Removing a Foreclosure from Your Credit Report

With the housing industry still trying to recuperate from the recent economic downturn, many of you who have been foreclosed on are wondering how you can recover your credit and begin over. Many are asking the question, “Can a foreclosure be removed from your credit report after the property has been taken back?”

The immediate answer to the question is that the Fair Credit Reporting Act provides the guidelines in which foreclosures are reported, and it allows foreclosures to remain on your credit records for up to seven years. Since the information is public information, unless there is a court order to have it removed or a voluntary response from the reporting creditor to remove it, it most likely will remain on your credit report even if you have taken the property back.

However, there are extenuating circumstances that can change whether or not the information remains on the reports. There is a difference between a mortgage company filing a foreclosure lawsuit and actually having the house foreclosed.

If you have reclaimed the property by catching up on your payments or by selling the property, there is a good chance you can get the credit agencies to remove the foreclosure from the reports.

In order for there to be a voluntary dismissal of a foreclosure, both parties must agree to the dismissal. You do that when you catch up on your payments to the mortgage company. Your mortgage company in return is obligated to dismiss the foreclosure by contacting the court and reporting to them you are caught up. If they do not do this, you can require them to do so. Your county courthouse will have a record of the court dismissal, and it too is public record.

You can get a copy of the public record from your courthouse, present the information to all the major credit reporting agencies, and dispute your credit record as being inaccurate. The credit bureaus are required to validate your information with the mortgage lender.

After a certain amount of time, the credit agencies should let you know the results of the dispute. If the mortgage lender does not or refuses to validate the information, you can send copies of the dismissal to the credit reporting agencies via certified mail, and you can have the agencies notate the inaccuracies on your report.

Theses actions should theoretically improve your credit scores, but even if your scores are not helped that much, the new positive information on your credit reports should help to offset the negative effects of the foreclosure record.

Foreclosure laws, just like bankruptcy laws, can be very complicated at times. To understand how they apply in your particular situation, it might be wise to employ a lawyer to help you understand how the complex laws may apply in your particular situation.

If you determine you are in need of relief from the stress associated with debt and you live in or around the metropolitan areas of Charlotte, Gastonia, or Rock Hill, North Carolina, contact us here today at .We will help you find a bankruptcy attorney in your area that will help you with any questions you may have on bankruptcy law.

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