Predictions on the degree of annhilation to FICO....

[Anonymous]

Hey, everybody.

I usually post on the General Credit board, but thought I would post here for a change...

Dh and I are in a really tough spot. I've written extensively on the subject, but basically we are considering either foreclosure, or BK for DH.

My question -- Have you been through a foreclosure, and what were the ramifications? Can't do a quit-claim or Deed-in-lieu, as there is a second on the house. We have had the house on the market about 70 days and have had two showings. Not looking too good.

I am wondering if a foreclosure were the only baddie on my CR, how bad would it be? Devastating? Or just merely horrible?

I've never been through anything like this, so any advice/first hand knowledge is mucho appreciato!

[Anonymous]

If a single 30 day late can do what it does to some folks, then a BK or foreclosure would likely be very devastating initially to one's score.

A foreclosure should be less damaging and the recovery time should be better than a BK, either 13 or 7.

If the house only in DH's name?

[fused]

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TexMontana wrote:

Hey, everybody.

I usually post on the General Credit board, but thought I would post here for a change...

Dh and I are in a really tough spot. I've written extensively on the subject, but basically we are considering either foreclosure, or BK for DH.

My question -- Have you been through a foreclosure, and what were the ramifications? Can't do a quit-claim or Deed-in-lieu, as there is a second on the house. We have had the house on the market about 70 days and have had two showings. Not looking too good.

I am wondering if a foreclosure were the only baddie on my CR, how bad would it be? Devastating? Or just merely horrible?

I've never been through anything like this, so any advice/first hand knowledge is mucho appreciato!

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With foreclosures, it depends on how it's reported by the lenders and if there are lates payments and balances. If the foreclosure is reported as a public record (less common), the damage would be similar to any other serious derog such as collection, CO (without a balance), BK, judgment, repo or 90+ day late.

If it reports as a derogatory trade line and it has lates and/or balances, this could be far more damaging...my guess, well over 100 points would be lost. Unlike the first scenario, balances can play a major factor in scoring with any derog TL. Public records are bad, but any balance it reports will NOT factor in FICO scoring, this is why derog TLs with balances can be worse.

[Anonymous]

The house is both names. What I am wondering -- I have "decent" - not great, just decent-- credit. If we go the FC route, yeah. I will be affected. If DH goes Bk, then I will still be liable for the house and would have to eventually go FC.

Ofcourse, we are hoping like h#ll that the stupid house will just sell....

[Anonymous]

I actually just read this yesterday.  Maybe it will help...

http://www.myfico.com/CreditEducation/Questions/Foreclosure-Credit-Score.aspx

[Anonymous]

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rebuilder wrote:

I actually just read this yesterday.  Maybe it will help...

http://www.myfico.com/CreditEducation/Questions/Foreclosure-Credit-Score.aspx

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Thank you -  that was very informative!