Foreclosure is the process in which a lender attempts to take possession of a mortgaged property from a borrower after the latter fails to keep up mortgage payments. This means that whenever you miss a payment for a mortgage after the final note, the bank or your lender has the right to take ownership of your property. The failure to pay for the mortgage that leads to the foreclosure process is automatically registered in your credit report. It then will lower your overall credit score. Such a record is kept by the credit bureaus for seven years starting from the initial delinquency date and should then fall off automatically.
After seven years you have the legal right to demand the removal of the foreclosure incident from your account. Besides that, you can also request its removal if your lender is no longer in business or if the servicer provided inaccurate information on your foreclosure. Even though it happens rarely, the foreclosure can also be removed if there was a voluntary dismissal.Please vote for the article: Others Cities: « How does foreclosure affect your credit? | How to help a spouse improve their bad credit? »