Identity theft can ruin your finances

Victims of identity theft know what a stressful process it can be to clear your name from damage made by a criminal. Just ask Ty Powell, an Arizona resident, who is facing foreclosure and financial problems because of a stolen identity.

The Huffington Post recently reported Powell purchased a home from a builder in early 2007, who used Powell's personal information to take out a mortgage in his name. The builder also made payments on the mortgage, the news source reported.

"The builder took out a mortgage on the house in Ty's name," said Jay Foley, founder of Identity Theft Resource Center. "Then he turned around and maintained the mortgage until Ty came back and bought that house."

Now, Powell is having trouble convincing Freddie Mac, a government mortgage agency, that he owns his house. His home was foreclosed in July and he could be evicted at any time, reported the news source.

It is important to catch signs of identify theft as early as possible to avoid substantial damage. By obtaining your credit report you can look for errors that could be signs of identity theft. If you believe you are a victim, visiting a credit repair company or contacting a credit repair attorney can help you file a dispute to fix your credit.