June 2007
Monthly Archive
30 Jun 2007 04:56 am
Credit Boosting Websites May Be Running Out of Time
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Credit boosting works like this: Folks with low FICO (credit) scores, such as a number in the low 500s, have a hard time qualifying for a mortgage with today’s guidelines. However, federal regulations allow for people with good credit to have authorized users on credit cards and other loans. The person with bad credit is instantly linked to the history of the person with good credit, although they have no access to the actual credit cards or loans. This can almost instantly inflate a credit score 200 points or more. |
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search for : Credit boosting
29 Jun 2007 07:18 am
How Wall Street Precipitated The Mortgage Meltdown
| Today, there are numerous examples of how Wall Street’s money and expertise have helped transform subprime lending into a major force in the U.S. financial markets. The mortgage lenders claim they are proud of their role in helping provide credit to consumers who might otherwise have been unable to buy a home, and proud of the controls they have brought to a sometimes-unruly business. Now, however, that business is in deep trouble, and some consumer advocates and policy makers are pointing the finger at Wall Street. Roughly 13% of subprime loans stand in or near foreclosure, bringing turmoil and sometimes eviction to tens of thousands of homeowners. Dozens of lenders have gone out of business. |
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search for : subprime loans
28 Jun 2007 04:10 am
Another choice for home financing.
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Lenders and brokers both perform a variety of loan origination tasks, which include finding, counseling and qualifying borrowers, taking applications, checking credit, and verifying employment and assets. But the lender is the one who must approve the deal and disburse the money to the borrower. Mortgage brokers usually are not authorized to provide final loan approval, nor do they disburse money. Suppose that at closing, the lender lends the broker enough money for the broker to fund the loan in his own name, then 10 minutes later when the transaction is completed, the broker sells the loan to the lender. Would this convert the broker into a lender? If we define “lender” as the entity who disburses funds to the borrower and receives back a note and mortgage, then the answer has to be “yes.”
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search for : loan origination, qualifying borrowers, checking credit
27 Jun 2007 07:29 am
Treat Bankruptcy Symptoms Early
| Homeowners and renters facing rising rents and others who, for whatever reason, just can’t financially hack it, are beginning to bang at the double doors of bankruptcy court again. The American Bankruptcy Institute reported in May that bankruptcy filings increased 51.3 from May in 2006. AICCCA says of 400,000 consumers it counseled since the new law went into effect in October of 2005, more than 95 percent of them went on to file for bankruptcy. That’s often because by the time consumers make it into counseling, their potential for bankruptcy already critical. |
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search for : bankruptcy
26 Jun 2007 06:55 am
Credit scores influence more than lenders
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According to Bankrate.com, credit scores heavily impact home and auto insurance coverage and rates. With a poor score, you could be denied insurance outright, which is especially tough in cases where the law requires insurance. People with bad credit are assigned to a higher risk group, as insurance companies are finding a correlation between bad credit and a higher number of claims. The logic being that fiscally irresponsible people might turn to insurance as source of revenue, turn to insurance too frequently, pad claims or make dishonest claims. |
search for : credit score, auto insurance, bad credit
25 Jun 2007 07:38 am
12 free credit monitoring strategies
| The United States Congress has guaranteed a free once-a-year glimpse into your credit files. But, how do you keep an eye both on your credit and on costs? Here are a few suggestions.
1. Catch mistakes before they make it to your report. Double-check your credit card and other lending statements to make sure you were credited for last month’s payment and that all charges are yours.
2. Stagger your free reports for year-round monitoring. The only place to get your federally guaranteed free credit report is through the annual credit request service.
For the complete list, chick here. |
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search for : credit card, free credit report
24 Jun 2007 06:51 am
What Everybody Ought to Know About Your FICO score
| Millions of U.S. homeowners have purchased homes “subject to” an existing mortgage. If they fail to make the payments, they can lose their property by foreclosure. That is your son’s situation. What matters is he must be on the title and be legally obligated to make the payments or risk losing the property. When you added his name to the title, he became eligible to claim the income-tax mortgage interest and property-tax deductions. |
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23 Jun 2007 07:15 am
Understanding Your Mortgage Closing Costs and Fees
| As an informed mortgage customer, you should make your mortgage banker walk you through each cost, and explain in detail what you are paying. The bottom line is that you don’t want to be surprised at the last moment. Imagine getting a call from your mortgage banker the day of your closing with a message that your closing costs are $1,200 more than you thought. And the only explanation is that the title company made a mistake. Chances are you may have to reschedule your closing to get the money together for the difference, or have your mortgage adjusted to have the amount rolled in. |
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search for : closing costs, title company
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