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From 800+ to Foreclosur​e - How Negatives Affect Your Score

Established Contributor

From 800+ to Foreclosur​e - How Negatives Affect Your Score

With the start of the new year, I made many life altering decision: attending more classes to get my bachelors, leaving the military service, and yes - leaving the 800 club for a foreclosure.  Before I missed my first payment, I paid off my auto loan, maitained 1% utilization on my credit cards, and set up an emergency fund for unexpected expenses.  But let me give you some quick background notes so it makes more sense. 

 

It has been over 18 months, every month, of making $1,200+ mortgage payments for a house that no one lived in.  My wife at the time decided to cause over $20,000 in damage when she moved out and left me with the cleanup.  Insurance wouldn't cover "intentional damage" and I didn't have the money to make the repairs.  Over the months I wanted to make sure I became financially secure no matter what.  My ex decided to leave the state mid-divorce (she represented herself) and since I am in a community property state, I would need her signature to sell the house.   Prior to not making my payment,  I tried for months to see what "other" options were available through my bank, but alas, community property stipulations wouldn't allow me to do ANY sort of sale on my own - even though I am the sole owner on the deed and mortgage.  So as of January 2015, I went from full time job to full time student, and now 30 days past due on my mortgage.  And instead of getting depressed about it, I decided I would turn my experience into a score update thread.  This way, the community can see how much damage each late does from 30 to 60 all the way to foreclosure.  I will update this thread every time I get my monthly FICO score updated.

  

Account Age as of January 2015:

Oldest: 7 years

AAoA: 4 years

Newest Account:  January 2015 (approved for Chase Freedom with best APR with 30 day late reporting Smiley Happy)

Number of Inquries: 1 on each bureau

 

FICO Scores as of 12/2014 - Absolutely no derogatories:

EQ04 - 790 / /  EX08 - 814  / /  TU08 - 829

 

FICO Scores as of 01/2015 - 30 Days Late Reporting:

EQ04 - 697  / /  EX08 - 702 / /  TU08 - 705

 

FICO Scores as of 02/2015 - 60 Days Late Reporting (all scoring models):

Equifax 08 - 633                Experian8 - 629                  TU08 - 640

EQ Home - 626                 EX Home- 651

EQ Auto 8 - 641                EX Auto 8 - 640

EQ Auto 5 - 658                EX Auto 2 - 682

EQ Bank8 - 652                EX Bank8 - 652

EQ Bank5 - 653                EX Bank2 - 691

 

FICO Scores as of 03/2015 - 90 Days Late Reporting (all scoring models):                                                  

Equifax 08 - 636               Experian8- 630            Trans 08  - 640

EQ Home - 622                EX Home - 638            TU Home - 648

EQ Auto 8 - 644               EX Auto 8 - 641           TU Auto8 -  646

EQ Auto 5 - 654               EX Auto 2 - 670           TU Auto4 -  661

EQ Bank8 - 653               EX Bank8 - 653           TU Bank8 - 662

EQ Bank5 - 649               EX Bank2 - 669           TU Bank4 - 662

 

FICO Scores as of 04/2015 - 120 Days Late Reporting (all scoring models):

Equifax 08 - 637               Experian8- 629            Trans 08  - 648

EQ Home - 625                EX Home - 638            TU Home - 636

EQ Auto 8 - 645               EX Auto 8 - 640           TU Auto8 -  654

EQ Auto 5 - 657               EX Auto 2 - 670           TU Auto4 -  650

EQ Bank8 - 656               EX Bank8 - 652           TU Bank8 - 670

EQ Bank5 - 652               EX Bank2 - 669           TU Bank4 - 653

 

FICO Scores as of 05/2015 - 150 Days Late Reporting/Foreclosure (all scoring models):

Equifax 08 - 636               Experian8- 636            Trans 08  - 657

EQ Home - 612                EX Home - 644            TU Home - 622

EQ Auto 8 - 644               EX Auto 8 - 647           TU Auto8 -  663

EQ Auto 5 - 646               EX Auto 2 - 675           TU Auto4 -  637

EQ Bank8 - 655               EX Bank8 - 659           TU Bank8 - 679

EQ Bank5 - 641               EX Bank2 - 622           TU Bank4 - 641

 

FICO Scores as of 06/2015 - Foreclosure Finalized/$0 balance:

Equifax 08 - 673               Experian8- 655            Trans 08  - 663

Equifax 04 - 645

 

FICO Scores as of 07/2015 - 1 Month Post-Foreclosure

Equifax 08 - 682               Experian8- 665            Trans 08  - 674

Equifax 04 - 662

 

