Foreclosures, bankruptcies, short sales … all have such negative impact on homeowners (or former homeowners to be exact).  However, the stigma of having declared bankruptcy or having lost a home is not as great as it used to be.

Remember in college when we were told, “Look to your left.  Now look to your right.  These people will probably not make it to graduation.”  It almost feels like those days have returned, but instead of not making it to graduation, it’s more like “These people are having financial problems and could lose their homes.”  The stigma of bankruptcy or foreclosure isn’t as great because it could be any of us!

But how long will one of these difficult financial situations follow your credit report?  RIS Media - a firm that specializes in information for real estate professionals - says seven to 10 years.

A foreclosure can be reported on your credit report for seven years from the date the foreclosure was filed in the court.  …

Bankruptcy, she said, legally can remain for 10 years from the date you filed - not the date of discharge or when the bankruptcy is completed. However, credit reporting agencies have agreed to voluntarily remove completed Chapter 13 filings - where someone pays off part or all of their debt under a court-supervised plan - seven years from the date of filing.