Credit Report

• A credit report consists of your history with consumer credit transactions. These reports contain information such as how many credit cards you have, how often you pay your bills on time and whether or not you've declared bankruptcy. A foreclosure is a significant negative on your credit report, and according to the FTC, it must remain on your credit report for seven years.
  
  

Credit Score

• Your credit score is a number derived from the information contained on your credit report. Various companies use this information to calculate a score that represents how safe a borrower you are given your past history. Your credit score will go lower if you have a foreclosure on your records, but how much lower depends on a variety of factors. Newer foreclosures have a greater negative impact, while those nearing the end of the seven-year required reporting period have a lesser negative impact.
  
  

Errors

• Though you cannot have a legitimate foreclosure removed from your credit report for seven years, you can address mistakes or incorrectly reported foreclosures. A consumer has the right under the Fair Credit Reporting Act to challenge any incorrect or erroneous information on his credit report. You can challenge this information by contacting either the company reporting it or one of the three credit bureaus -- Experian, TransUnion and Equifax -- upon whose credit report the item appears.
  
  

Improvements

• Though the negative effects the reported foreclosure has on your score will likely be significant after it is first reported, your credit score can increase over time. A credit score takes all your consumer credit history into account, and bases your score on numerous factors, including your history of payments, amount of credit you have available, types of credit used and the amount of debt you currently have. Improving any one of these factors will lead to an increase in credit score regardless of whether you have a foreclosure on your credit report.