Upcoming Foreclosures

Should a Foreclosure be deleted on your credit report??

Would it make sense for our government to delete a foreclosure from the millions of individuals who has obtained one on their credit report within the last 2-3 years. The way I see it, it would allow those who now have horrible credit to get back into spending money by purchasing (a home, cars, re-financing, ect..) These tax cuts and decrease in interest rates only help those that are not affected by the massive housing crunch. If we decreased the amount of inventory that is out there in the housing sector, we would be able to get our economy back on track. Agree or disagree? I hope to hear from you.

Public Comments

1. Here is your answer: Legally a "foreclosure" CAN NOT BE REMOVED from your credit report for a period of 10 years,under federal law.
2. Totally Disagree! If you were unable to make your payments and got foreclosed on then it will stay on your credit report for 10 years. This does not mean you will not be able to get any credit, it just means that the credit grantors will be forewarned that you may have money management issues. You can insert a statement into your credit report explaining what happened and most credit grantors will take this into account when reviewing your credit history.
3. NO! A person knows how much they can afford and what they cant afford, so people should not believe a bank or a Realtor on what they could afford because banks don't know were and how much money a person spends on food and other items. so this housing problem is the banks and the citizens fault not the governments. So No it shouldn't be deleted
4. Disagree. If they were stupid enough to get to foreclosure, they deserve to take a "credit" timeout for a little while until they get things back in order. This is why potential home buyers need to read everything and then take the same paperwork to a lawyer to be read over before signing anything. They also need to be honest with themselves about how much house they can really afford. Not to mention, it helps level the playing field. I'm not saying the banks don't deserve to be left off the hook in this current mess. Many of the big banks that were involved are facing record losses and several CEO's heads have already rolled for it. The sad thing in all of this mess is that alot of the employees at the banks not involved in the risky (stupid) lending are going to take a hit too financially (no or no cost of living raises, higher health benefits, etc. ) or get laid off and many homeowners will be forced to move out of the homes they cannot afford. This may not neccessarily be a bad thing, but it sure isn't going to be an easy year this year.
5. Foreclosures can't be erased they stay on your credit for a predetermined time. Due to media lies you and everyone else in the US are under the impression that the "poor with bad credit" caused our present problem. It is your self employed, or investor with the high 720 to 800 ficos and stellar credit history buying properties they could not afford under stated programs provided by your biggest lenders (like Countrywide). Under their fast n' easy stated programs the borrower's INCOME IS NEVER VERIFIED!! You had investors buying as many as 2 houses a month who now can't even find a renter for them and can't make the payments. People with high fico's were also used as "straw buyers" by unscrupulous Real Estate agents and Loan officers. These loans had low rates, and approved people with unrealistic, exaggerated incomes as long as they had a fico 720 or above. I have seen loans done for customer service reps who already owned 5 properties, all bought in the same year...but had a 720 FICO. The poor are a very small percentage of the foreclosures. I just read the other day that authorities are now finding out that some bank underwriters were on the take pushing loans through that never should have closed. And guess what? There's another black cloud in the housing horizon...why do you think the government is doing little or nothing about illegals...want to guess how many undocumented persons have FHA loans? Yeah the government better bail out the lenders..they did'nt bother to verify social security numbers before issuing out government purchase loans either. You deport them guess how many foreclosures we'd have then??? So let's make the poor the bad guy.. I think the blame goes a little higher up. Don't believe the hype.
6. Poor credit people had their chance. I'm sorry if you have failed. I work with so many borrowers that deserve a chance. Borrowers that DID NOT cash out of their property to pay off cards or just blow it. Borrowers that had a 80/20 2YR adjustable rate and now can not get out. Thats the real sad fact. 3% higher on 250K will hurt most people.