It is more important now more than ever to understand how a foreclosure will affect your credit score in NYC. The 5 boroughs all saw increases in foreclosure rates over the last year, but with the worst borough of them all being Queens and specifically zip code 11434 around Jamaica.
A foreclosure is never a decision that should be taken lightly and can have very harmful effects on your credit score. This is why you should also consult with a Queens County real estate lawyer before going into foreclosure. Oftentimes there are many things they can do to delay it and lower your monthly payments to make it more affordable. Taking action as soon as you can within the first 90 or less is vital but if you are unable to then it is best to be aware of how your credit score will be affected by your foreclosure.
What is a foreclosure?
The first thing to understand is what is a foreclosure and why it can happen. A foreclosure is a legal process in which the mortgage lender takes possession of a property if the borrower has not kept up with the payments. In New York, the princess usually doesn’t start until 90 days of missed payments.
When will your credit score be affected?
Typically after the lender has started the foreclosure process, your credit will be lowered within 1-2 months from that date. For each additional missed payment it can continue to be affected.
How much will a foreclosure hurt my credit?
A foreclosure in New York can hurt your credit by serious amounts. If you have an excellent FICO credit score (about 800 or above) one foreclosure can drop your credit score but about 160 points. If you have a good credit score (about 700-750) then it can be lowered by 100 points. This will dramatically affect your life with available credit lines, credit cards, & the interest rate on new and existing debt.
How Long will a foreclosure stay on my credit?
After a foreclosure has been processed it will remain on your credit ratings for the next 7 years from the time of the first missed payment. Although life can continue it will be a slow and difficult process to rebuild your credit over this time and in the future. There are legal ways to minimize the effects of foreclosure or to avoid them altogether. Speaking with a local real estate attorney in Queens can help you to determine what options are available.
If you are on the verge of foreclosure, contact the top rated real estate lawyer in Queens and avoid the credit score consequences:
Real Estate Lawyer Queens R.A Esq. 88-02 136th St, Jamaica, NY 11418 (718) 206-1555 https://realestatelawyernys.com/