How will a foreclosure affect my credit?

UPDATED: May 23, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: May 23, 2012Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

How will a foreclosure affect my credit?

When we purchased our home 13 years ago, the mortgage was in my husband’s name only. I actually signed away my dower rights. However, 4 years ago we added my name to the title under survivorship. He passed away the next year. I have been paying the mortgage for the past 3 years and no longer can. The house is upside down in the mortgage and I want to walk away. Can I without it adversely affecting my credit? Can I buy another home?

Asked on May 23, 2012 under Real Estate Law, Ohio


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

I am so sorry for your loss and for the situation.  I would urge you to contact you state attorney general's office to see about programs for those in your situation and about lowering the interest rate, etc.  You also need to speak with some one about a deed inmlieu of froeclosure (where you sign the house back over to the lender; forclosure is very expensive so they might be agreeable) or a short sale. The inportant thing here is to have them waive the deficiency.  Now, foreclosure stays on your credit report for 7 years like any bad debt.  It will indeed affect your credit rating.  But if you keep everything else current for at least 2 years your score could rebound.  Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption