Fair Isaac, the creator of FICO scores, has recently released a list of the effects that a homeowner experiences in the strategic default or foreclosure process. For a mortgage payment that is 30 days late, a credit score will be impacted with a deduction of anywhere from 40 to 110 points. Mortgage payments that are 90 days late, a credit score will be impacted with a deduction of 70 to 135 points. When an actual foreclosure proceeding is entered into a credit score, this will cause a deduction of 85 to 160 points in a credit score. A foreclosure will remain noted on a credit report for up to seven years after the actual sale has occurred. Also, a credit score can begin to rebound within two years of a person making consistent payments after a foreclosure.

For homeowners who are facing financial problems, taking a hit on a credit score may be the best way out of a difficult situation. Homeowners should be aware that there may be future issues in attempting to obtain a lease from a landlord. A lower credit score will also cause the payments for a future mortgage or auto insurance to escalate. Despite these impacts, there are ways to negotiate and continue to be able to obtain a lease or favorable terms for specific loans in the future. Working with a loan modification attorney can help a homeowner minimize the effects of foreclosure on one's credit history and credit score.