Will my credit score drop if I apply for a new loan?

Will my credit score drop if I apply for a new loan?

According to MyFICO.com credit inquiries make up 10% of your credit score. Everything is relative in credit scoring. So, if you are already struggling with a lower score, inquiries will have more of an impact. If your credit history is shorter, inquiries will have more of an impact. Most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time. Typically these are treated as a single inquiry and will have little impact on the score, if done within 30 days. 

ARE THE ALTERNATIVES TO FORECLOSURE ANY BETTER AS FAR AS MY FICO SCORE IS CONCERNED?

Are the alternatives to foreclosure any better as fare as my FICO score is concerned?

The common alternatives to foreclosure, such as short sales, and deeds-in-lieu of foreclosure are all "not paid as agreed" accounts and considered the same by your FICO® score. This is not to say that these may not be better options for you from a financial perspective, just that they will be considered no better of worse for your FICO score.

If you are considering bankruptcy as an alternative to foreclosure, that may have a greater impact to your FICO score, While a foreclosure is a single account that you default on, declaring bankruptcy has the opportunity to affect multiple accounts and therefore has the potential to have a greater negative impact on your FICO score. source myFICO.com

HOW LONG WILL A FORECLOSURE AFFECT MY FICO SCORE?

How long will a foreclosure affect my FICO score?

A foreclosure remains on your credit report for 7 years, but It's impact to your FICO® score will lessen over time. While a foreclosure is considered a very negative event by your FICO score, its a common misconception that it will ruin your score for a very long time. In fact, it you keep all of your other credit obligations in good standing, your FICO score can begin to rebound in as little as 2 years. The important thing to keep in mind is that a foreclosure in a single negative item, and if you keep this item isolated, it will be much less damaging to your FICO score than if you had a foreclosure in addition to defaulting on other credit obligations.
source   myFICO.com

credit scores - understanding your credit score HOW MISTAKES AFFECT FICO

Mortgage - (FICO)
Equifax
Transunion
Experian

Consumer

freecreditscore.com
triplescore.com
annualcreditreport.com

What is your FICO Score?

payment history 35%
amounts owed 30%
length of credit history 15%
credit use 10%
new credit 10%

PARTIAL CREDIT BUREAU SCORECARD
                                            ATTRIBUTES                                     POINTS
number of bank credit cards      
                                                     0                                                  15
                                                     1                                                  22
                                                     2                                                 {30}
                                                     3                                                  40*
                                                     4+                                                30

number of inquiries last month    0                                                  75*
                                                      1                                                 55
                                                      2+                                               {40}
number of months on file
                                                      -12                                               12
                                                      12-23                                           {35}
                                                      24-47                                            60*
                                                      48+                                               75*
number of months since most recent bank card opening
                                                       no bank cards                              32
                                                       bank card,not open date              40
                                                       0-5                                               {20}
                                                       6-11                                              25
                                                       12-17                                            30
                                                       18-23                                            38
                                                        24+                                              45*
                                                     
number of months since most recent derogatory public record
                                                        no public record                           {75*}
                                                        0-5                                                 10
                                                        6-11                                               15
                                                        12-23                                             25
                                                        24+                                                49

*represents the maximum points possible
{} represents the actual points received

©195,Fair, Isaac and Co, Inc



                                          HOW MISTAKES AFFECT FICO
CREDIT MISTAKE                          IF YOUR SCORE IS 680          IF YOUR SCORE IS 780          
maxed out card                                   down 10-30 points                     down 25-45 points
30 days late payment                          down 60-80 points                     down 25-45 points
debt settlement                                    down 45-65 points                     down 140-160 points
foreclosure                                           down 85-105 points                  down 140-160 points
bankruptcy                                            down 130-150 points               down 220-240 points

GETTING A MORTGAGE IS EASY

http://realtormag.realtor.org/daily-news/2015/03/11/getting-mortgage-easy-consumers-say#sf7948188

Mortgage rates

http://realtormag.realtor.org/daily-news/2015/02/27/mortgage-rates-continue-move-up#sf7703241

Debt to income ratio

http://www.investopedia.com/articles/07/debt_to_income.asp

Mortgage Forgiveness Debt Relief Act of 2007

Tax Relief for Some Financially Distressed Homeowners Homeowners experiencing short sales and foreclosures were given tax relief under the Mortgage Forgiveness Debt Relief Act of 2007. Instead of treating cancellation of debt as taxable income on the foreclosure of a principal home, no taxes will be levied on discharges of indebtedness of up to $2,000,000 for married taxpayers filing jointly and of up to $1,000,000 for a married taxpayer filing a separate return through tax year 2012. The basis of the taxpayer's principal residence is reduced by the excluded amount, but not below zero. The 2008 Economic Stabilization Act provided a three-year extension for home mortgage debt forgiveness relief. Qualified principal residence indebtedness is acquisition indebtedness (as discussed previously) with respect to the taxpayers' principal residence, but with a $2,000,000 limit ($1,000,000 for married individuals filing separately). Principal residence has the same meaning as under the home sale exclusion rules of IRC Code Section 121. Acquisition indebtedness of a principal residence includes refinancing of debt to the extent the amount of the refinancing doesn't exceed the amount of the refinanced indebtedness. The exclusion also does not apply to a taxpayer in a Title 11 bankruptcy. An insolvent taxpayer (other than one in a Title 11 bankruptcy) can elect to have the mortgage forgiveness exclusion not apply and can instead rely on an exclusion for insolvent taxpayers.