It is bad to lose a home to foreclosure or short sale, but can make things seem even worse to know it can impact your credit negatively for years to come. The points that drop from your score can be difficult to get back right away without help.
How a Lender Views a Foreclosure
A home foreclosure can have a dramatic impact on your credit score. Many individuals with excellent credit find their points dropping as much as 160 immediately. A lender views a foreclosure as a situation in which the borrower did not try to work in any way with a bank to find a solution. It is one of the more damaging items that can show up on your credit report.
How a Lender Views a Short Sale
The short sale of a home is also viewed negatively by a lender and impacts your credit score. It does not get dinged as bad as a foreclosure, but there is a noted drop. A short sale is viewed as a borrower doing everything to get out of a financial obligation. It takes the bank or mortgage company extra time to evaluate new buyers.
Steps to Repairing Credit
Repairing credit is simply a matter of finding ways to bring the score back up. A credit repair service can help isolate items for dispute, have them removed and dramatically improve your score over time. It will take looking at your complete credit history to get this done successfully.
Enjoy Improved Credit Ratings Over Time
Most changes in credit score will not happen overnight. Over weeks and months the score will steadily improve. Soon you will be in a range where you can apply for credit and loans. With careful budgeting you can get your credit healthy once again. It will give you the best chance of starting over.
Monitor Credit Activity In the Future
It is important to make sure all payments for debts are paid timely. You will discover how to check and monitor your credit to avoid serious problems in the future. Once you have your credit restored, you will want to do all you can to keep it that way.
Contact credit restoration specialists like www.globalcreditrepairservices.com/programs/elite-repair/ to find out how to begin short sale credit repair today!