Foreclosure
The legal process by which a lender takes possession of a home when the borrower fails to make mortgage payments. Foreclosure typically causes a FICO score drop of 100–160 points and remains on your credit report for seven years from the date of the first missed payment.
Related guides
- Full credit & FICO® glossary
Browse all defined terms by category.
- Mortgage
A loan used to purchase or refinance real estate, where the property serves as collateral. Mortgages are installment loans with terms typically ranging from 10 to 30 years. Missing mortgage payments can lead to foreclosure. Minimum credit scores vary by loan type (FHA: 500, conventional: 620).
- Delinquency
Failure to make a payment by its due date. A 30-day delinquency means you're 30 or more days past due. Delinquencies are reported to credit bureaus and can significantly lower your FICO score. The date of first delinquency starts the clock on the 7-year reporting period for negative items.
Frequently Asked Questions About Foreclosure
What does Foreclosure mean?
The legal process by which a lender takes possession of a home when the borrower fails to make mortgage payments. Foreclosure typically causes a FICO score drop of 100–160 points and remains on your credit report for seven years from the date of the first missed payment.
Is Foreclosure important for my FICO® score?
Understanding Foreclosure helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.