3 Ways Foreclosure Affects Your Credit

Free Foreclosure Case Evaluation

Cozmyk Law offers a free evaluation of your case and provides you with all the information necessary to make an informed decision.

1Applicant Info
2Summary Info
3Case Details
4Contact Info

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!

Cleveland, Ohio

6100 Oak Tree Boulevard
Suite 200
Independence, Ohio 44131

Office #: (216) 452-9145
Fax #: (216) 485-2125

Dayton, Ohio *

70 Birch Alley
Suite 240 Building B
Beavercreek, OH 45440

Office #: (937) 314-4297
Fax #: (216) 485-2125

Bethalto, IL *

333 West Bethalto Dr.
Suite C
Bethalto, IL 62010

Office #: (877) 813-0264
Fax #: (216) 485-2125

Cleveland, Ohio*

600 Superior Ave East
Fifth Third Building, Suite 1300
Cleveland, OH 44114

Office #: (216) 452-9145
Fax #: (216) 485-2125

Cincinnati, Ohio*

300 E Business Way, Suite 200
Summit Woods Corporate Center
Cincinnati, OH 45241

Office #: (513) 318-4764
Fax #: (216) 485-2125

Springfield, IL*

920 South Spring Street
Springfield, IL 62704

Office #: (877) 813-0624
Fax #: (216) 485-2125

Toledo, Ohio *

1690 Woodlands Dr
Suite 200
Maumee, OH 43537

Office #: (419) 600-0691
Fax #: (216) 485-2125

Columbus, Ohio *

545 Metro Place South
One Metro Place, Suite 100
Dublin, Ohio 43017

Office #: (614) 636-4692
Fax #: (216) 485-2125

Chicago, IL *

22 West Washington St.
Suite 1500
Chicago, IL

Office #: (630) 560-4471
Fax #: (630) 503-7828

* By Appointment Only

Disclaimer – This website is a public resource of general information concerning our law firm. The website or the associated pages is not intended to be and it is not a source of legal advice. Links on this website are not intended to be referrals or endorsements of the linked entities. No recipient of content from this site, client, whether current or otherwise, should act or refrain from acting based on information at this site. Any and all information on this website is not intended to, nor does it, constitute or establish an attorney-client relationship.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Call now for live help!