WIth multiple foreclosures on my credit, am I forever screwed?
A year and a half ago, my brother-in-law asked me to be a "credit investor" on some properties he wanted to buy. At the time I had perfect credit and a credit score around 700. He'd always been responsible and reliable, so I agreed and he purchased three homes using my name/credit. He made the payments on the properties for about 8 months, and then said that he could no longer afford to make the payments as he couldn't find renters or buyers. Then he just bailed and hasn't responded to my calls/emails about how to get these out of my name or whatever. Two have now gone into foreclosure, and the third will do so shortly. I know it was foolish of me to expose myself to this situation; am I forever screwed in terms of my future access to credit? Thanks for your responses. I just finished grad school and have no real assets, so there's not much that can be taken away from me at this point - save for my future ability to acquire assets. 7 years...gawd. Live & learn, I guess.
Public Comments
- Luckily our laws include second chances. The foreclosures will stay on your credit report for seven years from the date that the default began. However, since so much money is involved I'd seek legal council. You may want to file bankruptcy to protect any assets you have. Some forms of bankruptcy stay on your credit report for ten years.
- Not forever but for a long time yes. You will need at least 24-months of very good payment history on every account you have and hopefully your home as well to off set this mess and re-establish your credit. They will all show for 7-years from the date you went delinquent on the loans so figure 7-years and 180-days before they will drop off you report.
- Spifiman1 is correct.
- I think you already know the 7 year rule. There's also co-signing available. Co-signing someone with great credit allows you to purchase cars or other necessities.
- The foreclosure will stay on your credit for 7-10 years, but your should be able to finance another home after about 3 years from the last foreclosure, if you pay your bills on time
