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Most people know that most creditors use credit report agencies for obtaining information on a person when they have applied for any type of financing. However, there are actually two levels of credit reporting agencies. There are three major repositories of credit and background information. They are Equifax, Experian and TransUnion. When someone obtains credit, the creditor reports the payment history to these repositories. This is usually done monthly but may be done on an irregular basis. These repositories simply accept the information as it comes in electronically and they DO NOT check the accuracy of the information.
This is where the problem starts to often the information received is never check of accuracy. This leads to wrong or misreported information affecting your credit score. Examples may be collections that have been paid off but never updated or wrong social security numbers added to your reports. Now with that being said the question is how do you repair the damage that has been done?
The first thing you need to do is get a FREE copy of your credit. You can get them once a year for the CRA’s
(Credit reporting agencies), or anytime you have been denied credit. Then you need to go over every line of your reports and look for the errors (and there will be errors). Once you have identified the problem you need to tackle it head on and dispute the item. The only way you do the effectively is to writhe a letter and dispute the error. You must do this in writing and never over the internet. If you try to dispute the information on the internet most of the time nothing will happen. The main thing that they will not tell you is that it is there responsibility to have accurate information and they need to investigate it and prove this information is accurate if they cannot do this in a timely manner (30 days) they must remove it from your credit report.
Simply put, they keep a record of who has given you credit, when they gave you credit, how much credit you are given and whether or not you paid it back on time. When you want to obtain credit cards, loans, financing for a car or home, leases, apartments and sometimes even employment, the lender or bank will check your credit to see your financial history.Credit Bureaus are paid by the people who request your credit file.Credit Bureaus have no legal power over you. Banks, police or the government does not run them; so don't be intimidated by them. They are the Credit Bureaus because they own large computer systems capable of storing credit information on everyone in the United States. However, because of the tremendous amounts of information on their computers, their method of storing information is very basic and ridden with many errors. Since the bureaus have made so many errors in the past, all Federal Laws regarding credit information are very much in your favor.The Major Credit BureausEXPERIANP.O. Box 2002Allen, TX 75013(888) 397-3742experian.com
Trans Union CorporationP.O. Box 1000Chester, PA 19022(800) 888-4213transunion.com
Equifax, Inc.P.O. Box 740241Atlanta, GA 30374(800) 685-1111
Wednesday, July 25, 2007
Monday, July 2, 2007
Reverse Mortgage: Are They Right For You?
Reverse Mortgage: Are They Right For You?
A "reverse" mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay the loan each month. The cash you get from a reverse mortgage can be paid to you in several ways:
all at once, in a single lump sum of cash;
as a regular monthly cash advance;
as a "credit line" account that lets you decide when and how much of your available cash is paid to you; or
a combination of these payment methods.
No matter how this loan is paid out to you, you typically don't have to pay anything back until you die, sell your home, or permanently move out of your home. To be eligible for most reverse mortgages, you must own your home and be 62 years of age or older.
Other Home Loans
To qualify for most loans, the lender checks your income to see how much you can afford to pay back each month. But with a reverse mortgage, you don't have to make monthly repayments. So you don't need a minimum amount of income to qualify for a reverse mortgage. You could have no income and still be able to get a reverse mortgage.
With most home loans, you could lose your home if you don't make your monthly payments. But with a reverse mortgage, there aren't any monthly repayments to make. So you can't lose your home by not making them. Most reverse mortgages require no repayment for as long as you — or any co-owner(s) — live in the home. So they differ from other home loans in these important ways:
you don't need an income to qualify for a reverse mortgage; and
you don't have to make monthly repayments on a reverse mortgage.
"Conventional " Mortgages
You can see how a reverse mortgage works by comparing it to a "conventional" mortgage — the kind you use to buy a home. Both types of mortgages create debt against your home. And both affect how much equity or ownership value you have in your home. But they do so in opposite ways.
