Foreclosure information generally remains on your credit report for seven years from the date of the foreclosure. Even if you have a bad credit history or a low credit score, you can still qualify for a Federal Housing Administration (FHA) loan. The damage caused by foreclosure should decrease over time, but unfortunately, it will stay on record with all three national credit agencies for seven years. The late payments that caused the foreclosure can seriously damage your credit, and the foreclosure itself can cause even more damage.
The record of a foreclosure remains on your credit report for seven years from the date of the first late mortgage payment that resulted in the foreclosure action. The time between filing with the court and the completion of a foreclosure varies depending on local legislation and the type of foreclosure procedure being applied. If your credit report still shows a foreclosure after that date, or if your credit report somehow shows a foreclosure that never occurred, you have the right to use the credit report challenge process to document the error and correct your credit reports. Although a foreclosure can significantly affect your credit, remember that you can reverse the damage if you determine the cause of the foreclosure, commit to not repeating the mistakes that led to it, and take responsibility with your money. Depending on other elements of your credit history and the type of mortgage lender, you may even be able to qualify for a new home loan as soon as two years after the foreclosure is complete.
