A foreclosure will negatively impact your credit rating, and because of it’s negative impact on your credit rating, you should only do it as a last resort. A foreclosure can penalize your FICO credit score by as much as 200 or even 300 points. For example, lets say that you had 800 as your credit score, meaning you have excellent credit, then your going into foreclosure can bring that credit score down to a FICO score of 500. A FICO score of 500 is a very bad credit score.
Posted under credit rating, credit score, fix bad debt, foreclosure, mortgage debt
This post was written by fixbadcredit on July 28, 2009