FICO Scores as of 08/2015 - 2 Months Post-Foreclosure

Equifax 04 - 664               Experian8- 665            Trans 08  - 677

 

FICO Scores as of 09/2015 - 3 Months Post-Foreclosure (AAoA 5yrs -> 4yrs  New student loan)

Equifax 04 - 664               Experian8- 665           Trans 08  - 674

 

FICO Scores as of 10/2015 - 4 Months Post-Foreclosure (Oldest Account 7yrs -> 8yrs)

Equifax 04 - 670               Experian8- 665          Trans 08  - 679

 

FICO Scores as of 11/2015 - 5 Months Post-Foreclosure (AAoA 4yrs -> 5yrs)

Equifax 04 - 674               Experian8- 669          Trans 08  - 689

 

FICO Scores as of 12/2015 - 6 Months Post-Foreclosure (DOFD -> 1yr old)

Equifax 08 - 683               Experian8- 672          Trans 08  - 691

Equifax 04 - 674

 

FICO Scores as of 01/2016 - (30 day late -> 1yr old)

Equifax 08 - 693               Experian8- 684          Trans 08  - 695

Equifax 04 - 674

 

FICO Scores as of 02/2016

Equifax 08 - 696              Experian8- 684          Trans 08  - 695

Equifax 04 - 680

 

FICO Scores as of 03/2016

Equifax 08 - 706              Experian8- 688          Trans 08  - 699

Equifax 04 - 680

 

FICO Scores as of 04/2016

Equifax 08 - 706              Experian8- 688          Trans 08  - 699

Equifax 04 - 680

 

FICO Scores as of 05/2016

Equifax 08 - 704             Experian8- 684          Trans 08  - 699

Equifax 04 - 680

 

FICO Scores as of 06/2016 - (all scoring models):

Equifax 08 - 704               Experian8- 688            Trans 08  - 700

EQ Home - 680                EX Home - 719            TU Home - 701

EQ Auto 8 - 732               EX Auto 8 - 718           TU Auto8 -  723

EQ Auto 5 - 702               EX Auto 2 - 706           TU Auto4 -  713

EQ Bank8 - 721               EX Bank8 - 705            TU Bank8 - 722

EQ Bank5 - 700               EX Bank2 - 714            TU Bank4 - 732

Equifax 09 - 741               Experian9-  727           Trans 09  -  741

EQ Auto 9 - 751               EX Auto 9 - 738            TU Auto9 - 750

EQ Bank9 - 747                EX Bank9 - 738           TU Bank9-  744

 

FICO Scores as of 07/2016

Equifax 08 - 709             Experian8- 688          Trans 08  - 701

Equifax 04 - 685

 

FICO Scores as of 08/2016

Equifax 04 - 685            Experian8- 688          Trans 08  - 702

 

FICO Scores as of 09/2016

Equifax 04 - 685            Experian8- 693          Trans 08  - 704

 

FICO Scores as of 10/2016

Equifax 04 - 695            Experian8- 693          Trans 08  - 703

 

FICO Scores as of 11/2016

Equifax 04 - 707            Experian8- 693          Trans 08  - 704

 

FICO Scores as of 12/2016

Equifax 04 - 707            Experian8- 694         Trans 08  - 705

 

FICO Scores as of 01/2017

Equifax 04 - 707            Experian8- 699         Trans 08  - 706

 

FICO Scores as of 02/2017

Equifax 04 - 704            Experian8- 699         Trans 08  - 706

 

FICO Scores as of 03/2017

Equifax 04 - 704            Experian8- 701         Trans 08  - 707

 

FICO Scores as of 04/2017

Equifax 04 - 704           Experian8- 701         Trans 08  - 707

 

FICO Scores as of 05/2017

Equifax 04 - 704           Experian8- 701         Trans 08  - 709

Equifax 09 - 755

 

FICO Scores as of 06/2017 (2 years since foreclosure finalized)

Equifax 04 - 704           Experian8- 712         Trans 08  - 711

 

FICO Scores as of 07/2017

Equifax 04 - 714           Experian8- 713         Trans 08  - 713

Equifax 09 - 755

 

FICO Scores as of 08/2017

Equifax 04 - 714           Experian8- 724         Trans 08  - 723

 

FICO Scores as of 09/2017

Equifax 04 - XXX           Experian8- 725         Trans 08  - XXX

Equifax 09 - 781

165 REPLIES
Moderator

Re: From 800+ to Foreclosure - How Negatives Effect Your Score

Wow that sucks dude.

 

Are you divorced at this point?  I had thought usually one spouse had to refinance the house (or otherwise pay out of assets) to get full control over it in a community property state?  Would think there's a different way this should be approached rather than just letting the mortgage loan burn.

