Remove Foreclosure

Remove Foreclosure

Foreclosure or the termination of the one’s equitable right to redemption of a pledged property is recorded in your credit report for a maximum of seven years. This can be devastating to your credit score and should be avoided at all costs. If, unfortunately, you already have one on your record, don’t worry. Here’s how to remove a foreclosure from your credit report:

1. Know your rights. It is important that consumers understand the Fair Credit Reporting Act (FCRA) and other related legal provisions as these may be used to your advantage and will make it easier for you to remove a foreclosure from your report.

2. Credit repair. This should be your next logical move. Seek legal help or hire a credit repair company. These professionals specialize in removing foreclosures and other negative items on your report.

Under the Fair Credit Reporting Act (FCRA), you are allowed to challenge or dispute any information on his credit report on the basis of “completeness and accuracy”, and this includes foreclosures. This process may be facilitated by personally sending the credit bureau a letter of dispute or having your credit repair professional do it for you.

These experts will then find ways to dispute or challenge information accuracy, after which a 30-day investigation period takes place. If the credit bureaus are unable to verify the accuracy of the disputed information after investigation, they must promptly remove a foreclosure from your report.

Another option would be to get your creditor to clear you. You can do this by negotiating a settlement agreement with your lender. The lender must agree to remove the foreclosure from your credit report in exchange for your payment.

To sum it up, a foreclosure does not need to stay in your credit report. Removing it will not only do wonders on your credit score, it will also let you sleep better at night.

Don’t let the fear of your debt or bad credit take over your life. Get the facts about credit scores and learn how to get control of your debt. To learn more about removing foreclosure from credit report visit http://creditscoreanswers.org now.

How to Remove Foreclosure From Your Credit Report

 

How to Remove Foreclosure From Your Credit Report
A home with a for sale sign on it also has the word, ‘foreclosure’ on top. Photo Credit Andy Dean/Hemera/Getty Images

A foreclosure listing can significantly damage your credit rating and hinder your ability to get approved for low interest rates on new loans and lines of credit. According to the Fair Credit Reporting Act, foreclosures can appear on your credit file for a maximum of seven years. If the credit bureaus do not remove the foreclosure notation from your credit report automatically after this time frame, you can notify them of the obsolete entry and request its removal. In some cases, if your foreclosure notation contains inaccurate information, you may be able to have it removed before the seven-year reporting period expires.

Step 1

Obtain copies of your credit reports from Experian, Equifax and TransUnion. The Fair and Accurate Credit Transaction Act allows you the right to one free credit report from each credit bureau per year.

Step 2

Locate the foreclosure listing on each credit report in the “Public Records” or “Public Information” section. Check the date the foreclosure occurred to ensure that the listing is no more than seven years old.

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Step 3

Dispute the foreclosure notation with the credit bureaus if it occurred more than seven years ago. Notify each credit bureau in your dispute that section 605 of the FCRA prohibits information related to foreclosures from remaining in consumer credit reports for more than seven years. You may dispute credit information online or by telephone, but the Federal Trade Commission recommends that you submit your dispute in writing in order to keep accurate records of the process.

Step 4

Examine the foreclosure entry for errors if it is not obsolete. If any information within the notation is incorrect, such as the amount you owed your lender or the date the foreclosure was filed, you may have grounds to have the entry removed early.

Step 5

Contact the lender that initially compiled the report if you notice a reporting error in the foreclosure notation. Inform the lender that the notation is inaccurate and needs to be either corrected or removed. In some cases, lenders would rather remove an entry than attempt to correct it.

Step 6

Make copies of any documentation you have that proves the foreclosure entry is incorrect. Submit this documentation, along with a copy of your credit report and a letter explaining that you want the listing either corrected or removed, to each credit bureau currently reporting inaccurate information. The FCRA allows credit bureaus 30 days to investigate reporting errors and attempt to verify or correct them. If the credit bureaus cannot verify or correct your foreclosure notation, it must be removed.

Step 7

File a lawsuit against the lender reporting the foreclosure if it verifies the inaccurate information with the credit bureaus. The FCRA gives every consumer the right to sue any company or individual that knowingly provides inaccurate information to the credit bureaus. Many lenders, to avoid paying a representative to defend them in court, prefer to simply remove the foreclosure listing from the plaintiff’s credit file.

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