Credit Reports: What You Need to Know

creditForeclosures, bankruptcies, and losses by credit card companies for non-payment of your bills will have an obvious negative impact on your credit score. There are numerous other matters that are taken into consideration by credit agencies concerning credit scores.

Making Minimum Payments on Your Bills

Creditors make a lot of money from consumers who make minimum payments on their credit card bills. However, making minimum payments can have a negative impact on your credit score. Nessa Fedis, the Vice President of The American Bankers Association, states “it suggests you’re under financial stress.” Try to pay more than the minimum amount on your credit card bills. Minimum payments can be interpreted that you’re in financial difficulty.


A friend, family member or child may require you to guarantee their debt. When you co-sign for their debt, their entire debt appears on your credit report. The debt will be considered yours. If the primary obligore under the agreement misses payments or makes late payments, it will have a negative affect on the credit score of the co-signer.

Short Sale of Real Estate

A short sale takes place when the bank agrees to allow the sale of a residence they have a mortgage on for less than the amount due and owing on the mortgage. This causes the financial institution to lose money. This will have a negative impact on your credit score. You should negotiate with the lender prior to the short sale. It is important you request that the lender not report that you paid less than the balance due and owing to the credit agency. If they report to the credit agency that you paid less than the balance due on the note and mortgage, it will have a significant negative impact on your credit score.

Numerous Inquires

When you apply for credit with a lender or other institution, an inquiry is made against your credit report. When the credit agency sees numerous inquiries, your credit score is impacted in a negative manner.

Having good credit is important if you seek to buy a house, obtain credit cards, lease a car or engage in other financial transactions.

foreForeclosure and Bankruptcy

Foreclosure and bankruptcy have a significant negative impact on credit scoring. Bankruptcy can act as an escape valve to prevent the loss of a home, stop foreclosure, eliminate a second mortgage and stop debt collection harassment. Your credit can be re-established after filing either a Chapter 7 or a Chapter 13 bankruptcy One bankruptcy myth is that you will never receive credit again after filing bankruptcy. This is simply untrue.

Should you have questions or issues concerning your financial situation or are considering filing for bankruptcy, feel free to call the Law Offices of Schlissel DeCorpo. We’ve been helping our clients for more than 45 years deal with foreclosure defense and bankruptcy matters. We can be reached at 1-80–344-6431, 516-561-6645 or 718-350- 2802.

Credit Consequences of Foreclosure and Deficiency Judgments

Foreclosure And Deficiency JudgmentsFamilies facing foreclosure are concerned about being thrown out of their homes. Credit issues and concerns about deficiency judgments are secondary. When a bank initiates a foreclosure proceeding, they file a lis pendens on the property. A lis pendens filing notifies all prospective purchasers that the property is in foreclosure. This has the effect of making the title to the home unmarketable. This means the foreclosure proceeding must be dealt with before the house can be sold.

Late Mortgage Payments

Each time a mortgage payment is paid late, the financial institution notifies credit reporting agencies concerning this late payment. When mortgage payments are not made, credit reporting agents are also provided this information. Each late payment and each non-payment has a negative effect on credit ratings.

Sale of Property

At the end of the foreclosure proceeding the home is sold. Courts usually appoint referees in New York to sell these homes. If the financial institution does not receive enough funds from the foreclosure sale to pay off the mortgage in total, they may enter a deficiency judgment against the homeowner. The deficiency judgment is the portion of the mortgage that was not paid from the proceeds of the foreclosure sale. For example, if your home sells for $200,000 in the foreclosure sale and you owe $250,000 on your mortgage, the bank can enter a judgment against you for the $50,000 deficiency. This is called the deficiency judgment.

Avoiding Deficiency Judgment

There are a variety of ways to avoid deficiency judgments. You can enter into an agreement with the bank to have a short sale. This is when the bank agrees to forgive the balance of the mortgage not covered by the sale. You can also turn your house over to the bank by a deed in lieu of foreclosure, with the bank agreeing to forgive any deficiency from the sale of your home. Should your house be in foreclosure, it is important to consult with a knowledgeable attorney to avoid being subject to a deficiency judgment.

New York Foreclosure Defense

Losing your home in foreclosure is a scary prospect. Having an experienced foreclosure defense lawyer will not only help you in court it will give you piece of mind. Our office litigates foreclosure defense matters on behalf of our clients. We attend foreclosure court conferences. We litigate all types of real estate related issues including, but not limited to, predatory lending, defective foreclosure lawsuits, defective mortgages and bad faith on behalf of financial institutions. We maintain a foreclosure blog to update the general public concerning issues involving foreclosures, mortgage modifications and real estate matters. We also file Chapter 7 and Chapter 13 bankruptcies to deal with foreclosure problems. Call us we can help you!

Foreclosure Defense in Valley Stream, Lynbrook, Baldwin, Malverne, Freeport, Oceanside, Long Beach, Elmont, Lakeview, West Hempstead, Hempstead, Merrick and Bellmore, New York

We represent individuals throughout the New York Metropolitan area with divorce and child custody, personal injury, car accident, wrongful death, estate administration, nursing home and medicaid issues

The information you obtain at this website is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your particular legal issue. This is attorney advertising.

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