There are so many Americans who are either in pre-foreclosure, where they are 90 days or more behind on paying their mortgage or already have foreclosure proceedings in progress. There are millions more who have already lost their homes to foreclosure.
Your credit score will take a big hit having a foreclosure on your credit history means., You might see a hit of as much as 150 points or more once the foreclosure is listed and depending on what else is going on in your life..
For example, each of the missed mortgage payments to get you in this position will probably hurt your credit score as well.
After you've been foreclosed upon, you'll need to rebuild your credit history and credit score by making careful use of the credit that is granted to you.
Credit cards should be used in moderation and always paid on time and in full. Make a budget and stick to it. Build up your savings to get your financial life gets back on the right pathway.
It will take three to five years before you can buy a home using a loan from Fannie Mae, Freddie Mac or FHA with a foreclosure, short sale, or a bankruptcy on your credit history.
It is not the end of the world and can mean a new attitude towards money and credit but life still goes on. It will however mean that financing purchases will be a little harder and more expensive over the next few years.