"Debt" is the amount of money you owe a lender. It includes cash advances made to you or for your benefit, plus interest. "Home equity" means the value of your home (what it would sell for) minus any debt against it. For example, if your home is worth $3000,000 and you still owe $120,000 on your mortgage, your home equity is $180,000.
Falling Debt, Rising Equity
When you purchased your home, you probably made a down payment and borrowed the rest of the money you needed to buy it. Then you paid back your traditional "conventional" mortgage loan every month over many years. During that time:
debt decreased; and
home equity increased.
As you made each repayment, the amount you owed (your debt or "loan balance") grew smaller. But your ownership value (your "equity") grew larger. If you eventually made a final mortgage payment, you then owed nothing, and your home equity equaled the value of your home. In short, your conventional mortgage was a "falling debt, rising equity" type of deal.
Rising Debt, Falling Equity
Reverse mortgages have a different purpose than conventional mortgages do. With a conventional mortgage, you use your income to repay debt, and this builds up equity in your home. But with a reverse mortgage, you are taking the equity out in cash. So with a reverse mortgage:
debt increases; and
home equity decreases.
It's just the opposite, or reverse, of a conventional mortgage. With a reverse mortgage, the lender sends you cash, and you make no repayments. So the amount you owe (your debt) gets larger as you get more and more cash and more interest is added to your loan balance. As your debt grows, your equity shrinks, unless your home's value is growing at a high rate.
In short, a reverse mortgage is a "rising debt, falling equity" type of deal. But that is exactly what informed reverse mortgage borrowers want: to "spend down" their home equity while they live in their homes, without having to make monthly loan repayments.
Exception!Reverse mortgages don't always have rising debt and falling equity. If a home's value grows rapidly, your equity could increase over time. Or, if you only get one loan advance and no interest is charged on it, your debt would never change. So your equity would grow as your home's value increases. But most home values don't grow at consistently high rates, and interest is charged on most mortgages. So the majority of reverse mortgages end up being "rising debt, falling equity" loans
A "reverse" mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay the loan each month. The cash you get from a reverse mortgage can be paid to you in several ways:
all at once, in a single lump sum of cash;
as a regular monthly cash advance;
as a "credit line" account that lets you decide when and how much of your available cash is paid to you; or
a combination of these payment methods.
No matter how this loan is paid out to you, you typically don't have to pay anything back until you die, sell your home, or permanently move out of your home. To be eligible for most reverse mortgages, you must own your home and be 62 years of age or older.
Other Home Loans
To qualify for most loans, the lender checks your income to see how much you can afford to pay back each month. But with a reverse mortgage, you don't have to make monthly repayments. So you don't need a minimum amount of income to qualify for a reverse mortgage. You could have no income and still be able to get a reverse mortgage.
With most home loans, you could lose your home if you don't make your monthly payments. But with a reverse mortgage, there aren't any monthly repayments to make. So you can't lose your home by not making them. Most reverse mortgages require no repayment for as long as you — or any co-owner(s) — live in the home. So they differ from other home loans in these important ways:
you don't need an income to qualify for a reverse mortgage; and
you don't have to make monthly repayments on a reverse mortgage.
"Conventional " Mortgages
You can see how a reverse mortgage works by comparing it to a "conventional" mortgage — the kind you use to buy a home. Both types of mortgages create debt against your home. And both affect how much equity or ownership value you have in your home. But they do so in opposite ways.
"Debt" is the amount of money you owe a lender. It includes cash advances made to you or for your benefit, plus interest. "Home equity" means the value of your home (what it would sell for) minus any debt against it. For example, if your home is worth $3000,000 and you still owe $120,000 on your mortgage, your home equity is $180,000.
Falling Debt, Rising Equity
When you purchased your home, you probably made a down payment and borrowed the rest of the money you needed to buy it. Then you paid back your traditional "conventional" mortgage loan every month over many years. During that time:
debt decreased; and
home equity increased.
