topic Re: From 800+ to Foreclosure - How Negatives Effect Your Score in Understanding FICO® Scoring

From 800+ to Foreclosure - How Negatives Affect Your Score

JagerBombs89 — Tue, 08 Dec 2020 00:47:48 GMT

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 )

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 - 714 Experian8- 725 Trans 08 - 723

Equifax 09 - 781

FICO Scores as of 10/2017

Equifax 04 - 714 Experian8- 725 Trans 08 - 724

FICO Scores as of 11/2017

Equifax 04 - 715 Experian8- 725 Trans 08 - 724

Equifax 09 - 781

FICO Scores as of 12/2017

Equifax 04 - 715 Experian8- 725 Trans 08 - 724

FICO Scores as of 01/2018

Equifax 04 - 715 Experian8- 725 Trans 08 - 713

Equifax 09 - 782

FICO Scores as of 02/2018

Equifax 04 - 717 Experian8- 711 Trans 08 - 708

FICO Scores as of 03/2018 (New auto loan @ 1.74% & credit card)

Equifax 04 - 717 Experian8- 699 Trans 08 - 689

Equifax 09 - 769

FICO Scores as of 04/2018

Equifax 04 - 717 Experian8- 695 Trans 08 - 690

FICO Scores as of 05/2018

Equifax 04 - 717 Experian8- 699 Trans 08 - 694

Equifax 09 - 745

FICO Scores as of 06/2018 (Foreclosure 3 years old)

Equifax 04 - 717 Experian8- 712 Trans 08 - 706

FICO Scores as of 07/2018

Equifax 04 - 717 Experian8- 712 Trans 08 - 718

Equifax 09 - 758

FICO Scores as of 08/2018

Equifax 04 - 717 Experian8- 712 Trans 08 - 715

FICO Scores as of 09/2018

Equifax 04 - 717 Experian8- 713 Trans 08 - 718

Equifax 09 - 770

FICO Scores as of 10/2018

Equifax 04 - 717 Experian8- 717 Trans 08 - 715

Equifax 09 - 770

FICO Scores as of 11/2018

Equifax 04 - 721 Experian8- 717 Trans 08 - 715

Equifax 09 - 770

FICO Scores as of 12/2018

Equifax 04 - 721 Experian8- 716 Trans 08 - 715

Equifax 09 - 770

FICO Scores as of 01/2019

Equifax 04 - 733 Experian8- 716 Trans 08 - 707

Equifax 09 - 771

FICO Scores as of 02/2019

Equifax 04 - 733 Experian8- 717 Trans 08 - 721

Equifax 09 - 771

FICO Scores as of 03/2019

Equifax 04 - 733 Experian8- 718 Trans 08 - 710

Equifax 09 - 772

FICO Scores as of 04/2019

Equifax 04 - 733 Experian8- 723 Trans 08 - 722

Equifax 09 - 772

FICO Scores as of 05/2019

Equifax 04 - 733 Experian8- 723 Trans 08 - 711

Equifax 09 - 774

FICO Scores as of 06/2019

Equifax 04 - 733 Experian8- 724 Trans 08 - 711

Equifax 09 - 774

FICO Scores as of 07/2019 - (all scoring models):

TU & EX 1x inquiry each
1% overall UTIL
All cards but 1 w/ $0 balance
1x Auto loan @ 73% loan/balance ratio
Oldest Account: 11 years
AAoA - 7 years
AoYA - 1 year

Equifax08 - 721 Experian8- 724 Trans 08 - 713

EQ Home - 733 EX Home - 722 TU Home - 714

EQ Auto 8 - 749 EX Auto 8 - 753 TU Auto8 - 745

EQ Auto 5 - 754 EX Auto 2 - 738 TU Auto4 - 737

EQ Bank8 - 738 EX Bank8 - 740 TU Bank8 - 736

EQ Bank5 - 746 EX Bank2 - 746 TU Bank4 - 743

Equifax 09 - 774 Experian9- 779 Trans 09 - 767

EQ Auto 9 - 780 EX Auto 9 - 789 TU Auto9 - 775

EQ Bank9 - 776 EX Bank9 - 783 TU Bank9- 772

FICO Scores as of 08/2019

Equifax 04 - 733 Experian8-724 Trans 08 - 721

Equifax 09 - 774

FICO Scores as of 09/2019 - (Foreclosure deleted from TU)

