Posts Tagged ‘mortgage’
Are You The Parent (OR Grandparent) Of A New College Or High School Grad?: A Post From David M. Frees III J.D.
Are you the proud parent of a newly minted and soon to be “independent” adult? Ready to cut the cords and to stop paying their monthly bills?
Well, now’s the time to get ahead of a very dangerous and counter intuitive situation – The FICO credit score. And, this is one area of financial life where what you don’t know can hurt you and your child who is heading out into the world.
And by the way, when they first go out on their own, credit cards seem like a good way for them to pay the bills…. until they have gigantic and unmanageable debt AND as a result a bad credit score.
You see, nobody ever teaches our kids how to build and keep great credit.
And most kids don’t know that their credit score will radically affect whether or not they can buy a home, to buy or lease a car, rent an apartment, get reasonably priced auto or homeowners’ insurance, get a job and more.
That’s right, a good or bad credit score can mean a yes or no on these and many other buying decisions and bad credit or no credit rating can mean higher prices – much higher prices for car, rental, and home mortgage payments and even prevent your new adult from getting a job.
And I don’t know about you but once they move out of your house it’s hard (on both kids and parents) to have them move back in…especially if that could have been prevented with a little good advice and some “credit secrets”.
So let me tell you two stories to help you to understand why teaching our kids (as soon as possible) about how to get and to keep good credit.
Ray told me that he had always paid cash, even for his car and truck, and never had a credit card. He’d never really done anything wrong but……his credit score was only 680. You see that having absolutely no credit history can be just as harmful as a damaged credit history. He just hadn’t done a few things that really mattered.
Now that may not sound too bad, but he and his fiancée didn’t even qualify for a mortgage. His wife-to-be had a better score and could qualify on her own but they really needed their combined income to get the house that they wanted.
Even in the best-case scenario, where they did qualify, their interest rate, and therefore their monthly payment, would have been dramatically higher.
In this case, there was a happy ending.
I knew CR Publishing’s Alex Frees (yes he’s related) and put them in touch with Alex and The Starters’ Guide To Building and Protecting Your Credit.
With a few carefully executed strategies (described in The Starter’s Guide To Building and Protecting Your Credit) he was able to take his score from 680 to over 775. Those kids got their mortgage and their first home as a result of working hard, saving money for a down payment, AND having good credit scores.
So what’s the moral or the story?
Help to educate your recent grads…. before they make credit mistakes…about what to do to build and keep good credit.
Some of the rules are obvious – pay your monthly bills on time – and others are less apparent. For example, did you know that there are good reasons to get a second credit card and some bad reasons that can damage your credit score.
Are you aware that it’s not just how much credit you have available, but how much of the available credit you have used.
Do a few important things right and your score goes up. Miss them, or do them the wrong way or in the wrong order and you can easily damage your score.
Well, if you’re like me – a parent but not an expert on consumer credit scores – then getting your kids access to educational resources like the Credit Repair Intelligence System (a comprehensive guide to building and keeping better credit) and the super inexpensive The Starter’s Guide To Building and Protecting Credit can mean the difference between their life long financial success and independence and that knock on the door where they want to move back in.
Help your new grad to get a better start in life. It’s easy and effective to help them learn…. right from the start…how to build and keep a great FICO credit score.
Enjoy the exciting life of being a parent and grandparent!
Dave Frees, JD
P.S. I promised you a second story so here it is:
I knew another recent grad. He started life with a credit card balance that he couldn’t pay off. That in and of itself isn’t a problem. But, as the balance grew (he was using it to supplement his income) he was also using more and more of his available credit line.
This negatively affected his FICO score and the interest rate on his balance went up…and so did his monthly payment.
The next thing you know he missed or was late with a payment and his score dropped again.
He got another card but did the same thing there (and his interest rate was higher from the start).
It didn’t take long before the rent on his apartment was too much (along with his credit card debt) and he could no longer qualify to buy a new or used car.
Moving back in with his parents was the next step.
All of that could have been avoided with a little advanced help. Help your kids to study up on FICO. To learn more about credit and how it’s computed. And, if it makes sense get them a copy of The Starters Guide For Building and Protecting Your Credit or The Credit Repair Intelligence System.
Often it is hard to pin point one area of debt or credit repair to start. That is why when the Credit Repair Intelligence System was created it covered multiple topics. Its just the nature of the beast. Similarly, to building or repairing credit you can’t do just one thing. You often have to try multiple strategies at the same time.
The same goes for fixing debt! There is not one strategy that will fix everything. And experts would probably agree that you often have to use several and combine some strategies to be most effective.
That is why The Debt Free Bible combines 19 different strategies and secrets that are ready for you to discover right now. The Debt Free Bible is over 280 pages of knowledge that is ready to be absorbed.
But be aware…
This is not some fly by the night system. It actually took a little over 2 years and over $25,000 to create it. Our friends at Zodiac Publishing really created something special for the country here.
