Stopping foreclosure in Miami often the first step to repairing credit score

August 24, 2010

Failure to stop foreclosure in Miami is one of the many ways in which consumers are seeing their credit scores take a big hit. MSNBC reports a reputable credit repair firm may charge $600 or more to assist you in getting your credit back on track.

But there are few secrets to a good credit score. Low credit card balances and on-time payments will do more for your score than all the counseling in the world. Unfortunately, if you are dealing with an underwater mortgage in South Florida or a short sale or other bad mortgage debt, little can be done to help your credit without addressing the real problem.
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A Miami foreclosure defense attorney can assist you in determining the best course of action. Without proper assistance, a short sale or strategic default could result in a delinquency judgment and additional blows to your long-term financial well-being and credit worthiness.

Once you have dealt with your mortgage debt, you can begin to comb your credit report for errors or other problems that are needlessly dragging down your score. Too often, consumers continue to go on struggling with unmanageable debt out of misplaced fear of harming their credit score. In reality, your score has likely already taken a major hit from over utilization of available credit, missed payments, late payments and other issues. Getting back on strong financial footing may well allow you to repair your score faster than continuing to struggle with bad debt.

A free credit report is available at www.annualcreditreport.com. In general, scores in the 700 are good, high 600s are decent, low 600s are marginal and those with scores lower than 600 will find it difficult or impossible to get credit in the current environment. Rebuilding your credit requires paying your bills on time and using one-third or less of available credit.

If you are facing foreclosure in the Miami area or are considering home-loan modification, short-sale, strategic default or other options in South Florida, contact Barakat, Jacobs & Associates for a confidential appointment to discuss your rights. Call (305) 350-5055.

Expert Says Crappy Credit Score Doesn't Have to be Permanent - Local News - Miami FL - News - msnbc.com.pdf