Equifax 04 - 713 Experian8- 724 Trans 08 - 807

Equifax 09 - 774

FICO Scores as of 10/2019 - (all scoring models):

TU & EX 1x inquiry each
1% overall UTIL
All cards but 1 w/ $0 balance
1x Auto loan @ 65% loan/balance ratio
Oldest Account: 12 years
AAoA - 7 years (94 months) on TU & EX / 8 years on EQ
AoYA - 1.5 years

Equifax08 - 826 Experian8- 724 Trans 08 - 808

EQ Home - 809 EX Home - 725 TU Home - 800

EQ Auto 8 - 844 EX Auto 8 - 753 TU Auto8 - 826

EQ Auto 5 - 827 EX Auto 2 - 743 TU Auto4 - 830

EQ Bank8 - 848 EX Bank8 - 740 TU Bank8 - 831

EQ Bank5 - 828 EX Bank2 - 749 TU Bank4 - 833

Equifax09 - 820 Experian9- 779 Trans 09 - 809

EQ Auto 9 - 843 EX Auto 9 - 789 TU Auto9 - 823

EQ Bank9 - 831 EX Bank9 - 783 TU Bank9- 821

FICO Scores as of 11/2019

Equifax 04 - 809 Experian8- 728 Trans 08 - 808

Equifax 09 - 820 Experian3- 721

FICO Scores as of 12/2019

Equifax 04 - 809 Experian8- 728 Trans 08 - 815

Equifax 09 - 820

FICO Scores as of 01/2020

Equifax 04 - 809 Experian8- 728 Trans 08 - 811

Equifax 09 - 820

FICO Scores as of 02/2020

Equifax 04 - 809 Experian8- 728 Trans 08 - 811

Equifax 09 - 820

FICO Scores as of 03/2020

Equifax 04 - 809 Experian8- 728 Trans 08 - 811

Equifax 09 - 820

FICO Scores as of 04/202020

Equifax 04 - 812 Experian8- 730 Trans 08 - 825

Equifax 09 - 820

FICO Scores as of 05/2020

Equifax 04 - 812 Experian8- 730 Trans 08 - 825

Equifax 09 - 820 Experian9- 780

FICO Scores as of 06/2020

Equifax 04 - 812 Experian8- 730 Trans 08 - 825

Equifax 09 - 820 Experian9- 780

FICO Scores as of 07/2020

Equifax 04 - 812 Experian8- 730 Trans 08 - 825

Equifax 09 - 820 Experian9- 783

FICO Scores as of 08/2020

Equifax 04 - 812 Experian8- 730 Trans 08 - 836

Equifax 09 - 819 Experian9- 777

FICO Scores as of 09/2020

Equifax 04 - 812 Experian8- 730 Trans 08 - 829

Equifax 09 - 820 Experian9- 783

FICO Scores as of 10/2020 - (all scoring models):

All 0 Inquiries
All 1% overall UTIL
Credit Cards - AZEO
1x Auto loan @ 16% loan/balance ratio
Oldest Account: All 13 years
AAoA - All 8 years (rounded down)
AoYA - All 2.5 years

