What Happens to My Credit if I Go Into Foreclosure?

A completed foreclosure typically drops your credit score by 100–150 points and stays on your credit report for up to 7 years.

The Damage Isn't All-or-Nothing

Missed payments themselves start hurting your score well before foreclosure completes, and a short sale, deed in lieu, or loan modification generally causes meaningfully less damage than letting a foreclosure run its full course. A voluntary sale, for example, could let you qualify for a new mortgage in as little as 2–3 years, versus roughly 7 years after a completed foreclosure.

The Takeaway

Every alternative to a completed foreclosure is also a credit-protection strategy — one more reason timing matters so much.