How Can a Repossession or Foreclosure Hurt Your Credit Report

Foreclosures and repossessions are serious delinquencies and will lower your credit scores considerably for up to 7 years. Lenders see this as…you signed a contract with them to buy a home or car and pay it in full over a period of time. You failed to do so; therefore they consider you to be in default of your agreement with them and will report this on your credit reports.