I lost my house to foreclosure in 2012. I have been working odd jobs and continuing my practice in advertising. I do not yet have a full time job. I’ve been building back my life and with a steady group of clients. I have not asked for my credit reports because of just an innate fear of finding out and I don’t have the income to make settlement payments.
Are there steps I can make to just organize and find some ways manage these debts that will show up?
Can I get rid of things that are not true on my report if they show up?
The biggest restriction on rebuilding credit after something like a foreclosure is not closing the door quickly on the old debt and getting back to using credit again as soon as possible.
I don’t know what state you live in so it may be the statute of limitations has run it’s course and you can raise that as a defense if you are sued over the old mortgage debt. However, if you are ever in such a position again, I would suggest a consumer bankruptcy immediately following a foreclosure where there was a big balance claimed due by the lender.
Following a consumer bankruptcy you can easily rebuild credit and be in good shape again in about a year or so to get a mortgage, car loan, and credit cards to report a positive history.
Most people make the mistake of putting their head in the sand following these traumatic events and wasting loads of time that could have been used to get back on track.
I would urge you to contact the three major credit bureaus and get a copy of your credit report. Any information that is incorrect, should be disputed. Information on how to dispute these items is typically listed on the individual reports.
Your report will show you the current negative items being reported about you. Negative items will be reported till 2019, that’s 7 years from the time they last went delinquent.