Process Terms
Foreclosure: Definition
The legal process of a lender taking possession of a property.
Definition
Foreclosure is the legal process by which a lender takes possession of a property after the borrower fails to make mortgage payments. In Metro 2 reporting, foreclosure is indicated by specific Account Status codes. Foreclosure remains on credit reports for 7 years from the Date of First Delinquency.
Examples
Account Status 88 = Foreclosure proceedings started
Usage Notes
- Remains on report 7 years from DOFD
- One of most severe negative marks
- Specific status codes indicate foreclosure stage
Related Terms
More Process Terms
Dispute
A consumer's challenge to the accuracy of reported information.
ACDV (Automated Consumer Dispute Verification)
The system used by bureaus to process consumer disputes.
e-OSCAR
The industry system for processing credit disputes electronically.
File Submission
The process of sending Metro 2 data to credit bureaus.
Credit Report
A detailed report of a consumer's credit history.
Credit Score
A numerical representation of creditworthiness.
Tradeline
A record of a single credit account on a credit report.
Soft Inquiry
A credit check that doesn't affect credit scores.
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