Foreclosure and Your Credit

Written by on February 15, 2011 in Money - No comments | Print this page

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credit-houseThe relationship between your experience of a foreclosure and your credit score is an irreversible fact.

It is not like other bad incidents in your personal finance that you can use to turn-over from its flipside to make that bad incident an opportunity to have a good credit score.

Yet, despite the fact that a foreclosure always has a negative impact in your credit score, you may still delete it from your records under two conditions.

The first one is that you should first be able to carefully study your rights under the Fair Credit Reporting Act. Second is that you should also try to re-trace your financial transactions. In this matter, you must be able to re-trace all of what you did financially, especially those activities with negative effects, and see if your creditors backed-up those records with complete documents.

When you find any anomalies in your records and documentations, you may then first get some legal consultation. Now, if chances are in your favor, you should then legally appeal the court to delete those erroneous records, especially those related to your foreclosure, because they have such a huge negative impact on your credit rating; ranging from not less than 120 and even up to as 300 or even more.

The next thing that you may also do in order to ease the damage done by the foreclosure to your credit rating is to try to re-claim the mortgage of your home. One way to do this if you are already under a bad credit rating is by applying for bad credit debts. With the majority of people falling under bad credit scores, the market for companies granting these kinds of debts is expanding so you may not have trouble finding a company to apply for a bad credit debt.

If that’s not something you want to pursue, you can just apply for bad credit remortgaging so that you will no longer need to pass through any unnecessary proceedings. By applying for bad credit remortgaging, not only will you be able to re-claim your home, you will also get to have a chance to boost you credit scores if you are able to comply on all of the conditions of the remortgage. Applying for this type of relief is a chance for you to obtain a good credit score.

Even though trying to fix the negative impact of a foreclosure and your credit score is not a reversible incident in and of itself. By successfully fulfilling the conditions of a bad credit debt or a bad credit remortgage, you will be able to transform, or at least rebound from its negative impact on your credit rating. Just remember the fact that all forms of investment or re-investments have innate risks so you should never lose track of the way you planned your budget so that your rebound from a foreclosure will not turn into an even worse situation.

Foreclosure is a dreadful experience that is sure to affect your credit. The good news is, you can take steps to correct this or at least reduce the impact.

There’s more where this came from.  The Credit Doctor has useful and easy to use information that will help you fix your credit.  Find out for yourself what is a good credit score.
Image: jscreationzs / FreeDigitalPhotos.net

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About the Author

Alana Johnson

Alana Johnson tries to enjoy the simple things in life and writes for the Lifestyle category on Quality Life Resources. Living in the small New England town of Norwalk, CT, she looks forward to the warm summer months. To submit your own article for my category, please click HERE. View all Self Improvement articles.