Foreclosure occurs when a homeowner fails to maintain mortgage payments, resulting in the lender taking possession of the property. This process not only leads to the loss of the home but also deeply damages the credit score, as it signals a major failure to meet a significant financial obligation. Foreclosure can remain on a credit report for up to seven years, making it difficult to secure new loans or even rental housing. Credit repair after foreclosure may include negotiating with the lender to resolve any outstanding balances in a way that is less harmful to the credit report. Additionally, improving other areas of the credit history can help mitigate the impact of foreclosure. Maintaining a consistent history of on-time payments after the event and demonstrating responsible credit usage are essential to gradually restoring your credit score.