What damage does a foreclosure do to my credit rating?

A foreclosure is about the most damaging blemish a consumer can have on their credit report, making it impossible to obtain credit of any kind, much less a home loan.  Once a foreclosure hits the credit report, there is a waiting period before a consumer can qualify for a home loan from FHA (3 years) and FNMA (7 years).   A foreclosure is even worse than a bankruptcy. 
 
Furthermore, if a former borrower gets sued for a deficiency judgment, the judgment will appear on the credit report in addition to the foreclosure, further dragging down the score.  The judgment must be settled (paid) or expunged (via a chapter 7 bankruptcy) before a borrower will be able to qualify for a home loan.

​If you have any further questions about foreclose, please contact us.