How Long Does A Foreclosure Stay On Your Credit Report?

Going through a foreclosure can be very stressful, and not knowing the long-term effects of a foreclosure can add even more stress. The impact on your credit score is probably a negative effect of foreclosure that you haven’t considered before. It’s important that you know that a foreclosure will impact your credit after your home has been foreclosed on.

If you are at risk of foreclosure, there are options that can help you avoid foreclosure. Not only will avoiding foreclosure help you stay in your home, but it will also help your credit score stay higher by avoiding having a foreclosure on your credit report. An attorney can work with you to help you explore options to prevent foreclosure.

Joshua Denbeaux is a New Jersey foreclosure attorney dedicated to fighting for consumer rights. If your home is at risk of foreclosure, contact Denbeaux & Denbeaux Law today to learn more about how we may be able to help you. 

How Long Does a Foreclosure Stay On Your Credit Score?

A foreclosure will stay on your credit score for seven years from your first missed mortgage payment date. Once the seven-year period has passed, your foreclosure should disappear from your credit report. 

If your foreclosure doesn’t disappear from your credit report after seven years, you may need to contact the credit reporting bureaus to have your credit report fixed.

How Does a Foreclosure Impact Your Credit Score?

Your credit score is a numerical measurement to lenders of how reliable you are to repay credit. Because foreclosure happens if you’re unable to pay your mortgage, foreclosure will have a negative impact on your credit score.

The amount that your foreclosure impacts your credit score depends on the person. There isn’t a specific formula or amount that a foreclosure will hurt a credit score. Typically, people with a higher credit score will feel the impact of foreclosure more. This means having a high credit score before foreclosure may hurt your credit score more than someone with a lower credit score.

What to Do About Your Credit Score Before Foreclosure

If you’re facing foreclosure, the only way to protect your credit score is to look into options to avoid foreclosure. Preventing foreclosure altogether can help you save your credit score.

One of the most important options when trying to avoid foreclosure is to take a look at the rest of your financial situation. You may need to adjust other credit and credit payments so you can rebuild your credit before foreclosure. Addressing any additional credit and debt issues may free up your finances so you can afford your house payments. 

Ways to Rebuild Your Credit After Foreclosure

There’s no way to remove the impact of foreclosure from your credit report before the seven years is over, but there are things you can do to help improve your credit score. Making on-time payments for any other debts or loans you have can help improve your credit score as you show that you are reliable to repay your credit. 

Checking your credit report regularly won’t necessarily help improve your credit score, but it is important as you work to rebuild your credit. It’s a good idea to be aware of your current credit situation and if there are any changes. Checking your credit report will also allow you to act quickly if there are any errors on your credit report.

Working to pay off any credit card debt can help rebuild your credit. Having outstanding credit card debt hanging over you can have a significant negative impact on your credit score. Working towards paying off your credit card debt can go a long way in helping your credit score.

If you’re rebuilding your credit score, applying for a secure credit card is one of the best things you can do. Secure credit cards require a down payment, which acts as your credit line. For someone with a bad credit score, you may be more likely to get approved for a secure credit card, and it helps you avoid getting into any additional credit card debt because your credit line is already paid off.

How to Remove Foreclosure From a Credit Report?

A foreclosure should come off your credit report after seven years. You can dispute it with the credit reporting bureaus if it doesn’t come off your credit report after this time.

In some situations, you may be able to have the foreclosure removed from your credit report before seven years have passed, but these cases are rare. Your foreclosure could be erased from your record if your lender goes out of business before the seven-year foreclosure window ends.

You can dispute any errors or inaccurate information on your credit report, which could lead to the foreclosure being removed. If you’re planning to dispute credit report errors, it may be a good idea to review the information with an attorney beforehand to make sure that you have a good claim.

Sometimes a lender may choose to cancel a foreclosure. These instances are rare, but if this happens to you, you can apply to have the foreclosure removed from your credit report.

Talk to a Foreclosure Attorney Today

Facing foreclosure can be scary and overwhelming, and you may not realize how much it can impact you, in addition to losing your home. A foreclosure can stay on your credit report for a long time and impact your ability to get credit or a mortgage in the future. 

If you’re facing foreclosure and aren’t sure how much it will impact your life, an attorney can help you through the foreclosure process. An experienced attorney can work with you to explore a variety of options to help you avoid foreclosure.

Contact Joshua Denbeaux today to learn more about how we may be able to help you protect your home and your credit score.

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