Credit Score - A Number to Fight For! Plus Foreclosure Updates

As we enjoy summer days we need to remember those that are still having difficulty with their personal finances. With all the changes in government "bail out" efforts, credit card regulations and CC companies trying to preserve their bottom line, and the moratorium being lifted on foreclosures many of you may be facing tough days ahead. What you need to know is there are solutions, there are ways out of your financial debacle.

Something you will start to see a lot of this summer - may help with foreclosures.

Have you heard of "short-refi"? This is a short sale combined with a refinance instead of a sale to a third party. Your are basically buying your home from yourself. This can save your home but you must read the fine print. What happens: when the bank agrees to a short sale they are taking a loss by reducing the note/balance due. They "write off" their loss. If you (as the purchaser of your own home) refinance your loan with the bank you can reduce your payments but be aware - your credit score will be affected. You could see your credit scores drop by 100+ points and the transaction will be reported as "settled for less" or as a "charge off".

PLUS be sure you read the fine print. The bank may include a promissory note in your new loan documents. This promissory note will be a new debt you will have to pay in addition to the mortgage amount, it's an amount equal to the banks losses. This is great for the bank as they will get all their money back but not so great for you as you still have a derogatory "charge off" entry on your credit report.
 
PLUS read the fine print on the Truth in Lending disclosure. Be sure you are getting what you want. Look for a small (unchecked) box that says there may be a variable rate! And make sure there are no prepayment penalties. You want a fixed rate loan without prepay penalties.

Note: The first three months of 2009 saw more foreclosures than since 1972. Most new forclosures will not be from sub prime borrowers, they will be from good credit borrowers with safe 30 year fixed mortgages - the cause, job losses.

Your credit score is a number to fight for! 2009 marks the 20 year anniversary of "fico score".

The more I learn the more I need to do to protect myself - and I will  share these strategies with all of you.

Bad credit scores are now anything below 700. Yes, we are now required to have a 740 or above to get the best of the best rates. Most are now looking for 750-760. This is made all too clear when you look at the statistics. Loan applications are up 28% over last year but only 60% of all applications are approved.

Additionally, in this age of  technology not only mortgage companies, insurance companies and most vendors relying on your credit history but your new employer is checking your credit too. A bad credit score can mean no new job! 

It is absolutely crucial to preserve your credit scores. Stuff happens but with careful planning everybody can come out smelling as sweet as summer roses.

Posted by Minocqua Mortgage Blog at 5/29/2009 7:15 AM
Categories: Knowledge is Power, YOUR MONEY
Tags: www.mortgageminocqua.com Position Yourself For Success
 

What did you think of this article?




