How You Can Remove a Foreclosure from Your Credit Report
The maximum amount of time a foreclosure can be on your credit report is seven years. There are false reports that say a minimum of seven years.
These reports are false, did you know that credit reporting is entirely voluntary. A lender does not have to report a negative mark on your credit file and can remove one at any time.
I would first recommend that you dispute the listing directly with the credit bureaus. This is done by mailing a dispute letter to each credit bureau.
In this dispute letter you are challenging the validity or accuracy of the foreclosure. Common reasons for a challenge include; account paid, not my account, information is wrong, item out of date, etc.
It is common for credit bureaus to deem an initial dispute letter invalid. They will respond and ask you for more information about the dispute. This is a common stall tactic for the bureaus. They use this because it only costs them money to conduct an investigation.
Therefore you will have to send your dispute letter again, with some persistence you can get a dispute submitted that is valid. Then the bureaus will hold an investigation into the listing.
Since many lending institutions have gone under because of the housing crisis and the ones that did not are financially strapped there is a good chance your foreclosure will be unverifiable. If this is the case the mark must be removed from your credit report.
If you are having trouble submitting a valid dispute or the foreclosure is verified then I recommend a credit repair service. They often have credit lawyers on their staffs that have an expert understanding of credit laws. These lawyers can use advanced dispute tactics or if necessary even take your case to court.
We do expect to see some new laws or case precedents emerge from this housing crisis. It is probably in your best interest to hire a service especially if the foreclosure is not your only negative listing on your credit report.
You do however have one more option. You can negotiate a settlement agreement with the lender. In exchange for your payment get the lender to agree to remove the foreclosure from your credit report.
In sum, you do not have to just live with bad credit. You can have inaccurate or invalid negative marks removed from your credit report.
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