Myths The Credit Bureaus Want You To Believe

Myth No. 1 – It is easy to dispute a credit report. Consumer’s can resolve their own issues.
To be honest, it IS simple to challenge a credit report. However, as an everyday person, it’s amazingly difficult and frustrating to get results from the credit bureaus. Here’s why.
This is a little-known fact. More complaints to the Federal Trade Commission involve credit bureaus than any other type of company. The major credit bureaus have paid fines of $2.5 million over the years due to failure to respond properly to charges.
The main objective of credit bureaus is to protect their profits. They are NOT government agencies. They are for profit organizations. Anytime they have to investigate a consumer disputes it eats into those profits. Investigations take up time and energy too. The credit bureaus do everything in their power to make restoring your credit exceedingly difficult, short of sparking more massive lawsuits.
Attempting to restore your own credit means you must be willing to spend time learning about the process. This is why it is so difficult when you are inexperienced. Itmost cases you may be less effective than if you hired a professional. Realize that credit restoration will most likely take longer than you expected.
Myth No. 2 –A negative item that is successfully removed from your credit report will simply reappear again.
The reality is that a creditor has 30 days to verify a dispute. If the credit bureau has not heard from the creditor within that timeframe, they must delete the item from your report. Sometimes the bureaus will perform a soft delete. This is where they delete the item from your report but, will reinsert the item if they hear from the creditor within a week or two of the 30 days.
If this happens, the item can be disputed again. However, most of the time, once an item is deleted, it is gone for good. By using our preferred attorney’s, you can be sure your item will be disputed over and over again until it is removed. We have experienced a 96% success rate with this.
Myth No. 3 – Bankruptcies, foreclosures and tax liens can never be taken off your credit report.
Approached correctly, any negative listing can be removed. That is why it is best to work with a professional. They have the experience and know how to remove these items.
Myth No. 4 – The credit agency permits a 100-word paragraph to be entered on an account to explain the situation. Creditor’s take this statement into consideration when they’re weighing they’re options about extending credit.This seems reasonable, but it’s not correct. When we talk about creditors, we’re talking about companies who are loaning money – for credit cards, mortgages, cars, department store credit cards. Very few of these companies will consider any information you submit in a paragraph explanation. The only items verified on the statement are the negative items on your report.
The first thing we want to delete from your credit file would be the 100-word explanation. In essence, the explanation is seen as an admission of guilt. It’s actually the last thing you want to do. It verifies that something happened. You don’t want to do that.
Myth No. 5 – Paying off a past-due account (like a collection account or a charge off) will change your account to a “paid” status and it will no longer reflect negatively.
It is nearly impossible to completely fix your credit unless you settle your unpaid debts. However, as strange as it may sound, paying off a debt can have a negative impact on your credit rating. Aside from bankruptcy, which can appear on your credit report for up to ten years, negative items may be kept on your report for up to seven years. The date of last activity starts the 7 or 10-year time period. Making a payment “resets” the clock because it is considered new activity. So if this item was two years old, when you make a payment on the collection, the two years are wiped away and you start at day one again. It appears to the credit scoring computer as an item that happened yesterday.
Anything that happened yesterday affects your credit score more than something from two years ago does. This will damage your report, as it looks like the credit bureau forced you to pay up. Since you can do more harm than good, even though your intentions are right, it is always best to work with a professional when trying to restore your credit.
Myth No. 6 – Some people believe that a poor credit report can be off-set by building new credit.
Even one negative item on your credit report can have serious negative consequences. In today’s computer world, the decision to approve a new loan is rarely made by a human being. Your score is determined by a computer program. One negative item can send interest rates soaring.
You can have a small amount of negative credit a year or two ago. The last year or two has been great. A couple of those older accounts, regardless of how much good credit you now have, can cause you to be declined for additional credit, make you pay higher interest rates and waste thousands of your hard earned dollars.
Myth No. 7 – Credit bureaus are part of the government and are unquestionable.
The credit bureaus are in business to make an impression on their stockholders since they are publicly traded companies. They are NOT agencies of the government. In fact, the industry is one of the most heavily regulated. It has recently been revealed in a survey, by an independent group, that over 70% of all credit reports have an error on them. Due to the prevalence of mistakes, consumer protection legislation has been drawn up which allows the consumer the right to challenge the bureaus and force them to remove any incorrect data, information that is out-of-date or data that cannot be verified.
Myth No. 8 – It is against the law for creditors to remove a negative-listing on my credit record. Negative-listings are required by law to remain on the credit report for at least seven years.
When talking to collection agencies, credit grantors or the credit bureaus, keep in mind that you can expect to be given all kinds of quasi-legal drivel by people who are over worked and under trained. The law states that negative information must be removed after seven years. It sets a maximum, but not a minimum. The credit bureau can remove an item whenever it suits them.
Myth No. 9 – Many people share a belief that by getting a federal tax ID or altering a few numbers of their social security number, a new credit file will be created.
It’s extremely difficult to create a new credit file by this scheming, not to mention illegal, activity. A lot of people do it, but a lot of people also get into big trouble for doing it. This is not something that you want to do.
It might have worked 10, 15 or 20 years ago. But because of all the computer linking systems now, giving fraudulent information on a credit report is nearly impossible to get away with, let alone the fact that it’s a criminal offense.
It’s in your best interest to hire adequate representation. Face the music and confront the credit bureaus, armed with the rights that Congress has granted you through the consumer protection laws.
Myth No. 10 – Credit counseling services can help you restore your credit.
Credit counseling services are agencies that are set up to help you renegotiate your credit cards and other debt. They put you on a budget and you make one payment to them. They in turn pay all the bills for you.
People who are in debt or who are trying to avoid going bankrupt can seek help from these nonprofit consumer credit counseling services. (CCCS’s) However, these companies are controlled and funded by the credit bureaus and the credit grantors, like the big credit card companies. They actually fund these agencies.
Your creditors will usually make a note on your credit report if you’re working with one of these consumer credit counseling services. Potential credit grantors are scared off by this almost as much as a Chapter 13 bankruptcy. Some of the worst credit reports out there have been participants in a credit counseling service or similar program.

