How Bad Does Foreclosure Impact Credit Report?

April 14, 2010 - PRLog -- Because of the severe financial trouble and the pain and suffering it can cause, most consumers are ready to accept any consequences necessary in order to move on with their lives.

Aurora Lillo Editor of the "Best Loan Modification Companies" website -- http://www.BestLoanModificationCompanies.com -- pointed out;

“…However, it is important for homeowners to realize how negative of an impact a foreclosure can actually be on their credit report and even more critical that they understand that the severe repercussions could last up to ten years. Before simply giving up on their current situation, struggling consumers need to understand several key points…”

Any future lender that sees a foreclosure on a credit report will assume several things, but the most common will be that the borrower was not responsible enough to look into their options. While there are definitely a few consumers that must accept such a process and its appearance on their credit history, most people have alternatives and it simply takes a little bit of effort to determine what they may be. Lenders look at both the account history and a credit rating, and a foreclosure will severely harm both.

Even possible creditors in other areas will look at someone losing their home as a very negative mark on their credit report. Most financial institutions figure that a person is more likely to pay their mortgage than they are for unsecured debt in the event of tough financial times, so it only stands to reason that people who allow their mortgage to become delinquent are going to be seen as more of a risk. Therefore, these consumers often find it very difficult to rebound from such a negative event.

While it is difficult to estimate exactly how much a certain action or occurrence can lower a credit score, most experts agree that repossessions and other legal filings are certainly the worst factors to have present. Because legal filings, such as the foreclosing of a home, show up for 7-10 years, a consumer will not find it very easy to move on into better or brighter things.

“…The most important thing for homeowners to learn is that there are ways to stop foreclosure and methods that can be used to successfully remove oneself from such a difficult situation. The best idea is to contact a professional that can provide all of the advice and necessary steps…” added A. Lillo.

Further information about how to get professional assistance with a mortgage loan modification by http://www.BestLoanModificationCompanies.com