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Foreclosure

MTG_Special
New Visitor

Foreclosure

How much will someones credit score drop if they let a property go into foreclosure?  How long before the score goes back up if current fico is 750?
 
 
Message 1 of 11
10 REPLIES 10
fused
Moderator Emeritus

Re: Foreclosure

I'm moving this thread to the General Credit Issues Forum seeing there is no question involving a BK.
Message 2 of 11
fused
Moderator Emeritus

Re: Foreclosure

With a score this high, you could lose a lot of points depending on how it reports and if there is a large balance and past due amount showing. My guess is you will lose well over a 100.
Message 3 of 11
TheNewWorldMan
Valued Contributor

Re: Foreclosure

A foreclosure will deliver a nasty hit to your FICO score. However, treading water and falling late on multiple accounts over a period of months or a year is, in the long run, worse.

Start shoring up your credit position elsewhere. Make sure you have multiple revolving accounts (preferably at least three) that are current with low balances, reporting paid on time. If you have a car loan, make sure you stay up to speed on that.

Nothing will stop the 100 or so point hit that comes with a foreclosure, but by locking in good credit elsewhere, you will recover more quickly and robustly from the impact. But whatever you do, don't let your credit report get locked into the "Bad Credit Channel" where the foreclosure is one of the only lines of credit you have.

For other advice on defending your FICO score, read these boards and my Web site.
- - - -
in a credit-scoring postnuclear Stone Age...
Message 4 of 11
firstinlastout
Frequent Contributor

Re: Foreclosure

My wife is going through a foreclosure. Before she stopped missing payments, she got three new credit cards...two American Express cards and a Capital One card. She also bought a new 2008 Honda Civic. Now when her credit goes way down, she has a good foundation to work up back with. So my advice to you is to get some good cards and if you don't have a car loan or you HAVE a car loan and it will soon be paid off, get a brand new loan with a 5 year term. Good luck ! Things WILL get better
God is keeping score....be good to others.
Message 5 of 11
kimpossible
New Member

Re: Foreclosure

Hi there,
 
I'm in the beginning stages of the forclosure process and my first missed payment resulted in a 49 point loss. I did have a 770 score. I'm waiting to see what the second missed payment does to the score. I would definitly suggest that you get a car now if you might need one in the next few years.  I had a company car and they just pulled it. So I am scrambling trying to finance a new car before my fico score totally tanks. Since I've not been late on any other payments, I'm hoping that my good payment history with the car and credit cards will allow me to return to a decent FICO score in a couple of years.
Message 6 of 11
TheNewWorldMan
Valued Contributor

Re: Foreclosure

The car loan will count as an installment, which is good for your credit score (especially if you don't already have an installment open). But you've got the right idea: try and isolate the problem that caused the foreclosure and keep the rest of your credit in good standing.
- - - -
in a credit-scoring postnuclear Stone Age...
Message 7 of 11
fishbjc
Senior Contributor

Re: Foreclosure

I don't have advice, but I'd like to say *Sorry to hear this*.  I hope your scores recover quickly.  LIsten to the sound advice of the forum members and stick around for added support.
Message 8 of 11
gdtobefree
Established Contributor

Re: Foreclosure

Just my opinion here, DH filed chap 7 after a foreclosure, when he filed his score was 655.
Today he has a score of 643, he filed Chapt 7 in April of 07 and was dishcarged Dec 07.
 
Filing Chap 7 after a foreclosure will not hurt you as bad and having that forclosure on your record for 7 years.
 
After Chap 7 and a score of 643 he has a Chevron card with a 1k limit and a Cap one card with a 500 limit, the more payments he makes on time his score goes up 10 pts a month.
Message 9 of 11
amber78
Contributor

Re: Foreclosure

I was just wondering.. I filed ch 7 on two houses I owned (that are vacant with my ex).  Payments have not been made on either for about a year.  The bankruptcy is reporting and now the houses are about to go into foreclosure.. it appears that the foreclosure and the bk did not both hit your report?  Or are they both on there but the scores didjnt drop much??

I feel like its a bit of double jerapody. Im just attempting a fresh start with the bk and with two pending foreclosures I feel Im about to sink.

PAST SCORES: Experian FAKO
511 (12/01/13), 591E(05/02/14), 628 (05/07/2014)
CURRENT SCORE: 658 (08/15/2014)
Filed CH7 04/2014 & Discharged 08/2014
Goal Score: 720
In my wallet: CapitalOne Plat. $700 (07/2014), Capitalone QuickSilver $2,000 (09/2014)
Message 10 of 11
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