How does bankruptcy affect your mortgage situation and your ability to qualify for a home loan in the future? Currently, bankruptcy offers very limited protection to a homeowner who is upside down with his or her payments. The borrower can file a Chapter 7 which, depending on the state bankruptcy law, will most likely require […]
Understanding the 2009 First Time Home Buyer Tax Credit
Ever since the housing bubble burst and the current recession began in late 2007, the federal government has been seeking ways to reinvigorate the slumping housing market. Beginning in 2008, first time homebuyers became eligible for a $7,500 maximum tax credit to help in the purchase of their home. Unfortunately, this credit had to be […]
The Mortgage Crisis and Your Credit Part Five: Loan Modification
By Linda Ferrari – Author of the Big Score – Getting It & Keeping It Foreclosure, Deed in Lieu of Foreclosure, Short Sale, Loan Modification and Bankruptcy can all have long-lasting impact on an individual’s ability to obtain credit. Homeowners need to get the facts before making critical decisions that will impact their lives for […]
The Mortgage Crisis and Your Credit Part Four: A Short Sale
For years, credit experts, including me, have told people that a foreclosure is the worst possible option for homeowners who are upside down in their mortgage and is something to avoid at all costs. One of the alternatives to foreclosure that homeowners have is a short sale, which is when a bank or mortgage lender […]
The Mortgage Crisis and Your Credit Part Three: Deed in Lieu of Foreclosure
In my last article, I talked about how a foreclosure–the least desirable option other than bankruptcy for people who are upside down on their mortgage– affects your credit. Today, we’ll examine another option–deed in lieu of foreclosure. Deed in Lieu of Foreclosure In this scenario the borrower turns the house over to the lender and […]
The Mortgage Crisis and Your Credit Part Two: Foreclosure
Foreclosure, Deed in Lieu of Foreclosure, Short Sale, and Bankruptcy can all have long-lasting impact on an individual’s ability to obtain credit. Homeowners need to get the facts before making critical decisions that will impact their lives for many years to come. In this series of seven blogs, I’ll be examining each of these options […]
The Mortgage Crisis and Your Credit Part One: No Laws Requiring Lenders To Report To The Big Three
“Is it better to file for bankruptcy or to be foreclosed?” “What is a short sale and how can it affect my credit?” “What about a Deed In Lieu of Foreclosure? Or a Loan Modification? “What should I do?” Every day, these questions are asked of me by frightened homeowners who are quickly trying to respond […]
How Does Bankruptcy Affect Credit
A bankruptcy is reported on your credit report as a public record, and there is no doubt that your scores will drop anywhere from 100-300 points when it first hits, depending on how many points you still have to lose in your payment history factor. Keep in mind, by the time you have filed bankruptcy […]
Consumer Credit Protection Laws
Your Rights: The Consumer Credit Laws You Need To Know About Fair Credit Reporting Act (FCRA). The federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. Consumer reporting agencies include the credit bureaus and specialty agencies (such as agencies that sell information about […]
What To Do If You Don’t Have Credit
If you do not have a credit history, then it’s time to start building one. But the question is, how do you get credit if you don’t have credit? Here are some great tips: First, if you do not have credit, lenders and banks may look to other factors that can help them decide if […]
