Does anyone know the approximate effect of having an account status listed as a "collection" versus "120 days past due"? Which would be preferred if you wanted a higher score? I don't think either status would be considered completely accurate in my case since it is a purchase money second mortgage that had been foreclosed on by the primary in a non-recourse state, but I figure either of those are preferred to actually being listed as a "foreclosure". The first shows up with "120 days past due" and lists "foreclosure" in the notes section. I suppose that is because it was of the non-judicial type.
The hit will be different for everyone depending upon their starting FICO score and credit history. FICO's told us that if you have otherwise good credit and you miss 1 payment it could drop your scores 40-75 points. I don't believe they've released any specific numbers regarding collections, but a collection has to be viewed by the credit-scoring model as something worse than a late pay. It could easily drop you well over 100 points, so you definitely don't want any collections on your credit reports if possible.
