Increase Your Credit Score Now: 2012

Tuesday, December 25, 2012

Are You a Victim of the Bank Foreclosure?

Homeowners may qualify for compensation from foreclosure abusive. People who lost their home between 2009 and 2010 through robo signing. The banks listed below participated into robo signing.
1. Bank of America   11. Citifinancial                                     21. America's Servicing Co
2. Wells Fargo               12. CitiMortgage          22. HFC
3. J.P. Morgan Chase     13. Countrywide              23. HSBC
4. PNC                            14. EMC    24. BAC Home Loan Servicing
5. Met Life                          15. Everbank/Ever Home EMC            25.IndyMac Mortgage Co
6 National City Mortgage   16.Sovereign Bank                        26. Beneficial
7. Wachovia Mortgage         17. Suntrust Mortgage                   27. Auora Loan Services
8. Washington Mutual           18. US Bank
9. Wilshire Credit Corporation 19. Financial Freedom
10. CitiBank                            20. GMAC Mortgage
The homeowners who were a victim of the foreclosure abusive may file for compensation. This includes servicemen that was on active duty may qualify up to $125,000 plus equity that loss their home in foreclosure. If a servicemen reclaim their home in foreclosure, the homeowner will qualify for at least $15,000. Many homeowners that lost their home will receive less than $15,000 if the homeowner were turn down from a loan modification and ended up losing their home.

The deadline to file the complaint for compensation December 31, 2012. File your complaint at www.independentforeclosurereview.com or call 888-952-9105.

Credit Score Below 600

All Applicants with credit scores below 600 may still have the opportunity to purchase an affordable home. The booklet, "Increase Your Credit Score After Short Sale, Foreclosure and Bankruptcy", provides the techniques to increase an applicant's credit scores. The program offers “FREE 30 DAYS COACHING” as well as the booklet at increaseyourcreditscorenow.com

We provide a weekly blogging information at increaseyourcreditscorenow.blogspot.com

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Tuesday, December 18, 2012

Should You Buy A Home?

Everyone wants to buy the biggest investment in life. Some investors have become rich in purchasing homes. After the housing bubble, people are not sure about purchasing a home. A home is as good as you save funds for an unexpected job market and repairs. Most people purchase homes under these conditions as follows:
1. Impress friends with the size of their home
2. Success shows their accomplishment in life
3. Keeping up with the Jones

We are going to review "IDEAL" in purchasing a home. People should learn something from the government that approves of these guidelines to purchase a home. Let review these principles under IDEAL
1. Income-purchase income properties for investment
2. Depreciation-the government gives you 27.5 years on residential investment property to write off depreciation. The seller is tax when the property is sold which is called recapture tax.
3. Equity-as you pay down the loan balance you acquire equity into the property. Today, most people are upside down in their homes.
4. Appreciation-Before the housing bubble home, a home appreciated at least 35% per year in some areas in the United States. After the housing bubble homes have depreciated, underwater, and they are worst less in the housing market. Some people refinanced their homes several times and took out all of their equity in their home.
5. Leverage-you invest a small down payment and finance the remaining of the loan. If you purchase a home for $100,000, you put down 3.5% of the sale price which is $3,500. The lender finances $96,500 under a government loan.

Let review a smart way to purchase a home. Don't let the bank tell you how much of a home that you can purchase.
1. Base your income on purchasing a home after tax not before tax. After tax is your net income the lender qualify you for loan based on gross income.
2. Set aside three months of reserve after you purchase the home and start build your egg nest to 12 months of mortgage payments.
3. Do not refinance your home unless you are going to make a high internal rate of return on your investment.
4. Know the job market in your area if you happens to lose your job.

Credit Score Below 600

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Tuesday, December 11, 2012

ARE BANKS SQUEEZING YOU?

Our government passes new laws to improve the economy as the banks change their guidelines to make profit. Is this true? The lenders implement tighter restrictions for a buyer to acquire a loan. Today, it doesn't matter if a buyer has excellent credit because the restrictions are making it difficult to acquire loan.The reality is the government and the banks are tighten the lending industry. It is almost like good cop and bad cop in the real estate market. These guidelines comes from Fannie Mae, Freddie Mac and Ginnie Mae that implement these restrictions in the banking industry.

