This one’s a trick question. There is no exact number on any foreclosure on how it’s going to hit your credit score. And anybody that tells you anything different is lying to you. They’re misleading you, at least. Even FICO, the people that are running credit out there, will tell us that it depends on so many factors that they can’t even give you an estimate or an average. It depends on somebody’s pool of credit, how long have they had credit? What are the incidents that they’ve had? Are they always late on payments? Is this a one-time thing? So the number of points, nobody can give you a good estimate on that.
The important factor to know is, no matter what your credit score is, the impact of a foreclosure is going to stay on your credit for at least seven years. So make sure you’re aware of all of the impact. Ask questions to your local professionals. And take everything with a grain of salt when somebody starts to tell you it’s going to be 100 points, it’s going to be 200 points. Even if you’re reading it on the internet, believe it or not, not everything on the internet is true.
If you have questions about selling or buying real estate in Northern Virginia, give us a call, we have the answers.
By Steve Bradley