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Many people have faced the unsavory life event of having their home repossessed. It may feel like having a home repossession on your credit may be there forever, but this is not the case. In general terms, a home repossession will stay on your credit report for seven years, but the impact that it has on your score will eventually start to lessen over time. If you are keeping all your other debts up to date, your score could begin improving in as little as two years. The key thing to remember in all the negativity is that a home repossession is just one negative mark on your credit score, and if you are not defaulting on your other financial obligations then it will not hurt you as badly, or for as long as you might think.
How can you remove a repossession from your credit?
First, you will want to get a copy of your credit report from all three of the credit reporting agencies. Under the Fair and Accurate Credit Transaction Act you are entitled to one free report from each agency every year.
Second, you will want to verify that the listing is less than seven years old and that all the information that is being reported is accurate. If the repossession is more than seven years old, it is illegal for it to remain on your credit report, and it must be removed. If the information that is being reported is inaccurate, then you need start the process of having it removed from your credit report. Make sure that any and all contact that you have with your credit bureau and your lender is in writing so that you have a paper trail.
What If My Report Isn’t Accurate?
If you notice that there has been an inaccuracy made in your report, then you should notify your lender and request that either the listing is amended to show the correct details or that the repo is removed completely from your credit report. The banks won’t always tell you when there is an issue so you must stay on top of it. Sometimes a creditor would rather delete the listing than have to make an amendment to it. At this point, you will want to collect all your supporting documentation that proves that the listing is incorrect and submit it to all three credit agencies and tell them that you need it removed. If they cannot correct the credit report or verify the original loan, then it must be eliminated.
What If They Refuse to Change Your Score?
If the original lender verifies that the information they reported is correct, and you have supporting documentation to prove otherwise, you should contact a lawyer and file a lawsuit against them. Every single consumer is guaranteed the right to sue a company for knowingly providing inaccurate information to a credit bureau.
If you are willing to take the time to search out the options that are available to you and work with companies like Credit Sesame then there is hope. Sometimes a reporting error on a companies side can end up helping you. Sometimes all you need to do is contact the reporting agencies and inform them that the repossession is older than seven years. Stop dealing with the stress of bad credit due to home foreclosure and repossession.