Foreclosure: Foreclosure is similar to repossession except you are evicted from your home if you do not pay. Usually this time frame is longer than the repossession time frame. The title automatically switches over to the note holder (regardless of what you owe on the house). This will stay on your credit report for 7 years from last date of activity. It is very important to avoid foreclosure as this is large determinant as to whether future lenders will lend you money for a home in the future.

Solution: If you have too much house for what you can afford, attempt to sell the house. If selling the house isn't available, they you might consider a foreclosure alternative or foreclosure prevention program, in which they negotiate the foreclosure and payments to give you some breathing room. If you are in too much house to begin with, this only delays the problem.

If you already have gone through foreclosure and you'd like assistance on cleaning up your credit, use Lexington Law Firm.

What Causes Bad Credit:

Inquiries

Late Payments

Charge Offs

Repossession

Foreclosure

Judgements

Bankruptcy