What happens to my credit score after a foreclosure?

Foreclosure can have a huge impact on your credit score. In Oklahoma, the law provides that the foreclosure process begins when a lender files a complaint against a homeowner who is behind on their mortgage payments. Once this happens, the lender may obtain a judgment and start the foreclosure process by taking possession of the property. Once the foreclosure process is completed, the lender will most likely report the foreclosure to the credit bureaus. This will have a very negative effect on your credit score. Depending on the specifics of your situation, the foreclosure will remain on your credit report for up to seven years. During this time, it will be very difficult to obtain a loan or a mortgage at a reasonable interest rate. In addition, any other loans and credit cards you have outstanding will likely be adversely affected by the foreclosure. Your credit score will decrease significantly, and your ability to borrow money will be diminished. The affected accounts may also be closed due to the foreclosure, which can further hurt your credit score. Given the serious nature of a foreclosure and the long-term credit damage it can cause, it is important to begin the foreclosure avoidance process as soon as possible if you are having difficulty making your mortgage payments.

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What happens to my credit score after a foreclosure?

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