| A foreclosure can affect your credit rating drastically | | | | however some lenders will offer you financing after |
| and should only be considered as a form of last resort. | | | | two for small loans. You can expect to be able to |
| It is rumored that a foreclosure can affect your credit | | | | purchase a home again from some lenders after |
| score between 200 and 300 points. That means that if | | | | around five years; however you will most definitely be |
| you have an excellent score of 800 it will lower your | | | | assessed a very high interest rate. If you do choose to |
| score to as much as 500 which is considered to be a | | | | finance a home with a high interest rate you will be |
| negative credit score. | | | | able to refinance the home after the foreclosure has |
| Natalia Osorio Editor of the "Loan Modification | | | | dropped off your credit report assuming you have |
| Foreclosure" website -- -- pointed out; | | | | stable payment history. |
| “It is mandatory that a creditor does not offer you | | | | There are some things you can do to avoid losing your |
| any financing for 24 months following a foreclosure. | | | | home, or at least lessen the impact on your credit |
| This limit does not only go towards home financing but | | | | record. If you are interested in keeping your home and |
| any kind of credit. Therefore you will not be able to | | | | you have steady employment but just cannot keep up |
| buy a car, take out college loans, or even finance | | | | with the mortgage payments you may be able to |
| something as small as a computer. It may also affect | | | | refinance your home or do a loan modification. |
| your ability to find an apartment as landlords use your | | | | “…If you are not interested in keeping your home, |
| credit score as a means to determine how reliable you | | | | and you can prove that you cannot keep up with your |
| will be as a tenant. The same can be said about trying | | | | mortgage payments, you may qualify for a short sale. |
| to get a phone number or cable as they will also run | | | | To explore these options you should contact your |
| your credit to determine your reliability…” | | | | mortgage company immediately. Mortgage companies |
| The good news is that the harmful effects of a | | | | do not want a foreclosure any more than you do and |
| foreclosure can start to be reversed after the 24 | | | | therefore it is in their best interest to try and work out |
| month period has elapsed. A foreclosure will not fully | | | | an option to minimize the loss for both parties…” N. |
| be removed from your record until after seven years; | | | | Osorio added. |