Going through a foreclosure and losing your home can be a devastating experience. Added to the loss of what is often your biggest financial asset and investment as well as the stress of being displaced are the additional damages to your credit score. Your credit score, called your FICO, generally will take a hit, dropping 150 to 300 points. A foreclosure will remain on your credit report for 7 to 10 years. A lowered credit score will negatively affect your ability to get new lines of credit, such as credit cards and auto loans. You may have to pay higher interest rates on any items or services, such as insurance, that rely on your credit report. A lowered credit score may even make it more difficult to find employment if a prospective employer views it as a negative factor in assessing your responsibility level or moral character.
The best way to handle this situation is to make timely payments on any credit cards, other loans or financial obligations you carry forward after a foreclosure. By doing so, you can eventually restore your credit-worthiness. By keeping your balances on these obligations as low as possible and making at least minimum payments, your credit score can be rebuilt in a matter of a few years. Your foreclosure is one negative event whose importance will begin to recede over time.
Experienced Legal Help in Foreclosure Situations
In any New York foreclosure situation, it is best to weigh all of your options in determining what the best action will be. Despite the fact that a foreclosure can sharply impact your credit score, it may be better to cut your losses on a mortgage you can’t afford so that you can start over. To get all of the relevant information you need about your specific mortgage, your options and alternatives, you should consult with a Long Island foreclosure defense attorney at the Law Firm of R. David Marquez, P.C. Get experienced legal advice from a firm that has dealt with foreclosure cases and issues for 28 years.
Contact a Long Island foreclosure defense lawyer at the firm for capable legal assistance in any foreclosure case today.
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