How to Repair Credit After Losing Your Home (Good News - It CAN Be Done!)
Let's talk for a few minutes about fixing your credit after a foreclosure, short sale or a repossession.
Nothing is more devastating than losing something valuable that you've worked hard to accomplish.
Buying a home is often the most cherished asset many families have...
and losing that home to turbulent financial times can be a terrible even to experience.
It can lead to depression, frustration and the fear of an uncertain future.
It can also lead to a TERRIBLE credit report, and a low FICO score to boot! Bad credit, as most people reading this already know, can make getting a NEW home, or even a nice apartment, a serious challenge.
As a result, many people are forced into a vicious cycle of having to borrow more money to put down as a security deposit on a simple apartment or rental house, leading to MORE credit problems due to exorbitant lending rates, more debt, more depression and more problems across the board.
Here is the GOOD news: Repairing your credit after foreclosure is as easy as fixing your credit with any other issue.
The same laws that apply to removing a foreclosure, or a bank repossession apply HERE, as they do for any other negative information you'll want to challenge on your report.
(although a foreclosure is in fact one of the very worst items you can have on your report, and will have one of the worst overall affects on your score, hence the importance of challenging it as below) The first step? Order your credit file.
Look at the information on your report and RANK it from worst to best.
Your PUBLIC RECORD information is usually listed first, and is usually the worst information for those who are credit challenged.
(and includes foreclosures, bankruptcies, tax liens and judgements, and any and all information that is public record) Here is the very important part: Look for discrepancies in the way your foreclosure is being reported.
Anything that is NOT 100% accurate can be challenged on your credit file completely legally.
You have the federal right to dispute ANYTHING you think it not correct on your credit, and that can include mistakes in dates, amounts, or even actual original bank that lending you the money for your home.
(a common error in many consumer files recently, due to the rash of bank closings and consolidations in recent years) Remember...
There is NO credit issue that cannot be overcome, no matter how bad it looks right now! (foreclosure included)
Nothing is more devastating than losing something valuable that you've worked hard to accomplish.
Buying a home is often the most cherished asset many families have...
and losing that home to turbulent financial times can be a terrible even to experience.
It can lead to depression, frustration and the fear of an uncertain future.
It can also lead to a TERRIBLE credit report, and a low FICO score to boot! Bad credit, as most people reading this already know, can make getting a NEW home, or even a nice apartment, a serious challenge.
As a result, many people are forced into a vicious cycle of having to borrow more money to put down as a security deposit on a simple apartment or rental house, leading to MORE credit problems due to exorbitant lending rates, more debt, more depression and more problems across the board.
Here is the GOOD news: Repairing your credit after foreclosure is as easy as fixing your credit with any other issue.
The same laws that apply to removing a foreclosure, or a bank repossession apply HERE, as they do for any other negative information you'll want to challenge on your report.
(although a foreclosure is in fact one of the very worst items you can have on your report, and will have one of the worst overall affects on your score, hence the importance of challenging it as below) The first step? Order your credit file.
Look at the information on your report and RANK it from worst to best.
Your PUBLIC RECORD information is usually listed first, and is usually the worst information for those who are credit challenged.
(and includes foreclosures, bankruptcies, tax liens and judgements, and any and all information that is public record) Here is the very important part: Look for discrepancies in the way your foreclosure is being reported.
Anything that is NOT 100% accurate can be challenged on your credit file completely legally.
You have the federal right to dispute ANYTHING you think it not correct on your credit, and that can include mistakes in dates, amounts, or even actual original bank that lending you the money for your home.
(a common error in many consumer files recently, due to the rash of bank closings and consolidations in recent years) Remember...
There is NO credit issue that cannot be overcome, no matter how bad it looks right now! (foreclosure included)
Source...