Foreclosures have a long lasting impact on your credit report (up to 7 years!). Can you remove them? You can if a foreclosure is on your credit report as a mistake. Disputing errors on your credit report yourself is difficult (& time-consuming). It’s easier w/the help of an experienced credit repair expert like Credit Glory.
What is a foreclosure notice (& what does it mean)?
A foreclosure notice usually arrives if you haven't made a mortgage payment in 90 days. After that, the loan is sent to foreclosure, which means the lender can seize your home to recover the debt. That's not even the worst part! On top of foreclosure, you could face liens, taxes, and other costs that hurt your finances — and your credit.
Does a foreclosure hurt my credit?
Since your credit report reflects whether you make payments on time, foreclosures seriously hurt your credit score. Foreclosures appear on your credit report 1-2 months after proceedings begin and can drop your credit score between 100-160 points! The worst part? They stay on your credit report for 7 years.
Other ways a foreclosure affects you
In addition to your credit score dropping and having your home seized, other effects of foreclosure include:
- Tax impact - One of the overlooked aspects of foreclosures is the impact on your taxes. The IRS considers borrowed money that isn't paid back taxable income. So you could be facing a hefty tax bill.
- You have to wait to buy a new home - Foreclosures have a big effect on your ability to buy a new home in the future. In addition to dropping your credit score, the waiting period for buying a new home after a foreclosure is generally between 2-7 years.
- Harder To Get A Mortgage - Having a foreclosure on your credit report drops your score anywhere between 100-160 points. That means if you do qualify for a mortgage, you have fewer options and are looking at high-interest rates.
Can you remove a foreclosure from your credit report?
While a verified foreclosure can't be removed from your credit report before the 7-year expiration date, you do have options. However, under certain circumstances, you can remove the foreclosure from your credit report.
- If the foreclosure is more than 7 years old - If you have a foreclosure on your credit report that's past the expiration date, you can request to have it removed. You can do this by writing a letter to credit bureaus providing evidence of why it should be removed.
- If the lender is out of business - If the bank listed on your credit report is no longer in business, it means credit bureaus can't confirm the foreclosure information. Unconfirmed foreclosures can be disputed and potentially removed.
- Check for errors on the credit listing - If a foreclosure appears on your credit report and you think it's inaccurate, be sure to check the listing. Verifying the foreclosure balance, dates on the account, account number, and lender help you determine whether you can dispute it.
- Partner with a credit repair professional - Identifying and disputing errors on your credit report yourself is challenging. An easier alternative is having a credit repair expert (like Credit Glory) do it for you.
Repair your credit yourself or w/help from a professional?
Foreclosures have a long-lasting effect on your credit. Luckily, you have options. You can check your credit report for errors and dispute them yourself — but this is hard (& time-consuming). The simplest way to dispute errors (& boost your score)? Working with a credit repair expert (like Credit Glory) is easier than DIY.
Protect your credit score with help from Credit Glory
Working with a professional credit repair expert is an easier alternative to DIY. Credit Glory helps identify and dispute inaccurate late payments (& other negative marks) from your credit report (boosting your score!). Call today at (855) 938-3044 or set up a consultation with them to start on a path to a better financial future.