Foreclosure not only represents the loss of a home, but also represents a financial catastrophe. A foreclosed homeowner faces serious and long-lasting damage to her credit.
Foreclosure and Credit
Foreclosure information can be, and usually is, reported on credit reports. If your wife lost her home to foreclosure, she can be almost certain that it will appear on her credit report.
Time Frame
A foreclosure can remain on a credit report for up to seven years. To be sure that the foreclosure is removed from your wife's credit report when it should be, ask her to request her credit report from all three credit bureaus seven years after the foreclosure happened. If the foreclosure information is still on her report, she can write to the credit bureaus and request that the information be removed.
Effects of Foreclosure
Foreclosure has a serious impact on a credit score and can make it difficult for a person to get credit, buy, or even rent a home as long as the foreclosure remains on her credit report. However, many lenders are primarily concerned with the information placed on a report over the past two years. If your wife can show responsible credit behavior and money management for a period of time, the effects of foreclosure can be minimized.
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