Equifax08 - 838 Experian8- 736 Trans 08 - 829

EQ Home - 812 EX Home - 746 TU Home - 819

EQ Auto 8 - 859 EX Auto 8 - 770 TU Auto8 - 855

EQ Auto 5 - 830 EX Auto 2 - 765 TU Auto4 - 860

EQ Bank8 - 860 EX Bank8 - 751 TU Bank8 - 858

EQ Bank5 - 833 EX Bank2 - 766 TU Bank4 - 851

Equifax09 - 822 Experian9- 784 Trans 09 - 822

EQ Auto 9 - 845 EX Auto 9 - 794 TU Auto9 - 840

EQ Bank9 - 833 EX Bank9 - 787 TU Bank9- 834

FICO Scores as of 11/2020

Equifax 04 - 811 Experian8- 739 Trans 08 - 842

Equifax 09 - 822 Equifax08- 850

FICO Scores as of 12/2020

Equifax08 - 850 Experian8- 739 Trans 08 - 842

EQ Home - 811 EX Home - 746 TU Home - 819

EQ Auto 8 - 876 EX Auto 8 - 773 TU Auto8 - 879

EQ Auto 5 - 829 EX Auto 2 - 765 TU Auto4 - 857

EQ Bank8 - 877 EX Bank8 - 756 TU Bank8 - 877

EQ Bank5 - 830 EX Bank2 - 766 TU Bank4 - 851

Equifax09 - 847 Experian9- 799 Trans 09 - 846

EQ Auto 9 - 871 EX Auto 9 - 807 TU Auto9 - 864

EQ Bank9 - 857 EX Bank9 - 799 TU Bank9- 857

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

Revelate — Sun, 25 Jan 2015 07:52:07 GMT

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.

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

JagerBombs89 — Sun, 25 Jan 2015 08:10:56 GMT

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.

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

NRB525 — Sun, 25 Jan 2015 08:31:45 GMT

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?

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

tufa4311 — Sun, 25 Jan 2015 17:25:50 GMT

@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 )

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.

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

NRB525 — Sun, 25 Jan 2015 17:33:24 GMT

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.

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

tufa4311 — Sun, 25 Jan 2015 17:57:29 GMT

@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.

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

NRB525 — Sun, 25 Jan 2015 18:32:56 GMT

@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!

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

tufa4311 — Sun, 25 Jan 2015 18:59:44 GMT

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

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

JagerBombs89 — Sun, 25 Jan 2015 20:21:18 GMT

@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.

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

cashnocredit — Sun, 25 Jan 2015 21:08:49 GMT

You might consider taking out a secured card now. It is the least likely to get closed and that has a high probability of happening. This will help keep your scores high and speedd dup your recovery after the house is foreclosed.

While what you are facing is bad and I wish it was otherwise, posting your experiences through this could be enormously helpful to others. We almost only get to see the recovery process and most people recovering hadn't planned on what they would do before that. You have a chance to minimize the damage and explain that to others. It's really a very nice and valuable gesture.

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

JagerBombs89 — Sun, 25 Jan 2015 21:36:03 GMT

@cashnocredit wrote:
You might consider taking out a secured card now. It is the least likely to get closed and that has a high probability of happening. This will help keep your scores high and speedd dup your recovery after the house is foreclosed.

While what you are facing is bad and I wish it was otherwise, posting your experiences through this could be enormously helpful to others. We almost only get to see the recovery process and most people recovering hadn't planned on what they would do before that. You have a chance to minimize the damage and explain that to others. It's really a very nice and valuable gesture.

Thanks for bringing up this point. I thought there was a law passed that prohibited creditors from implementing adverse action based on derogatories from other companies? (Example: Chase closing out all your cards if you defaulted on American Express) Any insight would be great.

On a second thought, do you think it would be beneficial to call my creditors to give them a heads up and see if they will react? 3 cards have been open for 5-7 years without ever missing a payment or being late, 2 cards for 4 years, and 1 card for 1 year.

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

cashnocredit — Sun, 25 Jan 2015 22:21:30 GMT

@JagerBombs89 wrote:
@cashnocredit wrote:
You might consider taking out a secured card now. It is the least likely to get closed and that has a high probability of happening. This will help keep your scores high and speedd dup your recovery after the house is foreclosed.

While what you are facing is bad and I wish it was otherwise, posting your experiences through this could be enormously helpful to others. We almost only get to see the recovery process and most people recovering hadn't planned on what they would do before that. You have a chance to minimize the damage and explain that to others. It's really a very nice and valuable gesture.
Thanks for bringing up this point. I thought there was a law passed that prohibited creditors from implementing adverse action based on derogatories from other companies? (Example: Chase closing out all your cards if you defaulted on American Express) Any insight would be great.

On a second thought, do you think it would be beneficial to call my creditors to give them a heads up and see if they will react? 3 cards have been open for 5-7 years without ever missing a payment or being late, 2 cards for 4 years, and 1 card for 1 year.

Nope. The CARD act did prohibit universal default but creditors can and do close accounts if other accounts are sufficiently negative like they have always done. What was prohibited was interest rate jacking on existing balances or using a default on other cards to declare a default and accelerate a balance on good accounts.

