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Will a foreclosure on my credit report affect my credit score? The mortgage was discharged in Ch7 bankruptcy.

Alton, IL |

Mortgage was discharged in Ch 7 bankruptcy and shows $0 balance on credit report. My credit score is almost 700. The bank will now go through the foreclosure process to release the lien of the property in my name (post bankruptcy discharge date). I know this will be public record. Does this affect my CREDIT SCORE at all? That's my main concern.

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Attorney answers 3

Posted

Yes, bankruptcy is a derogatory event which will harm your credit score.

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Asker

Posted

Not the bankruptcy, that is over and done with (discharged Feb. 2011). I'm speaking specifically about the foreclosure process to take the lien of the property out of my name (mortgage was discharged in the bankruptcy) that is happening post bankruptcy, does that affect my credit score?

Deborah Gwen Roher

Deborah Gwen Roher

Posted

Logically it shouldn't, but credit scores are proprietary algorithms, so they can use whatever factors they think are relevant.

Posted

Yes. Both the bankruptcy and the foreclosure will affect your credit score.

Posted

The foreclosure will negatively affect your credit score.