In trying times you may be faced with the inability to pay bills. And if you’re like most Americans who have a home there is a possibility of you facing foreclosure. It’s a scary thing, proper planning and management skills can help you through it. Foreclosures essentially when a homeowner does not pay their mortgage bills for an extended period of time. Given that, the lender most probably the bank will then see the whole and deem it as a foreclosure.
That’s a lengthy definition. We like to think of it as a kid dropping their ice cream on the sidewalk. – Foreclosure is almost as bad as that feeling.
If you’ve ever encountered a foreclosure, you should know that it remains on your credit report for up 7 years. It does significantly impact your credit score although after the 7-year mark it should fall off and your credit score should increase marginally.
It should be a straightforward understanding that is foreclosure does it impact your credit score. A foreclosure on a credit report is terrible oh, it’s the simplest way to put it. Depending on where you stand with your credit score, a foreclosure will hit your credit differently. So for example, if you have a 600 credit score, expected to drop anywhere between 80 points to 110 points. Whereas if you have a credit score of 800 and you have a foreclosure, there’s little to no mercy there and your credit score will drop over 150 points.
With a foreclosure on your credit report, you definitely want to know if it can be removed, don’t you? Well, the good news is yes, but it varies depending on your situation. There are many different reasons why a foreclosure could be removed off your credit report and many reasons why it should stay.
So what are the reasons why a foreclosure can be removed off your account? Let’s take a look.
Expired. If the Foreclosure is expired, meaning it’s past the 7-year mark definitely contact the credit bureau to have it removed.
Out of Business. If the lender is no longer in business, you may have I got really lucky. Contact the credit bureau to the lenders no longer in business and you should have in foreclosure removed off your account.
Here are some tips on how you can remove a foreclosure off your account.
Inaccuracies. Firstly you should look for any inaccuracies on the Foreclosure entry. Make sure that you cross reference everything to ensure set the Foreclosure is correct or incorrect. You should be looking at things such as the balance, the date, account number, and the institutional lent you the mortgage. If you find any inaccuracies definitely write them down and save them for later.
Compile everything you have make sure to build a strong Foundation to the case you’re willing to present.
Now You Dispute. Next, you want to dispute the entry. What you would need to do is write a letter explaining why the Foreclosure should not be there on your account, will give you a list of some reasons below. But once he agreed to remove a foreclosure ideally you should be about 30 days before you have it off your credit report.
Professional Help. If you don’t want to do this alone or have no idea where to start the best place you can go to Are Professional Credit Repair services. Professionals know exactly what you’re doing and how to get the job done right, what you think might be possible can be a piece of cake to them. So we recommend calling your local trusted credit repair professionals here.
Foreclosures are difficult, it puts you in a position where you have to act quickly and get yourself back on your feet. But don’t be saddened, it’s not the end of the world. It’s a rough process yes, especially with the financial impact it has on you and your family and also your credit score. But there is light at the end of the tunnel especially when you have the ability to repair your credit score. Definitely sit down look at your options and set up a payment plan. Be responsible and repair your credit score so that way you’ll be able to get a mortgage in no time and hopefully you won’t have to face another foreclosure.