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2. Foreclosure If you default on
a mortgage loan, the lender can and probably will take
back your home
and sell it to recover the amount of the mortgage. This is the foreclosure
process. This process is sometimes technically different
in different states but the results are the same.
Foreclosure will severely damage
your credit, limiting your ability to obtain new credit in the future. A
foreclosure will remain on your credit report for seven years.
All The Information You Need Is In Our Credit Secrets Bible
3. Uncollectible Missing your payments for 6 months or more could cause your creditors to
deem your account as uncollectible. This is sometimes called a charge off. When this happens, the creditor writes
off the account and updates your credit report as "charged-off" or "written
off and uncollectible." Charged-off accounts remain on your credit report
for seven years. There are ways to get these removed earlier by paying them
off.
All The Information You Need Is In Our Credit Secrets Bible
4. Collections Some creditors use the
collections methods before they decide to do
charge-offs. After a period of
non-payment, they hire a third-party collection agency to attempt to
collect payment from you. Your credit report may or may not be updated to
reflect a collection status. Sometimes the debt collector places an entry on
your credit report or the original creditor places a note on your report
indicating the account is in collection status. This to remains on your
credit report for seven years. Under certain
circumstances they can be removed before seven years.
All The Information You Need Is In Our Credit Secrets Bible
5. Lawsuits and Judgments
Some creditors sue for their money if they are unable to collect for a bad
debt. They try to obtain a judgment which gives them certain rights under state
laws. These rights vary by state. Just because they get a judgment is no
guarantee they can collect.. If the lawsuit is accurate, it will remain on your credit
report for 7 years from the date of filing, Even if you satisfy the judgment
it can remain on your credit report for seven years.
All The Information You Need Is In Our Credit Secrets Bible
5. Liens When you don't pay property taxes on
your property,
the government can seize the property and auction it or sell it to pay the
back taxes. Even if your home is foreclosed because of a tax lien, you are still
responsible for the mortgage loan. Unpaid tax liens remain on your credit report for 15
years, while paid tax liens remain for 10.
All The Information You Need Is In Our Credit Secrets Bible
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