The Truth About Credit Repair

Have you ever wondered what companies send you when they claim you can erase your bad credit overnight? How about those ads that say you can get any major credit card 100% Guaranteed regardless of your credit?

Ads abound almost everywhere (online and off) selling books, systems and secrets to help you fix your credit in a hurry. Many of these programs have claims that read like the covers of supermarket tabloids “In 3hrs my credit score jumped from 580 to 676!”… “Erase bad credit and smash your debts with just 2 Magic Letters!”. “Create a completely new credit file in 24hrs!” Are these types of claims ALWAYS too good to be true? The answer is “Yes and… no”.

While many people would love for you to believe that the only thing that can fix bad credit is time; in reality… nothing could be further from the truth. The fact is, time is only one factor that will fix a credit report (but it’s a far cry from being the only factor). How can I back this up? Easy. Under a consumer protection law known as the Fair Credit Reporting Act (a.k.a. the FCRA) the only negative information that can remain on your credit report is not what is accurate… but what can be proved as such. What’s this mean to you?

It means any negative item on your credit report can only remain there if it is accurate and CAN BE PROVED AS ACCURATE under the guidelines of the FCRA. This undisputable fact presents consumers with both good news and bad news. The good news is that through the FCRA your credit score can most likely be improved dramatically in a very short period of time with only a modest amount of effort on your part.

The bad news is that while the actual “work” will take very little of your time, it is vital that you have good information on “how” to go about it. This is the bad news; 9 out of 10 courses on restoring your credit will do nothing more than lead you into a snake pit. This is because they provide you with out-dated “Boiler Plate” dispute letters, which are rarely effective. These are nothing more than form letters and… quite frankly (more bad news) the Credit Bureaus and Creditors will laugh at you if you try to use them.

While I agree with the Federal Trade Commission (FTC) that “Anything a Credit Repair Clinic can do for you legally, you can do for yourself at little or not cost”… the key element you need for success is the latest inside techniques and procedures to get the results you want. These involve strategies known as “Proof of Contract”, “Constructive Notice”, “Challenge of Procedure” or “Restrictive Endorsement” and many others.

All these terms may “sound” impressive but they are really quite simple. In the end, it is nothing more than a method of communication, which exercises your consumer protection rights, gets the results you want and raises your credit score. Even more impressive, once you learn how simple it can be by doing it for yourself, you will find there is a fortune to be made doing it for others! Either way, it all starts by requesting a free copy of your credit report by calling the Annual Credit Report Service at 1-877-322-8228.

Options for a homeowner in default

No one is prepared to loose his or her home.  That is why I made this article so you as a homeowner know what you can do to bring your house current or provide a way out so you don’t have a foreclosure on your credit.  

1.     Offer to Sell- You could try to sell the property yourself or list it with a realtor.  Have you tried that yet?  The only problem at this point is that the lender could have the trustee sale and foreclosure you out in a short amount of time.  That doesn’t give you or a realtor much time to find a buyer.  And if a buyer does come around it takes at least 30 days to close after they decide they want the property.  Not a real safe option.

 

2.     Refinance- You may have already tried to refinance.  Since you are behind now this option probably won’t work any longer.  Let me tell you why.  When you get nor than three payments or 90 days behind on your mortgage payments, my experience has been that almost no lender will want to finance you.  The only exception is if you have at least thirty-five per cent equity or a 65% loan to value (LTV).  In that case, they will talk to you. 

 

3.     Special Payment Arrangements- You could ask for Special Payment Arrangements.  That works something like this:  You would need to bring in, two payments now.  The other payments they will allow you to catch up over a short time.

 

4.     Forbearance Plan- A forbearance plan is always an option.  It works like this.  Your lender may reduce your monthly payment for a short period of time, perhaps six months and put the shortage amount on the back end of the loan.  This can be used in the case of death, terminal illness, serious health problems or disability, natural disasters not covered by insurance, or a substantial reduction in income that could not be prevented.  The only catch is that your loan has to be current in order for the forbearance plan to be allowed. 

 

5.     Deed in Lieu- You could always give the lender a ‘Deed in Lieu of Foreclosure.’  This is where you just deed the property back to the lender and then they don’t have to spend as much on attorney’s fees to finish the foreclosure and get you out.  That may sound good, but a “Deed in Lieu of Foreclosure” is just as bad on your credit report as a regular foreclosure.  All you do is save the lender time.  It doesn’t help you at all.

 

6.     Sell Now- Lastly, you could sell your house to an investor who can close you out quickly and get it off your back.  That way the foreclosure can be avoided and your credit while damaged will not be destroyed.  From the lenders point of view a foreclosure is the worst thing on your credit. 

 

We can show you how to sell your home fast and for more money than you thought possible.  You can turn your bad situation into a great solution that will put you on your way to getting back on your feet.

 

If you would like to know more information about what we can help you do give us a call.  We never charge you anything to outline a plan that will get you on the right track.

 

Contact The Bronson Barber TEAM

 

For all your Utah real estate needs

 

801-712-1607

bronsonbarber@gmail.com

Why your home isn’t selling?

