Credit Companies

How to Remove a Foreclosure from Your Credit Report?

A foreclosure can measurably affect your credit; but you may be able to eliminate it from your report if the claim is defective or unsupported.

The removal of a foreclosure is a long and tedious process. You are given the right to dispute the foreclosure, given that you have correct documentation to prove that it does not reside on your credit report.

You are permitted to eliminate the foreclosure if:

·        The foreclosure is greater than seven years old.

·        The creditor is no longer in business.

·        You have a voluntary deposition.

·        There are missing records.

What Steps Can I Take to Remove a Foreclosure?

Here are certain steps you can take to ensure your attempt at a foreclosure removal:

Step 1: Find Errors On Your Credit Report

Your initial step will be to collect your credit reports from Equifax, Experian and TransUnion. Each credit bureau is obligated to provide a free copy of your credit report every year. You can receive yours from AnnualCreditReport.com. you must check all the reports to see the varying details in each report.

Make sure to notice the following:

·        The foreclosure amount

·        Dates related to the account

·        The account number

·        The name of the creditor

If you notice an error on your credit report, you will need to communicate with the credit bureaus directly to begin a credit dispute. You should highlight the items you are disputing, the reason of your dispute and the proof giving backbone to your reason. The Federal Trade Commission provide a sample letter you can utilize.

The bureaus have 30 days to review and examine your case and five days after the results are present, they must send them to you, according to the Fair Credit Reporting Act (FCRA). Certain circumstances allow them to extend this given period.

Step 2: Communicate with The Lender

As well as informing the credit bureaus, you must also communicate with your lender and ensure they are aware of the inaccuracies. You must provide the details of your case the same way done to the credit bureaus. Lenders are required to examine the disputes as well.

Step 3: Contemplate Expert Help

A credit repair company like the Blackwater Credit Repair can be your best option if you are looking to eliminate a foreclosure from your credit report. You can make this choice if you decide that you do not want to deal with the time-taking and complicated process.

It is profitable to have a team working with you, with an acute knowledge of all credit-related topics and the time to work on your case. For example, credit repair firms most probably know what documents you need to win your dispute.

What Effect Does a Foreclosure Have On My Credit?

A foreclosure on your credit report can decrease your credit score by up to 160 points.

Foreclosures mean that you delayed your payments before the foreclosure, which indicated to your creditors that you may not pay them back at all. Fortunately, the negated effect of the foreclosure on your credit score lessens over time.

How Long Do Foreclosures Take to Be Eliminated Off a Credit Report?

Foreclosures can generally stay on your credit for more than seven years. Seven years is a substantial time and can determine the approval of your request for a new home.

How Does a Short Sale Affect My Credit Score?

According to the Experian reports, short sales, which are settled debts, are nearly as bad as a foreclosure itself and can drop your score by up to 160 points.

However, a short sale may be your only choice before you are given a foreclosure. It can be damaging to your credit but can help you long-term. You will need the approval of your lender to sell the property for an amount less than your debt, the lender may say yes or no.

The way a short sale shows up on your credit report depends upon the way the bank or the creditor project the sale. If they report it as “paid”, then you may not see a difference in your score at all.

How Long Does It Take for a Foreclosure to Come Off a Credit Report?

These short sales are treated in a similar to foreclosures and can stay on your credit report for up to seven years, appearing as your mortgage to be “settled” instead of a “short sale”. This is a small benefit as the words appear less harsh and allow the lenders to consider your proposal.

Will I Be Able to Buy a House with A Foreclosure On My Report?

Despite the hardships, you can still purchase a house with a foreclosure on your credit report. It is probable that will not be able to do it promptly after a foreclosure. In certain situations, you will have to wait for several years before receiving the approval for a mortgage loan.

When dealing with certain cases, it may be helpful to take the aid of a mortgage professional who can help navigate you through other options, like government-supported loans.

Having a foreclosure on your credit report can possibly increase the price of the process of buying a house. This is due to the fact that lenders see you as a financial risk and will most probably charge you increased interest rates and fees. Therefore, you can still get a mortgage with bad credit if you agree to paying the higher fees and a down payment.

Removing Foreclosures with a Credit Repair Firm

As mentioned before, there are several advantages to utilizing a credit repair firm to aid you in the diminishing of a foreclosure on your credit report. You can preserve time and money, and you would be looking at increased chances of getting your foreclosure removed from the report. If you would like to begin the process, sign up for a free credit report consultation to see how our team of experts at Blackwater Credit Repair can help you.