Credit After Foreclosure

Call reScore Solutions (a Kirkpatrick & Associatescompany) if you have had a foreclosure and ready to purchase another home.  We can advise you of your rights and help you rebuild your credit.

Foreclosure in Alabama
Had a foreclosure?

If you have recently experienced a foreclosure or short sale, it is important to know the effects those events will have on your credit report and credit scores.  You may be concerned about being able to qualify for another mortgage, car loan or even a credit card.

Yes, you can #regain your credit status.  This is where we can help you in rebuilding your credit and credit scores.  Let’s take a look at some valuable information regarding your credit after a foreclosure.  Even with this information, it can be confusing to how and when to rebuild.  There are many loan and credit card companies that are ready to capitalize on your situation and charge exuberant fees and interest rates to “help” you rebuild.  Here, at Kirkpatrick & Associates, we can help guide you through the process without you paying those loan sharks.

1.    Question: I was told that I would not be able to have credit for 10 years after Bankruptcy and not sure how long after a foreclosure.

Answer:  A Bankruptcy can remain on your credit reports for up to 10 years, but you can rebuild your credit immediately after your Bankruptcy is dismissed.  With re-established credit and credit scores, you can purchase a home after 2 years of Bankruptcy, that did not include a foreclosure and 3 years with a foreclosure.

2.   Question:  How will your FICO score consider a foreclosure?
Answer:   There’s no denying that foreclosures are considered a very negative event by your FICO score. With that said, it’s a common misconception that a foreclosure will make it impossible to rebuild your credit. In fact, if you keep all of your other credit obligations in good standing, there’s a good chance that your FICO score could begin to rebound in just 2 years. Try to pay your auto loans, credit cards and any other credit obligations on time to limit the effect of this foreclosure.  []

3.  Question:  Are other options better for my credit standing?
Answer:  Recently, several alternatives to foreclosure have become popular – some of these include “short sales” and “deeds-in-lieu of foreclosure”. These may be viable options for you, and you should definitely do research to determine if these options make sense for your situation. However, as far as your FICO score in concerned, there is no difference between foreclosures and short sales or deeds-in-lieu of foreclosures. Each of these actions is considered an account that was “not paid as agreed”, and will have the same impact to your FICO score.  []

Better FICO scores
Rebuilding your credit without the high fees and interest rates.

4.  Question:  How long will a foreclosure affect my FICO score?                                                                                                                                     Answer:  A foreclosure remains on your credit report for 7 years, but its impact to your FICO® score will lessen over time. While a foreclosure is considered a very negative event by your FICO score, it’s a common misconception that it will ruin your score for a very long time. In fact, if you keep all of your other credit obligations in good standing, your FICO score can begin to rebound in as little as 2 years. The important thing to keep in mind is that a foreclosure is a single negative item, and if you keep this item isolated, it will be much less damaging to your FICO score than if you had a foreclosure in addition to defaulting on other credit obligations.  []

Thank you for allowing us to help your with your current credit issue.  We would love to talk to you and invite you to call our office if you have concerns regarding your credit situation and feel that we may be able to assist you.  Our number is 205-352-3448 Monday – Friday 8:30 to 5:30.  We value our patrons and do our best to answer every call.  If we are not available, the receptionist will be happy to forward your call to the voicemail.  Please leave a message or email her at or

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