 

If it's a money issue maybe a CH 13 might be in the cards, I really don't know the options well enough but I know I'd be talking to lawyers before I went down the road you're planning on.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Established Contributor

Re: From 800+ to Foreclosure - How Negatives Effect Your Score

No the divorce hasn't finalized as she has moved half way across the US and keeps playing games with my lawyer and the courts and drawing it out.  It is my firm belief she's been delaying due to receiving all the military benefits of a spouse (free health insurance, etc.)  If I was asking the court to award HER the house, then she would have had to refinance it.  But she doesn't like working so she wouldn't meet income requirements.

 

As for a CH13, I don't really see me holding onto the house while I just became a student.  Especially since I would still have to pay for repairs and the monthly payment.

Super Contributor

Re: From 800+ to Foreclosure - How Negatives Effect Your Score

Sorry to hear about your troubles OP. Divorce is stressful enough when the ex's communicate.

 

Is the house in a non-recourse state, or a recourse state? This is important because a recourse state allows the lender to go to court to get a deficiency judgement against the owners. Florida, for example, is a recourse state, which leads to the huge foreclosure backlog they had/have because each foreclosure has to get a judge to sign off. Non-recourse states usually have a template of simple steps to go through where the lender takes back the house and cannot go after the owners for additional funds.

 

Who is monitoring the house to minimize further damage?

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727 FICO Simulator 2014: $20k balances = 812 FICO.
March 2017 $20k on $300k 6% util EQ 824 TU 824 EX 815

5 / 24 counting down to 1 Nov 2017... wait I guess it's 18 Dec 2017 to get 4/24
Established Contributor

Re: From 800+ to Foreclosure - How Negatives Effect Your Score


JagerBombs89 wrote:

With the start of the new year, I made many life altering decision: attending more classes to get my bachelors, leaving the military service, and yes - leaving the 800 club for a foreclosure.  Before I missed my first payment, I paid off my auto loan, maitained 1% utilization on my credit cards, and set up an emergency fund for unexpected expenses.  But let me give you some quick background notes so it makes more sense. 

 

It has been over 18 months, every month, of making $1,200+ mortgage payments for a house that no one lived in.  My wife at the time decided to cause over $20,000 in damage when she moved out and left me with the cleanup.  Insurance wouldn't cover "intentional damage" and I didn't have the money to make the repairs.  Over the months I wanted to make sure I became financially secure no matter what.  My ex decided to leave the state mid-divorce (she represented herself) and since I am in a community property state, I would need her signature to sell the house.   Prior to not making my payment,  I tried for months to see what "other" options were available through my bank, but alas, community property stipulations wouldn't allow me to do ANY sort of sale on my own - even though I am the sole owner on the deed and mortgage.  So as of January 2015, I went from full time job to full time student, and now 30 days past due on my mortgage.  And instead of getting depressed about it, I decided I would turn my experience into a score update thread.  This way, the community can see how much damage each late does from 30 to 60 all the way to foreclosure.  I will update this thread every time I get my monthly FICO score updated.

 

Account Age:

Oldest: 7 years

AAoA: 4 years (rough estimate)

Newest: 1 Month (approved for Chase Freedom with best APR with 30 day late reporting Smiley Happy)

 

Starting FICO Scores as of 12/2014 - Absolutely no derogatories:

EX08 - 814

EQ04 - 790

TU08 - 829

 


I'm going to be the one to point out the elephant in the room...is this point in time the best time to cut your income and go back to school?

I'm all for continuing education - I'm 41 and take online courses from my college and do them at night. You have financial responsibilties, I'm sure in addition to a mortgage you have some revolving accounts with balances?

Changing your life is great if it's what you want but doing it responsibly is also important. I don't know if it's too late but please reconsider and make sure this is the best way to do this. You are "only" 30-Days late at this point and this can be turned around and with other planning you don't need to do it this way.

I'm not judging but I think you really need to determine if this is the best way to do this. You can go back to school but why not wait, keep your job, continuing paying on your financial obligations, and sell the house. I understand that it is difficult with your wife MIA but I don't believe that there is no way around that - talk to a lawyer. I highly doubt that the "system" will allow you to defualt on a mortgage simply becuase your wife is unwilling to deal with her obligations. I assume you could file a motion and a judge could vacate your wife from the mortgage note in absentia (if not that way some other way, I'm not a lawyer but I really doubt you can't get around this wife not doing anything, take it to a lawyer, take it to court, let a judge make a decision). I know you have to ability to plan as you seem to be planning for a defualt and perhaps a BK. Once more, I stress that you speak to a lawyer, I stress that you reconsider not working, there is another way to do this.

