Bill Rapp here with the Heartfelt and Hot in Houston Blog, and this is our newest segment: Does a-foreclosure impact credit-score?
The true potential of AI isn’t found in a line of code or the plot of a sci-fi movie. It’s in real stories of real people doing really amazing things. Together the possibilities are exponential. Does a-foreclosure impact credit-score?
According to data from LendingTree, more than 600,000 homes were in foreclosure last year – and 2.9 million were in 2010. So what exactly happens to your credit score when your home goes into foreclosure and how long do the effects last? Does a-foreclosure impact credit-score?
During foreclosure, an individual’s credit score can decline by 150 points or more.
However, that doesn’t do irreparable damage to most people’s scores.
About 7 percent of borrowers still end the year with a score above 680, while 2 percent end a foreclosure year with a score above 740. Does a-foreclosure impact credit-score?
Credit score increase
Each year after foreclosure, credit scores can increase by about 10 points.
One year following foreclosure, the average credit score was about 605.
Five years after foreclosure, the average credit score was 640.
More than 30 percent of people have a credit score of at least 640 within 1 year after foreclosure. Does a-foreclosure impact credit-score?
The report showed that buyers with a credit score above 740 and a foreclosure in the past two years paid a higher average rate (5.02 percent) compared with those who either never had a foreclosure – or at least not in the past seven years (4.7 percent). Does a-foreclosure impact credit-score?
That is all for today folks from the Heartfelt & Hot In Houston Blog, make it a great day!
The inspiration for today’s edition came from this original article: https://www.foxbusiness.com/economy/home-foreclosure-impact-credit-score
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