Life after Foreclosure
The current financial climate being what it is, a lot of people are finding it difficult to stop foreclosure on their homes. For those who are facing a foreclosure and those who know that they are going to face a foreclosure, they need to know there are a several ways through which they can stop foreclosure and save their home. But most of these programs will end up costing them anywhere from $500 to $5000.
But for the homeowners that can't afford these services, they have to look for cheaper, or low cost alternatives. There are a number of government programs, both federal and state programs available. There are also, "do it yourself" guides that will walk you through the process so you can save on the cost of hiring someone else. Therefore, it doesn't have to cost any more money to stop a foreclosure, if you know what to do.
The method of assistance a homeowner elects, does not determine the odds for success. The most important factor to saving their home is time. In other words, how much time do they have to work out a settlement. Success requires taking action immediately. The worst thing to do is ignore the notices and communications from the lender. The problem will not go away without some kind of action.
One variable which is often ignored, when working out a loan settlement, is the after effect to the debtors' credit. Banks prefer to not foreclose on a home, therefore the options they are willing to consider frequently seem very favorable. But with the stress and anxiety that goes along with a foreclosure, many people are willing to simply agree to anything, that will allow them to keep their home.
A consumer reporting company can report most accurate negative information for seven years and bankruptcy information for 10 years. Information about an unpaid judgment can be reported for seven years or until the statute of limitations runs out, whichever is longer.
It seems as if, going through foreclosure wasn't bad enough, banks then penalize the person for going through tough times. Again, like foreclosure assistance, there are programs that can provide credit repair assistance at no additional cost. But be careful, there are many scams out there.
You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail, and maybe even calls offering credit repair services.
"Credit problems? No problem!"
"We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!"
"We can erase your bad credit - 100% guaranteed."
"Create a new credit identity - legally."
The fact is there's no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan..
Here is a checklist of considerations when hiring a credit repair service.
* The company wants you to pay for credit repair services before they provide any services.
* The company doesn't tell you your rights and what you can do for yourself for free.
* The company recommends that you do not contact any of the three major national credit reporting companies directly.
* The company tells you they can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.
* The company suggests that you try to invent a "new" credit identity - and then, a new credit report.
* The company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness.
No one can legally remove accurate and timely negative information from a credit report. The law allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete. You can do for yourself at little or no cost.
Just because you have a poor credit report doesn't mean you can't get credit. Creditors set their own standards, and not all look at your credit history the same way. Some may look only at recent years to evaluate you for credit, and they may give you credit if your bill-paying history has improved. It may be worthwhile to contact creditors informally to discuss their credit standards.
Will lenders take into consideration the impact the avalanche in unemployment and home values had on borrowers over the past two years, especially those that were once considered credit worthy, before the recession?
FOR MORE INFORMATION GO TO [http://www.stopforclosures.org]
But for the homeowners that can't afford these services, they have to look for cheaper, or low cost alternatives. There are a number of government programs, both federal and state programs available. There are also, "do it yourself" guides that will walk you through the process so you can save on the cost of hiring someone else. Therefore, it doesn't have to cost any more money to stop a foreclosure, if you know what to do.
The method of assistance a homeowner elects, does not determine the odds for success. The most important factor to saving their home is time. In other words, how much time do they have to work out a settlement. Success requires taking action immediately. The worst thing to do is ignore the notices and communications from the lender. The problem will not go away without some kind of action.
One variable which is often ignored, when working out a loan settlement, is the after effect to the debtors' credit. Banks prefer to not foreclose on a home, therefore the options they are willing to consider frequently seem very favorable. But with the stress and anxiety that goes along with a foreclosure, many people are willing to simply agree to anything, that will allow them to keep their home.
A consumer reporting company can report most accurate negative information for seven years and bankruptcy information for 10 years. Information about an unpaid judgment can be reported for seven years or until the statute of limitations runs out, whichever is longer.
It seems as if, going through foreclosure wasn't bad enough, banks then penalize the person for going through tough times. Again, like foreclosure assistance, there are programs that can provide credit repair assistance at no additional cost. But be careful, there are many scams out there.
You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail, and maybe even calls offering credit repair services.
"Credit problems? No problem!"
"We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!"
"We can erase your bad credit - 100% guaranteed."
"Create a new credit identity - legally."
The fact is there's no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan..
Here is a checklist of considerations when hiring a credit repair service.
* The company wants you to pay for credit repair services before they provide any services.
* The company doesn't tell you your rights and what you can do for yourself for free.
* The company recommends that you do not contact any of the three major national credit reporting companies directly.
* The company tells you they can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.
* The company suggests that you try to invent a "new" credit identity - and then, a new credit report.
* The company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness.
No one can legally remove accurate and timely negative information from a credit report. The law allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete. You can do for yourself at little or no cost.
Just because you have a poor credit report doesn't mean you can't get credit. Creditors set their own standards, and not all look at your credit history the same way. Some may look only at recent years to evaluate you for credit, and they may give you credit if your bill-paying history has improved. It may be worthwhile to contact creditors informally to discuss their credit standards.
Will lenders take into consideration the impact the avalanche in unemployment and home values had on borrowers over the past two years, especially those that were once considered credit worthy, before the recession?
FOR MORE INFORMATION GO TO [http://www.stopforclosures.org]
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