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For the first time, the creators of the leading FICO credit scoring formula have revealed how long it may take you to recover from mortgage delinquencies, short sales and foreclosure.

The data, posted earlier today on FICO’s Banking Analytics blog, shows that the higher your scores were to begin with, the bigger the negative impact and the longer you’ll need to recover. Someone with a 680 score might lose 50 to 70 points from a short sale or foreclosure and need about three years to recover, while someone with a 780 FICO to start could lose up to 125 points and require about seven years to return to his or her old score.

For more details and to check out the charts of impact by score, click HERE.

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Categories : Liz's Blog



this makes NO sense! why would someone who had a higher score be worse when all is said and done then someone with a lower credit score?

we had two good jobs and credit scores of 810 and 809. THEN i lost my job and eventualy we lost our condo.

why are we being punished even more than someone who had lower scores?


It’s always been easier to lose points than to gain them. The scoring formulas are set up to react strongly to any indication that your risk of default has grown, so a serious negative will whack more points off of a higher score than a lower one (which already indicates a higher chance of default, since the person hasn’t handled credit as well). And it takes longer to build a score back to 780 than it does to 680.


Great post. Hopefully a lot of people get to read this.