How do I rebuild credit after foreclosure?

Guest

what is the best way to start rebuilding credit after foreclosure? How long does a foreclosure stay on your record and what would be the time frame to receive a mortgage on a house after foreclosure? This is in Michigan

larry · Joined: 27 Jun 2007 Posts: 3328 474.49 Dollars($)

Hi penkitten,

Welcome to the forum.

Foreclosure stays on your credit for 10 years but you may qualify for a new mortgage before these 10 years if you can improve your credit score efficiently.

To increase your credit score, you should pay your debts always on time and keep it up to date. That leaves a positive impression on your credit report and increases your credit score rapidly.

Feel free to ask if you have any further questions.

Best of luck,
Larry

banker0679 · Posted: Tue Feb 26, 2008 3:28 pm Post subject:

FHA requires 3yrs before you can apply for an FHA mortgage.
This exception maybe waived if your foreclosure was due to serious issues (death/serious medical reasons).
Opening gas cards is a good way to get revolving credit history until you're able to open VISA/Mastercard.
If you have any tradelines, make sure to pay them on time as every lender will look at what you did AFTER the foreclosure

gmakerley · Posted: Wed Feb 27, 2008 11:13 am Post subject:

beware of opening too much new credit - this will initially adversely affect your credit score.

one of the best methods, and one which you should easily be able to accomplish, is to obtain a secured credit card (visa, master card, etc.). DO NOT go to first premier, which charges you an arm, a leg, half of your brain and your second-born child before you can even begin to use the card. instead, go to a credit union (first) to see if they will offer such a card. generally, the interest rate you get charged will be cheaper and the likelihood of getting the card better with a credit union. you can also check local banks to see if they will do it.

no matter what credit cards you have, keep the balance at less than 50% of the credit limit at all times; and, as larry noted, keep your payments up-to-date at all times. one late payment will be enough to drop your score a great deal, and you don't want that.

as noted above, you can typically obtain a new mortgage (assuming no further credit issues) within a few years after the foreclosure. you will want to make certain that you handle all your credit in a satisfactory manner in the meantime, of course.

Guest

Had a foreclosure sell date in Oct/07, left house in 02/08. Do they consider the 10/07 date as foreclosure date or when we left home? Also, working on clearing debts on credit report and obtained a new FT job with salary++ coming from self-employment which is where this all started to go south. What about co-signers?

Looking to right the wrong ASAP

Samantha

Hi Ac_dolfan,

The foreclosure date will be Oct 7, 2007 as it' the date of sale. But how could stay after that. I suppose the buyers were supposed to occupy the property after 2nd Feb. 2008.

Since you are clearing debts on credit report and trying to regain better credit, I suggest you use the credit repair tool to analyze your credit. And just in case you have further queries, feel free to ask.

Hope this helps...

God bless you.

Samantha

All times are GMT - 7 Hours

Page 1 of 1