Effects of Foreclosure on a Persons Credit

Foreclosure can have serious and long-lasting effects on a person's credit. Here are the key impacts:

Credit Score Impact

• A foreclosure can drop your credit score by 100 to 160 points or more, depending on your starting score.
  
• Those with higher credit scores typically see the largest drops.
  

Duration on Credit Report

• A foreclosure stays on your credit report for up to 7 years from the date of the first missed payment.
  

Difficulty Getting New Credit

• You may have trouble qualifying for new loans, credit cards, or mortgages during that time.
  
• If approved, you'll likely face higher interest rates.
  

Getting Another Mortgage

• Most lenders require a waiting period of 2 to 7 years after a foreclosure before approving a new home loan.
  
• You may need to show a strong credit recovery and financial stability.
  

Other Financial Consequences

• May affect your ability to rent housing, as landlords often check credit.
  
• Could impact job opportunities—especially in finance or government sectors.