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About how much should I expect (if any) my credit score to drop once my foreclosure drops off in June. (TU report stated it would drop at this time). Once that and my bankruptcy items drop, I should only have one account with a past due (only 30 days) from over 4 years ago.
FICO can go either way. When is the open date of this mortgage? How old is your AAoA?
The open date was 6/2004 and the forclosure date was 8/2007. (I lost my job 2 years after opening it) What is an AAoA?
AAoA stands for average age of accounts. Your credit report probably shows this on one of the first pages.
The closest thing I could find was 21 years, but I don't think that's right.
@Anonymous wrote:The closest thing I could find was 21 years, but I don't think that's right.
Chances are, 21 years is the age of your oldest account.
If that's the case, then it's possible that your average age of your accounts may be older than the foreclosure. If that's the case, you should see an increase. If your foreclosure is one of your older accounts and is older than your average age of accounts, it could cause your average age to drop which could actually cause a decrease in your scores. Otherwise, I think you have a good chance of an increase, though there's no way to know how much of an increase we'd be talking about.
Good luck!
The date of foreclosure wouldn't enter into AAoA. Whether the foreclosure was 6 yrs ago or yesterday, the open date on the mortgage is the same.
OP, the mortgage is over 7 years old if the open date is 6/2004. If this account drops at 7 yrs from DOFD, or 7-7.5 years minus this coming June if so reported on TU, then there will be some sort of impact to your AAoA which can raise or lower your score on the history alone.
OP, you'd need to calculate AAoA. AAoA is the average age of ALL of your OC accounts, whether they are opened or closed, good or bad. There isn't enough info posted to determine AAoA. You'd calculate how many months each OC account has been opened through the end of this month. You'd then average the sum of those OC accounts and then divide 12 months into that to come up with an AAoA measured in years. FICO rounds down to the nearest whole number in calculating AAoA. To cheat, your FICO report might show this info on pages 2 or 3 of your FICO report. Other CMSs like CreditKarma or Equifax.com do show AAoA but they calculate it incorrectly and should be ignored.
You'd want to compare the 7.5-8 yr age of the mortgage in relation to AAoA. As mentioned, if the age of the mortgage is lower than your AAoA, then you could see a gain on that alone as AAoA could increase. Conversely, if the mortgage is one of your oldest accounts, and your AAoA is younger than 7.5-8 yrs, then you could actually see a decrease if the mortgage is removed. Other factors come into play outside of the history like mix, how the foreclosure reports, your scoring bucket, overall credit, etc.
Like the prev. poster, I think you'll see a net gain. It isn't your oldest account. You won't be rebucketed because the BK reports. I vote for a net gain.