How to Remove a Foreclosure from Your Credit Report

May 14, 2025 • Credit Repair

A foreclosure can crush your credit score and stick around for up to seven years. But that doesn’t mean you’re stuck with it. In some cases, there are ways to get it removed—or at least reduce the damage.

Whether the foreclosure was reported in error or it actually happened, you still have options. Credit reports often contain mistakes, and even accurate negative items can sometimes be challenged or offset.

This guide explains exactly how to dispute foreclosure errors, request goodwill removals, and start rebuilding your credit score.

When a Foreclosure Can Be Removed From Your Credit Report

A foreclosure won’t just disappear from your credit report—but in some cases, it can be removed. If it was reported incorrectly or the lender can’t prove the details, the credit bureaus are required to delete it.

Here are the most common situations where foreclosure removal may be possible:

It’s inaccurate or unverifiable – If the information doesn’t match court records or the lender fails to verify it during a dispute, it must be removed.
The lender didn’t follow proper legal procedures – If the foreclosure process didn’t follow state laws, that could give you grounds to challenge it.
It was added by mistake or reported twice – Errors like duplicate entries or reporting the wrong property aren’t uncommon, and they’re worth disputing.

If any of these apply, you have a legitimate reason to take action and push for removal.

How to Dispute an Inaccurate Foreclosure

The dispute process starts with reviewing your credit reports and identifying any errors related to the foreclosure entry. If something doesn’t match up, you have the right to challenge it.

Step 1 – Get Your Credit Reports From All Three Bureaus

Start by pulling your credit reports from Experian, Equifax, and TransUnion. You can get them for free once a week at AnnualCreditReport.com.

Check for any of the following red flags:

Wrong foreclosure date
Incorrect loan servicer or lender
Duplicated foreclosure entries
Missing payment history or balances that don’t make sense

Even a small detail being off could be grounds for a successful dispute.

Step 2 – File a Dispute With the Credit Bureaus

Once you’ve spotted the errors, file a dispute with each credit bureau reporting the incorrect information. You can do this online, by mail, or by phone, but written disputes with documentation tend to be the most effective.

Clearly state what’s wrong and include any records that support your claim, such as:

Court documents
Loan statements
Correspondence with your lender

Each credit bureau has 30 days to investigate and respond. If they can’t verify the foreclosure, they must remove it from your credit report.

Step 3 – Follow Up With the Original Lender or Servicer

After you submit disputes to the credit bureaus, it’s smart to contact the lender directly. Sometimes they’re the source of the error—or they may not respond to the bureau at all.

Send a written request asking for:

A copy of any foreclosure documentation they have on file
An explanation of how they reported it
A correction, if they acknowledge the mistake

If the lender admits the foreclosure was reported in error, ask them to send a correction notice to all three credit bureaus.

What If the Foreclosure Is Accurate? Your Other Options

Even if the foreclosure was reported correctly, that doesn’t mean you’re out of options. You probably won’t get it removed through a dispute, but there are still ways to limit the impact and start improving your credit score.

Ask for a Goodwill Removal

This approach is a long shot, but not impossible. If you had solid credit before the foreclosure and haven’t had issues since, the lender may agree to remove it as a one-time exception.

A goodwill letter should be:

Short and respectful
Honest about what happened
Clear about how your finances have changed

Don’t make demands—just explain the situation, take responsibility, and ask if they’d consider removing the foreclosure to help you move forward.

Hire a Reputable Credit Repair Company

If the foreclosure is dragging down your credit report and you're not sure how to deal with it, hiring a credit repair company might be worth it. They can review your report, identify any errors, and handle disputes on your behalf.

Some people just don’t want to deal with the back-and-forth—and that’s where professional help can come in.
See our picks for the best credit repair companies.

Wait It Out (and Rebuild While You Wait)

If removal isn’t an option, the foreclosure will stay on your credit report for seven years from the date of the first missed payment that led to the foreclosure.

While you wait it out, focus on rebuilding your credit:

Secured credit cards – These are easier to get and can help you reestablish positive payment history.
On-time payments – This has the biggest impact on your credit score.
Low utilization – Keep your credit card balances well below the limits.

Time helps—but only if you’re actively building a better credit profile in the meantime.

What If the Foreclosure Was Part of a Bankruptcy?

If your foreclosure was tied to a bankruptcy, it should be reported a little differently. But sometimes credit bureaus get it wrong.

In a Chapter 7 bankruptcy, the foreclosure may appear separately or as part of the discharged debt. In a Chapter 13 bankruptcy, the foreclosure might show a different timeline due to the repayment plan.

Watch for these common reporting issues:

Duplicate entries—where the same account is listed as both a foreclosure and a bankruptcy
Conflicting dates
Status errors (e.g., “charged off” instead of “included in bankruptcy”)

If you spot any of these problems, file a dispute with each credit bureau and ask for corrections based on your bankruptcy discharge paperwork.

How a Foreclosure Affects Your Credit Score

A foreclosure is one of the most damaging entries that can appear on your credit report. Here’s what you can expect:

Estimated point drop – A foreclosure can lower your credit score by 100 to 160 points or more, depending on your starting score and credit history.
Mortgage impact – Most lenders won’t approve a new mortgage until 3 to 7 years after a foreclosure.
Credit tier shift – You may drop from a prime credit tier to subprime, which can mean higher rates on loans, credit cards, and even car insurance.

The good news? The impact fades over time, especially if you rebuild your credit with consistent on-time payments and low balances.

Final Tips to Recover From a Foreclosure

You can’t undo the past, but you can take smart steps to move forward. These strategies can help improve your credit score and show lenders you’re financially stable:

Open new accounts strategically – Start with easier approvals like secured cards or store cards.
Consider credit builder loans – These can help establish a payment history without taking on risky debt.
Use rent or utility reporting services – These add positive payment data to your credit report.
Monitor your credit monthly – Keep an eye out for any errors and track your progress over time.

Small wins add up—and they matter more than you think.

Bottom Line

A foreclosure can’t always be removed, but that doesn’t mean you’re stuck. If there’s an error or missing verification, dispute it. If it’s accurate, you still have options to reduce the damage and rebuild.

Start by pulling your credit reports and looking for mistakes. Then take action—whether it’s a goodwill request, professional help, or a plan to rebuild from the ground up.

Need help? Check out our free credit repair guide to get started.