Erase FORECLOSURES from Credit Reports: Two Insider Strategies!

Hey, Credit Heroes. There are two insider strategies that you can use to remove foreclosures from credit reports, and today I'm gonna explain how to do each one so you better stick around.

So the big question is this, how can we take our passion for helping people with their credit and turn it into a successful business without taking loans, without spending a fortune by bootstrapping it from nothing so we can help the most people and still become highly profitable? That is the question, and this podcast will give you the answer. My name is Daniel Rosen, and welcome to Credit Repair Business Secrets.

If this is your first time listening to my podcast every week, I give credit repair tips and advice on bootstrapping your business from nothing. So be sure to click subscribe now and get ready to start changing lives. Okay, let's get into this second only to bankruptcy. Foreclosures are the most damaging items that appear on credit reports. They can cause huge drops in credit scores, and they have such a bad stigma that many creditors won't consider lending to someone with a foreclosure on their record. But that's not the worst part of a foreclosure. A foreclosure on a credit report means that a person or family has lost their home and now their credit has been damaged so badly that they probably won't be able to buy a new home for a very long time. It's a slow and terrible experience and no one should have to go through it, but it happens.

So until the mortgage lending system changes, people need to learn how to remove foreclosures from their credit reports. So how does this relate to us? For anyone new to credit repair, foreclosure is a legal action that occurs when a lender takes possession of a property from a borrower after the borrower fails to keep up with their loan payments. The foreclosure process varies by state, but it typically looks like this default, A notice of intent of foreclosure from the lender, the foreclosure filing and a trial, a notice of sale, the sale of the property, and eviction. It's a grueling process that lasts an average of 852 days, and it ends with the foreclosure being listed on your credit report for seven years from the date of the first missed payment. According to FCO, the impact of foreclosure depends on what your credit was like before it began.

The higher the credit score was, the more room it has to fall with some scores dropping over a hundred points. Now, foreclosure rates did drop to historic lows in 2020 and 2021 due to the pandemic relief policies. But when those policies ended in 2022, foreclosures dramatically rose 169% with over 248,000 being initiated. There are two types of foreclosures, judicial foreclosures, and non-judicial foreclosures. And the difference is simply whether or not the courts are involved in the process. About half the states only permit judicial foreclosures, but the other half allows lenders to choose between a judicial and a non-judicial process. Now because judicial foreclosures are filed with the courts, they're considered public records. Public records are different from most negative items that appear on credit reports because the courts don't actually send these records to the credit bureaus. Mortgage lenders report them to the bureaus or the credit bureaus by the records from companies like Lexus Nexus, which collects the information from public record databases like pacer.

I know this sounds complicated, but all this information changing hands means there's room for error everywhere, and those errors are how you remove items from credit reports. Here's why this is important. When the credit bureaus receive public records from Lexus Nexus, they often list the furniture of information as the recorder of deeds, the clerk of the courts, the magistrate or the municipal court. They do not list the actual furniture. And this amounts to false reporting, which directly violates the Fair Credit Reporting Act and provides a perfect reason to dispute the foreclosure. Here's what you need to know. As always, you start the credit repair process by disputing any incorrect information that appears on the credit report. Beyond that, there are two insider strategies for removing foreclosures from credit reports. Here's strategy one, you dispute the public record. Step one, you sign up for a pacer account.

PACER is a public records database that anyone can access for free and companies like Lexus Nexus use it to gather our data. I added the pacer signup link over in the show notes. Step two, contact Lexus Nexus and request a consumer disclosure report. Thanks to the Fair Credit Reporting Act, they're required to provide you with a copy for free, and I included the direct link to the report request site in the show notes. Step three, when you have the PACER account records and the Lexus Nexus consumer disclosure report, compare the information in both and look for any inconsistencies and dispute them with Lexus Nexus just like you would with a credit bureau because they follow the same rules. If you're able to remove the foreclosure from the Lexus Nexus report, the odds of getting it removed by the credit bureaus seriously increase. Step four, dispute the foreclosure with the credit bureaus.

Do this just as he would any other item. If the bureau verifies the information, move on. Step five, send a simple letter addressed to the clerk of the court where the foreclosure was filed. There's no need to get into specifics. Just say something like this. I have a record from your court appearing on my credit report. I've disputed the item with the credit bureaus, Equifax, Experian, and TransUnion, all of which confirmed the record was verified by you. Please provide the procedure in which you verify records with the credit bureaus and send this letter to the clerk of the court with a self-addressed stamped envelope and your return address on it to make sure that it's very easy for them to respond. The clerk of the court should respond with a letter explaining that they do not report to the credit bureaus. Step six, make a copy of the letter you receive from the clerk of the court and send it to the credit bureaus along with a demand for deletion.