As you made each repayment, the amount you owed (your debt or "loan balance") grew smaller. But your ownership value (your "equity") grew larger. If you eventually made a final mortgage payment, you then owed nothing, and your home equity equaled the value of your home. In short, your conventional mortgage was a "falling debt, rising equity" type of deal.
Rising Debt, Falling Equity
Reverse mortgages have a different purpose than conventional mortgages do. With a conventional mortgage, you use your income to repay debt, and this builds up equity in your home. But with a reverse mortgage, you are taking the equity out in cash. So with a reverse mortgage:
debt increases; and
home equity decreases.
It's just the opposite, or reverse, of a conventional mortgage. With a reverse mortgage, the lender sends you cash, and you make no repayments. So the amount you owe (your debt) gets larger as you get more and more cash and more interest is added to your loan balance. As your debt grows, your equity shrinks, unless your home's value is growing at a high rate.
In short, a reverse mortgage is a "rising debt, falling equity" type of deal. But that is exactly what informed reverse mortgage borrowers want: to "spend down" their home equity while they live in their homes, without having to make monthly loan repayments.
Exception!Reverse mortgages don't always have rising debt and falling equity. If a home's value grows rapidly, your equity could increase over time. Or, if you only get one loan advance and no interest is charged on it, your debt would never change. So your equity would grow as your home's value increases. But most home values don't grow at consistently high rates, and interest is charged on most mortgages. So the majority of reverse mortgages end up being "rising debt, falling equity" loans
Friday, June 29, 2007
Advantages of a reverse mortgage
A reverse mortgage is a loan that enables senior homeowners, age 62 and older, to convert part of their home equity into tax-free* income—without having to sell their home, give up title to it, or make monthly mortgage payments. The loan only becomes due when the last borrower (s) permanently leaves the home. This offers the senior to enjoy all the benefits of living in his or her home with out the worries of making mortgage payments.
The main advantages of a reverse mortgage
· Remain independent. A reverse mortgage allows you to remain in your home and retain home ownership.
· Stay in your home. It allows you to remain in your home and retain home ownership.
· No monthly mortgage payments. You need not pay back the reverse mortgage loan nor make any monthly mortgage payments until you permanently move out of the home.
· Tax-free money. Because the money you receive from a reverse mortgage is not considered income, it is tax free* and will not affect your Social Security or Medicare benefits.
· Freedom and flexibility. The money you get from a reverse mortgage is yours to use in any way you choose.
The benefit of this type of loan is that it frees up a senior’s income for them to use any way they want from daily living expenses, home improvements, and healthcare expenses, paying off existing debts, or simply enhancing your retirement years. For many people, the money provides a "financial security blanket," in case unexpected expenses arise.
One of the biggest falsehoods of a reverse mortgage is that the Lender actually owns your home that is 100% false. A reverse mortgage is just like any other loan you own the property and you have a pay off you will have to make to the lender at sometime in the future. The only difference is you don’t have to make a monthly mortgage payment and this will free up money for you to use in any way you would like.
Another Falsehood with reverse mortgage
Is that it is possible for my loan balance to become greater than the value of my home?
You can never owe more than what your home is worth. What’s more, since the reverse mortgage is what is known as a "non-recourse" loan, the lender cannot seek repayment from your income, your other assets, or your estate. In other words, the house stands for the debt.
A reverse mortgage may be the best mortgage solution for a retired person over the age of 65 reverse mortgages will give you peace of mind and security
For more information on reverse mortgages or how they can benefit you or your family members please contact me @ Trevor.riggs@cficmontana.com
Trevor Riggs
The main advantages of a reverse mortgage
· Remain independent. A reverse mortgage allows you to remain in your home and retain home ownership.
· Stay in your home. It allows you to remain in your home and retain home ownership.
· No monthly mortgage payments. You need not pay back the reverse mortgage loan nor make any monthly mortgage payments until you permanently move out of the home.
