Credit Repair SOS: Americans Feel the Sting of Foreclosure
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Take Your Credit Repair Seriously or Risk Foreclosure on Your Home
Are you one of the millions of Americans in the throes of pending or previous foreclosure on your home?
It's in the news almost every day - and these citizens not only have to shuffle to find new living arrangements, but they must learn to hastily apply credit repair advice to allow them to function in a society consumed with credit and debt.
Home foreclosures leave open a financial opportunity for many - the ones who can swoop in and scoop up a home for a good deal. But the ones forced out of their homes are left with a credit report in disarray, and emotional trauma from the entire experience.
The best-case scenario would obviously be to acquire a home loan where you were sure you wouldn't have to miss a payment. But many people already have blemishes on their credit report, which means they have to sign up for an Arm (adjustable rate mortgage) and then cross their fingers they'll be able to refinance at a lower fixed rate two years later.
What usually happens, unfortunately, is that during those two years, the family continues spending out of control - credit repair nowhere on the horizon.
Their score continues to go south and when the two years are up, the ARM turns into a financial nightmare.
"If we hadn't worked hard on our credit repair issues," says Michelle V. of Panama City, Florida, "our mortgage payment was going to double from $1,100 to $2,100 a month - we would have lost our home."
Michelle and her family were lucky!
They took the issue of credit repair seriously and raised their credit score by cleaning up their credit for the two-year duration.
In just 30 days, the credit repair advice they implemented had already helped give them a boost in lender risk analysis.
Need Help With Your Credit Repair?
Let's face it - some people need professional help, but when you're in need of credit repair, you can't afford pricey assistance!Here's the link to some attorneys who specialize in credit repair at reasonable rates a "working person" can afford: Credit Repair Service
Learn How to Tackle Credit Repair on Your Own
Interest Rates Are Already Climbing Even With Credit Repair at the Helm!
Americans are falling behind in their housing payments.Even if you follow credit repair guidelines, you still might end up paying more for your mortgage than you can afford if you're not careful.
Why is this happening?
For awhile, housing prices were soaring - and Americans began forking over more than they could afford just to get the kind of house they needed or wanted.
They hadn't previously considered credit repair as an option to focus on before they financed a home - because in the past, this issue of foreclosures wasn't an epidemic like it is today. If only we had a crystal ball to predict the future!
More and more consumers were roped into signing up for an ARM, which gives them a false sense of security because the interest rate is lower than what they could get for a fixed rate.Lenders do this with the intention of allowing you ample time to clean up your credit and acquire a fixed rate loan that's even better than the ARM!
When it was time for the ARM to expire, homeowners discovered they couldn't qualify for a better deal - or any deal for that matter. Many let their credit get so tarnished they couldn't get any type of loan. Others couldn't qualify for a fixed rate loan, so their ARM rate doubled, costing them their home.
According to the First American Real Estate Solutions, which compiles national real estate data, 1 in 8 consumers whose ARM is set to explode will default on their loan - another statistic in the housing market.
This should be a lesson to all consumers - not just those currently in the market for a new or refinanced mortgage. Keep your eye on credit repair you can apply to your own history and you won't fall prey to the financial disaster sweeping this nation.
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Credit Repair - Do Americans Even Care About Foreclosures?
Drive down many tree-lined streets in America and you'll see dozens of homes that have been foreclosed on.Yet concern for this issue in our country isn't even on the radar - except for in the media, where warnings abound.
The potential for foreclosures is so great, yet only a small number of Americans focuses on credit repair to avoid foreclosure before it's too late. Usually, they put it on the backburner until the bank is beating down their door and forcing them into the streets - that's when their concern suddenly grows.
A Gallup poll was recently taken for Americans that questioned how worried they were about being able to pay their mortgage....
And a mere 11% were losing sleep over it! That rate rose to 21% when another poll of homeowners who had ARMs was asked.
Take action to prevent a foreclosure
Communication is key. You might want to run and hide, but talk to your lender and see if they can help you work out the situation.
Don't get lured into a false sense of security. It might be easy at first to buy a home, but if you get into financial straits, you might have a hard time making the payments.This often happens when medical bills, the loss of a job, or other situations arise.
Don't stretch your finances so thin that you're juggling bills. Start looking into credit repair even if you think your credit is "pretty good." It can always be better!
Don't buy more home than you can afford. If it means foregoing a house with a pool, so be it!
Stay out of trouble with your credit score using a Simple Budgeting System designed to help boost your credit!
Defining Forclosure, an article by Wikipedia
Category: File - :Foreclosedhome.JPG|thumb|House in Salinas, California under foreclosure, following the popping of the U.S. real estate bubble
Foreclosure is the legal and professional proceeding in which a mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor's equitable right of redemption. Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, the lender cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclose the equitable right of redemption. Other lien holders can also foreclose the owner's right of redemption for other debts, such as for overdue taxes, unpaid contractors' bills or overdue homeowners' association dues or assessments.
The foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or repossessing a parcel of real property (immovable property) after the owner has failed to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs, and it is typically said that "the lender has foreclosed its mortgage or lien". If the promissory note was made with a recourse clause then if the sale does not bring enough to pay the existing balance of principal and fees the mortgagee can file a claim for a deficiency judgement.
The ins and outs of 'Credit History'
An article by Wikipedia
Credit history or credit report is, in many countries, a record of an individual's or a company's past borrowing and repaying, including information about late payments and bankruptcy. The term "credit reputation" can either be used synonymous to credit history or to credit score.
When a customer fills out an application for credit from a bank, store or credit card company, his or her information is forwarded to a credit bureau, along with constant updates on the status of his or her credit accounts, address, or any other changes made since the last time he or she applied for any credit.
This information is used by lenders such as credit card companies to determine an individual's or entity's credit worthiness; that is, determining an individual's or entity's means and willingness to repay an indebtedness. This helps determine whether to extend credit, and on what terms. With the adoption of risk-based pricing on almost all lending in the financial services industry, this report has become even more important since it is usually the sole element used to choose the annual percentage rate (APR).
News You Can Use to Repair Your Credit!
Fetching RSS feed... please stand byWhat Part of the Credit Repair Process Do You Need Help With?
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- jdowens jdowens May 15, 2008 @ 4:07 am
- Good information on this lens. Chech out my lens on credit repair.
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- Good;advice Good;advice Oct 15, 2007 @ 7:59 pm
- this is good advice i will look at your blog under your name
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- ShortSaleRealtor ShortSaleRealtor Oct 1, 2007 @ 1:41 pm
- great lens, there are several people that can use this very helpful information
by InformationGuy
Hi, I'm a freelance writer and this lens is designed to help you improve your life! Thanks for reading.
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