Anonymous
Not applicable

Foreclosure Vs Score?

I am 5 years post-foreclosure at this point and can't wait for it to roll off in 2012. Does anyone know if a foreclosure's impact on your score lessens over time or if it is constant until it rolls off?

 

Thanks!

Message 1 of 5
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RobertEG
Legendary Contributor

Re: Foreclosure Vs Score?

Yes, someone knows.  But unfortunately, that someone is only Fair Isaac. 

FICO reveals a lot of general, public information about credit scoring, but hardly ever gets into the details of how aging of specific derogs continue to impact credit score.  You will never see that level of detail.

Their credit scoring algorithms are their business, and are closely guarded trade secrets, so you will never get a definitive answer to that question.

Therein lies one of the primary benefits of this site.  We rely on anecdotal experiences of others experiencing similar situations, but unforrtunaly, what impacts one person does not impact another to the same degree. 

FICO has at least a dozen scoring algorithms, which we on here call "buckets," which cubby-hole you into different risk analysis brackets, each having its own, separate impact for the same action or event, depending upon your "bracket."  So even anecdotal experience of one cannot necessarity be transferred over ot expectations of another.

I think, at best, you can only assume that impact deteriorates with age, But some deteriorate faster than others.  For example, I think it is kinda generally assumed experience on here that 30-day lates lose most of their impact after 2-3 years.  Also, that 60-day lates are scored about the same as 30-day lates after approx. 2 years.  But that 90+ lates (major derogs) kinda deteriorate much more slowly, and maybe linearly over their 7 year life span.

Other derogs not based on OC account reporting on your open account, such as charge-offs, collections, judgments, tax liens, repos, foreclosures, etc. are all major derogs, and their detoriation is slow.

You ask specifically about a foreclosure.  All I know for sure is that the CRA reporting codes provide for a creditor to report foreclosure, so they have that information if they choose to use it in your score.  I have no idea of its relative impact, importance, or rate of deterioration.

 

 

Message 2 of 5
Anonymous
Not applicable

Re: Foreclosure Vs Score?

Thanks for the info. I had been searching a bit on the net and I noticed it was more of a 'your mileage may vary' sorta thing. 

 

I have that foreclosure from 2005 and a 90 day late at the same time on an auto loan. The auto loan has been paid on time, every time since. I only wish that the foreclosure hadn't happened. I had a very messy divorce and the foreclosure at the time was the least of my worries. Child custody takes precedence over breathable oxygen I think.

 

Again, thanks for the help.

Message 3 of 5
RobertEG
Legendary Contributor

Re: Foreclosure Vs Score?

I hear you, Strugglin!

I also went through a messy divorce about 8 years ago, and learned. as you so well said, that major priorities in that messy slinging of arrows is rarely the consideration of FICO scores at the time of combat.  But a year, two, or five or more years from now, all of the secondary implications, such as FICO, come to roost.

There is not a single person on this site who has not experienced FICO problems.  Some have experienced them, overcome them to some degree, and wish to shaare their experiences with others.  Others who post are in the need of immeditate credit help.  This site brings the two together.

Message 4 of 5
BungalowMo
Senior Contributor

Re: Foreclosure Vs Score?

Greetings Strugglin!  I guess one way to gauge the impact of the forclosure might be when you buy your FICO's here.  Check both EQ & TU & on page 2, where you see the impact scale.  Check where this is sitting on the "Red" side.  The number, or placement that this is given can give some indication of importance.

 

If it had been #1 for a long time, but it's now #2, it's dropping.  It's not just the # that counts, but #? of how many.  The closer to the bottom of the list, the better.

 

Hope that helped.  Mo

BK 7 discharge 06.24.2020 No Fico score at all. Smiley Sad
Message 5 of 5
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