Creditpedia: Foreclosure or Repo effect on Credit Bureau
Here’s another long awaited installment of Creditpedia. However, it’s more of a Q&A.
Given the blooming economy (sarcasm) I have received many emails asking about the effect of foreclosures and repos on your credit bureau.
If you are one of the unlucky many that have failed to make payments given the poor economy and job losses you are not alone. Unfortunately something like a foreclosure or repossession is with you for a very long time. Based on the Statute of Limitations the said event will be reflected in your credit bureau for 7 years (yes, a whopping 7 years) after the date it was first delinquent.
What does this mean? Well it basically means that even if you pay off the bad debt you are gaining nothing (except eliminating phone calls from pesky collectors). The stain on your credit report will still be there next year, and the year after, and the year after…you get the point.
Tags: Creditpedia, credit crisis, mortgages, credit bureau, Credit, credit score, Uncategorized
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