Think about this.

758 TU FICO 08 (09/01/2017)
758 TU FICO 08 (01/12/2016)
753 TU FICO 08 (11/21/2015)
740: EQ Score Power (Beacon 5.0) FICO 04 (01/23/2015)
755 TU FICO 08 (01/21/2015)
652 TU Lender Pull (06/10/2014)
665 TU FICO 08 (05/21/2014)
Goal: 800+
Super Contributor

Re: From 800+ to Foreclosure - How Negatives Effect Your Score

Let's stick to the issues directly addressable. Decisions about life choices are not really something we can comment on.

 

If there has been no way to get complete participation by the ex to resolve this, and this is not the OP primary residence, then there may need to be the drastic action OP is taking.

 

As I've noted elsewhere, cash flow takes precedence over any FICO score considerations. This house is a big cash flow consideration that is best resolved soon so that the OP can get on with life.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727 FICO Simulator 2014: $20k balances = 812 FICO.
March 2017 $20k on $300k 6% util EQ 824 TU 824 EX 815

5 / 24 counting down to 1 Nov 2017... wait I guess it's 18 Dec 2017 to get 4/24
Established Contributor

Re: From 800+ to Foreclosure - How Negatives Effect Your Score


NRB525 wrote:

Let's stick to the issues directly addressable. Decisions about life choices are not really something we can comment on.

 

If there has been no way to get complete participation by the ex to resolve this, and this is not the OP primary residence, then there may need to be the drastic action OP is taking.

 

As I've noted elsewhere, cash flow takes precedence over any FICO score considerations. This house is a big cash flow consideration that is best resolved soon so that the OP can get on with life.


I'm going to disagree, I think my point speaks directly to the issue. The actions being taken here/considered here will lead directly to what this forum is all about. "Life decisions are not really something we can comment on"? We comment on life decisions on this board everyday, choosing what to spend money on with credit cards, how to pay loans off, how to go through BK - these are all life decisions.

 

Has the OP spoken to a lawyer specifically about his financial obligations with regard to the mortgage? I don't think it was confirmed. I am not telling the OP to do or not do any specific action other than to make sure that the OP has all the info required to make a decision as drastic as this. If the OP has not spoken to a lawyer than all the info is not available. You, I, nor the OP know what the legal possibilities are here. All I'm saying is get all the information prior to making a decision such as this.

I knew my point was not going to be liked but I stand behind it, respectfully. I will no longer comment on my point as all my intent was to bring up the point and the ensure ALL options were considered, especially those that we don;t know about, but a lawyer may.

758 TU FICO 08 (09/01/2017)
758 TU FICO 08 (01/12/2016)
753 TU FICO 08 (11/21/2015)
740: EQ Score Power (Beacon 5.0) FICO 04 (01/23/2015)
755 TU FICO 08 (01/21/2015)
652 TU Lender Pull (06/10/2014)
665 TU FICO 08 (05/21/2014)
Goal: 800+
Super Contributor

Re: From 800+ to Foreclosure - How Negatives Effect Your Score


tufa4311 wrote:

NRB525 wrote:

Let's stick to the issues directly addressable. Decisions about life choices are not really something we can comment on.

 

If there has been no way to get complete participation by the ex to resolve this, and this is not the OP primary residence, then there may need to be the drastic action OP is taking.

 

As I've noted elsewhere, cash flow takes precedence over any FICO score considerations. This house is a big cash flow consideration that is best resolved soon so that the OP can get on with life.


I'm going to disagree, I think my point speaks directly to the issue. The actions being taken here/considered here will lead directly to what this forum is all about. "Life decisions are not really something we can comment on"? We comment on life decisions on this board everyday, choosing what to spend money on with credit cards, how to pay loans off, how to go through BK - these are all life decisions.

 

Has the OP spoken to a lawyer specifically about his financial obligations with regard to the mortgage? I don't think it was confirmed. I am not telling the OP to do or not do any specific action other than to make sure that the OP has all the info required to make a decision as drastic as this. If the OP has not spoken to a lawyer than all the info is not available. You, I, nor the OP know what the legal possibilities are here. All I'm saying is get all the information prior to making a decision such as this.

I knew my point was not going to be liked but I stand behind it, respectfully. I will no longer comment on my point as all my intent was to bring up the point and the ensure ALL options were considered, especially those that we don;t know about, but a lawyer may.


Understood, but your first line in your first post was:

I'm going to be the one to point out the elephant in the room...is this point in time the best time to cut your income and go back to school?

