How A Foreclosure Can Affect Your Credit Score
When people are at risk of foreclosure, one major question they need to consider is the following: Will a foreclosure affect my credit score? The answer is yes. Having a foreclosure can be very damaging to your credit report because it shows lenders that you have a history of defaulting on a serious debt obligation. After a foreclosure, you will probably see a major drop in your credits score and you will likely have difficulty securing credit and loans – at least at reasonable terms.
How Long Will It Remain On My Credit Report?
A foreclosure will remain on your credit report for seven years. Your credit score will usually be most dramatically impacted at the beginning of the seven-year period. While having a foreclosure on one’s record is very serious, it may be possible for some individuals to restore their credit scores within just a couple of years if they have defaulted on other debt and they are proactive in rebuilding their financial stability.
At Whiteman Law, our Chicago foreclosure defense lawyer helps debtors determine how the foreclosure process can affect their credit scores. We also help them determine the best foreclosure defense solutions for their particular situations. Some individuals may choose to enter into voluntary foreclosure, or strategic default, finding the temporary damage to their credit reports worth the ability to break free from their mortgage obligations. Others may choose to fight foreclosure because they want to keep their homes or because they find the possible credit damage too risky. Our firm can help you determine which strategy is right for you!
Contact Whiteman Law!
When you turn to Whiteman Law, you can expect to receive one-on-one legal support. You will get to work directly with a lawyer rather than getting pushed from person to person. We believe in maintaining a strong line of communication with our clients and prospective clients – we strive to return calls and emails within a 24-hour period! If you are at risk of having your house foreclosed upon in Chicago or other parts of Cook County, Illinois, contact us for assistance! Call 312-655-1000.