Foreclosure Impact: what it does to your credit.

How long it lasts.

• A foreclosure stays on your credit report for seven years, counted from the date of the first missed payment that led to it.
• After seven years it is deleted automatically.
• The missed payments leading up to the foreclosure are also reported and stay for seven years.
• An accurate foreclosure cannot be removed early — you can only dispute it if it’s inaccurate or stays past the seven-year limit.

How it affects your scores.

• The damage is greatest in the first months and years after it appears, then fades over time.
• People who had higher scores before the foreclosure usually see the steepest drops.
• It can weigh on your scores the entire time it’s on your report.

How it affects future borrowing.

• Lenders see foreclosure as one of the most serious negative events on a credit report — second only to bankruptcy.
• Some mortgage lenders will turn down applications while a foreclosure is on your report; others may require you to wait several years.
• You may face higher interest rates and extra fees on future credit.

Rebuilding afterward.

• Pay every bill on time — payment history is the biggest factor in your scores
• Keep credit card balances low and pay them off monthly when you can
• Build an emergency fund of three to six months of expenses
• Be patient: there are no quick fixes, and credit repair companies can’t erase an accurate foreclosure
• Check your credit regularly to track your progress

Summarized from Experian: “How Does a Foreclosure Affect Credit?” ↗ and “How Long Does a Foreclosure Stay on Your Credit Report?” ↗ Links open in a new tab. This page is general information, not credit or legal advice.