Consumers should also have access to their credit scores for FREE, considering how important the score can be in determining your cost/access to loans, employment decisions, and whether or not you can rent an apartment. Rebuilding your credit after a foreclosure or short sale? Read our earlier blog:

New Report: 1 in 10 Consumers Have Incorrect Credit Score

FTC Finds High Number of errors in credit reports

By Sean Coffey, Program Manager, Foreclosure Help

The Federal Trade Commission released a report today (focused on credit report errors at the three large credit reporting agencies (Experian, Equifax, and Transunion) and found significant mistakes, with one in ten consumers reporting a change in their credit score AFTER they contacted the agency to dispute inaccurate information.

Regular readers of our blog may recall that the Consumer Financial Protection Bureau also released a report  (Analysis of Differences between Consumer- and Creditor-Purchased Credit Scores) with a similar focus in September 2012, which found that one in five consumers would see a different score than their lenders.   See our blog on the topic here: “1 in 5 consumers receive a different credit score than their lender”

In the most recent report by the Federal Trade Commission, (Report to Congress
Under Section 319 of the Fair and Accurate Credit Transactions Act of 2003) the researchers found:

  • 25% of consumers identified errors on their credit reports, potentially affecting their credit scores;
  • 20% of consumers had their errors corrected by at least one of the agencies after the consumer disputed it;
  • About 1 out of 20 consumers saw their credit score change more than 25 points, while 1 in 250 customers saw a credit score change of more than 100 points.

We’re glad to see that the Consumer Financial Protection Bureau is now overseeing credit reporting agencies.  The consumers who were interviewed last night on 60 Minutes (40 Million Mistakes: Is your credit report accurate?) had some pretty harrowing tales about trying to correct their credit reports, with some choosing to hire attorneys because the process was so slow/unsuccessful when they attempted to contact the credit reporting agencies.

You may find our previous blog postings helpful:

If you are struggling with foreclosure in San Jose or Sunnyvale, please give us a call. The sooner you pick up the phone, the sooner we can help, and the earlier you start in the process, the more options you will have to create a plan forward.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website:

Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: or send us an email:

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio:

Nuestros consejeros aprobados por HUD puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro o envíenos un correo electrónico:

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi:

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.

Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: hoặc gửi email cho chúng tô

Rebuilding credit after a Foreclosure or Short Sale

By Aurora Olivares, Housing Counselor at Project Sentinel, one of the members of ForeclosureHelpSCC

Building and maintaining credit is frequently on the minds of homeowners here in San Jose and Sunnyvale.  It’s no secret that your credit takes a hard hit during and after a foreclosure or short-sale.  Once you are more than 30 days late on your mortgage, it will be reported on your credit report, and your credit score will be impacted negatively. To learn more about how a foreclosure, a short sale without a deficiency, a short sale with a deficiency, and a bankruptcy impact three typical homeowners, read the FICO Banking Analytics blog posting: “Research looks at how mortgage delinquencies affect scores.

As homeowners are unable to pay their mortgage or secure a workout with their lenders, they may fall further behind on their payments, and their credit report will worsen.                 A homeowner’s credit is impacted throughout this progression until the entire delinquency is resolved.

Let’s fast forward.  What happens after someone goes through the foreclosure process? 

The foreclosure proceedings are reported to the credit bureau by your lender and will be noted on your credit report for the next 7 to 10 years.  However, this doesn’t mean that you can’t re-build your credit after a foreclosure or short sale and become a homeowner again.

Here are 5 tips on how to rebuild your credit so you can prepare yourself if you decide to purchase a home in the future or need to apply for other types of credit after going through the foreclosure process.

  1. Pay your debts on time.  Paying your minimum monthly payment on time will reflect positively on your credit report.
  2. Keep low balances on your credit cards.  If you have a credit card with a revolving balance, try to keep the balance at about 30% or less of the overall credit limit for that account.  For example, if your credit limit is $10,000, you should try to keep your balance below $3,000.
  3. Pay more than your minimum monthly payment.  By simply paying $1 more per month than your required minimum payment, it will register positively on your credit score.  It could be $1 or $100 more than minimum amount you are being billed.  Use this method to maximize your ability to pay off debt faster and start to rebuild your credit.
  4. Keep your older credit accounts open.  The longevity of an account plays a role on how your credit score is calculated because potential lenders like to see that you have a history of using credit and paying your bills.  Therefore, if you close an older account, it’s going to negatively impact your credit score.  If you need to close credit accounts, consider eliminating newer accounts first.
  5. Avoid quickfix schemes.  Claims to be able to fix your credit in less than 90 days may not be the most dependable outlets.  If it sounds too good to be true, it probably is.  If you decide to seek professional assistance to help resolve your credit issues, make sure they are a reputable organization.  One quick way to research if an organization is providing legitimate credit counseling assistance is to see if they belong to the National Foundation for Credit Counseling, a nonprofit, membership organization which holds its member agencies to high standards.  Visit their website: to learn more or to find a credit counseling agency close to you.

In conclusion, rebuilding your credit report and score after a foreclosure or short sale will take time and dedication and there are no “quick fix” schemes to fix your credit.

If you haven’t already, you may want to obtain your free credit report. And a reminder from the Federal Trade Commission: is the ONLY authorized source for the free annual credit report that’s yours by law. The Fair Credit Reporting Act guarantees you access to your credit report for free from each of the three nationwide credit reporting companies — Experian, Equifax, and TransUnion — every 12 months.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website  Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: