topic Re: Home Foreclosures in General Credit Topics

Home Foreclosures

Anonymous — Thu, 24 Jan 2008 14:20:00 GMT

With all the foreclosures on homes, in the news at this time, I wondered what effect this has on a person's credit. How does it affect the Fico score ? How long will it remain on a persons credit history?

Re: Home Foreclosures

haulingthescoreup — Thu, 24 Jan 2008 18:04:09 GMT

Hi, Luci, welcome to the forums! I have moved your thread to General Credit, as it is dealing with the effect of foreclosure on credit scores and reports. You're right, it's all over the news these days, fighting for airtime with the stock market and the credit!

In the meantime, please read Credit Scoring 101. It's a great intro to what's on your reports, what makes up your scores, and how to improve both. The link is up at the top of this board, and also here:

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654

Re: Home Foreclosures

fused — Thu, 24 Jan 2008 19:11:58 GMT

A foreclosure will usually have a MAJOR negative impact to scores...similar to a collection, charge-off, judgment or a lien. It can get even worse if the foreclosure is reporting as a derogatory trade line (instead of a public record) with an outstanding balance and late payments.

Re: Home Foreclosures

Anonymous — Thu, 24 Jan 2008 19:14:48 GMT

Is there any difference between an actual foreclosure on your credit report, and the remark "Foreclosure process started" with no late history? Both are negative - but how much different?

Re: Home Foreclosures

Anonymous — Thu, 24 Jan 2008 21:23:07 GMT

I am curious about this, too. I had a rent house that went into the foreclosure process twice due to my renter not paying her rent. I pulled it out of the fire each time once I managed to collect rent and add on the legal fees. I sold the property 2 years ago. How bad does this still look on my credit report?