How to Remove a Foreclosure from Your Credit Report

April 4, 2019

How to Remove a Foreclosure from Your Credit Report Title Image

A foreclosure can be removed from your credit report, but it requires time and patience. You can dispute it, but in order to prove it’s inaccurate, you’ll probably need the right documentation to show it doesn’t belong on your credit report.

How Common are Foreclosures in America?

While the economy has improved since the 2007–2008 housing crisis, the numbers on foreclosure in America are still an issue. Currently, 430,780 properties in the United States are in some stage of foreclosure. These numbers are 8% higher than the previous month.

If you've gone through a foreclosure, you've probably seen the damage it does to your credit. You also must be wondering if it's possible to get that damaging item removed from your credit report or if you'll ever be able to buy a home again. Here are some information and tips on how to remove a foreclosure from your credit report.

How Long Does a Foreclosure Stay on Your Credit Report?

Foreclosures stay on credit reports for about seven years. Seven years is a long time and a foreclosure can impact your ability to find another place to live. Not only that, but a foreclosure can have a drastic effect on your credit. This is where credit repair can be extremely useful.

How Does Foreclosure Affect My Credit Score?

A foreclosure has a huge impact on your credit because it shows that you weren't make your mortgage payments. It also means that you were late on your payments before the foreclosure and makes lenders think you might not pay them back. This has a huge impact on your credit score and you can expect to see a drop of 85-105 points. While this can stay on your credit reports, the negative impact becomes less severe as time goes by.

Can I Buy a House After Foreclosure?

Yes, you can still buy a house even with a foreclosure on your credit reports, although it may be challenging. And you won't be able to buy a house immediately after a foreclosure. Sometimes, you will have to wait for a few years before you can actually qualify for another mortgage loan. If you apply for government-backed loans such as an FHA loan, then you will have a better chance of approval than if you apply for a traditional mortgage.

Having a foreclosure can also make buying a house more expensive. This is because lenders view you as a higher risk and are likely to charge you higher interest rates and possible higher fees.

What to Do if There are Errors on Your Credit Report

Searching for errors on your credit reports is something you can do for any negative item. You're entitled to free copies of your credit reports each year from the three major credit bureaus. Take advantage of this and request your free copy as soon as soon as you go into foreclosure. Once you have that report, look for any inaccuracies or errors.

Inaccuracies and errors can be associated with any of the following:

  • The account number
  • The dates associated with the mortgage payments and delinquencies
  • The dates associated with the foreclosure process and notification
  • If you find anything out of place, then you can file a dispute with the credit bureaus. Filing a dispute with the credit bureaus can achieve the following:
    • The lender must verify the information that's being reported - if they don't, the bureaus can delete the foreclosure from your credit reports.
    • If your lender verifies that there is inaccurate information being reported, it must be updated. This may not help your credit score, but every consumer has the right to a fair and accurate credit report.

Get Professional Help

Foreclosures are tricky because they are a long, legal process. And filing disputes with the credit bureaus can be time-consuming and frustrating, especially if you're not familiar with your consumer rights. If your credit reports are suffering due to a foreclosure, or any other negative items, contact the consumer advocates at Lexington Law Firm today to help you repair your credit. We've helped over 500,000 clients remove millions of negative inaccurate, unfair, and unverified items from their credit reports. Call us today for a free personalized credit consultation.

How Can I Prevent a Foreclosure From Happening?

If you have late payments already and are at risk for foreclosure, there are some things you can do. One would be to communicate with your mortgage lender and explain your situation. Many mortgage lenders don't want to see property go into foreclosure because of the cost of the legal proceedings. They may be willing to work with you.

Another alternative to a foreclosure is doing a short sale on the home. This still has a negative impact on your credit, but can be less damaging than a foreclosure. A short sale is where you agree with the lender to sell the property for less than you owe on the mortgage. It can show up on your credit as a charge off or a settled account.

Call For A Free Credit Consultation

Lexington Law has helped clients work towards fair and accurate credit scores by leveraging their rights. We’ve helped hundreds of thousands of clients remove unfair, inaccurate and unverified accounts from their credit reports.

Call 1-855-255-0139

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