Credit Repair and Foreclosure

Following the 2007 collapse of the sub-prime mortgage industry and the subsequent drop in home values many homeowners found that that they could not manage their home payments or qualify for refinancing. In many cases foreclosure was the only feasible option. If this has happened to you please take heart. Foreclosure and its aftermath can be traumatic. Credit repair cannot resolve the problem directly, but there are many credit repair techniques that can be employed to mitigate the damage.

Isolate the Problem

Initially you should focus on isolating the mortgage issue as much as possible using credit repair. An isolated derogatory item, even one as significant as foreclosure, will have much less of an impact on your credit scores than it would in the context of other derogatory information. The FICO scoring model multiplies the score impact of derogatory information when it is not contained. Use credit repair to clean up every reporting issue possible to make the rest of your report shine.

Optimize Your Scores

In the wake of foreclosure you should do everything in your power to optimize your credit scores exactly as if nothing had ever happened to your mortgage. It may be tempting to give up on your finances, believing that the sheer weight of the foreclosure will ruin your credit. Nothing could be farther from the truth. Now is the time to focus your efforts on employing every credit repair score optimization tool available. If you are in our credit repair program we will review your credit and advise you of every possibility.

Rebuild Your Credit

If the events that surrounded your foreclosure have left you without any open accounts now is the time to rebuild. Secured credit cards are the perfect credit repair tool. It may seem like this is just a small token effort to offset a large credit problem, but opening two small secured cards and managing them properly will make a world of difference. Become proactive about rebuilding now. You will recover before you know it.