As for a "heads up" I wouldn't do that. Just continue to pay them. There is something called "strategic default" where people typically have sterling credit but stop mortgage payments becuase they are way underwater on their home. That isn't precisely your case but it will look like that to the analyst. These people typically will pay their credit cards. This is reversal of conventional wisdom where they see any sign of a late mortgage as indicating you are in over your head on all debt. As a result of this change in behavior you may be better off than had you done this in 2005.

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

JagerBombs89 — Tue, 03 Feb 2015 03:29:05 GMT

I have updated my first post as I got an update with EQ and TU with the 30 day late reporting. TU08 took a 124 point hit and EQ04 took a 93 point hit. Waiting on Amex to update my EX08 score so I can post those results as well.

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

Revelate — Tue, 03 Feb 2015 03:36:37 GMT

@JagerBombs89 wrote:
I have updated my first post as I got an update with EQ and TU with the 30 day late reporting. TU08 took a 124 point hit and EQ04 took a 93 point hit. Waiting on Amex to update my EX08 score so I can post those results as well.

You're one of the lucky ones with access to the Amex FICO score? Did it get confirmed as EX 08?

Anyway I do appreciate your posting your score changes as the lates come rolling in... crappy situation and that 100 point hit for a new 30 day late is pretty brutal.

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

JagerBombs89 — Tue, 03 Feb 2015 03:52:00 GMT

Yea got access to Amex FICO in November. Per the disclaimer: "The FICO® Score we provide is the FICO® Score 8 based on data from Experian and may be different from other credit scores."

According to FICO, a person with a 780 will drop to around 650 with a 90-day late and a 620 with a foreclosure. Curious to see if that still holds true.

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

jamie123 — Tue, 03 Feb 2015 04:54:24 GMT

You need to get out in front of this. If you REALLY want this to happen you need to talk to a lawyer and have him talk to the bank about voluntarily giving the house back. Don't wait until you do the 30, 60, 90 and 120 day lates and force the bank's hand. (You might need to if they won't voluntarily take the house back.) If you just let it run its course naturally it might be 2 years from now before you are actually foreclosed on.

Two years is a long time to absolutely be out of the credit market. This means that you can't really start rebuilding your credit for two long years.

As long as you pay your credit cards on time I don't think you will lose them. I wouldn't tell any of them about the foreclosure. Nothing good would come of it.

It is vital that you start building a nest egg because in an emergency that will be all you have to fall back on.

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

JagerBombs89 — Tue, 03 Feb 2015 06:51:01 GMT

@jamie123 wrote:
You need to get out in front of this. If you REALLY want this to happen you need to talk to a lawyer and have him talk to the bank about voluntarily giving the house back. Don't wait until you do the 30, 60, 90 and 120 day lates and force the bank's hand. (You might need to if they won't voluntarily take the house back.) If you just let it run its course naturally it might be 2 years from now before you are actually foreclosed on.

Two years is a long time to absolutely be out of the credit market. This means that you can't really start rebuilding your credit for two long years.

As long as you pay your credit cards on time I don't think you will lose them. I wouldn't tell any of them about the foreclosure. Nothing good would come of it.

It is vital that you start building a nest egg because in an emergency that will be all you have to fall back on.

Bank has already told me they won't (can't) due anything due to community property laws. Plus a short sale/deed-in-lieu/foreclosure pretty much have equal impact on FICO. Correct me if I am wrong but DOFD is still going to be Jan 2015, so it doesn't matter if they foreclose in two months or two years?

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

Anonymous — Tue, 03 Feb 2015 07:16:18 GMT

Sorry to hear this. Sounds like you're thought it through and it is your desicison. I'm assuming you're young & you can rebound from this. Going back to school is always a good choice IMO. Especially in these times. Good luck on your journey & I will follow you're story. Always think positive and there is a light at the end of the tunnel. I can vouch for it!

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

Anonymous — Wed, 04 Feb 2015 17:03:53 GMT

About 5 years ago I went through an intentional foreclosure as well due to returning to school after living out of state for several years and pumping money into an underwater mortgage that was underwater and severely damaged by a previous tenant. My one regret was not pulling the trigger on dumping the house earlier. OP, it sucks to have happen, but you'll be fine in the long run and probably sleep better at night without that payment hanging over your head. Good luck.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

From 800+ to Foreclosure - How Negatives Affect Your Score