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The best way to improve your credit after a major hit to your score is to have a line of credit that is active and in good standing. An example of this is a credit card that you use to buy gas on every week and then pay off in full every month.
If you allow your home to be foreclosed or if you sign a Deed-in-Lieu of Foreclosure. Home owners will take a hit of about 250 points on their FICO score. This means if a their FICO score before foreclosure was 680, it could dip as low as 430. A home owner who wants to buy another home after foreclosure will end up waiting about 24 months before a lender will offer any kind of interest rate that makes sense. During that time you must have a near perfect credit.
The affect of a short sale on a home owner's credit report is much less damaging. The negative on credit may show up as a pre-foreclosure in redemption status, which will result in a loss of around 80 points from the FICO score. It can also simply show up as the loan was paid off and not affect your score at all. This means a short sale with a previous FICO of 680 could possibly see it fall to around 600 or it could remain the same.
There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first. Try http://www.speedyrealestate.info. Good luck!
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∙ 15y ago
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If the lender starts the foreclosure process but isn't completed should it show on your credit report?
It wouldn't show up as a completed foreclosure, but it would show up. It would say "foreclosure started" or "foreclosure initiated" or something to that effect.
How long does a foreclosure stay on your credit report?
A foreclosure will typically remain on your credit report for seven years.
Is there still a past due amount on your credit report after foreclosure?
The foreclosure will be on your credit report indefinitely.
Does a Deed in lieu of foreclosure affect credit the same as a foreclosure?
Deed in lieu of foreclosure is not nearly as devastating to your credit as is a full foreclosure. Below is an article about the pros and cons of deed in lieu.
How long does foreclosure stay on your credit report?
A foreclosure will typically remain on your credit report for seven years.
How many points does foreclosure decrease your credit score?
how many points dose foreclosure decrease your credit score
How long is your credit affected after a foreclosure?
Usually a foreclosure will lower a person's credit score by 250 points, and sometimes by as many as 280 points. The foreclosure stays on a person's credit report for seven years.
What will credit card companies do if they see a foreclosure turn up on your credit report?
The only thing they can do is not issue you any credit, if they see foreclosure in your credit report. But they won't see it there, they will see it on your credit score. Or they can charge you higher interest rates than other people with better credit scores than yours.
Can you lose your general contractor license or your real state license if you have foreclosure in your credit?
You will not lose your general contractor license or your real estate license if you have foreclosure on your credit report. A foreclosure or bad credit is not a disqualification for these types of licenses.
How long will a foreclosure be on your credit report and how will it effect your credit score?
A foreclosure can stay on your credit report for over ten years. It will have a significant and negative impact on your score.
Can you buy a house if you have a foreclosure on your credit?
you must restore your credit.
Can you get a foreclosure off your credit report?
A foreclosure will be expunged from a person's credit report after seven years have expired from the time the foreclosure was reported. Valid information on a credit report cannot be removed until the required time limit for reportage has expired.