Lets face it, homes these days are sitting longer and selling for less.  Why the big change?  The banks were too greedy and now most of them are in a world of hurt.  Lets take a look at what the banks did or didn’t do to create such a problem.

One of the big problems is that banks and credit score companies try to make understanding credit so difficult and mysterious.  I want to know how they come up with those numbers and I know everyone else does too!  The reason why banks want to make credit scores so difficult is to make sure that your credit stays low so that they can charge you more interest every month.  Greedy banks.

Then they lightened up the credit score requirements and let just about anyone qualify for a loan.  That is ok in my opinion.  Then the greedy banks had to throw in another element that was a big trap.  Make ARM loans, interest only on 100% loans, and negative amortization loans.

Then markets around the country started to lose their momentum and leveled off or dropped slightly.  Consumers with 100% loans were upside down.  Then ARM loans started to adjust up and homeowners couldn’t afford the payments.  So they started to go into default.  Which created even more problems.  The media started to get involved and created a panic that real estate was going down.

That is what started the snowball effect that spun out of control and became what we know today as the mortgage meltdown.

What are the after affects of the mortgage meltdown? 

Now your credit has to be so high that 2/3 of potential buyers were eliminated from getting the chance to get a mortgage.  That was a lot of buyers done in overnight.  That meant the inventory of homes in most markets were too high due to lack of buyers. 

The media then really started to get everyone in a huge nationwide panic that real estate was dropping like it had never dropped before.  Which may or may not be true depending on your market.

What should have happened to prevent us from the mortgage meltdown?  Banks should have explained credit, not made it impossible to understand.  They should have kept lending guidelines somewhere in the middle of the credit scoring and never tricked buyers into doing loans that were such high risk.

What can you do about it?

Forget about selling if you don’t have to.  Don’t let the media or any one else tell you that the market is going to tank.  They don’t know!  No one knows what tomorrow will bring.

If you need to sell, find creative alternatives to selling.  The best one that I know about is Seller Financing.  Why choose seller financing?  Because you become the bank!  You then can decide who can buy your house and who cannot.

For more information on Seller Financing or any other real estate question contact:

The Bronson Barber Real Estate Team

801-712-1607

www.bronsonbarber.com

How to Price Your Home in Today’s Market

If you are selling your home or thinking about selling, you need to read this!  As many of you know, the market has slowed down a little bit and buyers are no longer paying what you are asking for.

I have a few suggestions about selling your home faster and for the most money possible in a slow market.

Condition.  Make the inside and outside of your home look as good as it possibly could.  Now I am not suggesting you renovate you property.  Even outdated homes can look great if you clean it up.

I don’t think that I can count how many houses I have been in that just needed a good cleaning to sell them.  That is it!  Also, if there is something broken fix it now!  Don’t wait for the buyer to ask for it.  It may never happen because some buyers will automatically assume that the home needs too much work and walk away.

Most buyers don’t like to walk into a “project house”.  They want everything ready to go.  If a buyer does want a project house then expect a lower offer.

You need to be realistic about the listing price.  These days lenders are less and less likely to just get the loan done.  They scrutinize every potential buyer and home more closely than they ever have.  Which requires their appraisers to be more conservative.  The new rule for appraisers is nothing over 90 days and less than half mile away.  That means less comparables that they can work with.

Unfortunately when a buyer is working with a lender, he/she is the one that will decide what you home is worth, not you.

If you over price you home, buyers won’t even look at it.

If you would like to learn how I sell homes for more money and quicker than anyone in your neighborhood, then you need to call me today.  With my team I will show you a way that you can be the bank and remain in control of how much you sell your property for.

The Bronson Barber TEAM

801-712-1607

www.bronsonbarber.com

Are You Being Forced To Sell Your Home?

Are you being forced to sell your house? 

There is nothing more stressful than knowing that you are losing control of you home. I have had family members fall into the same financial state and I understand the pressure you are under.   I also know that when you are behind on your mortgage you’re struggling to pay other bills.

 Have investors told you that they can help?

I am sure that you have received numerous calls and letter from investors’ claiming to help you.  Beware of the majority of these so-called rescue plans.  They know that you’re in a vulnerable state.  They know that you will do almost anything to save your home. 

 What options do you really have?

The truth is, unless you or someone brings your mortgage current you will lose your home.  I know that seems harsh but it is the truth.  You do have options!  You can get money from family or friends to bring your mortgage current.  You can sell your home.    You can have an investor come in and buy the home. 

 How can I help you?

I believe that I have the answer for you.  I will show you how to turn this unfortunate situation into a great opportunity.

 

• I can show you how to sell your home fast
• How to possibly walk away from the house with money in your pocket
• I can create monthly income for you to help get you on your feet
• Help you to reestablish your credit

 

The bottom line is that you need to do something and I have the answers for you.

 Who am I and why would I help?

My name is Bronson Barber.  I am a Real Estate Agent who specializes in creative financing.  I do charge you a fee but I never get paid until you do.  I want to be able to help because I know how much a home means to you and what a great gift you have.  If you would like a FREE consultation on how I can help you, you can call my office at

 

801-712-1607

WWW.BRONSONBARBER.COM