One of the main changes in the guidelines is purchasing another home if the buyer owns a home. The government hides behind the lending institutions, however, these guidelines are passed down to the lenders from the White House. If a buyer wants to purchase another home and they currently own a home, the buyer has to qualify for two mortgages. If the buyer hasn't filed rental income on their taxes, the buyer needs six months of reserve for both loans in order to qualify for another loan. It doesn't matter if you apply for a loan at Wells Fargo, Bank of America or Chase Mortgage because the White House passes the laws for the lending institutions. These guidelines, Fannie Mae and Freddie Mac, are from the White House not the lending institutions.

Credit Score Below 600

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Monday, December 3, 2012

The Boys Are Ridin Dirty Again!

The government plans to pass some new laws that will affect home ownership. In 2013 these laws are supposed to protect the consumer. No, these laws protect the investors on Wall Street that purchase these loans on the secondary market. These regulations may slow down the real estate market.

The new guys on the block are going to make a serious impact on the real estate market as follows: Consumer Financial Protection Bureau, Securities and Exchange Commission, Federal Housing Administration, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency. The government plans to implement these guidelines as follows:
1. 20% down payment to reduce home purchases
2. Raise the debt ratio
3. Let the lenders increase the cost to purchase a home (Realtor Magazine November)

These regulations are to protect the public in buying real estate homes. Where were the laws for Wall Street that caused the real estate catastrophe from their greed? There were no laws to protect the consumers or taxpayers from this mess. The door is still open for another housing bubble in the future because the White House hasn't fixed the problem. Now, let us pass some fake laws to stop the housing market for moving forward in the real estate market to protect the consumers. Let's dump on the little man, Main Street, again.

If these laws are passed, it will slow down the real estate market again. The government should be moving forward in the housing marketing not backward that slow down the housing market. However, Main Street should accept that the smartest guys in the room are on Wall Street as they pass their mess down to Main Street. Who'll bail them out again? Main Street, you the taxpayers.

Credit Score Below 600

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Saturday, November 24, 2012

Free Grant Money Up To $5,000 For VA First-Time Homebuyers

Military Housing Assistance Funds

All First-Time-Homebuyers Veterans may qualify for a free grant up to $5,000 from the United States Government to purchase a home. The lender requires a credit score of at least 600 to qualify for a VA Loan. The Military Housing Assistance Fund provides a free grant for all military, reserve, guard, veteran and civilian employees of the military. The program was implemented to help military First-Time-Homebuyers out of pocket expenses to a minimum when purchasing their home.

Credit Score Below 600

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Saturday, November 17, 2012

How to qualify to buy another home without selling your home?

The Dodd-Frank Act was passed to help homeowners who were underwater with their mortgage loan. The program provided relocation assistance for homeowners that qualify for the funds. If the homeowner didn't qualify for the HARP, the homeowners could sell their home through the tradition short sale. With the tradition short sale, the homeowner may not qualify for the relocation assistance funds.

What Should I do?

The idea is to take the advantage of the low prices in the market by buying a home to save money. A homeowner may want to sell their home if they are not underwater with their mortgage. A homeowner may be stuck because the only way to sell their home is through a short sale. If the homeowner doesn't have the extra funds to bring to closing, the only way to sell the home is through a lender approval for a short sale.

Selling My Home

A homeowners may lose between 150 to 250 points by selling their home through a short sale. A short sale is a pre-forclosure and it takes an impact on the credit report. It doesn't matter if the homeowner paid their mortgage on time. The lender reports the sale as a short sale and the homeowner is penalized by not staying in their home. The homeowner can't take the advantage of the great deal out there to buy another home and sell their home. The government has stuck the homeowner into a house that is underwater instead providing the opportunity for homeowner to move-up into the housing market. The homeowner has to pay he penalty for Wall Street greed.

New Guidelines

The homeowner may buy another home but the homeowner must qualify for two mortgage payments if the homeowner doesn't sell their home. The lender requires the homeowner to have six months of reserve for both mortgage payments.

Credit Score Below 600

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Friday, November 9, 2012

They're RIDIN DIRTY!

