Credit Score Consequences of Foreclosure in Gainesville
Foreclosure can be a devastating experience, one which has the potential to affect your life for many years to come. Not only does it mean that you may lose the home where you have built a life with your family and where you expected to spend your future, it may also have an enormously negative impact on your credit score. After a foreclosure, you will not be able to purchase a new home for several years, and you can expect to be paying higher interest rates for car loans, credit cards and other types of loans. You might even find that landlords are reluctant to rent to you, based on the fact that having a foreclosure on your credit report makes you appear to be a credit risk.
Credit Score Damage Can Be Fixed
Every month that you miss your mortgage payments, the fact of your default will be reported by the bank and will then appear on your credit report. Depending on the circumstances of the case, the bank may also report the deficiency balance in the event that the mortgage is underwater and the foreclosure sale does not raise sufficient funds to pay off the loan balance. In addition to the payment defaults, your credit report will also include the significant blemish of the foreclosure itself.
There is no way to predict with accuracy exactly how much of an impact foreclosure will have on any one individual’s credit score, but it is typically in the range of 85 to 160 points. One of the most frustrating aspects of a foreclosure is that homeowners with higher credit scores can expect to suffer greater reductions than those whose scores are already in the lower ranges. Fortunately, foreclosure will not ruin your credit forever. It will be removed from your credit report after seven years have passed. There are many ways of seeking to avoid a foreclosure, but the key to success is to hire a Gainesville foreclosure defense lawyer as early as possible. Contact The Law Offices of Justin McMurray, P.A. now to review your case and begin working on a strategy for preventing foreclosure and protecting your credit score.