If foreclosure has ever been a part of your experience then in addition to affecting your home, you may have wondered if it could affect your credit history the answer is yes. The information that can show up on one of the three credit bureau reports can vary, but its good to know that theres a strong chance that something regarding your situation can show up there depending on your stage in the process. Lets take a closer look at how this works.
Whats on Your Credit Report
As you can imagine, just about everything is now reported to the three credit bureaus, including charge cards, loans, judgments against you, IRS liens, bankruptcy filings, information reported by collection agencies (unpaid utilities, phone, and cable bills), company inquiries, and yes, foreclosure proceedings. But even before you reach this point, the late payments and default on your loan are likely to already be having a negative affect on your credit history and score.
How Bad is a Foreclosure on My Report?
Well, if you compare it to a bankruptcy, its not quite as bad, but close especially for future mortgage lenders. Theyd rather see a bankruptcy with no defaults on a home loan than a foreclosure that will leave them unsure of whether you can be trusted to pay a mortgage with them. And because it can be a part of your credit history for up to 7 years, it may take a long time to recover from this situation.
If you feel that youre in danger of foreclosure and how it affects your credit history is important to you then its a good idea to take as many steps as possible make sure you keep your home. There are federal programs available that may be able to help you if youve defaulted on your loan. Or you may be able to speak directly with your lender to work out new loan terms to help you get back on your feet.
