If you’re behind on your mortgage, your credit score will suffer. The question is, how much will it hurt your score?
A couple of years ago, Fair Isaac, which developed FICO scores, revealed some estimates of point-score declines following mortgage delinquency problems.
Here are the average hits your credit will experience:
30 days late: 40 – 110 points
90 days late: 70 – 135 points
Foreclosure, short sale or deed-in-lieu: 85 – 160
Bankruptcy: 130 – 240
Some borrowers will see their score fall much more than others for the same payment problem.
Even if borrowers made payments faithfully for years before short selling or doing a deed-in-lieu, their credit score will still take a hit. The total decline will run about 85 points for the 680 score borrower to as much as 160 for the 780 score.
Mortgage debt, combined with other financial problems, can send borrowers into bankruptcy, the worst thing that can happen to your credit score.