Tips to Help You Repair Your Credit Rating after Foreclosure

While going through foreclosure is definitely not good for either you or your credit rating, it can give you the chance to step back and look at the way you handle your finances, and if you also end up filing bankruptcy, to start over with a clean slate, at least where your credit rating is concerned. Before you can think about repairing your credit after foreclosure, there are some things that you need to do, to better your chances of doing it right this time.

The first thing you need to do is to think about the circumstances that led to the loss of your home, and your poor credit rating in the first place. Did you just amass more debt than you could ever hope to pay back? Were you just bad at managing money, and neglectful of your financial responsibilities? By taking the time to think about the events that led you to this point, you can make certain you don’t find yourself in a similar situation in the future, because you will learn from the past mistakes you made, right?

Obtain a copy of your credit report, and track down all of the lenders that show you negatively on your report. If your accounts are old, they may have been sold to outside collection agencies, so this can take some work on your part, and a lot of time on the phone, but it can be done. Find out exactly what outstanding debts you have, and then devise a plan to get them paid in full, and eventually, off of your credit report.

It can be overwhelming trying to come up with the funds you need to repair your credit, but if you work towards it each month, you can eventually do it. On the accounts that you have that are still open, do everything you can to make certain those payments are made on time each month, so your credit rating isn’t further impacted by a negative report. Create a system to help you keep track of due dates and payment amounts, either on your computer, or using a ledger of some kind, so you are less likely to lose track of due dates.

Watch your credit report closely, and dispute any inaccurate information, and especially accounts that you don’t recall having. Check your statements also, to look for any unauthorized charges, and report those as soon as they are found as well.

Try to stay away from any account that comes with a high interest rate, even if it could potentially help your credit rating. It is too easy for these kinds of accounts, especially credit cards, because these accounts can spiral quickly out of control. If you have any high interest debts, try to pay them off as quickly as possible.

Try not to use cash to pay your bills with, writing checks instead, so you will have a paper trail. This will not only help you appear more financially responsible, but will also serve as a good form of backup, should a lender claim they didn’t receive your payment.

Some collection agencies won’t make any changes to your credit report until a past due account is paid in full, so it is important to request payment receipts, or at least monthly statements showing your payments, so you can keep track of your balance, and provide proof if needed that you are in fact working to rebuild your credit. Keep receipts on file for at least two years, or until the debt has been paid in full and removed from your credit report.

Foreclosure is nasty, no matter how you look at it, but you should know that you can repair your credit and bounce back from it, if you work diligently at it.

Completed Foreclosures Down in Norton, State for 2011 - Patch.com

Completed Foreclosures Down in Norton, State for 2011 Patch.com By Mike Gleason The data, compiled by real estate information firm The Warren Group, had foreclosure deeds, which represent completed foreclosures, fall from 39 in 2010 to 25 last year. Foreclosure petitions were at 80 in 2010 and 42 in 2011 for Norton ... Ironically, as economy improves, foreclosures may increaseThe Patriot Ledger all 28 news articles »

A homeowner who fought foreclosure and won - Kansas City Star

A homeowner who fought foreclosure and won Kansas City Star By ALEJANDRO LAZO LOS ANGELES -- Foreclosure commonly represents the end of a struggle. A borrower can't pay a mortgage, loses a home and moves on. But Karen Mena, a 38-year-old county worker, never gave up. Mena fought even after her San Bernardino ... and more »

Foreclosures Draw Private Equity as U.S. Selling 200000 Homes: Mortgages - Bloomberg

Bloomberg

Foreclosures Draw Private Equity as U.S. Selling 200000 Homes: Mortgages Bloomberg Enlarge image Foreclosures Foreclosures Joe Raedle/Getty Images Renzo Salazar maintains the yard around a foreclosed home after the bank hired him to keep the home from falling into complete dilapidation, on Nov. 10, 2011 in Miami. and more »

Foreclosure Deal Would Give States Future Authority To Punish Firms - Huffington Post

Foreclosure Deal Would Give States Future Authority To Punish Firms Huffington Post Servicer compliance will be measured through detailed information about unlawful foreclosure sales and incorrect denials of loan modifications, according to the documents. If the servicer continues to violate any of the terms, any of the states or a ... and more »

Council Acts on Foreclosures - Gotham Gazette

Gotham Gazette

Council Acts on Foreclosures Gotham Gazette The bill will require the HPD to update their website quarterly with the number of foreclosure actions that exist in each community district. For buildings with twenty or more units, the HPD must list basic building information on the site so tenants ... Sunlight for City's Foreclosures, ContractsWNYC (blog) Stephen Levin, Darlene Mealy and Christine Quinn. Dana RubinsteinCapital New York all 4 news articles »