Daniel Rosen explains how foreclosures end up on credit reports: mortgage lenders report them to bureaus, not courts. Multiple handoffs between parties create reporting errors, which are your pathway to getting them removed.
I'm going to share two insider secrets for dealing with one of the most damaging items on a credit report. Foreclosures can create huge drops in credit scores and have such a bad stigma that many creditors won't even consider lending to someone with a foreclosure on their report. Most foreclosures are filed with the courts and are considered public records which aren't sent directly to the credit bureaus by the court, and that's the key to their removal. Mortgage lenders report them to the bureaus or the credit bureaus by the reports. Now, I know this sounds complicated, but all this information changing hands means there's room for error everywhere. And those errors are how you remove items from credit reports. Tune in in my podcast to learn more.