Trackbacks
Trackback specific URL for this post
  • 8/10/2009 3:32 AM how to fix your credit wrote:
    Another element to watch out for is the amount of utilization you have on your existing accounts. The old adage that banks only lend money to people who don’ t need it is pretty much true. Opinions vary, but having your total utilization (total debt divided by the total of your credit lines) should generally be less than 50%. Utilization on individual accounts should typically be less than 70%. We’re carrying a large 0% balance transfer on one of my wife’s accounts that I am an authorized user on.
  • 8/14/2009 6:29 AM credit repair service wrote:
    “In my opinion one of the biggest problems with our credit crunch and high foreclosure rate is bank reliance on FICO scores. FICO scores do a good job of reporting an individuals past history of repayment of debt. The biggest problem is the scores do not forecast in my opinion the current position of the borrower. To read from Fair Isaac what goes into your FICO score click here. FICO scores miss two important things when considering giving someone a loan, assets and income. Most people credit reports have...
  • 8/19/2009 7:43 PM credit repair company wrote:
    In the smaller side of the middle market, it may be less difficult to obtain financing, says one specialty finance lender. There are pockets of money out there to be put to work, but the problem is that deals do not hold together, he adds. Financing terms and deal multiples that worked a few months ago when the deal was initially planned, no longer work for the sponsor. So they go back to the negotiation table to try to obtain a lower purchase price that makes sense and allows them to lever up the deal. ...
  • 8/20/2009 1:01 AM how to fix your credit wrote:
    Be careful if you try to repair your own credit! There are many pitfalls you must avoid in order to be successful.
  • 8/25/2009 7:07 PM Methotrexate and gtd. wrote:
    Methotrexate and psoriasis. Prednisone methotrexate. Methotrexate. Methotrexate treatment for psoriatic arthritis.
  • 8/25/2009 7:45 PM Viagra. wrote:
    Viagra. Generic viagra mastercard. Buy viagra online. Cheap viagra. Viagra london.
  • 8/25/2009 9:28 PM Ambien. wrote:
    Ambien. Generic ambien. Ambien online no prescription overnight delivery. Ambien cr. Buy ambien.
  • 8/26/2009 7:59 AM Buy viagra. wrote:
    Viagra side effects. Buying overnight viagra. Generic viagra. Buy viagra in canada.
  • 8/26/2009 5:44 PM Levitra. wrote:
    Viagra levitra viagra comparisons. Levitra. Levitra 25mg. Cheap levitra.
  • 8/26/2009 6:01 PM Alprazolam. wrote:
    Alprazolam-ratiopharm. Alprazolam no prescription. Alprazolam.
  • 8/27/2009 7:29 AM Xanax. wrote:
    2mg xanax order.
  • 8/27/2009 7:44 AM Levitra side effects. wrote:
    Levitra free trial samples. Levitra. What is the correct dosage for levitra.
  • 8/28/2009 10:08 AM Phentermine. wrote:
    Discount phentermine. Phentermine no prescription.
  • 8/28/2009 10:10 AM Car loans bad credit. wrote:
    Auto loans california. Car loans with bad credit. Bad credit loans.
  • 8/28/2009 9:04 PM Lipitor. wrote:
    Lipitor. Lipitor and side effects. Generic lipitor. Lipitor side effects.
  • 8/28/2009 9:07 PM Bactrim. wrote:
    Bactrim. Bactrim ds 800-160. Bactrim and mrsa. Bactrim skin reaction complication. Bactrim for small birds. Bactrim and alcohol. What is bactrim. Bactrim ds.
  • 8/29/2009 11:06 AM Plavix. wrote:
    Plavix side effects. Plavix.
  • 8/30/2009 12:13 AM Xanax side effects. wrote:
    Buy xanax. Buy xanax without prescription in usa. Xanax. Cheap xanax online buy cheap xanax buy cheap xanax. Xanax side effects. Generic xanax.
  • 8/30/2009 12:20 AM Information about vicodin. wrote:
    Vicodin abuse. Vicodin. Dangers of vicodin. Vicodin detox. Vicodin no prior prescription. Buy vicodin online without. Pharmacy online no prescription vicodin. Online vicodin.
  • 8/31/2009 2:43 AM Levitra. wrote:
    Buy sublingual levitra online. Levitra starting from per pill. Generic drugs viagra cialis levitra and more. Levitra viagra cyalis webmd. Levitra free trial samples. Levitra.
  • 8/31/2009 3:01 AM Adipex capsules no prescription. wrote:
    Adipex online. Adipex phentermine vs al bawaba blogs. Is adipex phentermine t. Adipex. Adipex p. Adipex diet pills.
  • 8/31/2009 1:57 PM Percocet no prescription. wrote:
    Percocet 93-490. Pharmacokinetics of percocet. Percocet 7.5 generic. Percocet and nightmares. Soldier s percocet addiction.
  • 8/31/2009 10:17 PM Review adipex. wrote:
    Adipex phentermine vs. Adipex-p non-generic. Adipex. Adipex p. Yellow adipex.
  • 8/31/2009 11:38 PM Percocet. wrote:
    How do i get off percocet. Percocet 7.5 generic. Buy percocet online without office visit. Percocet withdrawal symptoms. Buy percocet online. Percocet sexual effects.
  • 9/1/2009 5:19 PM Order percocet online. wrote:
    Percocet. Buy percocet and greece. Long term use of percocet. Canadian prescritions and percocet. Half life of percocet.
  • 9/2/2009 7:00 PM Xanax lawsuits. wrote:
    Symptoms of xanax use. Xanax. Xanax class action. Generic xanax.
  • 9/3/2009 3:54 AM James bond casino royale. wrote:
    Sandia casino. Ameristar casino. Casino royale. Chinook winds casino. Casino royale 007.
  • 12/25/2009 11:15 AM fast credit repair wrote:
    The typical formula is to calculate your pre- operational expenses and add three months worth of your estimated monthly expenses to get your required startup capital. Take note however that depending on the nature of your business, the number of months of operational costs you need to consider could be more than just three. Other businesses may require six months to a year’ s worth of monthly expenses as part of their startup costs.
  • 4/23/2010 11:38 AM fix my credit wrote:
    I must add this place to my favorites.
  • 5/11/2010 7:07 AM fix my credit wrote:
    Credit where credit is due - you make a good point.
  • 5/12/2010 3:27 AM credit fix wrote:
    I have to give you credit for running an incredible site here.
  • 5/13/2010 11:57 AM fix my credit wrote:
    I can not believe I have not been to this pace before!
  • 5/14/2010 1:49 PM how to fix my credit wrote:
    Lots of different ideas listed here - simply astounding.
  • 5/15/2010 10:40 AM fix my credit wrote:
    Kudos to the webmaster for running an incredible site.
Comments
  • No comments exist for this post.
Leave a comment

Submitted comments are subject to moderation before being displayed.

 Name

 Email (will not be published)

 Website

Your comment is 0 characters limited to 3000 characters.