How will this Affect My Credit?

The first chart shows the impact on the score for each stage of delinquency,

and the second shows how long it takes the score to fully "recover" after the fact.

 

- The magnitude of FICO® Score impact is highly dependent on the starting score.
- There's no significant difference in score impact between short sale/deed-in-lieu/settlement and foreclosure.
- While a score may begin to improve sooner, it could take up to 7-10 years to fully recover, assuming all other obligations are paid as agreed.
- In general, the higher starting score, the longer it takes for the score to fully recover.
- Even if there’s minimal difference in score impact between moderate and severe delinquencies, there may be significant difference in time required for the score to fully recover.
 

One point to consider...

By avoiding Foreclosure, many individuals

are quickly able to obtain a credit score strong enough

to qualify for a new FHA Loan.

FHA 30 year fixed Interest Rate is currently at 3.875

and requires a minimum score of 600.