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Expert Insights: How Bad Is a Previous Foreclosure on Credit?

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Expert Insights: How Bad Is a Previous Foreclosure on Credit?
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Unfortunately, it is a pretty bad blemish. A property foreclosure is one of the most damaging events in a borrower’s credit record. In terms of the effect on your credit history, a deed in lieu of foreclosure-where you voluntarily ‘give back’ your property to the lender-or a short sale-when the lender agrees to write off a portion of the loan that is higher than the value of the home-is not as adverse as a forced foreclosure.

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