New Marketing Dawns For Real Estate

The internet has become such a common part of our everyday lives that people around the world use it for nearly everything they do. The world, at large, can now stay connected with friends and business associates, shop for nearly any kind of goods, track finances, transact business and virtually do almost anything else.
The real estate world has been shaken up with the monetary forecast as of late but now it’s got a new tool. Web 2.0 real estate marketing is helping agents achieve some amazing things.
Many people aren’t familiar with web 2.0 or know what it’s all about. Web 2.0 is the next generation of the internet. It is all about the way in which we exchange resources, information and with each other. Web 2.0 has given the world something simpler, more flowing to be connected with.
Realty agents using web 2.0 real estate marketing have discovered a method to reach out, across the planet to a whole new market. Using social networking sites as the foundation of their marketing efforts, sales are starting to snowball in many areas. Interestingly, many realtors never even meet face to face with their clients, thanks to web 2.0.
Social networking sites make it possible for you to create a personal page and post practically any information that you’d like about yourself so that anyone and everyone can see it. Realtors have found this amazingly useful. By utilizing other words that relate to location of the properties that are available, Real Estate agents can create a collection of pages on every one of the social networking sites.
Utilizing these sites to bring interested prospects in, Real Estate agents can generate far more interest in their properties than if they merely used a business website. Additionally, they can link their personal pages to their business sites, to increase business even more.
Web 2.0 allows you to post properties online a give anyone a virtual tour.. A lot of Realty agents are receiving interest from out of the country for houses in their local area. Many homes are being sold, sight unseen, within hours of a virtual tour by a prospect. This ease and flexibility to share information is unprecedented in the industry.
With web 2.0 marketing, a entirety new era of real estate is beginning. Until now, people haven’t been able to communicate with each other so easily and use the same resources, across the same medium. With the market in it’s current slump, social networking is breathing new life into an old game.

Building Construction

For the successful execution of a project, effective planning is essential. Those involved with the design and execution of the infrastructure in question must consider the environment impact of the job, the successful scheduling, budgeting, site safety, availability of materials, logistics, inconvenience to the public caused by construction delays, preparing, etc.

Building construction is the process of adding structure to real property. The vast majority of building construction projects are small renovations, such as addition of a room, or renovation of a bathroom. Often, the owner of the property acts as laborer, paymaster, and design team for the entire project. However, all building construction projects include some elements in common - design, financial, and legal considerations. Many projects of varying sizes reach undesirable end results, such as structural collapse, cost overruns, and/or litigation reason, those with experience in the field make detailed plans and maintain careful oversight during the project to ensure a positive outcome.

Building construction is procured privately or publicly utilizing various delivery methodologies, including hard bid, negotiated price, traditional, management contracting, construction
Residential construction practices, technologies, and resources must conform to local building authority regulations and codes of practice. Materials readily available in the area generally dictate the construction materials used (e.g. brick versus stone, versus timber). Cost of construction on a per square metre (or per square foot) basis for houses can vary dramatically based on site conditions, local regulations, economies of scale (custom designed homes are always more expensive to build) and the availability of skilled trades people. As residential (as well as all other types of construction) can generate a lot of waste, careful planning again is needed here.

