Credit Impact of Home Foreclosure
Every month that you miss a payment on your home mortgage, your credit score will suffer damage due to the fact that you are in default. In the event that your case moves all the way forward to a foreclosure on your home, the foreclosure will also be recorded on your credit report. There is no way to accurately predict the degree to which your credit score will be impacted by a foreclosure, but in most cases the reduction is in the range of 85 to 160 points. Probably the most unfair aspect of the situation is that if your credit score was relatively high before the foreclosure, you can expect to lose more points than if your credit is already low.
Foreclosure will remain on your credit report for seven years. It is not permanent, but it does have lasting effects. As a result, you will have to wait several years before you can purchase a new home, and you can also expect to pay significantly higher rates for interest on credit cards or a car loan. In some cases, you might even find that a prospective landlord will turn down your rental application based on the fact that you have a foreclosure in your credit history.
Save your credit. Fight foreclosure!
It would be difficult to exaggerate just how serious it is to experience a foreclosure. Not only do you lose your home and find yourself forced to find a new place to live, but you also end up with a major reduction in your credit score. Most people who purchase a house look forward to the fact that home ownership will eventually provide them with an excellent credit rating, but now you find that things may turn out exactly the opposite. Don’t give up hope yet. Contact The Law Offices of Justin McMurray, P.A. for help from an Ocala foreclosure defense lawyer with more than a decade of experience. We know how much is at stake for your future and we are ready to fight for you!