Just some of the methods can start helping immediately:
• Use the ”Method Matrix” to compare 19 get out of debt methods and pick the best one (page 222)
• Discover how to get one bank pay off another bank with the ”IR Method” (page 163)
• How to use the ”Overflow Method” pay off any debt faster (page 159)
• How to pay off your bills FASTER with no extra money using the ”RR Strategy” (page 167)
• Why the ”LBF Technique” gives you a psychological advantage to become debt free (page 169)
• Why the ”HIF Method” should be used FIRST on debts over 24% interest (page 171)
• How the ”Division Method” and a calculator can get you debt free 8 YEARS SOONER (page 173)
• Pay off your mortgage in only 6 YEARS with the ”AP Strategy”
But using just The Debt Free Bible or The Credit Repair Intelligence System is sometimes not enough. Luckily we are able to provide both for the ultimate debt fighting and credit building system.
Not only that but we are there every step of the way! Our Members-Only Forum, staffed by our Credit Expert Dan Sater (Check Out his Bio), is there for you to access and ask him questions! Having some guidance through the credit building or repair process is what separates us from the other guys. And now with The Debt Free Bible you can build the debt free life that you want and deserve for you and your family.
What Our Lawyers Make Us Say: CR Publishing publishes and provides quality and actionable do it yourself products and information to consumers who want to improve credit and/or to get rid of debt. The articles and information provided herein are for informational purposes only and are not intended as a substitute for professional advice.
FICO is a registered trademark of the Fair Isaac Corporation in the United States and other countries.
How would you like to live in your home for free? Well, almost…
Patsy Campbell has not made a mortgage payment on her home for 26 years. Yes, I said 26 years.
Almost every Real Estate Attorney agrees it is the longest foreclosure case in America… and probably the WORLD for that matter.
Miss Campbell has pulled just about every legal maneuver possible to delay foreclosure of her home for over two and a half decades.
The home was last appraised at over $200,000.
The short version of the story goes something like this.
In 1978 her husband Paul purchased the home with a mortgage for $68,000 from First Federal Savings.
He married patsy in 1980, later passing on and leaving the property to her.
Patsy became ill in 1985 and the loss of income caused her to stop making mortgage payments.
At this point, the Mortgage Holder First Federal had now merged with First Fidelity Savings and Loan which took over the servicing of her mortgage.
Later in 1987 the mortgage was sold by First Fidelity to American Pioneer Savings. American Pioneer Savings went broke in the early 1990′s.
The loan continued to change banks 6 times and each time it changed the foreclosure case was either delayed and or dropped as the financial institutions went out of business as well as fell victim to her later stall tactics.
Finally, her mortgage wound up with the Resolution Trust Corporation (RTC) which was the federally owned entity which was in charge liquidating assets from the Savings and Loan Crisis in the 90′s. Eventually the FDIC was in charge of her mortgage.
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Then, in 1998 the FDIC sold the mortgage to Commercial Services of Perry Iowa.
Commercial Services is a buyer and investor of distressed debt which filed for foreclosure on the Campbell home in the year 2000.
Obviously, after delaying foreclosure for 26 years, Miss Campbell has used a number of strategies to stay in her home.
In the beginning she had the help of a retired Lawyer, but today she’s learned so much about the law she’s actually handling the case herself.
The has appealed her case 7 times since 2000.
Among some of her tactics were claims that:
The note for her property was incorrectly assigned.
Lawyers waited too long to prosecute her case
The original sellers never received funds due from the bank.
Her husband’s signature was forged.
Her note was incorrectly separated from her mortgage agreement.
The loan was not properly transferred between the multiple financial institutions in went through.
In many cases she demanded documents the lenders were unable to generate (or generate quickly enough).
Once due to illness she put the home in her daughter’s name then later had the house deeded back to her.
Probably the most entertaining argument is when she denied there was any legitimate debt.
In 2007 a judge threw out many of her arguments as an unnecessary use of judicial resources.
Attorney Robert Summers for Commercial Services says “It’s almost like clockwork. You know you’re going to get a three-inch stack of documents every month or so, and you have to take the time to read through them.
It’s a burden on the courts, a burden on lawyers to decipher it, and it has enough meat in it that it’s not all void.”
After a very long fight Commercial Services finally got a date to take the foreclosure to trial.
In response, Miss Campbell filed Bankruptcy and In the state of Florida, bankruptcy stops foreclosure until a stay is lifted by the bankruptcy judge.
Miss Campbell currently maintains that no one owns her mortgage and because of all the mistakes the both private and federal institutions have made handling it, the debt is null and void.
It should be noted that any homeowner delaying foreclosure can raise defenses in court which may be baseless but still present legal obstacles for the banks to overcome. These obstacles cost both time and money and lots of it.
Moodys predicts foreclosures will increase from about 1.8 million in 2010 to 2.1 million in 2011.
With that said, I am sure we can all expect to see more foreclosure cases being delayed by other Americans following Miss Campbell’s lead.