There Are Solutions: Credit Repair
There is credit life after a short sale, foreclosure, bankruptcy or any other financial upheaval that has occurred. Just because you have had financial upheaval, possibly even a short sale, foreclosure or bankruptcy, doesn't mean you can't rebuild your credit and increase your FICO scores. It will take time: repairing/rebuilding credit is not an overnight process, but with diligence and the knowledge used from the below, it is possible to have an excellent credit score again.
There are 'credit restoration' companies, but our experience is that, with the below, one can tackle most every issue that arises on the road to good credit.
The Clark Group is pleased to provide the below credit repair resources. Please note we are not affiliated or associated with any of the below entities and do not endorse any of the below entities.
- FTC Consumer Publication on Credit Repair
- Credit Boards: a forum dealing with all issues of credit, including repair/building/rebuilding
- Creditfix123 Credit Repair Blog
- Credit Repair Answers: Free Information Download
- Ehow.com: information on how to fix credit
- About.com's credit repair list of items and information
- About.com's credit rebuilding information
- Wiki Answers on how to repair bad credit
- Blog on bad credit and how to rebuild your credit file
- Credit Repair at Experian.com: Ask Experian
- myFICO® Forums.com
- Ethical Credit Repair Alliance: list of resources to begin rebuilding credit
- Credit Magic letters: sample Letters to repair bad credit
- Oskie.com offers lots of information and resources on not only repairing/rebuilding credit, but also tips on negotiting with your creditors
- Credit-Aid offers credit repair software: includes dispute letters, contracts and much more
Impact Of A Short Sale Versus Foreclosure: Affect Of A Short Sale On Your Credit
For many, a short sale is far more preferable than a foreclosure - in addition to the below reasons to avoid foreclosure.
- FICO Banking Analytics Blog: Research looks at how mortgage delinquencies and other factors affect scores - includes an excellent chart that shows the estimated time for FICO score to fully recover from missed payments/short sale/foreclosure/bankruptcy provided to the blog by Fair Isaac Corporation (owners of the FICO mark).
- Experian: Impact of mortgage "short sale" on your credit report
- Will a Short Sale Ruin Credit? How Lenders View Short Sales vs. Foreclosures - at About.com
- Credit.com: Ask John: What Is a Short Sale and How Will It Impact My Credit?
- Credit.com Blog: Credit Q&A: Short Sales, Foreclosures and Your Credit Score
- Washington Post: What’s worse for credit score — foreclosure, short sale or deed in lieu?
The Clark Group and their team members have saved hundreds of Orange County homeowners and families from foreclosure. If you are experiencing issues with regard to your mortgage, the Clark Group can help. Call us at 949-285-1207 or sign-up for one of our FREE Homeowner Solution Workshops.
More than 45% of all homes for sale in Orange County, California as of March 2017 are in a distressed situation: most are in the process of being foreclosed on and have had a Notice Of Default (NOD) and, for those that have been in a NOD status, have also had a Notice Of Sale (Trustee Sale Notice) filed against them. There are many options available - over a dozen - but not every option may be right for you. You don't have to lose your home to foreclosure. If you have missed, or anticipate missing, mortgage payments, the Clark Group can help. Call the Clark Group at 949-285-1207: all information will be held in the strictest of confidence.
- Many current and prospective employers run credit checks: a foreclosure can put a current position in jeopardy. Also, foreclosure is one of the top items that will put a potential new hire in jeopardy.
- Security clearances, government positions, military and law enforcement, banking, financial services: many employers reconsider security clearances and jobs positions should one be foreclosed on.
- You could end up with a much higher tax liability in a foreclosure than could result in a properly negotiated short sale since, in most cases, cancelled debt will be higher.
- Credit: it will be much tougher - and take much longer - to buy a home with a foreclosure on ones record.
- You may end up with a Deficiency Judgment (the bank may pursue you for the amount you owe less what they received at auction).
Not able to attend one of our workshops? Call Bruce Clark at 949-285-1207, email us, or sign-up for our mailing list for notification of all upcoming events, to reserve a seat at one of our free homeowner workshops, or to set-up a confidential, private consultation. Always seek legal counsel and a tax opinion before attempting to pursue a short sale, or modify a home loan. A real estate agent cannot give you legal or tax advice.
As of May 2014, over 12.1% of Orange County homeowners are 'underwater' on their home: their loan balance(s) are greater than the value of their home - and 8% of all homes on the market are considered a distress sale. The Clark Group works with many homeowners on reviewing their options: with so many Orange County homeowners owing more on their home than it is currently valued at, we find that timely, accurate information is most important so that one can make an informed decision. Unfortuneately, for many, their choices become limited by the banks' lack of progress of a loan modification or principal reduction request - and the banks have begun foreclosure proceedings. (Click here for a chart showing the California Foreclosure Process.)
To find out more about avoiding foreclosure, the U.S. Department of Housing and Urban Development (HUD), offers some very good advice. One will also find information about The HOPE for Homeowners program that will refinance mortgages for borrowers who are having difficulty making their payments, but can afford a new loan insured by HUD's Federal Housing Administration (FHA). Call 1-800-225-5342 for more information.
There are many programs being introduced by the government to homeowners in distress - and for those about to begin missing payments. On November 30, 2009, the U.S. Treasury Department released forms and guidelines for the Home Affordable Foreclosure Alternatives Program (HAFA), which is part of the Home Affordable Modification Program (HAMP). For a list of servicers participating in HAMP, visit MakingHomeAffordable.gov..
For Orange County homeowners, there are three more resources available. Click here for more information.
If you would like to speak with us about your situation, please call 949-285-1207. All correspondence will be held in the strictest of confidence.