Foreclosure???

Question

WHAT ARE THE END RESULTS WHEN SOMEONE HAS THERE HOME FORECLOSED??? HOW LONG DOES IT AFFECT A CREDIT REPORT AND/OR SCORE??

Answer 1

Well it normally takes about 6 months for a morgage company to forclose on a home. It can be sooner or later, just depends on how much of idiots the creditor is. Then within 3 months this will show on there credit report. It will affect the credit score as soon as it is reported to the credit bureaus.

Answer 2

The END result? Well if you mean many years from now, the effect will be determined by what else happens in the mean time. In the shorter term, you can get another house. Under the Fair Credit Reporting Act, nothing bad can stay on your credit report for more than 7 years, except bankrupty which stays for 10 years.

BUT!!!! The real problem is when to start counting. Banks and other creditors want to keep negative info on your report as long as they can by claiming that the 7 years doesn't start until their last action of calling you or their last letter to you, rather than the due date of your last missed payment. They help each other out this way by creating excuses to charge higher rates to people with low credit scores.

AND, lenders will always ASK you about stuff that is not allowed by law to be on your credit report. They can't report a BK or a foreclosure after the time is up, but they will ask you when yoyu apply wether you have ever had a BK or foreclosure. It is not clear whether it is illegal for them to ask or whether it is illegal for you to "lie" in response. My view is that you should "lie" and say no--because it is not a lie if they have no right to know the answer. Just like a teacher who asks a child in front of the class, do you wet the bed. It is not a lie for him to say no even if he does wet the bed because the class has no right to know. And refusing to answwer is the same as an admission.

To improve your score you need to pay everything on time for a while, and start to build new credit relationships. You can use the landlord and utility companies as references but they do not usually report to the credit reporting companies so you have to ask specifically for a reference.

I have known people who are able to buy a house 3 years after bankruptcy. I'd guess it might be about the same for foreclosure. But for some it might be more or less.

Answer 3

Well, the obvious end result it you no longer own a home. Usually, the home is put up for auction in order to recoup what was owed on the mortgage. If foreclosure has not been finalized yet, the owner can still sell the home through conventional means. There is also the option of doing what is called "a quick sale", meaning the home is sold for the lowest possible amount if all you are looking to get is enough to cover the mortgage. Selling the home before the foreclosure is final can sometimes look better on your credit than just letting the foreclosure happen. It will affect your credit for 7 - 10 years

Answer 4

Because it is one of the biggest responsibilities and greatest means of building up one's credit score, going into fore closure may result in loss of the property, and a massive ammount of loss of credit points which will hurt you in the long run. Generally it takes 7 years to clear up things from one's credit report. But if the mortgage company keeps filing claims, it will take and show up on your credit report for longer periods.

Answer 5

It will remain on your credit record for 7 years. A bankruptcy will remain for 10 years. The older either get the less of an impact on your score but either will cause a significant hit.

Answer 6

It will report for at least 7 and up to 10 years at the creditor's discretion. It will be several years before you are able to get a new loan, and even then it will be sub-prime, or as we say, an ankle-grabber loan.

Answer 7

It is worse than a bankruptcy and a BK takes about 7 years...