Mortgages and Loans Q&A

A: Typically, foreclosures will lower a credit score by 250-280 points, and stay on your credit report seven years. If you continue paying other bills and credit obligations on time though, within three years your credit score could be robust enough to get you a new mortgage with a favorable interest rate. A foreclosure is only one single negative item, not a blanket record of defaulting on all credit obligations. Good luck!