What is a Foreclosure?
A foreclosure can occur if you are unable to pay your mortgage that you were extended through a bank or financial institution. During the foreclosing process the financial institution who leased the mortgage will repossess the house to try and pay off the debt that is owed.
If the institution is unsuccessful in doing this, they will likely write the expense as a charge off on their taxes. This unpaid debt will likely be sold by the institution to a collection agency. The collection agency can then attempt to recover the debt in full or partiality from the person responsible for not making the mortgage payments.
How a Foreclosure impacts your credit score
Regardless of weather the debt is paid or unpaid by the person responsible; a foreclosure will remain on the credit report for up to 7 – 10 years and will absolutely crush your credit score. The 7 years refers to the credit reports and the 10 years refers to public record listings.
Contacting the creditor directly to try and remove the foreclosure from your credit report will be very, very difficult. Since foreclosures are a very serious negative credit allegation, creditors are highly unlikely to consider removing a foreclosure from your public credit report records.
With that being said, all hope is not lost. The present state of the economy has caused major havoc and has the job market has suffered because of it. The economy could be just one reason why the foreclousure ever happened. Divorce, death and other serious events that happen are all shades of grey that are sprinkled into this equation that resulted in the foreclosure.
The consumer who undergoes a foreclousre is liable for what happened, however, when trying to get your credit life square again by challenging the information on your reports it can be very tricky to get it erased.
Understanding the consumer protection laws is the first step in being able to leverage a letter to send to the bureaus for their consideration in removing the item. The problem is this time consuming and a difficult plan to implement.
A smoother, and simpler credit solution
The best course of action you can take in removing a foreclosure listing, is to contact a credit repair service because they understand how the credit and legal system function.
Lexington Law has helped millions of people remove negative credit accounts from their credit reports including foreclosures and has improved millions of credit scores in the United States.
If you are interesed in a free, no obligation credit consultation, simply fill out the form below and a paralegal from Lexington will follow up with you.