HARP and HAMP

The HARP, Home Affordable Refinance Program, was implemented to slow down the falling real estate market. If the government wouldn't have stepped in to save the real estate market, the housing market would have been worst than it is today. The homeowner has to meet the requirements for HARP in order to qualify for the program. If the credit score is not at least 620 or higher, and no late payments within a year, the homeowner doesn't qualify for the program. The programs, HARP, Home Affordable Refinance Program and HAMP, Home Affordable Modification Program will expire on December 31, 2013.

The homeowners have to close their loans before January 1, 2014. These loans are sold to Wall Street on the secondary market. The government owns 60% of the Fannie Mae and Freddie Mac loans. The HARP assists homeowners with their mortgage payments if the homeowners have paid on time.

Truth-Riding Dirty

The lenders, credit bureaus, collection agencies and government are all riding dirty. All homeowners need to check with their lender on the way the loan is rated on their credit report. To participate in one of these programs, the home owner may lose approximately 100 points on their credit scores. The lenders are making money off these programs. Most of the lenders are extending the mortgage terms to 40 years for the lowest interest rate reduction. The lenders don't have to do a principal reduction on a loan. If a homeowner has excellent credit, the homeowner may take a hit on their credit report for participating under the HARP or HAMP.

The government has requested the lenders and the credit bureaus to change the way these loans are coded on the credit report under the HARP, Home Affordable Refinance Program and HAMP, Home Affordable Modification Program. If the credit scores are lowered, the lenders make more money by charging high interest rate on credit cards.

Under a FHA loan the homeowner has to miss a payment to qualify for a short sale. A late payment on any credit account reduces credit score approximately 45 points on the credit report. All homeowners should check their credit report before accepting the HARP and check their credit report after receiving the program.

Credit Score Below 600

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Thursday, November 1, 2012

Stop Bad Credit-Increase Your Credit Score

Credit Score Below 600

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Saturday, October 27, 2012

Is A Loan Modification A Good Deal for the Homeowner?

Save Money With Lower Payments!

Every one is trying to qualify for a loan modification, HARP, Home Affordable Refinance Program. It may be a good deal to lower the mortgage payments but some lenders are not making it a good deal for the homeowners. Yes, the homeowner may qualify for the interest rate reduction but the homeowner may be stuck with a 40 years mortgage. These loans will be sold in 2014 and the homeowner's home may cost 50% more from a 40 years mortgage.

Principal Reduction

The homeowner should do a principal reduction on the loan if the fair market value in the neighborhood has dropped. There is nothing free about these HARP loans with the big boys in the white house. The Government controls the monetary market in the world that includes interest rate etc. It sounds great to a homeowner that is struggling with their mortgage payments but the lenders will make more profit from these programs. These programs have been reviewed a thousand time before approved by the government. The homeowner should review both plan before choosing their loan, 30 years or 40 years terms.

The Worst Term-40 Years

The homeowner should contact the lender to modify their loan to a lower payment. When the homeowner signs a modification for 40 years, they receive the lowest interest rate reduction for the life of the loan. The homeowner may not pass wealth to their next generation of children like the Rockerfeller, Hilton and Kennedy. If the homeowner is 75 years old, the homeowner will be 115 years old before the loan is paid in full. Every homeowner should check to see if the loan has a prepayment penalty. It is a choice a homeowner should review closely before sign the documents.

Credit Score Below 600

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Friday, October 19, 2012

What Is The Debt Of A Person With A Credit Score Of 785 Or Higher

People with credit scores over 785 are "high achievers. These people account for 25% of the consumers in the United States. The consumers that are "high achievers" make their payments on time and keep their credit cards balance low. High achievers are not debt free consumers. They have multiple credit cards as well as most consumers. These are the facts about the "high achievers" group as shown:

Here are other key facts about this group:

High achievers have an average of seven credit cards, including both open and closed accounts.
They have an average of four credit cards or loans with balances.
One-third of high achievers have total balances of more than $8,500 on non-mortgage accounts; the remaining two-thirds have total balances of less than $8,500.
96% show no missed payments on their credit report; of those who do, it happened four years prior, on average.
Many people have high scores without using credit cards at all. Those that do use credit cards often keep balances low, only using an average of 7% of their available revolving credit.-(FICO)

Credit Score Below 600

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Thursday, October 11, 2012

Increase Your Credit Score With Federal Laws

Credit Score Below 600

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Friday, October 5, 2012

Increase Your Credit Score As Easy As 1-2-3

Credit Score Below 600

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Friday, September 28, 2012

Does Paying Your Bill On Time Equals Good Credit?

