Credit Tips: Forclosure From Credit Report?

Posted On: September 1, 2006

Author: scotty
Posted: Sat Jan 24, 2004 7:42 pm
Post subject: credit problem

i bought a house then signed it over to someone else but with documents stating then the house got foreclosed and i have really bad credit what can i do to erase it and if not how long will it take to rebuild it and how?

Author: NightStar
Posted: Sat Jan 24, 2004 8:36 pm
Post subject:

The foreclosure can technically show on your credit report for 7 years.

You can try your hand at credit repair and send in dispute to all 3 of the Credit Reporting Agencies stating that the account is not yours and that you want it removed.

What will happen is that the CRAs (credit reporting agnecies) will have 30 days to contact the creditor asking them to verify. If that creditor for some reason messes up in their response then the CRA will likely grant you want you requested.

But if they catch it, the CRAs will report back to you verified, should this happen then you want to look at the tradeline for any errors in the reporting like

incorrect last activity date
incorrect balance
incorrect payments
incorrect status….

You can try anyone of these reasons as a follow up dispute, just takes time trial and error on these things.

If you can’t get it removed right immediately - then just give some time and in the mean time set yourself up with a secured installment loans or credit card to rebuild credit history. And keep periodically trying with the disputes.

You can use this method on about any negative reporting… just recommend not disputing for deletion on accounts that are otherwise good reporting but for a few late listings - with these you can write a letter to the creditor asking for good will of them removing the lates for you. That way you accomplish saving a good trade to continue the positive reporting.

Also before you start with the disputes… look over the credit reoprts for errors in the personal information they have on you. Like any reported names that are spelled wrong, or ailiases (want only on version of your name being listed on the report) same thing with outdated addresses. Just dispute these as incorrect and needing to be removed. No other explination is needed here. Don’t want to make the mistake of saying that the addresses are past addresses (then the CRA will just say it can remain on the credit report).

If you get these removed off of the credit report 1st then go back and dispute the other stuff you chances for success will increase on actually accomplishing removal. Most accounts are on the credit report due to their relationship to the name and / or address. Social Security number is not a key identifier all the time on keeping the information stuck to the report.

Oh and recommend sending your disputes in by writing certified mail return receipt so you can keep track of when the 30 day dispute period starts. That way if the CRA messes up and does not respond in the given time you may have another angle for forcing the information off of the report - by writing back in say in 35 days of non - response and requesting that the investigation be completed. They will be obligated to comply. Just be sure to keep copies of your dispute letters.

Also even if the CRA does remove, the account can be re-added later, but the CRA must give you 5 business day notice of the reinsertion. If not you can just write them back stating that they failed to notifiy you of the reinsertion and that now you want the tradeline removed for good. They will have to comply with that request, it is in the Fair Credit Reporting Act.

If you like - recommend reading this - know it is a large document, but the key sections concerning you would be:

Sections 605 is the key section which people go by

http://www.ftc.gov/os/statutes/031224fcra.pdf

Depending on how recent your delinquiencies have been if you are currently having problems with collection agnecies you may also read up on the Fair Debt Collections Practice Act - key sections are:

Section 809

http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm

Both of these documents have most all the answers which consumers use.

Best of luck with you journey here,