“How will walking away from your morgage affect your credit score and ability to buy a home in the future?”
200-300 point credit drop- that’s it
I’ve considered that if a large number of people have credit hits from walking away from a house in this era, this type of credit hit will lose its sting. Apartments need to have renters, and homes need to have buyers. In the 80’s, I worked with car dealerships in finance, and marveled at how people with repo’s and BK’s could get financed. They did indeed - not at very good interest rates, but they got financed.
“200-300 point credit drop- that’s it”
And a 100-200 point increase after about 9 months with no further derogatory credit entries.
The FICO system is highly manipulated. FICO is in no way accurate. They manipulate the numbers each month based on the desires of the banks to loan money to certain consumer sectors. FICO is a closely guarded secret as to its formula, why is that? It is because they manipulate the numbers to manipulate consumer credit.