Removing Bankruptcies and Foreclosures From Your Credit Report
Having a foreclosure on your credit report is like dropping a bomb on your credit score — almost cutting it in half in some instances. Your FICO Score will take a big hit that could remain on there for as much as seven years.
Unfortunately, more and more people are having to deal with foreclosure — primarily due to the recent downturn in the economy and the collapse of the housing bubble.
There is no type of negative listing that hasn’t been removed from a credit report thousands of times. Negative items, such as bankruptcy or unpaid debts, are certainly more difficult to remove from the credit report, but this has more to do with the operational systems of the credit bureaus than with the severity of the bad credit item. For example, judgements and tax liens are severely negative listings, yet are easier to remove.
The first 3 years are near impossible to remove a bankruptcy, judgement or foreclosure but you can still work to repair your credit instead of waiting 7 to 10 years before it will be removed automatically. However, typically anytime after three years have passed, the majority of courts will move all of their old files into an archived warehouse for storage. When you initiate a dispute with the credit bureau, they typically will not hire people to dig through this warehouse to verify the complaint.
One important note to remember is if you claim any part of the dispute is yours, they will attempt to verify the claim and if they don’t find it they will only remove the part you disputed. If you tell them “This disputed item is not mine”, then they will look into the claim and remove it if the court does not have the record easily accessible.
If your creditor cannot prove that the debt is valid (regardless of whether or not it actually is), they must remove the item from your credit report.
Tags: 10 Years, 3 Years, 7 Years, Bad Credit, Bankruptcies, Courts, Credit Bureaus, Credit Report, Credit Score, Creditor, Dispute, Foreclosures, Housing Bubble, Judgements, Negative Items, Negative Listing, Repair Your Credit, Tax Liens, Unpaid Debts, Validate Debt