Failed Residential Investor - Need Foreclosures Removed!!

Asked by Thomas, Raleigh, NC Mon Dec 19, 2011

Due to hardship and miserable tenants, 2 were foreclosed and the last is a pending short sale.
At one point I had 3 homes and perfect credit! As a previous failed investor, how can I get foreclosures removed?? Their dates are March 2009 and February 2010.
None of the properties in question where ever my primary residence. I'd now like to buy my primary residence. Is there any recourse or adjudication for failed investors to get their credit repaired? Or some way to truly legally remove foreclosures?
Thank you for your time.

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Jim Simms’ answer
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Tue Dec 20, 2011
James, disputing accurate information on your credit report in order to get a mortgage is fraud; you may want to research the topic before taking such action. I have linked below more information on the subject, I hope it keeps you out of harm’s way. Good luck,
1 vote
Annette Law…, Agent, Palm Harbor, FL
Tue Dec 20, 2011
You most certainly encounter extraordinary circumstances that would have been a hard recovery for any investor. Many of my peers who took the investor route had their homes sold as short sales or foreclosed upon over the past four years. This colossal calamity swept the good, bad and ugly away with equal disregard. Your story reveals you truly had a generous heart only to be betrayed by those in whom you had faith. It is my hope you are able to put this behind you and start a new chapter just as you have indicated.

Your option to purchasing a primary residence will involve expensive money, but it is available. As others have noted, time is most assured path to recovery. Your attorney will be the best resource for methods to mitigate the effect of these foreclosures (if NC law allows). They won't disappear, but may be eligible for repositioning. Florida options will not apply to NC.

Best of success in achieving your goal.
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Nic Winder, , Valparaiso, IN
Mon Dec 19, 2011
I'm sorry for your situation.

According to… a foreclosure will stay on your credit report for 7 years.

I can't find anything solid, but it appears a short sale is the same story also due to it be a distressed sale.

It is possible to start to improve your credit score after 2-3 years of a foreclosure or short sale though. Keep in mind though, that advice is for 1 distressed property on the report.

About the only thing that could help is if you had the properties under a business rather than a personal name. Even that can be iffy in some cases.

The only way they are honestly coming off though, is with time.
0 votes
Don Tepper, Agent, Burke, VA
Mon Dec 19, 2011
With all due respect, why should the foreclosures be removed? Because you were an investor and those properties weren't your primary residences?

Sorry, but foreclosures are foreclosures. I'm sorry for what happened to you, but that's the risk of being an investor. You repair your credit the same way anyone else does--pay your bills on time, remove erroneous information from your credit reports, pay down any debts, etc.

I'm guessing that maybe you were following the advice of some "guru." Lots of investors who lost money--many of whom went bankrupt--were doing so. In fact, I even wrote a blog about it. See… In this case, a "guru" was describing a student of his who'd made some bad investments, filed for bankruptcy, and now wanted to continue on. And--and it's gotta be the height of chutzpah--the guru who apparently helped bankrupt the poor woman was trumpeting this (and the "solution") to other would-be investors.

One tip: Use some of what you know as an investor to help buy your primary residence. Specifically, consider doing a lease-option, a land contract, a subject-to, or owner financing. There are plenty of properties out there that you can buy with poor credit . . . as you well know.

Hope that helps.
0 votes
Ron Thomas, Agent, Fresno, CA
Mon Dec 19, 2011
When the Banks look at your Credit Record, they do not see if the property was a Primary Residence or an Investment; they don't care.
It is a Foreclosure.
The lastest word is that a Shortsale will stay with you for 2 years, and a Foreclosure, for 3 years.
There may be some flexibility on this in the future.

Good luck and may God bless
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