What happens to my credit score after a foreclosure?

When a foreclosure occurs in Washington, your credit score may take a significant hit. Depending on your current credit score, a foreclosure could cause your credit rating to drop anywhere between 100 to 200 points or more. This could take years to repair, depending on the amount of effort you make to repair your credit after a foreclosure. In addition to diminishing your credit score, a foreclosure also stays on your public record for up to seven years. During this time, it can be difficult to secure additional credit from lenders since a foreclosure will appear in their background checks. You should note that, technically, a foreclosure does not take place until the lender owns the property. This means that, if your house does not sell at auction, you may be able to work something out with the lender and avoid a foreclosure. It is also important to consider that a foreclosure can also have a psychological impact as it can lead to feelings of shame and discouragement. This is why it is important to seek counseling and support from friends and family during this difficult financial transition. Overall, a foreclosure will have a significant impact on your credit score and credit history. It is important to take all the necessary steps to repair any damage done to your credit. This includes speaking with a credit counselor and finding ways to rebuild your credit score over time.

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What happens to my credit score after a foreclosure?

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