If you are facing foreclosure there may still be time to save your house or find an alternative to losing your home. Many people who are behind on their house payments wonder how a foreclosure will impact their credit score. The following lists three ways that foreclosure may impact your credit score. The impact on your credit score is another strong incentive to try to stop the foreclosure process.
1. A Potential Large Drop in Credit Score
Expect that your credit score could drop by as much as 100 points after foreclosure occurs. Keep in mind that in Ohio, foreclosure is a process, and it can take a while from start to finish. During that time, you have options and rights. Learn more about those by contacting a lawyer who specializes in protecting you from foreclosure.
2. Foreclosure Will Haunt Your Credit Score for Seven Years
It takes seven years for a negative mark on your credit score to drop off the report. Since foreclosure is not a repayment or recoverable loss, the mark will remain on your credit score until it drops off naturally.
Many people who come to us believe that the only way to stop a foreclosure is to hand the lender a large chunk of money. That is not always the case. There are plenty of options including a loan modification or a repayment plan that will bring your loan current after a certain number of months. Lenders may offer these options if there is a valid reason or hardship that caused you to fall behind on your payments. If you need time to sell your home via a regular sale or a short sale, a lawyer can help to make sure that you have the time you need to sell your property and in some cases, stop a foreclosure from occurring.
3. Foreclosure can Prevent Other Types of Loans
If you need a new car after your home is foreclosed, you may have to pay cash or resort to a loan for high-risk buyers. Because the foreclosure potentially impacts your credit score dramatically, it can knock you out of the good credit bracket and force you down into a risky lending credit bracket where you can be denied or forced to pay much higher interest rates.
This is a big reason that many people fight to save their homes. Under Ohio law, you have rights and if you do not understand your rights a foreclosure lawyer can help. The best way to stop foreclosure is to bring your loan back to the green. That does not mean you need to pay a huge upfront payment. We can help you set up payment arrangements with your lender so that the loan becomes current over a period. We can help you deal with the court process of foreclosure and even possibly stop a foreclosure that is pending.
Contact Cozmyk Law For More Information About Foreclosure
Learn more about your rights under Ohio and Federal laws so that you can protect your home and your credit score from the impact of a foreclosure. The sooner you act, the more options you have. Cozmyk Law has many years of experience in navigating the foreclosure process. Contact our experienced attorneys today for more information. We’re here to support you in keeping your home!