After foreclosure your FICO score (created by Fair Isaac Corporation) is likely to drop by an average of 100 pints but if your points were on the higher side the fall is expected to be with between 200 to 300 points. In short, the higher your credit points the greater your credit ranking is likely to be affected. The silver lining is that foreclosure does not ruin your credit score forever because as time goes by the effects of foreclosure on your credit are lessened with the immense effects been felt in the first two years.

How foreclosure affects your credit score

Foreclosure substantially lowers your credit worth however if your credit score was lower initially you might not notice so much of a drop but the impacts are the same as it will be next to impossible to secure favorable interest rate from you potential lenders, inclusive of other lenders other than mortgage companies and in some cases you may be barred from acquiring credit at all.

Foreclosure will be reported on your credit report for 7 years but this does not necessarily mean that your chances of getting new credit will be difficult for the next seven years or so because if you manage to remain current on all of your other debt obligation, your fico score will spring back in about two years after your foreclosure case.

Effects on the ability to access future credit

As soon as after one year, you might be able to get a new mortgage through the FHA-backed loan, if you are able to meet certain expectations and have pleasing credit throughout that one year duration.

For the other forms of credit such as credit cards or car loans there exists no specific limitations on when you can access them because the question of whether you qualify for them is left at the discretion of their lenders and they have different takes when one may reject your application the other may not and besides there are credit entities targeting the market with person with poor credit histories however their interests must be higher.

Effects on your ability to relocate or rebuild your financial situation

If after losing your home to a foreclosure you are considering to rent, you may find yourself in an awkward position whereby you will need to explain to your potential landlord how you are going to be a trustworthy tenant especially in a case where you have left your lender with a hefty debt.
Your chances of securing a new job where you were probably seeking to earn more; may be significantly affected by your foreclosure more so if the position you are seeking is charged with the responsibility of handling money and your potential employers have to check on your credit report. This is likely to happen because a person with a poor credit is more often than not construed not to be as equally trustworthy as a person who has a sound credit history.