When a homeowner hasn’t made their monthly mortgage payments for 3 months or more, their lender will usually starts the foreclosure process. There can be many reasons why they haven’t been able to pay their mortgage payments such as: loss of job, spouse’s death, medical issues, etc; however the outcome is always the same, Foreclosure! What many homeowners do not realize is the foreclosure credit consequences they will face.
Your credit report is a very important factor in your financial life. You need credit to buy a home or car, rent an apartment, get a loan, and even to get a new job! In today’s housing crisis more and more homeowners cannot afford to pay their monthly mortgage payments and are going into foreclosure. A foreclosure can ruin your credit score lowering it as much as 300 points!
Ways A Foreclosure Can Impact Your Credit Score:
1. Your credit score will instantly decrease 200-300 points once a foreclosure appears on your credit report. Even someone with a good credit rating such as a 700 will be drastically affected by a foreclosure after their score lowers to around 400…
2. A foreclosure can stay on your credit report for up to seven years and the effects of foreclosure credit consequences can last many years after. It’s important for homeowners to understand how difficult it is to recover your credit score after a foreclosure.
For More Information:http://www.floridalawattorney.com