Improve Your Credit Score Overnight

Improving your credit score does not happen overnight. Many consumers believe there is a quick fix to a situation that did not happen overnight. It is estimated that 60% of all people will have a bruise or blemished credit in the next several years. The rampant foreclosure and job loss has caused a downward swirl in credit portfolios. The first step in improving your credit score is actually obtaining your credit score from all there major credit bureaus. I recommend getting your credit report from a local banker or mortgage professional so you will have the report that financial institutions use to make financing decisions.

Once the tri-merge credit report has been secured the fun part begins. Verify the account information listed, it is estimate that 79% of all reports have some type of errors. If the accounts are numerous and hard to verify consider working with reputable credit repair company to work on your behalf If the accounts are few in number work with the creditors to offer settlements on collections and charged-off accounts. But beware that paying off collection charges on judgment does not increase credit scores dramatically. In order to see a significant boost your credit score you will need several factors working together at the same time –stay tuned for next post that describes a key element in raising your credit score on your own.

Don’t let your credit score keep you in credit prison visit www.queenofmortgages.com for more information. Markita Aldridge-Woods is an expert at helping clients raise credit scores and get the chance they deserve to become homeowners.

Is Credit Repair the Ethical Way to Handle a Major Problem?

A lot of people ask if it's ethical to try to take off legitimate bad credit.

American consumers have been treated unfairly by the credit-ranking system. "Credit repair" is a phrase that has ended up with a bad reputation, and it has been associated with scams. The outcome is, a lot of times we end up having to defend our work of assisting other people to fix their credit.

The experience of being in credit prison does have other solutions to the issues that are harming the credit report. Rather than a person seeing the credit report as evidence of poor credit, he or she should see it as an allegation that often goes unchallenged. The people we help with this are generally saying they are not guilty when they join up to use our preferred attorney option to defend themselves.

Our preferred lawyers make the credit bureaus prove their claims. If the bureaus state that they have previously examined the situation and the charge is real, then this decision is debated. We have found that the majority of credit report accusations are incorrect, and that is when they can be removed. It makes good sense ethically to take a bad credit item off your record.

Our society has origins in capitalism, and the credit bureaus apply consumer personal information to their own benefit. The legal system pledges an oath to be honest, equal and generally good; however, credit bureaus don't do this. Why should any person be forced to help any company, not to mention big businesses, when doing this could mess up his credit and financial situation? The credit bureaus would hold onto all of the credit information, real or fake, forever if the government didn't make them get rid of the many details after seven years has passed. If not for this law, credit bureaus would be able to keep many items on your report after seven years has passed. If good credit accounts can be taken off after a brief time period, then why don't you take off bad credit accounts before the seven years is up?

Credit bureaus don't care about their effect on customers. Profits -- not the rights of the consumers -- are the main reasons for their judgment.

Judging a person's credit from their past credit isn't always reliable. It hurts all people to have nice people thought of as being deadbeats. A number of policies and methods utilized by credit bureaus appear to be harmful to the consumer. Because of this, we disagree very much with the current standards of credit reports. The debtor is chastised unfairly with seven years of credit prison (with 10 years for being bankrupt and some court judgments). Credit bureaus have never conducted any research to figure out if seven years is enough time to re-establish good credit. The seven-year mark is a random choice. The facts are that, based on what Dr. Bonnie Guttion, consumer affairs adviser to President Bush, computer models that foretell credit details which show "nearly all details that are over two years old are not important"; also, our customers think that seven years is too much time. After a few years, the majority of people are capable of completely recovering from a financial crisis. In spite of this, they are usually made to live a poor life style and pay a lot of interest on loans and wind up being rejected for loans because of the information on their credit reports.

Even though credit bureaus boast of a 1% error rate, that isn't really accurate. But, other research not conducted by the bureaus reveals that errors happen at a rate of almost 79%.

One credit bureau confesses that they have an error rate of over 50%.

The legal agencies stubbornly oppose that these errors be fixed. It is very expensive for them, spending time as well as money. The truth is, credit bureaus profit from selling your credit history. This vast amount of information is not handled by anybody but them. A person can't win if they are valuing someone's privacy. People have lost their jobs and public standing due to errors on their credit reports.

There has been a high amount of the worst offenses like file errors and mis-merges. This means that their should be a big scale update for the American credit reporting procedures. When an individual's information is assigned to the incorrect file, it is called a mis-merge.

