How much does a foreclosure hurt your credit and for how long?

Answer

A foreclosure, being a legal action, is a significant derogatory mark. This would show twice on your credit report. Once as a notation in the tradeline, and then again in the public records section.

The tradeline entry would show all the history on the account and negative data for 7 years, plus 180 days from the last time the account was paid as agreed. The public record would have its's own opening date (the date the foreclosure was filed at the courthouse) and would show for 7 years from the date of the disposition.

Having any item in the public record section of your credit report causes all deductions to have a larger impact on the score. Foreclosuure is a serious legal action and would indicate great risk to potential future lenders. Most consumers, even when they have trouble with other types of bills, pay their housing and utilities expenses. Lenders tend to look very unfavorably toward anyone who has let those expenses go into collections and lawsuits.

First answer by The Credit Lady. Last edit by The Credit Lady. Question popularity: 65 [recommend question]