Does Foreclosure Ruin Your Job Prospects?
A foreclosure is a stressful event in anyone's life. Of course, the most immediate impact is that you will lose your home and be forced to move. Unfortunately, the negative effects do not stop there. A foreclosure impacts your credit, and in some circumstances it can also have an effect on your career.
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Credit Impact
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When you undergo a foreclosure, this event is recorded on your credit report. This may not happen immediately, but eventually your lender will update the credit bureaus on the situation with your loan, and the foreclosure will remain as a black mark on your credit for seven years. It will cause your credit score to go down, sometimes by 100 points or more.
Employer Checks
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Many employers check credit reports as a routine part of the hiring process. They will note your score as a general representation of your financial stability and responsibility. A low score is not necessarily a killer blow to your job prospects, but it will count against you. Employers may not look at the report in enough detail to note the actual foreclosure, but the information will certainly be available to them.
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Type of Career
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Experiencing a foreclosure will be viewed more seriously in some professions than in others. If you are applying for a position in financial services, for instance, a recent foreclosure could even prevent you from landing the job. If financial matters have less relevance to your field, the foreclosure may not be viewed as relevant.
Explanation
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If you have been through a foreclosure, and you believe your prospective employer has done a credit check on you, be prepared to discuss your situation at interview. In many places, foreclosure is a common event, and has happened to many people through no fault of their own. You may find the employer is sympathetic to your situation if you deal with it proactively.
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