The most popular method of residential construction in the United States is wood framed construction. As efficiency codes have come into effect in recent years, new construction technologies and methods have emerged. University Construction Management departments are on the cutting edge of the newest methods of construction intended to improve efficiency, performance and reduce construction waste.

John Schmidt
Innovative Design
jps1914@bellsouth.net
336-501-8918

12 Steps You Must Know When Buying A Short Sale Property

1) Locate homes which are in default, as early as possible, even possibly before the formal non-judicial foreclosure begins.
2) Search foreclosed homes with plenty of lead time before the Trustee’s Sale (you may need weeks or months of lead time.)
3) Once you have created short list of such homes, narrow that list to only those homes you would likely purchase for yourself.
4) Complete an accurate Comparative Market Analysis (CMA) using sold homes with similar features, via a good database such as the local MLS.
5) Determine the exact mortgage balance and status of default or foreclosure.
6) Be sure to find out if there is a second or third mortgage on the house.
7) Research the possibility of other liens (tax liens, mechanic’s liens, labor liens, state liens, etc.)
8) Determine how best to talk and negotiate with the loss mitigation department of the bank or mortgage holder (email, fax, phone, etc)
9) Determine whether or not purchasing via the short sale will negate any subordinate loans or liens (another trap for the unwary.)
10) Know which costs and fees in addition to the mortgage balance can be compromised and by how much (experience is the best teacher.)
11) Prepare a comprehensive package to present to the mortgage holder, which is the most critical step in closing a short sale. This should include the Purchase & Sale Agreement, and a thorough analysis of the home, prices, the local market, and justification of your offering price. Your offer must be prepared very professionally or the bank will merely overlook you, without giving your offer a second look. You have to be able to make a case to the bank, as to why they should sell to you at this price.
12) In order to close on a deal in a short sale, you must follow through with all parties involved.

10 Steps to Sell You Home Faster In A Slow Market

You probably already know that real estate across most of the country is not appreciating as fast as it was at one time. This isn't necessarily a bad thing, unless of course you purchased last year and are now selling. People who have owned a property for several years are still generally well ahead in the game. We can't predict what 2009 will bring, but so far, most markets have slowed, if not declined. For the majority of established home owners in the prevailing market, prior property appreciation will ensure at least some degree of profit, though today's sales might not be as prosperous as they would have been in 2006. But all homeowners want to get the highest possible profits. How do you go about this? There are 10 negotiating steps that a seller can follow to assure that a person's home gets the best price and is sold quickly.

Step 1: Use a broker from the local area. When the market is down, so is the number of buyers. That means that you need to expose your property to as many potential buyers as possible. Who do prospective buyers get in touch with when they are house hunting? Real estate brokers. National Association of Realtors statistics show that 85% of purchasers count on real estate brokers for their home selections, while the Internet accounts for 80%. Who creates all of those online real estate postings? Real estate brokers from the local area.

Step 2: Familiarize yourself with the entire sale agreement. Nearly all jurisdictions have standardized real estate contract which have become lengthy and complex over many years. If you use one of those, read it carefully and be aware that you are agreeing to every unmodified term and condition. Make sure there is nothing in the agreement that needs to be taken out, rewritten or added. The brokers should offer a copy of the sale agreement that they might use at listing presentations and the sale deed should be read to avoid misunderstandings. As these are agreements on forms, whatever is not stated as a requirement by the law can be changed by a cross-out or addendum. Consult your attorney or broker for further detailed information.

Step 3: Be completely familiar with the current real estate market. For the sake of negotiations, knowing what the recorded sale prices were isn't sufficient because often they don't give the complete picture. As an example, two houses might have both sold for $300,000. A person might have sold for $350,000 while the other for $300,000 but the owner gave the buyer a 6 percent seller credit for a new roof and appliances, which is $18,000. Local brokers who are familiar with the details of recent sales are able to provide the best negotiation advice.

Step 4: Understand all of the terms you are willing to offer. You are confident that your home is going to sell at some satisfactory price, but instead of starting out with an inflexible amount, consider the property sale as a combination of price and terms. For example, it might make more sense in a slow market to help reduce the buyer's closing costs by offering a "seller contribution "instead of lowering the price of the property. Often the seller contribution could be significantly less than a reduction in price, and buyers who require cash to close the sale could find it more attractive as well.

Step 5: Request a smaller deposit. In order to bind a legal contract, the buyer needs to make a deposit. In an ideal marketplace, a seller will receive a large deposit, but in a down or "off" market, a much smaller deposit may have to be accepted. The buyers prefer to make the lowest possible deposit because a huge deposit indicates a big financial and psychological commitment. You can ask for a lower deposit if the buyer has a mortgage pre-approval or if the buyer shows a strong interest in the property and you have no other offers.

