Foreclosure A Year Later

WILL A FORECLOSURE STILL WEIGH HEAVILY ON MY CREDIT REPORT AFTER I YEAR?

DEANDRE

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Hello Deandre,

The simple answer is yes a foreclosure will weigh heavily on a credit report after one year.  Other considerations would be whether or not the mortgage lender sold the house for enough to cover the balance and if not, then is there a deficiency judgment?  Was there a bankruptcy involved?  The bankruptcy would most likely wipe out the judgment.  Typically, three years is the amount of time to wait post-foreclosure to obtain another mortgage loan with favorable terms although it is possible to qualify for a mortgage loan as soon as one year post-foreclosure.

Either way, be sure to make the rent payment with a personal check each month to provide future evidence of good housing history to your new lender.

Thanks for the questions!

Paul