How Long Does a Foreclosure Stay on Your Credit Report?
A foreclosure stays on your credit report for seven years after the first missed mortgage payment that started the foreclosure. Foreclosure occurs when a lender takes possession of a home after a homeowner misses several months of payments. Record of a foreclosure remains on your credit report for seven years from the date of the first missed mortgage payment that led to the foreclosure action.
In addition to loss of the home, it can have long-lasting negative effects on the mortgage borrower’s credit and ability to secure a new loan. Foreclosure can drag down your credit scores the entire time it’s present, although its impact typically diminishes with time.
How a Foreclosure Affects Your Credit:
A foreclosure can put a serious dent in your credit. The missed payments that led to the foreclosure can severely damage your credit, and the foreclosure itself can add even more harm. Here’s an overview of how a foreclosure affects your credit.
Missed payments hurt your credit history.
Every missed payment is recorded on your credit report and has a significant negative effect on your credit score. A late payment shows up on your credit report when the payment is at least 30 days overdue. Subsequent late payments also will appear on your credit report. Late payments stay on your credit report for seven years.
Foreclosure stays on your credit report for seven years.
A foreclosure stays on your credit report for seven years from the date of the first missed payment that led to it, but its impact on your credit score will likely fade earlier than that.
Foreclosure may hurt your ability to get a new mortgage. Even after your credit score rebounds, a foreclosure on your credit report could hurt your ability to get a new mortgage. Lenders may not approve an application from someone whose credit report has an foreclosure on it. We can help you to save your credit score by short selling your home. Call us today!