A foreclosure on your assets can be the absolute worst thing that can happen to your credit report. However, if you default on your mortgage one too many times, you will have no choice in the matter. What is devastating is a foreclosure can remain on a credit report for seven (7) years from the date of the first missed payment. It can seriously bring down your credit score as well, which can compromise your ability to get a loan in the future. Typically, a default notice arrives in 60 or 90 days when you fall behind on your mortgage payments. An Illinois foreclosure attorney will tell you the process initiates when the complaint to foreclose is filed by the lender.
How a Foreclosure Affects Credit
A foreclosure can knock your score by as much as 400 points, but there isn’t a consensus on the exact amount that is deducted. Each crediting agency has its own scoring algorithm, which it keeps secret. Even if your agency has notified you of your score, it may not be the score the three main credit agencies maintain. In other words, even if your history is the same on all three, your score may not be the same.
That’s because each company has its own rules and regulation for every piece of information that is present on a credit report. One may focus on open collections while another may focus more on missed credit payments.
Whichever company or lender you go with, if you face foreclosure, bouncing back from it should be your priority. It is not the end of the world, but it can be a nightmarish experience nonetheless. The first thing you need to do is to see if your reports had any mistakes in them. If you spot several, you can file a dispute and have it corrected. By doing so, you can ensure a loan application doesn’t get rejected later and help you get your life back on track.
Hire an Illinois Foreclosure Attorney
Receiving a foreclosure notice can be one of the most devastating events anyone can go through. This is where our foreclosure attorneys can prove invaluable. At Covert Marrero Covert, LLP, we provide moral and legal support to clients who are facing this issue and help them find real solutions. Get a ‘foreclosure attorney near me’ in Naperville, Schaumburg, and Warrenville, IL today by getting in touch with us for a consultation.