How Long Does a Foreclosure Stay on Your Credit Report?
Under the federal Fair Credit Reporting Act, most negative information, including adverse items such as a foreclosure, generally cannot be reported for more than seven years; bankruptcies can be reported for up to ten. The time limits do not apply to certain larger credit, insurance, and employment transactions. Accurate negative information cannot legally be removed early, but errors can be disputed for free.
What the law says
- Credit reports can include public records such as liens, foreclosures, bankruptcies, and civil suits and judgments, along with account payment history and missed payments. CFPB, What is a credit report?
- Under 15 U.S.C. 1681c(a)(5), a consumer reporting agency may not report any adverse item of information, other than records of criminal convictions, that antedates the report by more than seven years. 15 U.S.C. 1681c (Fair Credit Reporting Act section 605), via GovInfo
- Under 15 U.S.C. 1681c(a)(1), bankruptcy cases may not be reported if, from the date of entry of the order for relief, they antedate the report by more than 10 years. 15 U.S.C. 1681c (Fair Credit Reporting Act section 605), via GovInfo
- The CFPB says a credit reporting company generally can report most negative information for seven years, and bankruptcies can stay on your report for up to ten years. CFPB, How long does negative information remain on my credit report?
- The time limits do not apply when the report is used for a credit transaction of $150,000 or more, underwriting life insurance of $150,000 or more, or employment at an annual salary of $75,000 or more. 15 U.S.C. 1681c (Fair Credit Reporting Act section 605), via GovInfo
- For delinquent accounts placed for collection or charged off, the statute says the seven-year period begins 180 days after the start of the delinquency that preceded the collection activity or charge-off. 15 U.S.C. 1681c (Fair Credit Reporting Act section 605), via GovInfo
- The FTC says no one promising to repair your credit can legally remove information that is both accurate and current. FTC, Fixing Your Credit FAQs
- If information in your report is wrong or incomplete, both the credit bureau and the business that supplied it must fix it for free; a bureau generally has 30 days to investigate a dispute. FTC, Disputing Errors on Your Credit Reports
- You can check your credit report from each of the three nationwide bureaus (Equifax, Experian, and TransUnion) for free once a week at AnnualCreditReport.com, the only authorized site for these free reports. FTC, Free Credit Reports
FAQ
How long will a foreclosure show on my credit report?
The FCRA generally bars reporting adverse items, other than criminal convictions, that are more than seven years old. The FTC says most negative information stays on a report for seven years.
Does the seven-year limit always apply?
No. It does not apply to reports used for credit of $150,000 or more, life insurance of $150,000 or more, or a job paying $75,000 or more a year.
Will the information be deleted from the bureau's files?
The CFPB says companies usually won't report negative information after these limits, but they may still keep it on file.
Can a credit repair company remove a foreclosure early?
Not if it is accurate and current. The FTC also says it is illegal for credit repair companies to charge you before they help you.
What if the foreclosure is reported incorrectly?
You can dispute it in writing with each bureau showing the error and with the business that reported it; fixing errors is free.
Are alternatives to foreclosure less damaging to credit?
The CFPB says options such as selling, a short sale, or a deed-in-lieu are typically less damaging to credit than foreclosure.
Related
- Buying a Foreclosed Home: What to Know
- What Is a Deed in Lieu of Foreclosure?
- The Foreclosure Process Step by Step
- Foreclosure Surplus Funds: Who Gets the Money Left Over?
- How to Stop or Avoid Foreclosure
- What Is Foreclosure? (Including Pre-Foreclosure and REO)
- Foreclosure & Homeowner Law by state
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.