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What everyone should know about recovering from foreclosure.

January 11, 2011
Foreclosure

Image by Stuck in Customs via Flickr

 At one time, one of the dirtiest words one could utter was the “F” word- foreclosure.  Next to that was the ‘B’ word – bankruptcy.  Now, both of these things are so common, it is a good bet that whether you know it or not, somone you know is facing one or both of these situations.   One of the first questions we get when someone calls about selling their house as a shortsale is “how will this affect my credit?”  In my opinion, the stigma attached to these words has changed from one of failure to one of recovery.  That being said, the article linked below discusses how foreclosure affects your credit and the best way to begin recovery including:

  • Pay your bills on time to re-strengthen your FICO score
  • Review your credit report and keep close tabs on correcting any errors or discrepancies you find.
  • Check your mortgage to make sure there is no deficiency judgement and that you do have a zero balance, which is not always the case in a foreclosure.
  • Apply for credit- though this seems counterintuitive since thats probably, in part, what brought you down in the first place.
  • Dont fall prey to credit repair companies that can claim quick fixes to your credit…there are no quick fixes.

 

5 Strategies to Rebuild Your Credit after Foreclosure | RISMedia

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