 

That is a life choice not relevant to FICO scoring. It is relevant to having resources to pay bills, for certain, but there are many factors that would lead to this decision that we don't have access to.

 

The rest of the questions / comments we are trying to understand relate directly to the question of how to handle the mortgage. My question about recourse vs non-recourse is critical. If it is a non-recourse state, in my mind it is an easy decision to monitor the house, not make the payments, and the bank has to pick up the pieces, FICO scores be da##ed. If the state is recourse, on the other hand, that is an entirely different kettle of fish, stinky fish, requiring OP to be much more involved in the process to protect his interests.

 

I think we both agree the OP needs to work with a lawyer to get through this. It would also be helpful to get the ex to participate, but we sometimes face challenges with getting people to take responsibility for their actions and just have to make the best of it, including triggering a crisis, such as stopping payments, to get things resolved. Not that that applies in all cases, but it is a legitimate tactic to consider.

 

Cheers!

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727 FICO Simulator 2014: $20k balances = 812 FICO.
March 2017 $20k on $300k 6% util EQ 824 TU 824 EX 815

5 / 24 counting down to 1 Nov 2017... wait I guess it's 18 Dec 2017 to get 4/24
Established Contributor

Re: From 800+ to Foreclosure - How Negatives Effect Your Score

I agree, to consider, while ensuring one is fully informed.
On a side note, this is why this board is awesome, we have informed people *fighting* to help each other Smiley Happy
758 TU FICO 08 (09/01/2017)
758 TU FICO 08 (01/12/2016)
753 TU FICO 08 (11/21/2015)
740: EQ Score Power (Beacon 5.0) FICO 04 (01/23/2015)
755 TU FICO 08 (01/21/2015)
652 TU Lender Pull (06/10/2014)
665 TU FICO 08 (05/21/2014)
Goal: 800+
Established Contributor

Re: From 800+ to Foreclosure - How Negatives Effect Your Score


NRB525 wrote:

Sorry to hear about your troubles OP. Divorce is stressful enough when the ex's communicate.

 

Is the house in a non-recourse state, or a recourse state? This is important because a recourse state allows the lender to go to court to get a deficiency judgement against the owners. Florida, for example, is a recourse state, which leads to the huge foreclosure backlog they had/have because each foreclosure has to get a judge to sign off. Non-recourse states usually have a template of simple steps to go through where the lender takes back the house and cannot go after the owners for additional funds.

 

Who is monitoring the house to minimize further damage?




tufa4311 wrote:

I'm going to be the one to point out the elephant in the room...is this point in time the best time to cut your income and go back to school?

I'm all for continuing education - I'm 41 and take online courses from my college and do them at night. You have financial responsibilties, I'm sure in addition to a mortgage you have some revolving accounts with balances?

Changing your life is great if it's what you want but doing it responsibly is also important. I don't know if it's too late but please reconsider and make sure this is the best way to do this. You are "only" 30-Days late at this point and this can be turned around and with other planning you don't need to do it this way.

I'm not judging but I think you really need to determine if this is the best way to do this. You can go back to school but why not wait, keep your job, continuing paying on your financial obligations, and sell the house.


@NRB525 The house is located in a non-recourse state but it is a VA loan.  Right now, there would have been 20% equity if there were no damages.  So I guess we'll see how much the damages affects the actual market value.  As far as damages, I frequent the house to ensure it's not being further damaged.  My alarm is also active 24/7 and it's in a good neighborhood so I am not too worried.

 

@tufa4311 Sinking $1,200+ a month into the house without any light at the end of the tunnel would just seem foolish to me.  I've already done that for months and months and spent well over $30k just in maintaining the mortgage.  I was able to save money every month when I was actually living in the house.  But now, I used to pay the mortgage AND still find another place to live with all the monthly expenses.  Needless to say, the military doesn't pay enough to maintain two houses, everyday living, and have a savings.  

 

As far as keeping my job, well, I decided I was going to leave the military three years ago (the day I re-enlisted).  This pre-dated any damage to the house and I figured I would have been able to sell it before I left.  So keeping my job wasn't an option - especially if the only reason was to maintain a mortgage.  And just so you know, once the divorce would have finalized, you lose your housing allowance which means I still would have to make my mortgage payment, but the I truly wouldn't have the money to do so and I would be looking at a deed-in-lieu/shortsale/foreclosure anyways.

 

And like I mentioned in my first post: I don't have a car note and my current balance across all my cards is $100.  My cash flow is really restricted to just everyday living - minus the mortgage.  Without the mortgage, I get paid enough to attend school and still put away some into savings.  It's not that I just woke up last week and decided to stop paying the mortgage - this has been considered for over a year now.