Posted on: 02nd Oct, 2012 01:13 am
Hi there… I'm applying for an FHA loan but I have some queries. I had a property which foreclosed in 2009. However, my credit report is NOT showing a foreclosure. It shows closed and charged off and shows the remaining balance after the house was sold at auction. How will this affect me?
The correct status of the account should be updated in your credit report. If your property was foreclosed, then you should contact your previous lender and ask him to update the right status to the credit bureaus.
A foreclosure affects your credit score negatively and its impact remains in your report for 7 years.