WHAT IS FORECLOSURE?

Foreclosure is a process that begins when a mortgage loan borrower fails to keep up with their mortgage payments, and the lender exercises their rights to seize the home. The home will then be sold to recoup or reduce the lenders financial losses.

HOW BAD IS FORECLOSURE?

A foreclosure is a significant negative event on your credit profile that can lower your credit score considerably and limit your ability to qualify for credit or new loans for several years to come. According to FICO a foreclosure will drop your credit score 85 to 160 points.