Credit Repair SOS: Americans Feel the Sting of Foreclosure

Are you one of the millions of Americans in the throes of pending or previous foreclosure on your home?

It's in the news almost every day - and these citizens not only have to shuffle to find new living arrangements, but they must learn to hastily apply credit repair advice to allow them to function in a society consumed with credit and debt.

Home foreclosures leave open a financial opportunity for many - the ones who can swoop in and scoop up a home for a good deal.  But the ones forced out of their homes are left with a credit report in disarray, and emotional trauma from the entire experience.

The best-case scenario would obviously be to acquire a home loan where you were sure you wouldn't have to miss a payment.  But many people already have blemishes on their credit report, which means they have to sign up for an Arm (adjustable rate mortgage) and then cross their fingers they'll be able to refinance at a lower fixed rate two years later.

What usually happens, unfortunately, is that during those two years, the family continues spending out of control - credit repair nowhere on the horizon.

Their score continues to go south and when the two years are up, the ARM turns into a financial nightmare.

"If we hadn't worked hard on our credit repair issues," says Michelle V. of Panama City, Florida, "our mortgage payment was going to double from $1,100 to $2,100 a month - we would have lost our home." 

Michelle and her family were lucky!

They took the issue of credit repair seriously and raised their credit score by cleaning up their credit for the two-year duration. 

In just 30 days, the credit repair advice they implemented had already helped give them a boost in lender risk analysis.