Many of my clients ask me about the damage that will be done to their credit score if a foreclosure judgment is entered against them.  A foreclosure judgment will cause your credit score to drop around 200 to 300 points.  A good credit score of 700 could drop to as low as 400, which is considered pretty terrible.  The minimum FICO score is 340.  In addition, a foreclosure judgment may lead to tax consequences from the capital gain on the short sale of propety or a deficiency judgment for the remainder of money owed to the bank.

While a foreclosure can remain active on your credit report for three to seven years and make it difficult in certain buying situations, it won’t ruin your credit score for life.  If you keep all of your other credit obligations in good standing, your FICO score can begin to rebound in as little as two years.  The important thing to remember is that a foreclosure is a single negative item.  If you keep it isolated, it will be much less damaging to your credit score than if you had a foreclosure in addition to defaulting on other credit obligations, such as filing bankruptcy.

For more information on how to protect yourself from the consequences of a potential foreclosure, please contact the foreclosure defense team at Wild Felice & Pardo, P.A. at 954-944-2855 or via email at