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Old 07-07-2011, 06:12 PM
bobvaun bobvaun is offline
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Default Any way to remove a foreclosure from your credit?

Hi,

I got divorced nearly 3 years ago. The attorneys came up with something they claimed as standard practice in the state but has caused nothing but headaches for me and my credit. We had 3 properties at the time of the divorce. I signed a quit claim deed on two of them and she signed one for the remaining property giving me the rights to it. We each were then given 3 years to either refinance or sell our respective properties to remove the other person's name from the loan. At the end of 3 years if we still have a property that has not been refinanced then we must put it up for sale and there is a complicated process by which it is forced to get sold eventually.

About six months ago my ex-wife foreclosed on one of her two properties. I was never informed that the payments were missed or that the property was under going foreclosure. Yes in hindsight I should have been watching like a hawk... I did not know until I checked my credit score and saw I had taken a hit for the foreclosure. I called the bank who had the loan and they said that if they had my current address on file they would have notified me. I have moved since the divorce and my ex kept all the paperwork so I'm sure they did not have my new address but I suspect my ex got the notices and just threw them away.

This hit on my credit is hurting me in more ways than one. My property I kept is now a rental and I owe about $37,000 more on it than it's current market value. I've tried to refinance it but the foreclosure is preventing me. In September I will be forced to put it on the market and could well end up having to do a short sale which will hit my credit a second time. If I could find a way to clear the foreclosure off my credit then I could at least refi my rental and wait and sell it at a future time when I can at least break even.

I feel I never had the opportunity to step in and take over the payments on my ex's property to avoid the foreclosure so I should not have it count against my credit. Does anyone have any experience with this and know if there is any possibility? I am remarried now and living with my new wife but in a small house. We need more space and my income is more than sufficient to buy a bigger house but with my credit in the hole no bank will loan to me. This could affect me for years a prospect that my wife is very depressed about.

Any advice would be greatly appreciated.
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Old 07-30-2011, 04:50 PM
kate032 kate032 is offline
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Default Re: Any way to remove a foreclosure from your credit?

Ouch, you learned a valuable lesson by not keeping track of the payments that your wife was supposed to make on property still in your name. I don't know the answer to your question, but since you were legally responsible, I have a feeling you may not be able to erase it from your record.

However, in your new situation, if your current wife has good credit, perhaps she can apply for a mortgage.
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Old 10-11-2011, 01:43 PM
sPetersPi sPetersPi is offline
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Default Re: Any way to remove a foreclosure from your credit?

Double ouch!
As Kate032 suggests, you probably can't do much about it

It was your legal responsibility so you should have kept on top of it.
I know it sucks, but there may be one thing you can try...

There is a legal requirement to notice interested parties if a default happens.
"if they had my current address on file they would have notified me"
^Isn't good enough. They are obliged to notice you! It's a glimmer of hope.

You should request all paperwork pertaining to the notices and go through them with a fine-toothed comb.

It's a long shot, but just prey they have an error in the notices.
If they don't have them on record they may try to avoid sending them, forcing you to send a data protection act request (or freedom of info request - I always forget which is which)
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Old 01-02-2013, 06:54 AM
rockymountain rockymountain is offline
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Default Re: Any way to remove a foreclosure from your credit?

ways to remove a foreclosure from your credit:
1
Since the number of foreclosure have increased so dramatically and so many risky loans were given recently, lenders who might not be wiling to remove a foreclosure from a credit report might be more inclined to do so.

2
Depending on which state you live in, the foreclosure will be removed after about 7- 10 years. If all else fails, this is the way to go. After that time a lender may continue to report the foreclosure but you or your lawyer can send a few letters in to have them stop reporting it. This method usually works.
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