Short Sale/Foreclosure - Start fixing your credit right now

So you survived the Short Sale or Foreclosure process and you figure your credit history is toast. You're thinking that might never crawl out of this hole. Well, Stand tall! Ralph Waldo Emerson said it best ~ "Our greatest glory is not in never failing, but in rising up every time we fail." There is hope and with hope comes a need to jump back in the saddle and be proactive because nothing is free or easy in life (we're all experts on that one!).

Beside starting at that familiar step one(saving up for another down payment) the next best thing would be to check what your credit looks like. This can be done quite easily and at no cost. It all starts here...

Locate Internet access and visit http://www.AnnualCreditReport.com
This central site allows you to request a free credit file disclosure, commonly called a credit report, once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. If you schedule one every four months, you can start monitoring your credit on a regular basis which also allows you to get early tabs on any suspicious activity that might led to Identity Theft.Remember that this is not a substitute for other proven means of protecting your credit, it is merely a free tool to augment your other effort(s).

AnnualCreditReport.com is the official site to help consumers to obtain their free credit report. Exercise caution and ensure you've gotten to the correct site before inputting any information.

Find the words, START HERE. You will be prompted to select the state you are in (I am in California, all of my commentary is related to my experience with free California credit reports solely but I expect the access would be similar), and then click Request Report which will then take you to an area for you to identify yourself by completing the blanks with personal information. Ensure that you check the box to restrict the viewing / printing of you Social Security Number to the last 4 digits only. Clicking next brings you to a page to select one of the companies. After selecting, clicking on next brings you to a page indicating that you selected the particular company. Clicking next takes you to a page of qualifying questions> Proper answers ensure the person entering the information is the actual person or authorized party for which the credit report is being requested. Once you have answered these and clicked next, you will come to an offer of various services available through the respective company, including providing credit scoring. It is your choice but you can refuse by clicking the small designated area {No Thanks} at the bottom. Remember that it's not important to have credit scoring at this point so save your money. Anything else is up to you. Click next ~ You are in!

This is your chance to review all the information at the particular company and dispute any incorrect information, as appropriate. Here's some very general, quick tips...

Once you have a report, you have 30 days within which to view it online. Write down the file or report number, chosen user name and password to ensure you have access.

The first step in reviewing a credit report is to make certain that the information in the file is about you and is correct. Many reports contain information from others with a similar name or similar Social Security number even a transposed number which could have linked to your credit history. Credit reports also should be reviewed for incorrect items, such as credit cards that were never opened or payments made that were never reported. These could lead to Identity theft or improper credit to your account resulting in reports of late payments which damage your credit, not to mention fees.

Sellers who sold their home via a short sale should review their credit report to ensure the account reflects a zero balance rather than the difference between the outstanding balance and the sales price. Do note that a short sale carries no further obligations. Be mindful of the terms you agreed to or the path you chose whether Short Sale or Foreclosure. Some lenders are filing deficiency judgments, while others are selling the debts to investors who then contact borrowers for repayment. If something is inaccurate, now is the time to dispute the reporting, not 2 years from now when you are trying to buy another house.

Make sure that you stay current on all your other loans (Auto, personal, etc...) and your credit cards. Apply for a secured credit card or two and maybe even a small loan. If you can pay it back quickly gives evidence that you are credit worthy and can help to re-establish credit.

In closing, remember to mark your calender in 4 month increments to check your credit reporting history. It makes good business sense for the future of you and your family plus practical sense after you've successfully acquired a new home.
Keep the faith!