Pay The Account In Full

Consumer thinks that their credit scores are rated higher if the consumer pays their account off from the creditor. The creditor should love to see a customer that pays on time in good faith. Wrong answer! The average consumer doesn't understand how credit is rated within the FICO algorithm system. First, the lender wants the consumer to have bad credit scores because it gives the lender the opportunity to make more money off of the consumer. A lender charges a higher interest rate for bad credit scores and it is legal under the government laws. As soon as a consumer pays off an account, the credit score drops. Now, is something wrong with that picture.

Transferring 0% Interest Rate Credit Card

The customer opens their mail to receive a credit card that guarantee a "Zero Interest Rate for a year". The banks decide to help the customer by sending a credit card to trap the customer into more debt as they make more money off the customer. The banks are so smart as they keep us in debt by letting the customer thinks that they are helping them. The customer pays their account on time and has never been late. The lender decides to do the customer a favor by sending a "zero interest rate for a year". The customer thinks that this is a great deal to save money and to pay off the credit card. "WRONG ANSWER" The customer has been set up by the lender. RIGHT ANSWER. "DON'T FALL FOR IT" Everything the lender does is profit for them. They know that the customer is not going to pay off a $10,000 balance on a credit card within a year. The lender charges the customer a transfer fee and gives the customer a "Zero Interest Rate for a year." Now the credit card is at "Zero Interest Rate" before the regular interest rate changes after a year. After the balance has been transfer, the customer closes the other account. The truth is the credit score takes a large hit on points for paying off the account and the customer has lost more points for transferring the balance to the new account at the maximum credit limit.

Credit Score Below 600

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Friday, September 21, 2012

Should I Pay-Off A Charge-Off?

A charge-off, R-9, is an account reported to the credit bureau that the creditor has written off as a loss. The government provides the business with an opportunity to write off for their loss when a customer doesn't pay. The customer is still responsible for paying the unpaid balance on a charge-off. The charge-off remains on the credit report for seven and half years from last date of activity. It depends on how long the charge-off has been on the credit report that affect the credit scores.

Timing

Most people credit report takes a sever hit on their credit score for a charge-off reported on their credit report. Each month the credit scores drop from a late payment. If the account balance is more than $1,000, the lender may request the account to be paid under a FHA loan. If the customer has an old account on their credit report, the scores have been calculated on the old debt. Paying off a credit account to obtain a mortgage may drop the credit score immediately. If a buyer has a credit score of 620, the buyer should pay off the account at the closing table. The credit score will take a drastic hit for paying off an account before final approval.

Resolve the Problem

The customer should negotiate with the creditor to pay off the account. Some time the collection agent is annoyingly rude to a customer who is trying to negotiate an account. All agreements should be put in writing before sending a cashier check.

1. Never give a collection agency your personal checking account. They could draw the rest of the money out of your account.

2. Never pay a collection agency until they send in writing the amount to be paid.
3. Request the creditor to delete the account based on pay-for-deletion.

Under the Fair Collection Act, the customer has Federal and State Rights to protect them. The collection agency can't violate a customer rights as they collect their money. If a customer's right has been violated, the collection agency may be suited for the violations.

Consequent of Late Payments

Every late payment drops the customer's credit scores.The late payment stays on the credit report for seven and half years from the last date of activity.

Credit Score Below 600

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Thursday, September 13, 2012

Home For Sale-Qualify up to $15,000 in Down Payment Assistance

Neighborhood Lift Program

First-Time Homebuyer may qualify to purchase this home under the Neighborhood Lift Program. The program is based on median household income for the county. The down payment assistance funds may be forgiven if the buyer stays in the home for five years. This home is a gem for a First-time Homebuyer to purchase.

