We’ve covered a lot of ground in this series! In case you missed any of the important articles, use these links to access the blogs now:

1. The Mortgage Crisis and Your Credit Part One: No Laws Requiring Lenders To Report To The Big Three
2. The Mortgage Crisis and Your Credit Part Two: Foreclosure
3. The Mortgage Crisis and Your Credit Part Three: Deed in Lieu of Foreclosure
4. The Mortgage Crisis and Your Credit Part Four: A Short Sale May No Longer Be a Better Option than a Foreclosure: Here’s Why!
5. The Mortgage Crisis and Your Credit Part Five: Loan Modification

6. The Mortgage Crisis and Your Credit Part Six: Bankruptcy Mortgage Relief

Some of it may seem pretty bleak and overwhelming, so I’d like to share the good news with you. Even options like foreclosure and bankruptcy aren’t the end of the world and are events you can recover from. Let’s take a look at some basic principles in this regard:

• Aging Out: In all instances where I reference how many points will be lost in each scenario, it is important to understand that over time all derogatory accounts age out. This means that the older the account, the less it will hurt your credit scores.
• 7-Year Reporting Period: The law states that derogatory items “can be” reported for 7-10 years. It doesn’t state that they “MUST BE.” My experience proves over and over again that there is no need to wait out the 7 years. You don’t have to. You can start seeking early removal of the item by disputing to the credit bureaus that are reporting it. In many instances, the item will be deleted before the 7-year reporting period.
• You can start recovering and rebuilding immediately. My site, and my book, The Big Score, provides hundreds of tips and tools to help you rebuild credit.

Each of the scenarios I have presented in this series has a specific impact on credit scores, but it’s important that each individual understands that this is a very personal decision. A borrower must weigh the impact such a critical decision will have on family, employment, and future financial stability.

But above all, consumers should not be afraid to ask questions and find out what options are available. Many consumers mistakenly assume that there are specific laws and policies set in place that govern the actions of lenders, creditors, and credit bureaus. However, in many instances they are in the grey as much as the consumer. So homeowners in trouble should not feel intimated by them. If a plan sounds logical then the borrower should do the research, lay out the plan, and present it to the lender. With so many Americans in trouble, this is a time when real solutions are necessary to our economy. By creating solutions, there is a chance we can bring about changes in legislation that can help millions of consumers.

Over many years in the credit business I’ve seen much devastation to credit scores, the result of economic crisis. I have never witnessed such a dramatic impact across a wide cross-section of people as with the current mortgage debacle. It is trying the hearts, minds, and financial futures of literally millions of individuals. On a daily basis, I suffer heartbreak as I speak with countless individuals who have abandoned their last hope of salvaging their home ownership and now fight to save their credit. They are strong, and they will overcome this struggle because they are proactive; they are wise, and they know that they can take steps to mitigate the damage and recover to come back stronger than ever.

My advice to any homeowner on the verge of foreclosure, short sale, or bankruptcy is, first and foremost, find out what options are available. Do the research. Consult the experts. Gather as much information as possible, and weigh the pros and cons. What may seem to be the best answer right now may also have a serious impact for many years to come, so make an educated decision.

The great news is that whatever decision you make, whatever fate falls upon your credit scores right now, you can start improving your situation immediately by being proactive.

Recovering & Rebuilding Your Credit

• My Free Special Report, Save Your Credit – Save Your Life is a great place to start! Click here to learn more.
• My Book, The Big Score – Getting It & Keeping It will give you the knowledge and the tools you need to Recover and Rebuild from any credit crisis. Even if you have great credit now, this book will help insure that it stays that way. Click here to learn more.
• Hire a Professional to help.  If your credit challenges are to much to handle on your own, consider hiring Credit Resource Corp. to help you reach your credit score goals.  Click here to read about how you can receive a free credit consultation now, or just call CRC at (866)541-2500.