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How Long Does A Mortgage Default Last On A Credit File?

How Long Does A Mortgage Default Last On A Credit File? | J Daniels& Associates

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If you have a mortgage default on your credit file, you might be wondering how long the default will be listed on your credit file. In most cases, a standard default will stay on your credit file for a period of five years, regardless of whether or not you are able to pay it off. When you have a default listed on your credit file, you may find it difficult to be approved for another loan. It’s also possible that your credit score may become lower if you have multiple defaults.

Read on below to find out more about how long a default will last on your credit file.

How long does mortgage default last on credit file?

The length of time that defaults are kept on record depends on the type of default, and how much the default is worth. Generally, a standard default will remain on your credit record for five years.

This could mean that during those five years, you may find it difficult to be approved for a loan. If you happen to pay the default off within those five years, generally, the default will remain file. However, it will be marked off as having been paid.

How does a mortgage default affect your credit score?

Worried about a mortgage default on credit file | J Daniels & Associates

If you’re wondering what kind of effect a credit default could have on your credit score, it may depend on a few factors. If you choose to apply for another loan after having a default on your credit report, a lender may reject your application as they may class you as a higher risk to lend to.

If you happen to have multiple defaults listed on your credit report, a lender may be less inclined to lend to you, as they may think that you are more likely to default on a loan.

When you have a default on your credit report, you may notice that your credit score will significantly drop, especially if you have more than one default to your name. It’s possible that as the five years pass, your credit score may improve.

How can J Daniels & Associates help me?

J Daniels & Associates has more than 40 years of experience and has helped 1,000’s of people successfully. We advocate on our clients’ behalf with banks and creditors to stop home repossession, as well as those being harassed by creditors due to bankruptcy issues. Your financial situation should not leave you living in fear, and that’s where J Daniels & Associates can assist you.

We strive to provide top class service to those who need assistance, or who are confused about where to turn during bankruptcy. Our professional advocates can help you when you’re in need. J Daniels & Associates are here to assist you when you need it most with confidential, expert debt guidance.

We believe in transparency with our fees, so you won’t need to be concerned about any hidden surprises. In addition to helping you to improve your financial situation, we can assist you in finding a solution to your mortgage issues. If you need help and support, give us a call today for your free consultation.

*Disclaimer: This article contains general comments and recommendations only. It is not intended to be and should not be construed as legal advice. This article has been prepared without taking account of your objectives, financial situation or needs. Before taking any action, you should consider the appropriateness of the comments made in the article, having regard to your objectives, financial situation and needs.

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