For Sale-$128,900
Jacksonville, Florida

Stucco Front in a nice neighborhood

3 bedrooms/2 baths

Double car garage

Upgraded Masterbath Room and Guest Bathroom with new fixtures

Upgraded Kitchen with granite countertop and fixtures - new microwave hood range

Wooden flooring in the living room and dining room

Screen-in Patio with tile flooring

Wooden deck-As IS

Fence Backyard

well maintain landscape with sprinkle system

The Neighborhood Lift Program requires all First-Time Homebuyers to have at least a 640 credit score.

Credit Score Below 600

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Friday, September 7, 2012

How To Qualify For A FHA Loan?-Down Payment Assistance

The First-Time Home Buyer may qualify up to $15,000 to buy a home at the approved cities that offer the Neighborhood Lift Program. The program is based on an applicant's household income. The participating lenders must be approved under the Neighborhood Lift Program for the down payment assistance program. The requirement for the program is the applicant must contribute 3.5% of the sale price of their funds into the program. The down payment assistance funds will be forgiven if the applicant owns the home for at least five years. The applicant must provide the following documents for a mortgage application:

1. Two years of 1040

2. 30 days pay stubs

3. Three months of bank statements

4. Application Fee (appraisal and credit report)

5. Gift letter from a relative, if needed

6. Self-employed - two years of profit and loss-Schedule C from1040
7. Explanation for any derogatory accounts on the credit report

All documents are verify before the applicant receives a final approval from the lender. The applicant employer will receive a verification of employment and the bank will send a verification of deposits for funds. The applicant's credit accounts will be verify on the credit report. If a charge-off is less than $1,000 and at least 24 months old from the last date of activity, the lender will not require the applicant to pay off the accounts.

Compensation Factors

To qualify for a FHA loan, the applicant must have a front-in-ratio of 29% and back-in-ratio of 41%. If the applicant's ratio exceed the guidelines, the lender may use compensating factors. The applicant may be approved by the lender based on rental history, reserve funds in the bank and job stability. If the applicant rent is higher than the mortgage payment, the underwriter may approve the mortgage loan. The requirement for a FHA loan is a credit score of at least 620 and the Neighborhood Lift Program may require a credit score of at least 640.

No Credit

The applicant may still qualify for a mortgage loan even if the applicant doesn't t have any credit. The lender may use alternative credit to qualify an applicant for a mortgage loan as follows:

1. utility account

2. car insurance account

3. rental history

4. rent to own account

Credit Score Below 600

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Saturday, September 1, 2012

How to Qualify for a Loan Modification-HAMP

President Obama passed the HAMP, Home Affordable Mortgage Program, to help homeowners to lower their mortgage payment. This program was implemented to keep homeowners in their home at an affordable mortgage payment for people who wanted to stay in their homes. Every homeowner should contact their lender to apply for a reduction in their mortgage payment. The frustration started when homeowners were denied their loan modification. Some homeowners were denied several times for a loan modification. As homeowners began to fear losing their home because the homeowner lost their income, it made a simple program harder for people to qualify.

Reasons for Denial

A homeowner may be denied the loan modification under the HAMP, Home Affordable Mortgage Program, because the way the paperwork was submitted. If the homeowner didn't complete their financial paperwork correctly, the lender may deny the loan.

The reasons loan modification are denied as follows:

   1. Homeowner doesn't make enough money
   2. Monthly payment 31% or less of the gross monthly income
   3. Debt coverage ratio exceed 1.20
                                                   4. Not Owner-occupied
                                                   5. Missing documents in the submitted package
   6. Current unpaid principal balance exceed $729,750

Do not move out of your home -The home must be Owner-Occupied

The homeowner will be disqualified for the loan modification

Qualify for Hardship

The lender requirement is to write a hardship letter to explain the need for a reduction in the mortgage payment. A hardship letter should be only one page long explaining to the lender the request for a payment reduction. All homeowners are required to sign an Affidavit of Hardship. The hardship letter must include these circumstances as follows:
   1. Loss of Income Or Unemployment
   2. Decline In Self-Employment Business
           2. Reduce Hours On The Job
   3. Unexpected Medical Expenses-Chronic Illness, Disability, Taking Care of Elderly Relatives
           4. Lack of Cash Reserve-not greater than $5,000 or three month of house payments
           5. Natural Disaster - Unexpect High Property Tax

A debt coverage ratio is less than 1.20 of the annual net income and annual debt expenses. The calculation is based on the annual net income divide by the annual expenses. If the debt coverage ratio is higher than 1.20, the homeowner may not qualify for the loan modification. The disposable income is the same term as net income when the negotiator tell the homeowner that they do not have enough of disposable income.

