by 
The Curious Bag
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Homeowners should be aware of the negative impact that losing their home through a foreclosure will have on their credit record. Once the foreclosure process is completed, it remains on their credit report for up to seven years.
The Facts
The Fair Credit Reporting Act applies in most foreclosure situations. It states that credit bureaus cannot include out-of-date (more than seven years) negative information on a credit report.
Significance
A foreclosure decreases an individual's credit score which can lead to higher interest rates and difficulty getting credit, a new job and a mortgage.
Considerations
In some situations, the report of a foreclosure is not automatically removed from the credit record after seven years. Individuals may need to submit a written request to the three major credit reporting agencies (Experian, TransUnion and Equifax) to have it removed.
Prevention/Solution
Homeowners may be able to avoid foreclosure through loan modification, forbearance or a short sale. The Federal Trade Commission recommends that struggling homeowners contact their lender or a local Department of Housing and Urban Development housing counselor to discuss their options.
Warning
Homeowners should avoid fraudulent companies or counselors that guarantee to help stop a foreclosure in exchange for a fee or title to the property.
Source:
privacymatters.com-Foreclosure and Your Credit History
Fedreal Trade Commission- Mortgage Payments Sending You Reeling?-Here's What To Do
ftc.gov-Summary of Your Rights Under the Fair Credit Reporting Act
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