· Tax-free money. Because the money you receive from a reverse mortgage is not considered income, it is tax free* and will not affect your Social Security or Medicare benefits.
· Freedom and flexibility. The money you get from a reverse mortgage is yours to use in any way you choose.
The benefit of this type of loan is that it frees up a senior’s income for them to use any way they want from daily living expenses, home improvements, and healthcare expenses, paying off existing debts, or simply enhancing your retirement years. For many people, the money provides a "financial security blanket," in case unexpected expenses arise.
One of the biggest falsehoods of a reverse mortgage is that the Lender actually owns your home that is 100% false. A reverse mortgage is just like any other loan you own the property and you have a pay off you will have to make to the lender at sometime in the future. The only difference is you don’t have to make a monthly mortgage payment and this will free up money for you to use in any way you would like.
Another Falsehood with reverse mortgage
Is that it is possible for my loan balance to become greater than the value of my home?
You can never owe more than what your home is worth. What’s more, since the reverse mortgage is what is known as a "non-recourse" loan, the lender cannot seek repayment from your income, your other assets, or your estate. In other words, the house stands for the debt.
A reverse mortgage may be the best mortgage solution for a retired person over the age of 65 reverse mortgages will give you peace of mind and security
For more information on reverse mortgages or how they can benefit you or your family members please contact me @ Trevor.riggs@cficmontana.com
Trevor Riggs
Monday, June 25, 2007
How to repair your credit and get ready to purchase Real Estate
Mortgage lenders generally check with three credit bureaus in order to evaluate your past payment history. Your goal in cleaning up your credit report should be to clean up each of the three bureaus. If you only work on one, this does not effect the reporting to the other bureaus. Mortgage lenders use the middle of the three scores in order to qualify you for an interest rate so raising all three scores is very important.
The following are the steps you need to follow in order to improve your credit.
The first step is to get a copy of your merged credit report, which shows all three of the major bureaus, Experian (formerly TRW), Equifax (formerly CBI), and Trans-Union. Most mortgage lenders will obtain data from all three of these bureaus in analyzing your credit history. The exception is that some portfolio lenders (usually adjustable rate lenders) may only review one. You can do this free once a year as mandated by federal law or if you have been denied credit. I can supply you with the proper letters at www.cficmontana.com.
Contact your Creditors
There are two efforts that must be made. First, call any creditors reporting a negative and ask them to remove the negative item. Ask in a nice voice and do not get upset when they say no. Simply repeat your request over and over in your nice pleasant voice. If you get nowhere, then ask to speak to the supervisor. Make sure you keep a log of your conversation, noting the date, time, who you spoke to and what they said. Repeat this procedure over and over. In a high percentage of cases, it works!
Get written conformation of agreements
Be sure to ask for a letter by mail or fax that shows the creditor is correcting the negative information. You may need this letter for two reasons. First, they may not actually make the changes. With the letter, you can appeal directly to the credit bureau and they will make the correction. Second, if you are applying for a mortgage before the changes actually hit the credit bureau’s report; your lender will need this documentation.
If you have a charge off or collection account that shows as unpaid, don’t just send them a check and pay it off. Call the creditor on the phone, explain that you have the funds to pay the account in full, and calmly explain why it should not have been reported on your credit in the first place. Then ask if they will provide you a letter deleting the account entirely from all credit bureaus if you pay off the account. Try to get them to fax it to you. As before, be sure to document all of your telephone contact and always keep a nice pleasant tone in your voice. In a large percentage of cases, this also works.
Your Creditor Will Not Remove an Item
There will be cases when the creditor does not agree to remove the negative credit item. If it is an item that is definitely not yours, call the credit bureau immediately (except for Equifax, who only responds by mail). When on the telephone, do not discuss any negative items that are accurate. Do not discuss any items that may be accurate in general but have some small error in detail that you can dispute by mail. Once you confirm any accuracy at all, you cannot dispute it later by mail.
