This is a interesting situation one of my friends has fallen into.

In October of last year we pulled his crdit and fico scores.
His FICO was 799
He had no negative remarks and only about 18K stretched out over 220K of credit cards
Only installment loan was his house he purchased a couple of years ago.

We just pulled his reports and scores again this afternoon because of a bunch of letters from credit card companies that showed up yesterday.
Today his FICO was 446.

Here's the negatives.
Mortgage - over 90 days past due and shows as a foreclosure and account closed .(he said he really hasn't paid on the house for 6 months. But he still lives in it)

Judgment on public records for the home from the mortgage company.

This is how the lady at experian explained it.

His first 30 day late on the mortgage dropped his score by 30 points---------------------------769
His 60 day late on mortgage dropped it by 75 points-------------------------------------------696
his 90 day late dropped it by another 100 points-----------------------------------------------596
the judgment and foreclosure 150 points-------------------------------------------------------446

But its going to get much worse, here's why.
The letters he received from all the credit card companies either canceled his cards or dropped
the limits down to around 1000-1500 each. His total credit limit now is 20K.
Next months credit report will show him at almost 90% utilization of available credit. OUCH!
That will be another 50 points off at least.
If it happens he will have the lowest score I have seen.

All because he decided he wasn't going to pay for the house.
But I just find it unreal how it all snowballed so quickly.

Just thought I would share, just in case somebody else is thinking of walking away from a house. It appears to have consequences way beyond just not paying on the mortgage.

Thats AWESOME!

OP seems to be too happy about the situation to actually be "his friend".

vaylon said:This is a interesting situation one of my friends has fallen into.

In October of last year we pulled his crdit and fico scores.
His FICO was 799
He had no negative remarks and only about 18K stretched out over 220K of credit cards
Only installment loan was his house he purchased a couple of years ago.

We just pulled his reports and scores again this afternoon because of a bunch of letters from credit card companies that showed up yesterday.
Today his FICO was 446.

Here's the negatives.
Mortgage - over 90 days past due and shows as a foreclosure and account closed .(he said he really hasn't paid on the house for 6 months. But he still lives in it)

Judgment on public records for the home from the mortgage company.


This is how the lady at experian explained it.

His first 30 day late on the mortgage dropped his score by 30 points---------------------------769
His 60 day late on mortgage dropped it by 75 points-------------------------------------------696
his 90 day late dropped it by another 100 points-----------------------------------------------596
the judgment and foreclosure 150 points-------------------------------------------------------446

But its going to get much worse, here's why.
The letters he received from all the credit card companies either canceled his cards or dropped
the limits down to around 1000-1500 each. His total credit limit now is 20K.
Next months credit report will show him at almost 90% utilization of available credit. OUCH!
That will be another 50 points off at least.
If it happens he will have the lowest score I have seen.

All because he decided he wasn't going to pay for the house.
But I just find it unreal how it all snowballed so quickly.

 

Just thought I would share, just in case somebody else is thinking of walking away from a house. It appears to have consequences way beyond just not paying on the mortgage.Quoted for preservation

Not paying a mortgage for 6 months... No surprise in those scores. Is he a member of http://www.youwalkaway.com/ by chance?

igorthesmall said:Why didnt your friend max out his credit cards if he was going to walk away from his mortgage debt. Doesnt seem like it could have hurt his credit any worse.Clearly they have penalized even more for being a stupid debtor.
If he would have done an AOR, his score would be at least 50 points higher!

Thankfully its not me and yes he is a good friend, actually a very good friend. But he really doesn't care about this credit stuff.
So if it doesn't bother him it doesn't bother me.

But here's a little more info why it doesn't bother him.
He owns 3 very successful business's all in other people's names and they are proverbial cash cows.
He makes more in 1 week than I make in a month.
The guy never finances anything, he pays cash for new cars and houses.
The guy loves gold bars and Krugerrands and stores them in 5 gallon buckets.
Our golf games end with him loosing a Krugerrand.

He has the money to pay the house off and all the credit cards, he just refuses too.
How he is able to live in the house is beyond me.
I think he is planning on buying the house thru his attorney at the auction next month.

I just posted it because it was just ODD with the score! Not to get judgments on people's character's.

vaylon said:Thankfully its not me and yes he is a good friend, actually a very good friend. But he really doesn't care about this credit stuff.
So if it doesn't bother him it doesn't bother me.

But here's a little more info why it doesn't bother him.
He owns 3 very successful business's all in other people's names and they are proverbial cash cows.
He makes more in 1 week than I make in a month.
The guy never finances anything, he pays cash for new cars and houses.
The guy loves gold bars and Krugerrands and stores them in 5 gallon buckets.
Our golf games end with him loosing a Krugerrand.

 

He has the money to pay the house off and all the credit cards, he just refuses too.
How he is able to live in the house is beyond me.
I think he is planning on buying the house thru his attorney at the auction next month.

I just posted it because it was just ODD with the score! Not to get judgments on people's character's.
He doesn't seem to have any character to judge.

wiredspider said:vaylon said:Thankfully its not me and yes he is a good friend, actually a very good friend. But he really doesn't care about this credit stuff.
So if it doesn't bother him it doesn't bother me.

But here's a little more info why it doesn't bother him.
He owns 3 very successful business's all in other people's names and they are proverbial cash cows.
He makes more in 1 week than I make in a month.
The guy never finances anything, he pays cash for new cars and houses.
The guy loves gold bars and Krugerrands and stores them in 5 gallon buckets.
Our golf games end with him loosing a Krugerrand.

 

He has the money to pay the house off and all the credit cards, he just refuses too.
How he is able to live in the house is beyond me.
I think he is planning on buying the house thru his attorney at the auction next month.

I just posted it because it was just ODD with the score! Not to get judgments on people's character's.

If he buys houses in cash, then why does he owe on this house?

if his so smart and rich, why did he destory his credit?

i'm thinking this guy really isnt so smart and rich, and the cc bill is more like 220k and he paid 'cash' for all his toys using c.c. money

Nice fantasy. Playing golf for gold, getting a customer support lady explain the inner workings of the FICO models ... OP, you should think about starting to write fiction books. Be the next K. Rowling.

On a different note, I don't get it why everybody gets so upset and disgusted whenever someone mentions not caring abbout their credit score. "Uh-oh, he is destroying his credit " He doesn't care! Get it?

I'll give you an example. If you started studying hard today, in about 6 years or so, you could become a doctor. So (provided you are not one today), why are you not studying, "ruining your career"? The answer is simple - you just don't need to be a doctor.