Step 6: Sweeten the pot. Are you really planning to take large items like a swing set or washing machine? In certain cases it may be better to leave such items if a buyer makes an offer.

Step 7: MLS photos have to be updated. If your MLS photo shows snow around your home in the middle of the summer, potential buyers will know your house has been on the market a while. They may interpret this as meaning that you might be desperate to sell and will expect to lower your initial offer. Make sure your broker posts recent photographs.

Step 8: Fully understand the marketing plan. The broker's marketing plan should be reviewed quite often to see that it is being followed and is changed whenever it is needed.

Step 9: Check out open houses. Going to open houses, also known as your competition is a great idea. It isn't always easy to be objective. However, do other owners have selling ideas that might work in regards to your home? Is there something you can use to bargain with? You could consider offering to do some painting or other cosmetic repairs.

Step 10: Keep everything in context. Don't worry about nickels and dimes when your main goal is to get the house sold.

As an example, just before closing the deal, we had a buyer request an extra $600 to resolve last minute concerns. That gesture seemed like nothing more than a case of buyer's remorse, so we agreed to it, received an otherwise ideal price, and closed the sale. It wasn't long before the prices softened in the local market. It was better to lose $600 than to find another buyer later when the market was harsher and the final sale price might have been less by several thousands of dollars. Would we have preferred to save that $600? Certainly. However, six hundred dollars was a small price to pay considering that the delays could have meant a big reduction in price.

10 "Green" Home Tips

These "Greenest" homes are already built to be "Green". But that does not mean that you cannot take an existing home and make it more eco-friendly. This is how you can do that:

1) Keep original windows intact. Studies show that older windows can perform as well as vinyl replacements. Weatherstrip them so that they seal tightly, caulk the exterior trim, and repair cracked glazing or putty around glass panels. You'll reduce landfill waste and the demand for vinyl, a non-biodegradable material that gives off toxic by products when it is made.

2) Use light paint colors for your house exterior. Lighter colors reflect heat better than darker ones.

3) Insulate the attic, basement, and crawl space. About 20% of energy costs come from heat loss in those areas.

4) Reuse old materials such as brick, stone, glass, and slate when making home improvements. If you are rebuilding a staircase, for example, use wood from the summer kitchen or shed that could not be saved.

5) Install fireplace draft stoppers, attic door covers, and dryer vent seals that open only when your dryer is in use. An open dampener in a fireplace can increase energy costs by 30%, and attic doors and dryer vent ducts are notorious energy sieves.

6) Plant trees. Evergreen trees on the north and west sides of your house can block winter winds, and leafy trees on the south and west provide shade from the summer sun.

7) Have an energy audit done by your local utility company. Audits can help pinpoint problem areas and measure energy savings after you improve your home's efficiency.

8) In the summer, open the windows and use fans and dehumidifiers, which consume less energy than air conditioning. Many old houses were designed with good cross ventilation; take advantage of your home's layout.

9) Keep doors airtight by weatherstripping, caulking, and painting them regularly. Recent studies suggest that installing a storm door is not necessarily cost-effective.

10) Restore porches and awnings. Porches, awnings, and shutters were intended for shade and insulation. To save energy, draw shades on winter nights and summer days.

Truth in Lending Act Changes!

The Housing and Economic Recovery Act of 2008 included several revisions to TILA. These important revisions go into effect July 30, 2009.

The key changes effective with all applications on or after July 30, 2009 are:

1) Collection of fees: Lenders cannot collect a fee from the consumer, other than a reasonable fee for obtaining the consumer's credit history, until the consumer is in receipt of the initial TIL.

2) TIL disclosure applicability: Lenders must now provide a TIL on refinance transactions.

3) New statement added to all TIL disclosures: You are not required to complete this agreement merely because you have received these disclosures or signed a loan application.

4) Initial TIL waiting period: A loan cannot close until seven business days from the delivery of the initial TIL. For example: Lender places loan disclosures in the mail Monday, August 3rd, the loan cannot close until on or after Tuesday, August 11th. Business days are the same used for rescission--Monday through Saturday excluding legal public holidays.

5) APR re-disclosure tolerance: After the initial TIL is given if there are any changes that effect the APR and cause the APR to go up by .125% for fixed rate products (or .25% for ARM products) a new TIL must be given to the borrower. The new waiting period is three business days after the borrower receives the revised disclosures. A borrower is presumed to have received the new disclosures within three business days if placed in the mail. This creates a six day waiting period, three days to receive the disclosures and three days waiting period.

The key is for a buyer to lock their loans early enough so new waiting periods do not effect their closing date.



This information was provided by:

Richard Watkins
Sr. Mortgage Consultant
National City Mortgage
Richard.Watkins@ncmc.com