Approval

The lender reviews all the financial documents submitted by the homeowner and decides to approve or deny the request for the loan modification. The homeowner that is approved receives a reduction in their interest rate and may receive a deferment or forgiven on their back payments. The lenders are not obligated to defer the back payment or to forgive the back payment. The forgiveness on late payments is based on the negative equity in the home only. Homeowner must be persistence in contacting the lender weekly to receive an approval.

Don't take a no for an answer from the lender. Ask the negotiator how did you arrived at that decision. Request the lender to send you the paperwork on why the loan modification was denied. If you don't understand, keep asking the negotiator to explain it. Make sure you understand the debt to ratio before you turn in a car. Request in writing from the lender when you turn in a vehicle, voluntary repossession, that you will receive an approval for the loan modification. You have the rights to fight for the loan modification approval. If you are denied, you may re-submit the paperwork again.

Increase Credit Score

Late payments on a mortgage may affect the homeowner's credit scores during a hardship circumstances. After the homeowner receives an approval for the loan modification, it is time to start rebuilding the credit. The booklet, "Increase Your Credit Score After Short Sale, Foreclosure and Bankruptcy", provides the techniques to increase a homeowner's credit scores after a loan modification. The program offers “FREE 30 DAYS COACHING” as well as the booklet at increaseyourcreditscorenow.com

We provide monthly newsletters on how to increase an applicant's credit scores and weekly blogging information at increaseyourcreditscorenow.blogspot.com

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Saturday, August 25, 2012

Urgent-Do you qualify up to $30,000 free money from a short sale?

Don't Miss Free Money- Limited Time

The lending institutions, Bank of America, JP Morgan Chase, GMAC, CitiMortgage and WellsFargo, have a relocation assistance incentive program for distressed homeowners. They offer relocation assistance funds up to $30,000 after the Realtor has sold the home. The homeowner receives their money at the closing table. The HAFA, Home Affordable Foreclosure Alternative, Program is a win-win situation for the lender and the homeowner to prevent foreclosure procedures. Under the Dodd-Frank Act, the HAFA, Home Affordable Foreclosure Alternative, requires the homeowner to qualify for the program. The qualifications for the HAFA Program are as follows:

Homeowner - primary residence in the State of Florida
Must qualify for the HAFA Program
List your home with a license Florida Realtor
Close the transaction on or before September 26, 2013
Minimum relocation assistance is $2,500 to $30,000. It is based on the unpaid principal balance on the loan.
Relocation Assistance Funds will be documented on the HUD1 and 1099 MISC will be issue for taxes.
Ginnie Mae, FHA, VA and USDA Loans are ineligible for the program.
Lot Loans are ineligible for the program.

Relocation Calculation of Funds

The lender calculates the relocation assistance funds from the unpaid principal balance of the loan. Since the full balance of the loan isn’t paid at closing, the lender may file a deficiency judgment. As of December 31, 2012 the homeowners do not have to pay taxes on the relocation assistance funds.

Re-establish Credit

The homeowner may lose at least 180 to 250 points on their credit score. It depends on the how the other accounts on their credit report were paid. The applicant will need to rebuild their credit report within the next three years after a short sale. The booklet, "Increase Your Credit Score After Short Sale, Foreclosure and Bankruptcy", provides the techniques to increase an applicant's credit scores after a short sale. The program offers “FREE 30 DAYS COACHING” as well as the booklet at increaseyourcreditscorenow.com

We provide monthly newsletters on how to increase an applicant's credit scores and weekly blogging information at increaseyourcreditscorenow.blogspot.com

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