For the remaining items, you need to dispute them by mail, writing directly to the credit bureaus. Write a letter to the appropriate bureau including your name, social security number, address, disputed accounts, and account numbers. You must sign the letter. Inform the bureau that you are disputing the data as it appears on your credit report. I can also give you examples of letters I use daily to remove incorrect information at www.cficmontana.com. I have been repairing credit for years and I have a proven system that will help you correct you credit and raise your scores
Trevor Riggs
Sr. Loan Officer License #000358
CFIC Home Mortgage
www.cficmontana.com
Questions you can email me at Trevor.riggs@cficmontana.com
The following are the steps you need to follow in order to improve your credit.
The first step is to get a copy of your merged credit report, which shows all three of the major bureaus, Experian (formerly TRW), Equifax (formerly CBI), and Trans-Union. Most mortgage lenders will obtain data from all three of these bureaus in analyzing your credit history. The exception is that some portfolio lenders (usually adjustable rate lenders) may only review one. You can do this free once a year as mandated by federal law or if you have been denied credit. I can supply you with the proper letters at www.cficmontana.com.
Contact your Creditors
There are two efforts that must be made. First, call any creditors reporting a negative and ask them to remove the negative item. Ask in a nice voice and do not get upset when they say no. Simply repeat your request over and over in your nice pleasant voice. If you get nowhere, then ask to speak to the supervisor. Make sure you keep a log of your conversation, noting the date, time, who you spoke to and what they said. Repeat this procedure over and over. In a high percentage of cases, it works!
Get written conformation of agreements
Be sure to ask for a letter by mail or fax that shows the creditor is correcting the negative information. You may need this letter for two reasons. First, they may not actually make the changes. With the letter, you can appeal directly to the credit bureau and they will make the correction. Second, if you are applying for a mortgage before the changes actually hit the credit bureau’s report; your lender will need this documentation.
If you have a charge off or collection account that shows as unpaid, don’t just send them a check and pay it off. Call the creditor on the phone, explain that you have the funds to pay the account in full, and calmly explain why it should not have been reported on your credit in the first place. Then ask if they will provide you a letter deleting the account entirely from all credit bureaus if you pay off the account. Try to get them to fax it to you. As before, be sure to document all of your telephone contact and always keep a nice pleasant tone in your voice. In a large percentage of cases, this also works.
Your Creditor Will Not Remove an Item
There will be cases when the creditor does not agree to remove the negative credit item. If it is an item that is definitely not yours, call the credit bureau immediately (except for Equifax, who only responds by mail). When on the telephone, do not discuss any negative items that are accurate. Do not discuss any items that may be accurate in general but have some small error in detail that you can dispute by mail. Once you confirm any accuracy at all, you cannot dispute it later by mail.
For the remaining items, you need to dispute them by mail, writing directly to the credit bureaus. Write a letter to the appropriate bureau including your name, social security number, address, disputed accounts, and account numbers. You must sign the letter. Inform the bureau that you are disputing the data as it appears on your credit report. I can also give you examples of letters I use daily to remove incorrect information at www.cficmontana.com. I have been repairing credit for years and I have a proven system that will help you correct you credit and raise your scores
Trevor Riggs
Sr. Loan Officer License #000358
CFIC Home Mortgage
www.cficmontana.com
Questions you can email me at Trevor.riggs@cficmontana.com
Thursday, June 7, 2007
I hate Equifax
Equifx has to be the worlds worst company in the world You cant get a straight answer out or them to save your life I have been run around so much I cant even tell
Let me know what you think of them
Let me know what you think of them
Tuesday, June 5, 2007
Change in Fico Scoring
June 5, 2007 - (Minneapolis, Minnesota, USA) - Fair Isaac Corporation (NYSE:FIC) today announced that it will adjust its FICO scoring formula to ensure the continued reliability and predictive power of FICO scores. This action is intended to protect lenders and FICO scores from abuse of authorized user credit card accounts by a new kind of credit repair service that sells consumer credit card histories to credit applicants in order to purposefully misrepresent the applicants' own credit history to lenders and other businesses.
