There are things that you must hold sacred in your life to protect you financially and personally. Your bank accounts, social security number and insurance policy information are just some of these things. One thing that many homeowners do not protect is their credit score. The slightest negative activity can affect your credit score and make it so that you cannot receive an unsecured loan. A foreclosure is one of the most damaging things that you can show up when your credit report is pulled. A foreclosure on your credit report will remain until your debt is settled.
How Foreclosure Affects Your Credit
When your bank or mortgage lender forecloses on your home, your total debt and any debts incurred during the legal process of foreclosure are charged against your credit. Mortgage debt is not like a revolving credit card account. A charge off on a revolving account will remain for a few years and can be contested for removal. A foreclosure on your credit report will list the number of months that you did not pay your mortgage as well as the total amount your bank or lender lost by foreclosing on your home.
Many homeowners believe that banks only report the amount that was lost. Because of recent changes in tax laws, any creditor is allowed to send a 1099-C to the IRS and to you. This lists the total amount of debt that was canceled during the foreclosure. You will be responsible for paying taxes on this amount directly to the IRS. This creates a much larger financial problem. Credit bureaus will report that you have outstanding debt and the IRS will pursue you for uncollected taxes.
Preventing Foreclosure on Your Credit Report
Once a foreclosure is placed on your credit report there is little you can do. Your FICO score will drop making it harder to get a fair interest rate should you try to pursue another mortgage loan. Many lenders do not grant mortgages to homeowners with a previous foreclosure. An apartment lease, approval for higher education loans and basic utilities are harder to get with a foreclosure listed on your credit report.
You can try to renegotiate with your mortgage lender before a foreclosure notice is sent to credit bureaus. The normal period of time is 90 days or less from the start to the completion of a foreclosure. You may have already passed this time frame. A professional intervention from a foreclosure specialist can help you prevent foreclosure from going on your credit report. If you have tried to speak to you bank and have been denied, it is time to seek professional help to stop foreclosure.Watch Full Movie Online Streaming Online and Download
Call Avoid Foreclosure today at 1-800-589-4106 and speak with a foreclosure expert that can provide the help that you need to prevent foreclosure.