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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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โˆ™ 2008-09-09 12:47:59
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Q: How do you get your credit up after a foreclosure?
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Related questions

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.


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 foreclosure stay on your credit report?

A foreclosure will typically remain on your credit report for seven years.


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 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.


Can you buy a house if you have a foreclosure on your credit?

you must restore your credit.


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.


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 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.


If foreclosure becomes definite what will happen to your credit?

your credit rating will drop


Does a timeshare foreclosure hurt your credit after a bankruptcy has been discharged?

Any foreclosure or bankruptcy affects your credit. And for anywhere from 7 -10 years.


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.


If my mother is an authorized user on my credit card and she is currently in the process of foreclosure would her foreclosure as an AU affect your credit?

No, having her listed as an authorized user will have no impact on your credit score.


Will i have good credit if i file bancruptcy on a foreclosure?

No - but you can rebuild your credit over time.


How is credit standing affected by a foreclosure?

A very negative!


Could a pending foreclosure cause a bank loan to be declined?

Yes, if one got the loan after foreclosure proceedings began. When banks make credit decisions, they want to consider as much up-to-date information as possible. If a foreclosure is coming up but is not on the credit report, the bank may grant the loan. Once the foreclosure shows up on the report, the bank will conduct due diligence and see if they would have granted the loan knowing about the foreclosure. Most banks would not and will call the loan, making you responsible for paying immediately.


Why does a creditor claim I had a foreclosure but my report doesn't mention one?

The foreclosure may have been reported to the Credit Bureau your lender is looking at but not the Credit Bureau you are looking at. For example, the 3 main Credit Bureaus are Transunion, Equifax and Experian. You lender may be looking at Equifax and seeing the foreclosure, when you are looking at your Transunion, where the foreclosure was not reported.


How many points will a foreclosure reduce your credit score?

Depends on credit score prior to foreclosure. If your score was higher before foreclosure, it might drop 200 points or so. If it was lower before foreclosure, it might drop closer to 100 points. It varies significantly.


If a loan was in foreclosure when property was sold how will it report to credit bureaus?

It reports that it was previously in foreclosure and is now paid-in-full.


How long does a foreclosure initiated stay on your credit?

Foreclosures remain on your report for 7 years. It is difficult to get a foreclosure removed.


Does is make a difference if you have one foreclusure or 2?

The first foreclosure will have the largest impact on one's creditworthiness as the home is considered the most important asset to protect (largely by keeping up with mortgage and tax payments). The belief is that if one does not keep up payments on their home, why would they keep up payments for anything else as anything else is insignificant in comparison. The foreclosure will stay on your credit record for up to 10 years and will negatively impact your credit score throughout the entire period. If you got your second foreclosure within those 10 years, your credit rating will be lowered, but not as much that resulted from the first foreclosure. If you got your second foreclosure more than 10 years after getting the first, your credit rating will be negatively impacted to the same level as the first was.


How does foreclosure impact my credit score?

Foreclosure can have a drastic effect on your credit score. Your credit rating decreases with missed payments on your home, as well as other bills. In addition, the foreclosure itself can lower your score by over 100 points. In addition, a foreclosure can stay on your record for seven to ten years. Forclosure can and will have a very negative impact on your credit score. This is an unfortunate by product of the recent economic crisis.


Is a short sale better than foreclosure?

In most cases it is preferable to foreclosure. I disagree. A short Sale has less impact on your credit score than a foreclosure.