The adjustment removes authorized user accounts from consideration by the scoring model in FICO 08, the newest version of the Classic FICO credit score which Fair Isaac expects to become available to lenders starting in September.
"We will do whatever it takes to protect the reliability and accuracy of FICO credit scores for lenders, and to ensure lenders can continue to use FICO scores with confidence when making their most important customer decisions," said Dr. Mark Greene, CEO of Fair Isaac. "We will continue working with lenders, regulators and others in the credit reporting industry to end deceptive practices that fraudulently misrepresent consumer credit histories for profit."
An authorized user is a person permitted by a credit account holder to use an account, typically a family member who is managing credit for the first time. Used legitimately, authorized user account information has helped both lenders and consumers by enabling lenders to use FICO scores when making credit decisions for consumers who are starting to establish a credit history. Fair Isaac's research indicates that the next version of its FICO scoring formula will deliver increased predictive power without considering authorized user accounts. Fair Isaac will work closely with lenders to help them implement and benefit from the FICO 08 score as it becomes available. As the company announced previously, lenders will be able to use the new version of FICO scores with minimal changes to their own operating systems. To make lender adoption easier and faster, the new scoring model will retain the same scoring range, score reason codes, minimum scoring criteria, inquiry treatment, and related model parameters as previous versions of the FICO formula
Correct your fico socre at cficmontana.com
The adjustment removes authorized user accounts from consideration by the scoring model in FICO 08, the newest version of the Classic FICO credit score which Fair Isaac expects to become available to lenders starting in September.
"We will do whatever it takes to protect the reliability and accuracy of FICO credit scores for lenders, and to ensure lenders can continue to use FICO scores with confidence when making their most important customer decisions," said Dr. Mark Greene, CEO of Fair Isaac. "We will continue working with lenders, regulators and others in the credit reporting industry to end deceptive practices that fraudulently misrepresent consumer credit histories for profit."
An authorized user is a person permitted by a credit account holder to use an account, typically a family member who is managing credit for the first time. Used legitimately, authorized user account information has helped both lenders and consumers by enabling lenders to use FICO scores when making credit decisions for consumers who are starting to establish a credit history. Fair Isaac's research indicates that the next version of its FICO scoring formula will deliver increased predictive power without considering authorized user accounts. Fair Isaac will work closely with lenders to help them implement and benefit from the FICO 08 score as it becomes available. As the company announced previously, lenders will be able to use the new version of FICO scores with minimal changes to their own operating systems. To make lender adoption easier and faster, the new scoring model will retain the same scoring range, score reason codes, minimum scoring criteria, inquiry treatment, and related model parameters as previous versions of the FICO formula
Correct your fico socre at cficmontana.com
Credit repair
Credit scores affect every aspect of our financial lives including qualification for loans and mortgages, the interest rates we pay, employment opportunities, and even insurance premiums. Repairing your credit profile is one of the most important financial decisions you can make. CFIC is a trusted mortgage company that makes the credit repair process convenient, personal, and effective.
Most peeople dont know how many mistakes are made every day by the CRA's (credit reporting agencies). The mistakes they make cause your credit score to be lower there for causing you to pay higher intrest rates on car payments mortgages and a lot more. I would like to help every one update and repair thier credit report, and force the cra's to report accurate information.
I would be glad to help anyone with questiosn about credit or how to repair thier credit for free
Most peeople dont know how many mistakes are made every day by the CRA's (credit reporting agencies). The mistakes they make cause your credit score to be lower there for causing you to pay higher intrest rates on car payments mortgages and a lot more. I would like to help every one update and repair thier credit report, and force the cra's to report accurate information.
I would be glad to help anyone with questiosn about credit or how to repair thier credit for free
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