Troubled homeowners who want to stop a foreclosure would usually be worried about how their situations will affect their credit scores. Credit scores are statistically computed by credit bureaus. They are seen to be reflections of the homeowner’s or the company’s credit worthiness and sense of responsibility.
A good payment history and stable home life may contribute to a good credit score. These scores range from 1 to 1000 and are based on a wide variety of data such as financial, or survey and trade data. There are many ways to compute the credit score, but the most widely used basis for computation is the FICO.
There are three major credit bureaus which have created a complicated way to compute the FICO score. Thus, there is really no sure way to personally determine a person’s credit score. However, one can make sure his FICO score remains credit worthy by learning how to stop foreclosure at all costs. Following these tips may help in doing this.
Remove a home foreclosure report after seven years. This may not be easy but not doing so means being unable to apply for loans, lease an apartment or buy a car. Some creditors who do approve your request may even take advantage and charge hefty interest rates which would not stop foreclosure but even lead to a second one.
Employ a loss mitigation company to help you stop a foreclosure. Loss mitigation companies work for homeowners by contacting lenders and negotiating affordable mortgage payments. This is the best option to stop home foreclosures if mortgage payments are hard to come by.
Explore other options such as short sales and deeds in lieu. These are non-retention possibilities which will keep foreclosures from credit reports.
The key to stop a home foreclosure is to act quickly and effectively on the matter. By being aware of and utilizing these tips, one need not worry about computing his credit scores.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.