Consumer credit reporting standards are not only used in the United States, but other countries use them also. Most countries judge credit considering the recent credit standards. For instance, Equifax and Experian in England can't hold onto credit details after five years. The credit reporting system in America needs to be changed. There is nothing wrong with wanting to be sure your credit report is correct. Be assured that it is not unethical or wrong in any way.

Our clients can be trusted and have been totally redeemed from hardship, as well as they are elated to come back to the credit economy and be financially trustworthy. Our aim is to assist people to avoid predatory lenders.

A person can lose thousands of dollars because of bad credit and can end up in a vicious cycle, from which escape is virtually impossible. Many people repair their credit for refinancing, or to purchase "double the home's worth" at almost the same cost. For people who have credit issues, it is difficult to pay another person's mortgage. A lot of renters have finished paying another person's mortgage, but still are not able to buy their own house because of bad credit.

Unfortunately, a lifetime of good credit can be overwhelmed by just one bad item on your credit report. Unfortunate consumers end up with no choice but to reside in neighborhoods that don't have a nice reputation. Don't let this happen to you....visit www.queenofmortgages.com to learn more about reparing your credit so you too can realize the American Dream

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The New American Dream,uh,Deferred!

I read in a Washington Post article two weeks ago, that the biggest losers of wealth in the midst of the subprime crisis are Blacks and Hispanics. The two most targeted groups for the exotic mortgage products, that have helped cause a mortgage meltdown. The media has done a good job of reporting the doom and gloom but out of all this there is a silver lining. There has not been a greater buying opportunity available since, well actually I can’t remember. Just as many that lost wealth, in the wake of the unscrupulous loan officer and fat cat Realtor market; there is the opportunity for that many or more to gain wealth in this market. One of the secret of the rich is to by low and sell high; for the last five years most people have operated totally opposite of that paradigm. And many Realtors and lenders laughed themselves right to the bank.

Speaking of banks I have a situation with one of the biggest participators in sub-prime exotic mortgage lending, that now has several foreclosed properties on the market. This credit fallout is not just the homeowners fault, big lenders and banks like Wells Fargo and Countrywide approved these loans without the blink of an eye, only worried about their fiscal bottom-line. And not the potential of what could happen to the homeowners after their ARMS adjusted and literally knocked them out of their homes (the place where hopes and dreams, family memories, and the cornerstone of wealth used to reside). Anyway back to my situation, I have a pre-approved client that has gone through the process of lining up financing before looking for a new home (the right thing to do). Now that she has found this home, the lender/owner of this foreclosed property does not want to accept her offer until she is “pre-qualified” through their lending department and ultimately try to steal the client and place their loan back on the house. It is so interesting to me that had they verified and made sure clients were truly qualified before they would not have to stoop to such a low level to regain business.

Personally I have decided the next time this happens under the banner of giving the clients a choice, that I am not going to participate in the shameless act. Because my clients are not some MARKET SHARE TRYING TO BE REGAINED or BIG COMMISSIONED EARNED AND ON TO THE NEXT LOAN. My valued services are for a lifetime, because homes are the cornerstone of wealth. I will be my client’s lender for life not just for one loan transaction. When the tax issues needs to be addressed, or identity theft has occurred, or a new baby has been welcomed to the family I will be there to service my clients if we did a loan one week ago to one decade ago, because I believe in the American Dream. And my passionate mission is to empower people to purchase homes, start building wealth, and living the new American Dream! If the people on your team don’t share this conviction then get a new team. No more business as usual, house rich but cash poor clients wondering how to keep their American Dream from being deferred.

Mortgage with big bank worth $100 monthly savings…Mortgage with trusted advisor…PRICELESS!

NO Cost Refi....Yeah Right!

Most of my blogs have been directed to new buyers, etc; today I am focusing on the current or soon to be homeowner. One of our biggest allies has turned into somewhat of a foe by advertising the so called “No Cost Refinance”. You have probably seen the ad from this company (withholding the name to spare the guilty) and thought to yourself this is too good to be true. And you are somewhat correct….

The no cost refi program truly has no closing costs; all the closing costs and third party fees are paid by the lender. Let’s discuss the true pros and cons of the no cost refinance program. Typically, a no cost refinance will come with a higher interest rate. Face it; there really is no free ride no matter how cleverly disguised!

