A home foreclosure will stay on your credit report for seven years. This can make it difficult for you to purchase big-ticket items such as a car or a house if you cannot afford to pay cash. However, if your foreclosure was unjustly executed, or the institution that provided your mortgage is not fairly reporting your credit, there are steps you can take to have the foreclosure removed early.
Step 1
Find a reason to dispute the fairness of how your bank treated you during the loan or foreclosure process. Familiarize yourself with your rights under the Fair Credit Reporting Act. If you have trouble deciphering the legalese in the law's documentation, consult a lawyer and ask him to clarify the language for you. Also, read carefully through all of the documentation created when you set up your loan. Some banks engaged in dishonest practices like fabricating the income of loan applicants. If you can find evidence of such a practice, or you think your rights under the Fair Credit Reporting Act have been violated, you can proceed to the next steps.
Step 2
Retain the services of a lawyer to help you write letters to the bank explaining how your rights were violated by the bank. In these letters, threaten a lawsuit unless the bank contacts the credit agencies to remove the foreclosure report from your credit.
Step 3
File a lawsuit against the bank if it does not remove the foreclosure from your credit report. You can supplement this action with letters to the bank stating the nature of your case and threatening to defame the bank by picketing it or going to the media about its unjust practices. These measures might convince the bank that it would be easier for it to remove the foreclosure from your credit report than to continue to deal with you and your lawyer.
Member Comments