Foreclosure Blunder #4: "Credit's damaged already, so who cares..."

BLUNDER #4: Thinking, “My credit is damaged way beyond repair, so it doesn’t matter what I do now”.

Here are the facts.

In most states, the formal “Foreclosure” takes place at the court hearing where the Judge grants the lender the Foreclosure. (In Texas, Georgia, Alabama, Tennessee, Virginia, and Missouri your credit report will not show a Foreclosure until after the sale by the lender).

So until the judge grants the lender the Foreclosure, you are considered to be in PRE-FORCLOSURE. This means you are on your way to Foreclosure, BUT YOU DO NOT HAVE IT ON YOUR PERMANENT RECORD YET.

At this point, your credit report will show late payments (derogatory) on your mortgage. Of course, this isn’t good. But is it vastly different than seeing FORECLOSURE stamped on your credit report…

Credit is NEVER damaged “beyond repair”. No matter how bad your credit is, or how low your credit scores are, you can improve your credit and increase your credit scores. It may take some time, and it will definitely take some due diligence on your part, but you can reestablish a good credit rating.