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A 90 day late payment has the same negative effect as a foreclosure!
Article Published by Robert Weinberg on Sunday, April 5th, 2009

What almost nobody knows is that a 90 day late payment by itself has the same exact effect on a credit score as a foreclosure.  Fair Isaac’s classic fico model is designed to determine the liklihood of someone going 90 days late on a particular loan obligation over the next two years.  Once someone goes 90 days late, since that is the event the scoring model is trying to predict, anything beyond that is a moot point and will not cause an additional decrease in the score.

While it is true that a foreclosure does make a person more of a credit risk overall, the classic fico model is not telling you if they are a risk overall other than the risk they will pay 90 days late over the next two years.  Whether they are a risk to file a bankruptcy or whether they are a risk for defaulting 5 years down the road is not what the score is trying to predict. 



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"Rob walked me through this step by step process, making things clear along the way. I highly reccommend your service to anyone who is struggling with debt" Michael Bennett
 

 

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Who you trust in helping you eliminate your debt is an important decision. Since 2003, Robert Weinberg has helped hundreds of homeowners achieve their financial goals by teaching them advanced strategies for melting down debt, creating wealth, and preserving credit (more)