When homeowners in New Jersey lose their home to a foreclosure, they may have two main concerns. The first is where they will live and the second is how they will rebuild their credit score. Without rebuilding a good score, even finding a place to rent may prove difficult. Once the score is up again, however, the individual may even be able to purchase a new home.
Fox News reports that the higher a person’s credit score was before a foreclosure, the longer it may take them to get their score back to normal. For example, it might take three years to regain a credit score of 680, but seven years to return to a 780 score. The best way to build credit is to keep credit accounts open and make payments on time. People who may forget may consider setting up automatic payments to reduce this possibility.
While many people are worried about how foreclosure may affect their credit score, other problems may affect their scores too. Consider claiming a free credit report from Annualcreditreport.com to check for any errors or discrepancies. Dispute any problems found with the credit bureaus as it may help to improve credit scores.
As individuals spend more time monitoring their credit history, they may wonder how long a foreclosure may remain on their report for. According to NerdWallet, the answer is seven years. At the end of this period, the derogatory mark may automatically fall off the credit report. If not, consider disputing this with relevant agencies as well.
A foreclosure is not the end of the world. With patience, perseverance and support from family and friends, many people get back on their feet in no time. Also, be sure to spend some time evaluating what led to this foreclosure to mitigate against it for the next home purchase.