May A Foreclosure Be Removed From Your Credit History?

A foreclosure can be the most damaging entry on an individual's credit report, lowering your credit score and making new lines of credit very difficult to obtain at a fair interest rate. Having a recent foreclosure on your credit history can drop your FICO score by 200 points, and new home and automobile loan interest rates will be at least 3 percent higher than before the foreclosure. However, having a foreclosure on your credit report will not effect you forever. You can legally clear a foreclosure from your credit report seven years after the foreclosure.

To remove a foreclosure from your credit report, you will first need to learn about the rights given to individuals in the Fair Credit Reporting Act and other federal, state and local laws pertaining to credit reporting. Being informed of your rights while working in conjunction with the credit reporting agencies will make the process of removing the foreclosure off your credit report a lot less stressful and easier to understand.

Many of the credit reporting agencies will not automatically remove entries from your credit report. You will then need to request a free copy of your credit report from the three major credit reporting agencies to review your information. Then, you will have to send a written request to the three major credit reporting agencies to get them into action and review the information on your credit report regarding your foreclosure.

The process of filing and getting a dispute resolved is not easy or fast. Having all the documentation regarding your foreclosure on hand while filing the dispute will make the process go smoother, but repairing the issues on your credit history will take some time. The three major credit reporting agencies now have online websites, and you are now able to dispute entries on your credit report by going to their websites, entering your information and filing a dispute. Going online to remove your foreclosure from your credit history will make the process faster, however not dealing with a customer service representative one on one can lead to errors in processing your request or delays in notifications.

Credit repair agencies can also assist you with removing a foreclosure from your credit history, as well as other problems you may have with your credit report.