How Long Does Foreclosure Affect Your Public Records?
Foreclosure is a legal process in which a lender tries to recover money that is owed on a mortgage. If you're unable to make your monthly loan payment, lenders have the legal right to take away and sell your home using this legal motion. can have a negative impact on your credit history and can stay on your public record for many years.
In this article, we will discuss what foreclosure is, how it affects your public record, and how to remove it from your record. DoNotPay can also help you navigate removing foreclosure from your public records.
How Does Foreclosure Work?
While the process may vary from state to state, they generally follow a similar course of events. Lenders will typically use one of two methods to begin foreclosure proceedings. The judicial sale method is executed through the court system, while the power of sale is carried out completely by the mortgage lender. The judicial sale is permitted in all states, while the power of sale is only allowed in 29 states. The judicial sale method works as follows:
- The mortgage lender files a suit through court, which triggers a letter that is sent to you demanding payment.
- You have 30 days to respond to the notice with payment to avoid foreclosure proceedings.
- If payment is not received, the lender can request that the property be sold through an auction.
- Several months following the judgment, the auction is carried out by the local sheriff's office.
- Upon sale of the property, you are served with an eviction notice to vacate the property.
The power of sale method works as follows:
- The mortgage lender serves you with papers demanding payment.
- A deed of trust is drawn following a waiting period that temporarily grants the property to a trustee.
- The trustee sells the house at a public auction on behalf of the lender.
Both types of foreclosure proceedings require that advanced notice be given to the homeowner. This is especially important if the homeowner took out an additional mortgage against the property. The additional mortgage must also be paid up ahead of the auction.
How Does Foreclosure Affect Your Public Records?
If you are facing foreclosure, it is important to understand how it will affect your public records.
- A foreclosure will stay on your public records for seven years, and it can impact your ability to get a mortgage or rent an apartment.
- A foreclosure can drop your credit score by as much as 200 points or more.
- After your foreclosed home is sold, the sale is recorded in public records. This means that anyone who searches for your property's public records will be able to see that it was foreclosed on.
- Failure to pay off your mortgage debt could also lead to a deficiency judgment being filed against you. This judgment could stay on your public record for up to ten years, and it could negatively impact your ability to obtain future credit.
How Can You Remove a Foreclosure From Your Public Records?
There are a few ways that a foreclosure can be removed from your credit history.
- If there are errors associated with the foreclosure entries on the credit reports from Equifax, Experian, and TransUnion. You can file a dispute with each of the companies to either correct or remove the entry altogether.
- If there are inaccuracies in the foreclosure information, you can contact the lender to remove the entry.
- Obtain professional credit repair assistance if you are unsuccessful in any of the above actions.
The process to remove a foreclosure from your public record requires contact with the court that handled your case. However, unless you can prove the foreclosure was made in error or was a result of fraudulent activity, the courts won't remove it unless you have satisfied the outstanding mortgage debt. You can contact Equifax, Experian, and TransUnion here:
|Equifax Information Services LLC, P.O. Box 740256, Atlanta, GA 30348
|Experian, P.O. Box 4500, Allen, TX 75013
|TransUnion LLC Consumer Dispute Center, P.O. Box 2000, Chester, PA 19016
Remove Foreclosure From Your Records With the Help of DoNotPay
If you are unable to navigate the process to clear your foreclosure information yourself, DoNotPay has you covered with their easy-to-follow process.
- Search Clean Credit Report on DoNotPay.
- Prepare a recent copy of your credit report that you can use as reference.
- Let us guide you through the 4 potential options:
- If you've already paid off your debt, we'll help you file a Goodwill Removal Request to get it removed.
- If you notice any errors in your report (we have a list of common errors you can use!), we'll help you file a credit dispute to the creditor or major credit bureaus.
- If there are no errors, we'll check if you're still eligible to file a debt validation request. If they can't validate your debt, they're required to remove it from your report and they can't collect it!
- Lastly, if none of the above options work, we'll help you file a pay-to-delete negotiation letter. You can customize the amount you are willing to pay in exchange for getting the item removed.
DoNotPay Can Help You With Other Credit Related Issues
If you need assistance with other credit reporting issues, DoNotPay offers the following solutions:
- How to improve your credit score.
- How to dispute your credit report.
- How to obtain a debt validation letter
- How to remove collections from your credit report.
- How to write a credit dispute letter.
- How to remove late payments from your credit report.
- How to fix your credit score.
- How to remove inquiries from your credit report.
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