Clean Up Your Credit or Forget It

Just when home prices and interest rates are really starting to look attractive, Fannie Mae and Freddie Mac announced increased delivery fees and new Loan-Level Price Adjustments, making credit much more expensive for potential homebuyers and homeowners looking to refinance. These increased fees are mandatory and have nothing to do with your mortgage professional. They are simply Fannie and Freddie’s way of recouping losses associated with the recent rise in delinquencies and foreclosures. Under Loan-Level Price Adjustments, additional costs are assessed to mortgages based solely on FICO credit score ranges that fall below 680. In the mortgage industry, this is called risk-based pricing, and it can really add substantial costs to a mortgage if borrowers aren’t credit ready.

If you or someone you know intends to take advantage of the low home prices and the lowest mortgage interest rates in years, please call us right away. We’ll get you a copy of your credit score and see what, if anything, needs to be done. Sometimes small changes to your credit profile can yield big results that could save thousands of dollars on your mortgage. Other times, professional credit repair may be required, and this process could take up to six months to reach the scores you need. If you’d like more information about these new fees or a free copy of our informative Consumer Credit Scoring Booklet, just give us a call.

Consumer Credit Counseling groups are popping up all over the internet and on TV adds. I have a major pet peeve about these companies. Most of the companies are legit in what they offer and what they do, but what I have a problem is that they do not disclose to the consumer the effect it will have on their credit rating by using their services.

When you use the service of a Consumer Credit Counseling agency or “3 C’s”, “CCC” as they are know in the industry, you need to be aware that you will suffer some major re-precautions from the use of their service. The use of their service will appear on your credit report as “under debt management” or “Consumer Credit Couseling’ or many other possible scenarios. The future credit companies will then categorize you in the same manner as if you where filing bankruptcy under the chapter 13 title of the US Bankruptcy code. Your record is damage for 10 years. They never tell you this but if you read the find print you will find it.

So if you plan to use one of these services please make sure you clearly know what you want to do. You may want to simply file a Chapter 13. Keep in mind that new changes in the Bankruptcy laws require that you attend a CCC training or counseling session in order to proceed with a bankruptcy. I find it rather dumb. The changes in the Bankruptcy law was lobbied by large CCC companies as an effort to drive more business in their direction. I simply see that CCC’s are a private method of doing Chapter 13 with no added benefit.

The CCC are one more idea that qualifies in the “fleecing of America” category in my book.

Real Estate Consumer Group is an idea that has been in my mind for over a year. I have been in the Real Estate and Mortgage Industry for over 17 years. I wanted to create a website that offers the consumer valuable information regarding real estate, foreclosures, short sales and mortgage loans. I will provide information to the consumer who is looking to get a good loan or purchase real estate or both. I will also provide information on this site to help people who want to make money in Foreclosures and Short Sales.

I will probably have to remain anonymous for now, because the information and my view that I will share with you on this site will probably offend some of my peers. I work mostly as an investor now, but I still think I might have to create a pseudo name.

Please add me to your rss feed, opt in to my mailing if you prefer or at least bookmark this website. I will begin posting shortly just give me time to finish my website.

Sincerely,

?