Can Credit Repair ACTUALLY REMOVE Short Sales & Foreclosures From Your Credit Report?
Here are some frequently asked questions regarding short sales, foreclosure and how they impact your credit score and credit report.
“Does a short sale hurt your credit?”
“Short sales take more than 90 days, how will that affect my credit score?”
“How long does a foreclosure stay on your credit?”
“How does a foreclosure affect a persons credit score?”
“How long does a bankruptcy stay on your credit report”
“Can credit repair actually remove foreclosures from credit reports?
..so on and so forth.
Well, let me start off by saying that both a foreclosure and a short sale will impact your credit score. The difference is that a foreclosure may be more damaging to your overall credit and will remain longer on your credit report than a short sale.
- 85-160 reduction to your FICO score depending on the borrower.
- Inability to obtain a standard mortgage for at least 24 months
- 85-160 point reduction on your FICO score, depending on the borrower. Yes, this is almost the same as a short sale.
- Remain on credit report for 7 years. Inability to obtain a mortgage for at least 24 months. Difficult to obtain a standard interest loan afterwards
- Remains on credit report 7-10 years
- A very large ding on credit score, usually a few hundred points
One of the major concerns that homeowners have when going through a short sale, foreclosure or even a bankruptcy are the consequences on their credit.
However, what most homeowners do not know is that the FCRA (Fair Credit Reporting Act) requires certain steps to be made by creditors before reporting an item on a credit report, and if a creditor misses one or more of these steps (which they often do), the FCRA will not allow the item to appear on the credit report. This includes unverifiable information, clerical errors, mistaken identities, etc.
What this basically means is that you, as a homeowner, might be qualified to have your short sale, foreclosure, late payments (30/60/90 day lates) and sometimes even your BK removed from your credit report even if they are accurate. This is not illegal! In fact, it is actually the law that allows you to accomplish this, since the FCRA requires conditions beyond “accuracy” to be met by creditors when reporting a negative item on your credit report.
If you are looking to purchase another home post-short sale or foreclosure, don’t fall for one of those high interest “foreclosure loans for bad credit” provided by hard money lenders who are looking to take advantage of your situation. Rather, remove negative items using our lawyers, raise your FICO score and obtain a standard, low interest mortgage when purchasing your next house.
Credit Repair & Deletion:
My job is to help people walk away from this season in life with as clean of a slate as possible. With the help of one of our partner law firms, you can remove foreclosures from credit reports, as well as short sales and other negative items. Deleting negative items on your credit is a sure fire way to help rebuild your credit after a short sale, foreclosure or even BK faster than you’ve ever thought possible.
When it comes to short sales and foreclosures, listen to the experts. Don’t do what everybody else is doing, rather, take advantage of what’s out there and milk every opportunity you can find. The reason why most homeowners are stuck having to short sale is because they ended up purchasing homes based on feelings or the opinions of a single realtor. This time, choose differently. Take advantage of our knowledge on the subject and you’ll be back running in no time.