How Long Does a Foreclosure Stay on Your Credit Report?

September 15, 2009 2 Comments »


More mortgage crisis Q&A: “How long does a foreclosure stay on your credit report?”

With all the foreclosures sprouting up, struggling homeowners that are either going through the process or teetering on the brink may be wondering what the repercussions are, aside from the obvious, losing your home.

Well, with regard to credit, foreclosure is a very serious delinquency, and one that will stay on your credit report for up to seven years (typically from the date of filing).

The filing date for a foreclosure may be the Notice of Default (NOD) in a non-judicial state such as California or the Lis Penden (written notice of pending lawsuit) in a judicial state like New York.

Initially, the foreclosure will hit your credit score big time, likely dropping it more than 150 points, pushing even the most prime borrower into subprime status.

The amount it will drop will vary based on your credit history.  If your credit score was essentially flawless, you’ll see a larger drop.  If your credit score was already dinged up, the drop won’t be as severe.

Essentially, two borrowers with different credit scores hit with foreclosure will end up in similar places. And they aren’t good places…

Time Is Your Friend, Kind Of…

However, as time goes by, your credit score will inch up, assuming you continue to pay your other bills and meet other commitments in a timely fashion (this is key to recovery).  Be sure not to miss any subsequent payments, or you’ll set yourself back.  Even on unrelated credit tradelines, such as a credit card or an auto loan/lease.

The presence of the foreclosure record on your credit report doesn’t mean you can’t obtain mortgage financing for seven years, but it does mean creditors will be able to see the red flag and punish you accordingly.

Even if you meet the bank or lender’s requirements for past foreclosures, an underwriter could still determine that you are too risky for a subsequent mortgage if you’ve got other iffy stuff going on.

You may also be subject to more stringent guidelines going forward, like no stated income documentation and a larger down payment requirement.

Keep in mind that the longer you put off foreclosure, the longer the recovery period; that’s not to say give in, but take note.

Like any other derogatory credit account, it’s possible to get a foreclosure removed from your credit report, though you’ll probably need a compelling reason and a whole lot of legwork. But it could certainly be worth your time.

Plenty of homeowners fight to get foreclosures reversed due to faulty paperwork and other lender and loan servicer shortcomings.  If you’re able to do so, be sure to get everything in writing so you can get the foreclosure removed from your credit report as well!

Read more: Foreclosure waiting periods.


  1. oluwabiyi January 19, 2016 at 10:55 am -

    Quick question, I had a foreclosure on my credit report( conventional loan 80/20) first and second loan showing on my report. When I pull out my credit report it shows the date, month and year when it will be removed. My question is, will the foreclosure removed at the date reflected on my report or it can be extended ( I believe its almost 7 yrs now).

  2. Colin Robertson January 19, 2016 at 6:19 pm -

    It should be removed seven years from the filing date, as mentioned in the article.

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