Legal Question in Credit and Debt Law in California
Credit Status after Foreclosure
After a home mortgage foreclosure in the State of Michigan, having had no delinquent or other credit issues previouosly, what would the effect be on establishing myself in California? Specifically, getting a builder's license and purchasing a home there.
How long would the foreclosure appear on my credit report?
1 Answer from Attorneys
Re: Credit Status after Foreclosure
The foreclosure will remain on your credit report for a maximum of 7 years. The California Contractor's State License Board won't be interested in your credit history, but you do need a $10,000 license bond to get a license. The bonding company might have some interest in your credit rating. You may find difficulty getting bond and/or you may pay a higher bond premium for the bond than other contractors.
As far as purchasing a home, that all depends on the lender and the criteria they use to approve or deny loans. The foreclosure is only part of your overall picture. The higher the downpayment you can afford, the better your chances of getting a loan. You should start looking around for a mortgage broker.
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