If you have experienced the foreclosure of your home, you know that it is a financially and emotionally challenging occurrence. In addition to the toll a foreclosure takes on your happiness, security, and bank account, it also severely impacts your credit score. This is very important to know, since your credit score determines your ability to receive financing, find a new home, and even be hired for a job. The good news is that it’s entirely possible to erase a foreclosure from your credit report under the right circumstances.
Understanding Your Credit Score
Your credit score is a number that reflects your creditworthiness. In other words, it indicates how responsible you have been with your money and how much of a threat you pose to the banks and lenders who may loan you money, like a credit card company. If you pay your bills late, spend too much on your credit cards, or take on too much new debt in a short amount of time, it send your credit score down. However, defaulting on major loans, as happen in a foreclosure, is seen as a huge red mark against you and will send your credit score plummeting.
Restrictions of a Low Credit Score
When you have a low credit score, especially with a foreclosure on it, you will find it difficult or impossible to obtain a car loan, a new credit card, or a new home. Most lenders have no interest in taking a risk on someone whose credit score proves financial instability. If you are serious about improving your credit score and having the finan
cial world open to you once again, you need to speak to an attorney about having your foreclosure wiped from your report.
How to Remove a Foreclosure From Your Credit Report
A foreclosure stays on your credit report normally for 7 years, though the worst damage is done after year 2 or 3. If your mortgage lender made clear mistakes that have been well-documented in your foreclosure case, it’s possible to have your foreclosure erased from your report. If the bank that handled your foreclosure is no longer in business and there is a lack of available records, that also gives you ground to have your foreclosure removed.
If your attorney believes you have a good chance of winning, he will help you craft letters to each credit agency to make disputes against the foreclosure. Tens of thousands of Americans have utilized this process to successfully expunge their foreclosures from their records and get their lives back on track.