Foreclosure
A mortgage is a contract loan a person takes out to purchase their home, and is one of the most significant trade lines on a credit report. When a lender looks at how a person paid their mortgage, they look at how many late payments there were and if the home went into foreclosure. If a home goes into foreclosure, it shows that the person was not paying their mortgage or could not afford their mortgage.
How damaging is a foreclosure to your credit report?
A foreclosure is the worst record to have on a credit report, and can remain on your credit report for a very long time. In order to keep a foreclosure from appearing on your credit history there are 2 options. Try to make timely payments or if the foreclosure item is reported incorrectly on your credit report it would be best to dispute it to have it removed from your credit report. Many times information is reported inaccurately on a credit report.
What if my home did not go into foreclosure yet, is there still hope?
The best way to avoid going into foreclosure is to pay your mortgage on time and avoid anymore late payments! However, many people often misread or were mislead on the contract and sign a mortgage that they did not understand. These types of opening low price mortgages increased dramatically over time in the first few years. The people who agreed upon these mortgages can no longer afford their now high priced homes, and are now going into foreclosure. The best thing to do is to change to a fixed-rate mortgage, rather than these ever changing mortgage rates. However, if you have a low credit score, you will be unable to get one because lenders do not trust that you will repay them.
How can I raise my credit score after foreclosure?
If there is any information on your credit report that is inaccurate or incorrect, you can dispute it and have it removed to lower your credit score. A lower credit score can make the difference in thousands of dollars on your interest rates and whether you get a fixed-rate mortgage or not. CreditLawGroup can handle this process for you by disputing the negative and/or misleading items with the 3 credit reporting bureus.
Are you ready to remove the inaccurate information from your credit report today?
If you’d like to know more about credit repair, you can speak to a credit analyst at CreditLawGroup today by calling 1-800-508-0041. With cost effective legal representation, you can look towards a brighter financial future as well as a higher credit score. We have excellent customer service, and you will develop a close professional relationship with your paralegal to work together to clean up your credit report.
