Question:

What does a foreclosure do to your credit?

Answer:

You surely want to know what foreclosure does to your credit but it is difficult to answer that question. The Fair Isaac Co keep it a secret how exactly FICO score is calculated, so no one could truly tell what foreclosure does to the credit score.

However, it is known that every time mortgage payments are reported late, your FICO is affected. It can also be said that recent history affects your score with fully 35% while older records do not have as much weight, except for the longevity of your credit history.

If you had foreclosure recently, it affects your credit score significantly. If it was far in the past, it won't have nearly as much effect on your credit as recent foreclosure will.

Also, a foreclosure record can be removed from your credit report after 7 years upon request.

Foreclosure and bad credit can't stop you from getting a house. Rather, you won't be able to borrow more than 70% LTV.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Why: Find your next home and save money.
Link: Search thousands of foreclosures. Free 7-day trial.
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Common misspellings: mortage and morgage