There are many Idaho homeowners with delinquent mortgages. If your lender reports the delinquency to the credit bureau, the negative item will stay on your credit for 7 years. If you default on your Idaho mortgage, and your home goes to foreclosure, the foreclosure will stay on your credit for 7 years as well, except that it will show up under public records and judgments. To avoid damaging your credit, you should try and work out a solution with your lender to cure the delinquency. This can be done by paying the default amount current, refinancing or obtaining a mortgage modification. You can also at the same time negotiate with your lender in writing to have them remove any negative reporting from your credit report. They will say they cannot delete it, but that is not true. Be persistent or have your attorney help you with the negotiations.
If you cannot afford to keep paying your mortgage payments and need to sell your home or you decide to give it back to the lender by signing a deed in lieu of foreclosure, you can ask your lender to delete any negative reporting regarding your delinquent mortgage. Just ask them to report the transaction as paid satisfactorily or satisfied. This way there won’t be any negative impact on your credit.
Disputing Negative Items on Your Credit Report
If you are unsuccessful in getting your lender to remove the delinquent reporting from your creditor report, then you can dispute it with the three credit bureaus. You should request a free copy of your credit report to determine exactly what was reported, and to which bureau. Since it is not mandatory that your lender report your payment history, they may only report to one bureau. If your lender does not respond to the dispute in 30 days, the credit bureaus have to remove it from your report. Even if you are unable to get your lender to remove the delinquent reporting, you can make a statement explaining the delinquency and have it added to your credit report. Older negative items have less impact on your credit score. After seven years, the item will automatically drop off your report.
Credit Repair
You can start rebuilding your credit by keeping current on your credit cards, student loans or other revolving accounts. Be sure to make your payments on time, and don’t go over your credit limits. It will probably take you a couple years to repair your credit so you need to expect to pay higher interest rates on any new credit.
Hiring an Attorney
An attorney can help you negotiate with your lender to get them to delete a delinquent mortgage from your credit history. The attorney has established relationships with lenders and knows how to negotiate with them to get results that you need and want.
