Why checking your credit reports before and after a foreclosure is vital

Why checking your credit reports before and after a foreclosure is vital

Why checking your credit reports before and after a foreclosure is vitalA large part of our practice at Watts & Herring is helping people who are facing foreclosure in the state of Alabama.

In addition, we help consumers with credit reporting errors.

Are these two practice areas completely separate, or do they merge together from time to time?

Sometimes they merge.

This is why we recommend checking your credit reports whether you’re facing a foreclosure, or you’ve just gone through a foreclosure.

When we’re dealing with credit reports, there are a few laws that can help us out.

This includes the FDCPA (Fair Debt Collection Practices Act) if your mortgage company is considered a debt collector.

The FCRA (Fair Credit Reporting Act), which would apply even if the mortgage company isn’t considered a debt collector.

And other laws that would help us out.

What are some common errors before a foreclosure?

Let’s say your foreclosure sale is set for May 1.  But in March, you are reported as “in foreclosure” — is that right?

Alabama foreclosure happens when the actual sale occurs — not two months before.

What if you last made a payment in August but your credit reports show you made no payment in August?

Is that true or false?


If there’s false information, it may be that you can sue for that, or dispute with the credit bureaus and ask them to fix it.

Which, if they don’t fix your reports, you can sue them for false credit reporting.

This also gives you the ability to influence your mortgage company to stop the foreclosure.

Make them realize that they’ve been caught putting out false information, it may encourage them to work things out with you.

What about after a foreclosure happens?

After a foreclosure, check and see if your credit report is accurate.

Let’s say you have a house that’s worth $200,000, and it sells for that much at the foreclosure sale. 

Fast forward 6 months and the credit bureau is reporting that you still owe $200,000.

That simply isn’t true.

You owe $0 now.

Or maybe the foreclosure has already happened, but your credit reports say that the foreclosure is currently happening.

That isn’t right either.

There are so many things that can be wrong on your credit report before and after a foreclosure.

If you find any inaccuracies on your credit report, be sure to get with a lawyer to figure out your options.

If you have any questions, feel free to get in touch with us.

We would be glad to help you figure out your best course of action.

You can reach us by phone at 1-205-879-2447, or you can fill out a contact form and we will get in touch with you quickly. 

Hope this was helpful to you!

We look forward to chatting with you.

Have a great day!

-John G. Watts

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