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Foreclosure and Your FICO Credit Scores

A foreclosure ranks high among the most damaging hits to your credit score. In fact, FICO has stated that foreclosures will typically result in a loss of 85 to 105 points for someone with a 680 credit score. And if you have better credit, say a FICO score of around 780, the hit to your credit score could even be worse—potentially in the 140-160 range.

No matter what your current credit profile looks like, the bottom line is you can expect your FICO scores to take a major nosedive from good to bad when a foreclosure hits your credit reports! And the road to recovery won't be fast either, but that doesn't necessarily mean you should lose all hope of ever qualifying for a loan again. By taking the proper steps to repair your past mistakes and build positive payment history as fast as possible, you may be able to get your FICO credit scores back on track in 3 years or less.  It will take a lot of work, but the good news with credit is that time heals all wounds.

on Thu, 2016-02-04 02:58