By Steve Bradley
Do you want to know how long bankruptcies and foreclosures and missed payments are going to stay on your credit record? Well stay tuned, I’m going to tell you next.
First, I want to disclose that I’m not a credit specialist. It’s not what I do all day long, so I went right to FICO’s website to answer this question. The typical missed payments, late payment, foreclosure, stay on your record for seven years.
A bankruptcy, depending on which type you file, is going to stay on differently. A Chapter 7 filing, which is the complete removal of your debt, no negotiated payments, will stay on your record for ten years. A Chapter 13, which is the negotiated payments, will stay on your record for seven years, after the discharge. Now my understanding is that the discharge is after three or five years of payments.
So you have three/five years, and then the clock starts and you have seven years after. So you potentially have a total of twelve years, from start to finish, before everything’s gone and you’re able to manage.
One thing that’s important to know is that the reports and information are different, depending on who is pulling it. So please feel free to pull your free credit report and get some information, but know that your scores may show differently when a mortgage lender goes to pull your report.
So if you’re going to buy a home, ask a mortgage professional to pull your credit report early – I would suggest months before you’re going to buy, so they can help you locate which areas need attention. Sometimes you have derogatory reports on there, but you can have them removed because they’ve been on there longer than seven years, or something like that. And there are professional services out there that can help you do that. I’m not talking about debt consolidation, I’m talking about credit specialists who actually get involved and clean up your report to get your points up.
|Real Estate Expert, Steve Bradley has been advising home owners, home buyers, professional Realtors and real estate attorneys on the real estate market in Northern Virginia since 2002. His passion to share his knowledge and experience separates him from so many others. If you are looking for someone that is easy to work with and truly focused on helping you through the selling or buying process Steve is an exceptional option.
DISCLAIMER: Steve Bradley is not an attorney and not offering legal advice. He does not hold a real estate brokerage license in any every state. Laws, requirements and local policies differ and selling and buying real estate can have significant legal implications. Always seek the advice of a licensed attorney and/or real estate broker if you have concerns about your sale or purchase of a home.