How Will Foreclosure Affect My Credit?

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Foreclosure affects and individual's credit history in a negative way, as it is very difficult to borrow money after failing to make house payments. Find out how foreclosure affects the ability to borrow money in the future with information from a financial manager and currency trader in this free video on finance.

Part of the Video Series: Credit Reports & Credit Scores
Promoted By Zergnet

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Video Transcript

I'm Roger Groh. We're here today to talk about foreclosure and the affects that that has on your credit history and your ability to borrow money in the future. Well, let's face it. If you're coming to me and you're asking me to lend you money, if hand me your credit report and it shows that you did not make your payments on time, I'm not going to be very anxious to lend money to you. If it says that you stopped making payments, and somebody that has lent you money beforehand has actually come back and has taken back the asset that you bought, that's going to make you, me even more apprehensive. The net affect of it is, if I do make you a loan, I'm going to charge you a very high rate of interest in order to compensate for my risk. My very real risk, that you will not make the payments on time. So it's a very negative thing, to have foreclosure on your credit history. And I'm Roger Groh.

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