One of the main factors in determining whether a no cost refi is the "right" way to go is to look into your financial situation and see what your future goals are. A no cost refi is a good idea if you are considering moving in a few years or you know that you will need to refinance in a few years. The reason being is that by obtaining a no cost refi you are going to pay a higher interest rate than you would have by just simply paying for the closing costs or rolling them into your loan. Most of the time the closing costs could have been paid for within a couple of years with a lower rate loan and therefore if you keep the no cost loan more than a couple of years you will be stuck with that higher interest rate for the life of the loan or long after you would have paid for those closing costs. This will cause you to pay much more in interest over the life of the loan. After discussing your goals and needs with your mortgage professional he or she should be able to provide you with their opinion on which type of refinance will be best for you, "no cost" or "with cost".

Whether a no-cost refi is the way to go depends on a couple of factors. ... If you're planning on moving fairly soon, the no-cost refi might very well make sense.
One way to find out which method is best for you is to find your breakeven point. The breakeven point is the number of months it would take to recoup your closing costs based on your savings in monthly payment. For example if you incur 5,000 in closing costs which result in a $250/month savings, it would take 20 months to break even of the closing costs.

Again the large corporate lender that advertises the "NO Cost Refi" puts it in a way that appears to save the borrower money. Again name withheld to spare the guilty! But I know you have seen or heard the commercial. The fact is that over the life of the mortgage the higher interest rate of a No Cost Refi will cost you substantially more money. You are better off paying closing costs out of pocket or rolling them into the loan in return for a lower mortgage interest rate.

When you hear the term "NO Cost Refi", ask yourself how are they going to make their money. (Remember there are no free rides!)The answer is in the form of a higher interest rate. You may save a few thousand dollars upfront but you will be paying tens of thousands of dollars in the long run. These loans are great for borrowers without the ability to pay the upfront fees but borrowers who can afford them should be very leery about using them.
While a no cost refi may sound like a dream come true, talk to a local and accountable mortgage professional about the detailed costs of originating a new loan or refinance. There is no such thing as a free ride, and sadly, there is no such thing as a free refinance either. How you choose to pay may dramatically impact how much you spend on your mortgage over the long run.

Overcoming Your Fear!

Fear stands for False Evidence Appearing Real! I don’t think we realize how much this can truly impact our personal and business life. I believe fear is the reason so may borrowers have called my office or met with me personally been pre-approved for excellent mortgage programs , viewed several properties with their Realtors but have yet to move forward on actually signing a contract. And basically giving up on their dreams of homeownership!

The external noise of the media and sometimes friends and family members can actually paralyze us from moving forward with our goals and dreams. In most cases, you will have to step out on faith. This simply means that you believe in yourself and that you will be able to make it work. Definitely you must not make foolish decisions but prepared and informed decisions that will help you deal with the unknown. This weekend I was listening to a song that had an appropriate hook “How will you make it if you never even try?”

Of course, I am basing this article on mortgages and purchasing a home, but the information is true for any endeavor we are looking to accomplish. In many cases, we often let ourselves or other people talk us out of doing something rather than into it. Distance yourself from the well-intentioned naysayers who think they are protecting you. But many times stealing away your dreams is exactly what they do.

It is okay to be afraid when doing or starting something new. As a matter of fact it is perfectly normal. As stated by a spiritual leader with the utmost integrity,” Do it with the fear!” How many people would have let golden opportunities pass them by, if they let their FEAR stop them from moving forward? I admit it can be frightening to think about all the different aspects of the transaction with realtor, lender, and title company, etc. Then there is the mound of paperwork that needs to be signed in advance such as the real contracts, inspections, and loan applications. As one buyer put it, you feel like you are signing your life away. Which is relatively true in a reverse way if you don’t sign you could be giving away certain aspects of your financial life such as the opportunity to build home equity that could fund your child’s college education, receive the large tax savings that you definitely deserve, or the opportunity to become debt-free through smart mortgage planning.

I encourage you to use fear as a tool to make sure you are informed and prepared versus paralyzed in your tracks. Meet with your local and accountable real estate professionals, ask plenty of questions, and use their expertise as your safety net. This will only be true when working with lenders and Realtors that you trust. Any Realtor or lender can place an advertisement in the paper or on the Internet. Only work with individuals that come highly recommended and will add value to your Real Estate transaction.

Since way back in the nineties, this is one of the most excellent times to purchase. The difference in this era is mortgage rates, although they have crept up in the last few years, still remain at overall thirty year lows. So if you have the opportunity to buy a home go ahead and seize it today before the window closes. Contact your local and accountable mortgage professional, to start the process or update your existing mortgage pre-approval. Get back out there on the market and purchase your new home today. False Evidence Appearing Real can never win unless you let it stop you instead of stepping out on faith!