How Long Does A Foreclosure Affect Your Credit?
Foreclosures are often financially devastating for those that fall victim to them. Far from the least of the problems that foreclosure will inevitably lead to is the negative impact on the victim’s credit score. This impact can mean poor credit for years to come and affect everything from a car loan to getting a cell phone plan. But not to worry, you can rebuild your life after a foreclosure. So how long will this deficit stay on your record, and what can you do to negate its effect?
A foreclosure will affect your credit score for seven years, from the date of the first unpaid payment. Fortunately, there are things that can be done to counteract the effects of foreclosure on your credit score.
What can you do to improve your credit score after a foreclosure?
For those who have fallen victim to foreclosure, the hit your credit score can feel like something you’ll never get out from underneath. Fortunately, there are plenty of things that you can do that will help get your credit score back up after a foreclosure brings it down.
The best way to improve your credit is to always be punctual when paying rent, car payments, etc. This will do a great deal to raise your credit score, as this is the most important factor in deciding your credit score. Punctuality in making payments will raise your credit score and get it back up to par long before the foreclosure has been purged from your credit history.
Another thing you can do to improve your credit score after a foreclosure is to minimize your expenditures and hold yourself to a more conservative budget. Cancelling unneeded subscriptions, cooking and eating at home instead of going out and other smart financial and other similarly smart financial moves will not only improve your credit but also prove invaluable in avoiding future crises.
However you tackle your credit woes, it’s important to remember that a foreclosure is not the end of your financial life. It may take months or years, but it is very feasible to recover from the low credit score that a foreclosure may result in. If you remain consistent in paying your debts and living frugally, two years from now you likely could be partially if not completely recovered.
Popular Real Estate Questions
Popular Real Estate Glossary Terms
Individual or entity that divides up a large piece of owned land into smaller pieces generally for the purpose of developing them into homes for sale in the future. ...
(1) Sudden and dramatic increase in activity or prices. (2) Rapid economic prosperity. ...
Sections of a homeowner policy. Section I relates to the home, contents, and accompanying structures. Section II provides comprehensive coverage for personal liability and the medical ...
An Option Listing agreement is one of the many specificities of a Listing Agreement. Here’s what happens when the house seller signs an Option Listing: he gives someone (a home buyer, ...
Materials that are inherently noncombustible, are widely used in constructing exterior surfaces and include brick, aluminum siding, cement, and asbestos shingles. ...
Circumstance where no people or contents occupy or are kept in a building for at least 60 consecutive days. The same stipulations apply to property coverages as found in unoccupancy. ...
Generic name given for any association of property owners sharing an interest in commonly owned property. Community associations may be developed in condominium, cooperative, or housing ...
Property deed in which the grantor limits the title warranty to the grantee. A grantor does not warrant a title defect to the property occurring from a happening before the time of his ...
Placed by the federal government on a individual's real property for federal estate tax or income tax law violations. In the case of a federal estate tax lien, upon the owner's death, the ...
Have a question or comment?
We're here to help.