How to Remove a Foreclosure From a Credit Report

Your credit report is used by many companies when determining whether or not to give you a loan and how much of a loan they're willing to give you. In one sense, loan agencies are taking a risk when they loan money to individuals. They base their decisions on things such as work and salary histories and your credit report. Your credit report will show late payments on credit cards and mortgages. Having a foreclosure on your credit report will not necessarily prevent you from getting additional loans, but it is a big negative mark on your history and will make it more difficult for you to get loans.

Instructions

1

Get your credit report from one of the three main credit reporting agencies, Experian, TransUnion or Equifax. This will tell you which company reported the foreclosure. You might already think you know which company reported the foreclosure, but you want to make sure. Many times mortgages are traded by financial institutions, and the mortgage might be owned by a company other than the original lender.

2

Unfortunately, having a foreclosure removed from a credit report is extremely difficult. You can choose to wait it out. A foreclosure is typically removed from a credit report after seven years. In some states, the time can be extended to 10 years. Consult a financial specialist in your state to determine the time period. This hurts your credit rating, but you can slowly improve it by taking out additional small loans, paying them off and otherwise not being late on any payments.

The other option is to have the lender remove the foreclosure from the credit report. (Step 4)

3

If your foreclosure was put on your credit report in error or because of a special circumstance, you can hire a legal attorney and file a petition in court to have the foreclosure removed. The attorney will be able to discuss this option and the chances for success. But if you believe you are right and the error is real, going to court, contacting your congressional representative and contacting the Better Business Bureau are three things you can do to help your situation.

4

If the foreclosure wasn't the result of an error, you can still petition the lender to have it removed. Send emails and letters to various individuals in the organization. It would help your case if you could show that your situation has changed and that you are not a bad risk for another mortgage. This would include building up the amount in your savings account. The reason that a foreclosure is put on a credit report is to alert others that you are a bad credit risk. By proving that you're not, and by being persistent, you could eventually wear the lender down, making someone in the organization relent and have your foreclosure removed.

5

Keep your chin up. Having a foreclosure on your credit report isn't the end of the world. Build up, brick by brick, your wall of credit history, and you'll be able to move on.