Credit Score

Obama’s Mortgage Rescue Plan Will Destroy Your Credit

by Wendy Black Polisi on December 28, 2009

According to an article on CNN money published today, many people are finding that Obama’s mortgage modification plan has destroyed their credit. People who were told their credit scores would not be harmed are finding their scores have fallen by more than 100 points! So, if you are considering a mortgage modification of any kind, you need to be VERY clear on the impact that it might have on your overall credit score. Do not take someone’s word over the phone that your score will not be impacted!

You can read that article here: Mortage Resuce: Credit Score Killer

More on mortgage modifications and the current mortgage crises from around the web!

The Meltdown: Surviving Bankruptcy and Mortgage Loan Modification …

Read The Meltdown: Surviving Bankruptcy and Mortgage Loan Modification and other news posted by Denver citizens. Keep in touch with your neighborhood and the rest of the Denver Metro community at YourHub.com. … When the mortgage came due and the checking account wasSTILL empty, we wrote one of those checks thatMasterCard gives you to pay off other credit cards.We held our breath as we stuck the envelope in the mail. We knew it was not a good idea, but surely some …

Securitization Is Back! Investor-Owned Mortgages Have High Re …

Banks will push the Obama administration to expand its mortgage-modification program to allow interest-only periods on reworked loans, seeking to bring more homeowners into the. ….. I was simply suggesting that allowing the foreclosure to go through now will hasten a recovery, and a moratorium on dinging credit score would take the sting out of those losing their homes. And since they need to live somewhere, they can pay rent probably at a lower cash flow burden than …

Credit Impact on FiCO Scores – Loan Modification Forum – LoanSafe.org

I read this the other day and thought the foreclosure ding wasn’t that bad either but what kills your FICO is the foreclosure process. I had a 800+ FICO score when i stopped paying my mortgage (Feb. 09) and by May my AMEX with a 30k …

What is a Loan Modification and Who Qualifies for One? | Zillow …

Whether you call it a loan modification, mortgage modification, restructuring, or workout plan, it’s when a borrower — who is facing great financial hardship and is having difficulty making their mortgage payments — works with their lender to …… The problem with that for me was that I had to have money for a closing and my credit score was low because of late payments. For the loan modification I had to bring everything to the table again but this time there was …

Decided against a mortgage modification?  You may need a bad credit 2nd mortgage!

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Buying a House with Bad Credit

by Wendy Black Polisi on September 25, 2009

I get questions every day about the options people have when they are interested in buying a house with bad credit.

Are there still options?

Can you get into your dream home when you have less than perfect credit?

The truth is, your options are much more limited than they were just a year ago, and FAR more limited than they were before the mortgage market began its implosion.

(I can remember a time when if you had a pulse and a job you could get a mortgage!)

FHA loans are probably the best options for buying a home with bad credit in today’s market. Even with an FHA loan, the standards have tightened considerably.

You will now need a minimum of a 620 credit score. If you have filed Chapter 7 Bankruptcy, you will need to wait at least two years from the date of discharge to qualify for an FHA loan. If you filed Chapter 13, you will need to wait at least one year from the discharge date. If you have any late payments after your bankruptcy, you may be denied. If you have had a foreclosure, you will need to wait at least three years.  For the best results, you should find a bad credit mortgage broker to work with.  They will have the knowledge to help you get the best possible loan based on your situation.

These requirements show you that buying a home with bad credit isn’t as easy as it used to be! Your best course of action is to actively engage in credit repair and consider finding a rent to own home in the meantime!

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Establishing Credit When You Don’t Have Any!

September 11, 2009

Most people I talk to are interested in repairing their credit. Even people with good scores are now motivated to make them GREAT (i.e. 720+) due to tightened lending guidelines. While trying to repair damaged credit is certainly a challenge, there is something that can be even more difficult to overcome. What? NOT HAVING ANY [...]

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New FICO Model — Will it Help Your Score?

August 31, 2009

The new FICO 08 credit scoring model is out, and over 400 lenders are already using it. The credit scoring model was redesigned to give lenders a better idea of your credit risk. Will it help your score? Here are some key features: Collections under $100 will no longer hurt your score.  This means a [...]

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