How Does A Foreclosure Affect Credit Rating
Foreclosure is a legal action that arises from delinquent payments on a piece of property, usually a house. Due to the fact that it has become a legal matter a foreclosure can have a powerful effect on a person’s credit rating, lowering their credit score by as much as 250-280 points.
A foreclosure normally remains on record for 7 years after the action was first entered into public record. This can be absolutely life-shattering as a victim of foreclosure not only loses their property, but also becomes ineligible to reapply for a loan for a very long time.
Recovering From A Foreclosure In Less Than 7 Years
While a foreclosure can all but destroy one’s credit, it doesn’t have to be the end of a good credit rating. In fact, many report that after only 3 years of reestablishing their credit through timely paying habits, they have built their score high enough to receive
a new loan with a manageable interest rate.
Another trick that many consumers are unaware of is that they can actually have the bank or lender to remove the foreclosure from their credit completely. Reporting any delinquencies or foreclosures to credit tracking agencies is the choice of lender, and they can likewise choose to have it removed at any time.
Unfortunately, as there is no incentive for an agency to do so, the removal of the foreclosure report is a rare occurrence, especially for a consumer without an agency to advocate for them.
Finding A Credit Repair Agency
Credit Absolute is one of best credit repair agencies in the United States, and are in a position to fight for their clients to have such delinquencies and foreclosures removed from the record far sooner than the 7 year average.
Contact Credit Absolute now to learn how they can help you recover from foreclosure.Source: www.creditabsolute.com