It doesn't have to be written exactly the same way, but it should be something along the lines of this I have previously disputed. And then insert the public record name in the reference number with you. And in response, you verified the item as accurate stating that you have verified the information with the court. I contacted the court and their response is enclosed. It is clear that they do not report to you or any credit bureau for that matter. Therefore, your initial response verifying the item with the court was either an error or a lie. Either way, the reporting requirements do not comply with FC r a, section 6 11 15 USC, section 1680 I. And the information must be deleted immediately. The bureaus know this law and they understand that they have a potential violation if they don't remove it, so they'll typically respond with a deletion.

If the bureaus refuse to delete the foreclosure despite your valid reason for removal, then it's time to file a complaint with the C F P B because you're entitled to fair and accurate reporting. If the foreclosure is removed, you'll be on your way to financial recovery. And if you'd like copies of these public record dispute letters, you can download them free right now at creditrepaircloud.com/public-record-dispute. And here's strategy number two, send a qualified written request. Now, this is a bit advanced, but Credit Repair Expert and Millionaires Club member Bruce Pano recently shared this proven strategy with me. In the real estate world, there's a letter known as a qualified written request or A Q W R. A Q W R is a letter that you or someone acting on your behalf can send your mortgage servicer to request information about your mortgage account or to claim that the company has made an error.

In this case, you would write a Q W R and request all documents related to the mortgage account that was foreclosed, stating that you wanna review them for suspected errors, you need to be clear, you want everything. Your servicer must generally confirm it, received your letters within five business days, and respond with an answer. Within 30 business days. According to Bruce, you've now requested so much documentation. The chances are the servicer is not going to send it. They're either gonna ignore you, in which case you can file a C F P B complaint against them or they're gonna remove the record of the account. It's not guaranteed, and they may actually send you a ton of documentation, but if they do, you can go through each page to look for inconsistencies and dispute them just like any other piece of incorrect information. And here's my final point.

A foreclosure is the second most damaging item They can appear on a credit report. It means someone has lost their home and they won't be able to get a new home for a very long time. And to me, that's totally unacceptable. Disputing a foreclosure may seem slow and complicated, but when it comes to helping people to find a home, we do whatever it takes. And just a reminder, this podcast is brought to you by Credit Hero Score. Credit Hero Score is the only credit monitoring service that integrates directly with Credit Repair Cloud. Get instant access to your credit reports and scores by signing up for a seven-day trial for only $1. Sign up right now at creditheroesscore.com. And now, for my favorite part of the episode, every week I feature one of our credit heroes inside our credit Repair cloud Facebook community so that you can see firsthand what real people are doing as they run and grow their businesses.

And today's spotlight is on Michelle Barry Nunez. Michelle recently posted a great comment celebrating her very first paying client, and she explained her marketing strategy. She said I offer a generous discount to community groups, married couples, active military veterans, and to residents of our subdivision. Yesterday I attended the grand opening of a new youth center in our neighborhood, and I'll be making a donation for every family from our subdivision that becomes a client. That is an amazing strategy, Michelle, and congratulations on your first paid customer. It's the first of many. Keep up the great work and keep sharing your progress. And I'll end by saying, if you don't already have a credit Repair Cloud account, check it out. It's a software that most credit repair businesses in America run on. Just sign up for a 30-day free trial at creditrepaircloud.com/freetrial. And if you'd like to change lives and grow your credit repair business, check out our Credit Hero Challenge.

It's a live experience that has helped tons of people to get certified in disputing and to gain confidence as they run their credit repair business on a solid foundation so they can change a whole lot of lives and make a great living in the process. We're starting the next challenge very soon. So you want to join before the door is closed, or you're gonna have a long wait until the next one. So sign up right now at creditherochallenge.com. If you're finding value in the things that I share on this podcast, click below to subscribe and follow. Also, gimme a five-star review, gimme a thumbs up, or share the show and help me to change more lives. If you'd like to read the show notes, they're posted on my blog. If you have a question or a comment, drop it down below because I read each and every one of them. I would love to hear from you and I'll respond as soon as I can. If you wanna learn more top-secret credit repair disputing strategies, check out my interview with Bruce Poll. So take care of Credit Hero and keep changing lives.

Hey everybody, it's Daniel again, and really quick, I'd like to invite you to join what I believe is the best thing we have ever created inside the Credit Repair Cloud community. And it is a challenge that we call the Credit Hero Challenge. If you're just planning out your business or you're just getting it started and you dream of having a successful business of your own so you can quit your nine-to-five and fire your boss and have financial freedom or so, you can add another revenue stream to your existing business. If that's your dream, you need to get into this challenge. We created this challenge to help you to create and launch your very own credit repair business to build a proper foundation for a really successful business. This challenge is going to help you to understand the strategy, the tactics, and all the things you need to be successful at credit repair. It really is the greatest thing we have ever built, and it will change your life. So I recommend you do it right now. Stop everything, pause this audio, go online, and go to creditherochallenge.com. That's creditherochallenge.com and join the next challenge. And there's a challenge that's starting in just a few days. So go get started right now at creditherochallenge.com.