A good credit report is essential for anyone looking to buy a home, as it’s one of the first things lenders will evaluate. If you plan to purchase a home and have an eviction in your past, you might wonder how it will affect your ability to secure a mortgage. In this article, Resolvly LLC reviews how an eviction can affect your credit and your chances of getting a mortgage.
Are Evictions on Credit Reports?
Evictions are not typically reported on credit reports. However, if you owe money to your former landlord as a result of the eviction, that debt may be reported.
Additionally, if the eviction case went to court, it may be listed in the public record and appear on a background check.
This possibility is why it’s essential to review your credit reports from the three main credit bureaus — TransUnion, Experian, and Equifax — before applying for a mortgage. By checking your reports, you can identify any errors or omissions and take steps to correct them.
How Evictions Can Affect Your Chances of Getting a Mortgage
While an eviction won’t necessarily show up on your credit report, it could still affect your chances of getting a mortgage.
Mortgage lenders typically want to see a solid rental history when they’re considering you for a loan. If you have a record showing the eviction, it could make lenders hesitant to approve your loan.
When you’re looking to purchase a home and have an eviction in your past, there are some things you can do to improve your chances of getting approved for a loan, such as:
- Waiting at least two years after the eviction to apply for a mortgage
- Working on improving your credit score before applying
- Paying any outstanding debts related to the eviction
- Providing a detailed explanation of the eviction to potential lenders
- Securing a cosigner with good credit to apply for the loan with you
While an eviction can make it more difficult to get approved for a mortgage, it doesn’t make securing home financing impossible. By waiting a few years and taking steps to improve your credit score, you can increase your home loan approval chances.
Contact a Consumer Protection Attorney
If you’re facing eviction, it’s important to understand how the process can affect your credit.
Collection accounts as a result of unpaid rent and fees an eviction can stay on your credit report for up to seven years, making it difficult to rent an apartment or get a loan during that time. However, there are ways to improve your credit after an eviction.
A consumer protection attorney can advise you on the best steps to take.
About Resolvly
Resolvly is a Florida Bar-approved lawyer referral service that helps clients nationwide connect with consumer protection attorneys specializing in debt resolution. Since 2015, the company has helped thousands of Americans find the right legal-based solution to reduce or dismiss their unsecured debt, including credit card debt, private student loans, business debt, medical bills, and vehicle loans.
