How do I fix my Credit after a Short Sale or Foreclosure?


Get your credit score back on track

You can fix your credit after a short sale or foreclosure in 3 steps.
Step 1: Get a good “mix” of credit. The perfect mix of credit is a Mortgage loan, Auto loan, and 3-5 credit cards. You can get secured credit cards instead of traditional credit cards. If you have a paid off car, just get a small auto loan on it from a local credit union. If you don’t have a mortgage don’t worry about it, but if you do, make sure it’s in good shape. Losing one home to a short sale or foreclosure hurts, but it’s compounded by further mortgage delinquency.

Step 2: Check your credit report. You can do this for Free once a year at You need to make sure it’s reported properly. For a short sale, make sure it’s not reporting as a foreclosure! If the narrative on your credit report says “foreclosure process started”, “foreclosure in process” or has a status code of an “8” or “M8”, then you have a problem. Your short sale is being reported as a foreclosure and you will need credit repair. Also make sure the account is closed, has a zero balance and is no longer reporting as active.

For a foreclosure, make sure the account has a zero balance and has been closed out. Sometimes the banks will keep reporting lates after the foreclosure. This does major damage to your credit score.

Step 3: Hire a good credit repair company. I recommend Credit Repair Mike. In the past, I always told people to hold off on this until the last possible second because of the expense. Now, with Credit Repair Mike, it’s only $499 per person for complete credit repair services no matter how many negative items you have or how many are removed in the process. With 5 rounds of unique letters to each negative account for only $499, it’s no longer a question of whether it’s worth it or not…

In Step 7 of The Life Plan, we teach you how to “Play the Game” of credit scoring so you and your entire family can have great credit scores.

Today’s On-Air Guests:
Bekah Stone, Head Negotiator with the Loss Mitigation NetworkShort Sale Expert
Mike WatsonSan Diego Credit Repair Specialist with

Listen to today’s show here: 

Categories: collections, Credit Repair, Credit Score Secrets, Foreclosure, Loan Modification, Radio Shows, San Diego Real Estate Market, Selling your home, Short Sale, The Life Plan

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