How bad does your credit drop if your home is forclosed?

Question

I have many many other bills including car payments. That are paid on time.

If I have to rebuild, would that take about 3 years to get another mortgage loan? Because I started building credit at the age of 19. I'm 21 now, turning 22. Will everything be back to normal when I hit 25?

Answer 1

Well as a mortgage broker I can assure you that there is no better way to destroy your credit than a late mortgage payment.. let alone losing your house because of it. Your mortgage is the cornerstone of your credit score because the amount is most likely more than all your other loans combined and then some. If you can't make the payment to keep a roof over your families head, then what will you make payments on? I know you said that you're good on all your other bills, but that's still the way it is. If there is still hope, I recommend you get current on your mortgage (even at the expense of all other bills). After a forclosure, you will be lucky to have a score in the 500's, which is a bad score anyways.

DO NOT LISTEN TO DOWJONES!!!! He has no idea what he's talking about. As far as your last question, it depends on how much positive credit activity you have during that time.

Don't have too many cards.
Never have your card balance over 50% of the max for periods of time.
Pay everything on time...... Good luck!

Answer 2

It might actually raise it. Seriously. Banks like you to pay late, but pay eventually. If someone declares bankruptcy, that severly limits their ability to declare bankruptcy again, and credit cards know that they'll get their money eventually.

The best credit ratings are for those that pay the most interest.

Answer 3

You could do deed in lieu of foreclosure. You will need a attorney to do this. This way you still get an Apartment to live in.

Answer 4

Your credit will drop to about nothing and you'll have to rebuild.

Answer 5

the mortgage is a biggie. how does rock bottom basement sound.

Answer 6

very very low.