Foreclosures Credit Repair in Dallas-Fort Worth
When a homeowner fails to pay the mortgage for an extended stretch, the lender will foreclose on the property. This is a legal process by which the owner forfeits all rights to the property because of non-payment. If the owner can't pay off the outstanding debt or sell the property via a short sale, the property goes to a foreclosure auction.
A foreclosure can devastate a homeowner's credit score. FICO estimates that a foreclosure will drop someone's credit score between 85 and 105 points for a homeowner with a credit score of 680 (an average rating). For a homeowner with an excellent credit score of 780, a foreclosure will drop your score by 140 to 160 points. In other words, the higher your credit score, the greater the impact in a foreclosure situation.
Rebuilding your credit score after a foreclosure will take anywhere from 3 to 7 years, and possibly longer. For Dallas-Fort Worth residents seeking to repair credit scores damaged by foreclosure, experts from Trinity Credit Services are here to help. We also do more than assist those battling back from foreclosures. Our financial professionals find remedies for customers facing late payments, charge-offs, bankruptcies, tax liens, repossessions, collections, and much more.
5 Steps to a Foreclosure in DFW by Trinity Credit Services
What happens during a foreclosure? The specifics can vary from state to state, based on local laws, but the 5 steps include:
- Missed payments: The process starts when the borrower (homeowner) fails to make timely mortgage payments. After 3-6 months, the lender starts foreclosure proceedings.
- Public notice: The lender records a public notice with the County Recorder’s Office, indicating the borrower has defaulted on the mortgage. In some states, this is called a Notice of Default (NOD). Other states call it a lis pendens, which is Latin for "suit pending." Some states require the lender to post the notice on the front door. Regardless of where it is posted, this official notice makes the borrower aware that foreclosure is possible.
- Pre-Foreclosure: After receiving notification from the lender, the borrower enters a grace period of 30-120 days, depending on state law. During this pre-foreclosure period, the borrower can work out an arrangement with the lender via a short sale or pay the outstanding amount owed. If the default is not paid off, the foreclosure continues.
- Public Auction: If the default is not remedied by the deadline, the lender sets a date for the home to be sold at a foreclosure auction (also called a Trustee's Sale). The Notice of Trustee's Sale is recorded with the County Recorder’s Office with notifications delivered to the borrower, posted on the property and printed in the newspaper. A public auction is scheduled and the home is sold to the highest bidder for cash payment.
- Post-Foreclosure: If a third party does not purchase the property at the foreclosure auction, the lender takes ownership of it and it becomes what is known as a bank-owned property. Bank-owned properties are sold on the open market or at a liquidation auction.
Once foreclosure proceedings are complete, the former homeowner begins the process of repairing a damaged credit report with help from Trinity Credit Services.
Let Trinity Credit Services Deal with Your Foreclosure in DFW
A foreclosure is a traumatic situation for any homeowner. It involves a loss of property and a huge hit to your credit rating. To repair your credit as quickly as possible, the credit-repair experts from Trinity Credit Services have a wide array of strategies and programs designed to get our DFW customers back on stable financial footing. We can also assist with bankruptcies, late payments, repossessions, collections, tax liens and more. When you need our services, Contact Us online or give us a call at 888-669-7372.