There's no question that a foreclosure will leave a negative mark on your credit.
It's important to know that there are many ways to avoid foreclosure – talk to your lender today about your options to avoid it and its costly implications – whether you want to keep your home or exit your home gracefully.
While it's sometimes difficult to admit when you need help, don't let pride or fear stand in the way of finding your solution. Reach out to your lender or a reputable housing counseling organization right away!
With a foreclosure, your credit score will take a big hit.
What exactly does this mean to me?
- You'll have future difficulty borrowing money – whether you're trying to obtain a car loan, open a new credit card, or get insurance.
- You may have a difficult time with employment as some employers look at your credit score as an indication of your sense of responsibility.
- The interest rates on your credit cards could increase as the credit card companies may view you as an increased risk.
- You may be faced with higher rental deposits when looking for a new place to live.
A foreclosure can remain on your credit report for as long as 7 years, but its effect will lessen over time