Rogers Park Foreclosures in relation to FICO scores

How will your FICO score consider a foreclosure?

There's no denying that foreclosures are considered a very negative event by your FICO score. With that said, it's a common misconception that a foreclosure will make it impossible to rebuild your credit. In fact, if you keep all of your other credit obligations in good standing, there's a good chance that your FICO score could begin to rebound in just 2 years. Try to pay your auto loans, credit cards and any other credit obligations on time to limit the effect of this foreclosure.


Are other options better for my credit standing?

Recently, several alternatives to foreclosure have become popular - some of these include "short sales" and "deeds-in-lieu of foreclosure". These may be viable options for you, and you should definitely do research to determine if these options make sense for your situation. However, as far as your FICO score in concerned, there is no difference between foreclosures and short sales or deeds-in-lieu of foreclosures. Each of these actions is considered an account that was "not paid as agreed", and will have the same impact to your FICO score.


What about bankruptcy?

While both foreclosures and bankruptcies are considered very negative items by your FICO score, a foreclosure can be isolated to a single account (your mortgage account). Often, bankruptcies involve multiple accounts that are "not paid as agreed", so bankruptcies have the opportunity to be further reaching than foreclosures. However, if you're unable to pay other credit obligations in addition to your mortgage, you may need to consider bankruptcy. Here's a post on the FICO Forums that lists some good resources regarding bankruptcies.

Read more here.



Tags: 49th Ward, 60626, 60645, bankruptcies, credit obligations, credit standing, deeds-in-lieu of foreclosure, FICO score, foreclosure, mortgage, not paid as agreed, Rogers Park