When a bank has foreclosed on your property, the record of the foreclosure will normally stay on your credit report for 7 to 10 years. Like many negative entries, some foreclosures will stick even after that time and you will need to use the dispute process to get it corrected (or even resort to legal means).
Bankruptcies are damaging to credit scores. There is no doubt about that. But what a lot of people don't realize is that if you know certain things about how bankruptcies work and WHY they are so damaging, you can rebuild your credit relatively quickly after the bankruptcy and usually go about life more or less as normal.
If you have a foreclosure on your credit report, it is going to hurt your credit score, and probably a lot.
At first, the damage to your score will be worse, and after a couple of years it should be less. Most credit scoring in based on the last 2 years of credit history. It doesn't mean that older items won't still hurt your credit—they will, but what it means is that as a negative item ages, it will tend to affect your credit score less and less.
In this article we're going to cover what I believe to be the best strategy for rebuilding credit after bankruptcy.
If you stick to some basic rules and follow some very basic steps you may be surprised to find that you can have a very healthy credit score within a relatively short amount of time after your bankruptcy.