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

[EW800]

Thanks again for keeping us in the loop in regard to your scores and such.  

I am not an expert, but from all that I have read, I believe you are correct.  A negative closed account should come off at the 7-ish year mark from DOFD - completely removed.  I believe an open account that has lates and such turns to a positive status after the 7 years.  Someone please correct me if I am wrong.  

Just confirming, is the mortgage/foreclosure account now showing $0 balance?  

Thanks again for sharing!

[JagerBombs89]

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@EW800 wrote:

Thanks again for keeping us in the loop in regard to your scores and such.  

I am not an expert, but from all that I have read, I believe you are correct.  A negative closed account should come off at the 7-ish year mark from DOFD - completely removed.  I believe an open account that has lates and such turns to a positive status after the 7 years.  Someone please correct me if I am wrong.  

Just confirming, is the mortgage/foreclosure account now showing $0 balance?  

Thanks again for sharing!

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DOFD is 12/2014 while the foreclosure finalized June 2015 ($0 balance).  Also, the account has not udpated on any CRA since June 2015.

[Revelate]

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@JagerBombs89 wrote:

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@EW800 wrote:

Thanks again for keeping us in the loop in regard to your scores and such.  

I am not an expert, but from all that I have read, I believe you are correct.  A negative closed account should come off at the 7-ish year mark from DOFD - completely removed.  I believe an open account that has lates and such turns to a positive status after the 7 years.  Someone please correct me if I am wrong.  

Just confirming, is the mortgage/foreclosure account now showing $0 balance?  

Thanks again for sharing!

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DOFD is 12/2014 while the foreclosure finalized June 2015 ($0 balance).  Also, the account has not udpated on any CRA since June 2015.

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That sounds about right; I don't know foreclosures but typically the DOFD is the month before you went 30+ days late on the last cycle leading to the account being charged off or in this case foreclosed.

Napkining it out:

Dec: 1+

Jan: 31+

Feb: 61+

Mar: 91+

Apr: 121+

May: 151+

June: Foreclosed

I don't recall your dates explicitly but that sounds reasonable?  I wouldn't expect a reporting date after 6/15 unless you did something to get the tradeline updated.

[JagerBombs89]

Revelate, that is correct.  Due date was Decemebr 1st with January putting me at the first 30 days.  For some reason, I didn't realize DOFD was the month before it went 30 days late, but it makes sense that I didn't pay December's bill.  What is amazing is that it will be the 1 year mark in 45 days! I will probably pull a 3B report here at MyFICO on January 15th just to see what happens when at the 1 year mark from getting a 30 day late and then every 6 months after that.

[JagerBombs89]

Here are the changes from the last couple months:

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 4 yrs -> 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

[NRB525]

Nice, back on the road to 800

[JagerBombs89]

And since it has been almost two months, here are the latest and greatest stats:

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 - (60 day late -> 1yr old)

Equifax 08 - 696              Experian8- 684          Trans 08  - 695

Equifax 04 - 680

[EW800]

Congrats on doing so well on your recovery! It is wonderful that you are so close to getting into the 700's so quickly!!

[JagerBombs89]

Thanks.  I figured I will be over 700 in the next 4 months, which is when the foreclosure turns 1 year old.

On a side note, I also just received a $6,500 on my Discover card!  This brings me to my highest limit of $19,300

[JagerBombs89]

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@Revelate wrote:

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@JagerBombs89 wrote:

Thanks for the insight Revelate as I completely forgot about bucketing. 

So on a unrelated note, I have been debating taking out a student loan.  My final school year will be the 2015-2016 sessions as I should be a graduate this time next year.  Both the original mortgage and refinance mortgage (foreclosure) are being reported as closed, no open auto loan, and no open personal loans.  Here are a couple background points I could use some thoughts on:

1)  I don't need the loan for the money.  It would be a federal subsudized loan so my understanding is it would be 4.29% interest and I wouldn't have to start making payments until 6 months after graduation.  In the mean time, the government pays all the interest until repayment starts.  Have I interpretted this correctly?

2)  Since I don't need the money for the loan, I am thinking of doing it just to have an open installment account on my credit report.

• I have two closed personal loans that should will drop in 2019 and 2020. 
• There are four closed auto loans that will drop in 2020, 2021, 2022, and 2024. 
• There are two closed mortgages that will drop in 2021 and 2025

3)  The maximum amount of the loan would be $5,500 for the 2015-2016 school year.  Let's assume I take the maximum and we ignore the fees.  This means $2,750 would disburse for Fall of 2015 and $2,750 would disburse Spring of 2016.  How do these loans report on your credit?  Is it one loan for $5,500 or would it show as two separate loans for $2,750 each? 

4) Overall, I don't see myself needing a loan anytime soon, besides the potential student loan.  I am not planning on buying another car or taking out any kind of loan for for at least the next 3 years (times might change by then).  If concern #3 reports as two separate loans, I would be apt to cut the amount in half so only one loan would report.  Keep in mind, I still have 5 credit cards that are open/active that have perfect payment history ranging from 1-7 years old.  AAoA is currently 5 years old.  My main concern is #2: considering I just had the foreclosure and the drop dates listed above, would you take out the student loan to have an open installment account and  compensate for account dropping primarily between 2019-2022? 

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If you're just doing it for FICO purposes, why not simply open up a $500 secured loan with either Alliant or SDFCU, then after it reports make a regular payment in the amount of ~$460 and then sit on it for a few years?

FICO 8 doesn't look at dollar value for this as near as I can tell, just some utilization metrics.  Solve a reindeer game as cheaply as possible; now if you're financing a SL because you're getting a better return on your money elsewhere, by all means go for it, but I wouldn't do it just for your report.

Thread that Jamie and I have been working on:

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Installment-tradeline-utilization-thread/...

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Just wanted to provide an update on this discussion.  So I originally had a $2,750 student loan disburse in the Fall of 2015 and it reported to the CB as such.  Just last month, the second half of that loan disbursed.  Today, I refreshed my CK reports fully expecting another student loan to appear.  Instead, the original student loan balance from 6 months ago went from $2,750 -> $5,500 and no new loan was reported.  Also, I just paid it down to 77% of the original balance so I could be under the 80% mark.