A foreclosure should only be considered as the last resort for it can drastically affect your credit rating. In fact, a foreclosure can affect your credit score by about 200 to 300 points. This means that a credit score of 800 can be lowered to 500. This results in a negative credit score. After a foreclosure, it is mandatory that you should not receive any financing from a creditor. This means that you will not be able to get loans, buy a car or any financing.
Your low credit rating may also affect your ability to get an apartment as most landlords use your credit scores as a way to determine your reliability as a tenant. This also applies to getting phone numbers or cable. However, these detrimental effects can be reversed only after the 24 months are over but a foreclosure will only be fully removed after seven years.
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