When is Bankruptcy the Answer?

Filing for bankruptcy becomes a viable option when an individual’s cash flow is “upside down” with no reversal in sight. But before proceeding, it’s important to first look at the structure of one’s assets and liabilities. For many homeowners, an experienced and qualified mortgage professional may be able to help them restructure debt and avoid bankruptcy altogether.

If this isn’t possible, then it’s critical not to let negative cash flow go on for too long. Instead, quickly seek references for a reputable bankruptcy attorney and a credit counselor. One of the worst mistakes consumers make is to borrow more money in an attempt to pay off debts.

When declaring bankruptcy, it is important to be very accurate and honest in one’s filing, especially when it comes to any recent changes in income. Remember, a bankruptcy hearing is a federal proceeding, complete with courts, judges, and representatives who coordinate with the Department of Justice, the FBI, and the IRS.

During the proceeding, homeowners should develop a budget and try to live below their means. They should use this time to save cash as well as examine the causes of their bankruptcy. Also, they should keep organized, saving all their paperwork and taking note of their discharge date. Having this information on hand will prove extremely useful in the future.

Once the bankruptcy is final, it’s time to begin rebuilding credit. Secured credit cards are an excellent place to start. This is also a good time to hire a reputable credit repair specialist who can offer advice regarding the best ways to re-establish credit. There is definitely life (and credit) after bankruptcy. The trick is to get the help and advice you need from professionals you trust.

Ways to improve credit score

With identity theft on the rise, consumers are becoming increasingly aware of the importance of reviewing their credit reports. However, their thoughts about credit and its long-term impact upon their financial future typically end there until it’s time to apply for a home loan. A credit score is used to evaluate how likely a borrower is to repay their loan. There are several actions a person can take to impact their score. Here are a few to keep in mind.

If someone has a credit card which has a high balance, while their remaining credit cards have low or zero balances, it’s best to distribute the debt across the cards in order to change the ratio of debt to available credit.

Many consumers believe that they should close an existing credit card account if the card is inactive. It’s better to keep the account open and use it periodically in order to take advantage of its contribution to their long-term credit history.

With the flood of credit card offers that come in the mail, it may be tempting to open new accounts. However, these “pre-approved” offers are not approved until the companies run a credit report which will temporarily impact the applicant’s credit score. In addition, experts recommend that a person maintain between two to five credit card accounts, total, so it’s best to avoid accumulating too many.

There are several factors that contribute to a credit score. But by observing the tips above, as well as making payments on time and keeping balances as low as possible, a consumer is sure to achieve superior results

Check your credit 2X a year

I recommend checking your credit at least twice a year so you know who is reporting what.  I had a client in yesterday that knew her credit changed due to a medical collection; but didn’t know by how much.  Well that wasn’t the only thing that changed, she had a car loan that she traded in and the dealer didn’t pay off the loan in a timely manner.  It marked as a 30 day late.  With those two incidences her score went down over 80 points.  We quickly called the car loan company and explained the situation and the late was removed.  We went one step further that is a must…. Get a letter stating what the company is doing, in this case removing the 30 day late.  We then negotiated the medical collection to 50 cents on the dollar.  Her score went up 60 points overnight.  That could have taken 6 months and she could have spent thousands of dollar but this is a free service we offer.  To get your free credit report log on to www.BuyorRefi.biz  We’ll give you a free report and go over the myths and facts of credit reporting.  Or call us directly at 1-800-517-2311 Ext 2 for your confidential report.

Cheapist credit repair and banks numbers(ouch)

When someone pays for credit repair it’s usually a eye opener for that person.  Since that magical number is so important, it’s mandatory to keep your score as high as possible.  Not only are home loans basd on your fico score but also your insurance rates, security clearance in the military, and often times job placement.  I work with a company that guarentees your report will be fixed in 6 months or your money back.  THAT’S STRONG.  One client of mine went up 102 points.  I was impressed and had to give them a Booya. 

 

On a less pleasant note bank stocks got hammered yesterday after Freddie and Fannie, the nations largest mortgage holders, reported huge losses.  In fact it’s creeping out most investors.  Check out these numbers thanks to Rob Chrisman……

Bank stocks got hammered as investors and analysts worried that worsening housing and credit problems could claim more banks after the failure of IndyMac. Suntrust, National City, Zions Bancorp, WashingtonMutual, Sovereign Bancorp, and KeyCorp grabbed the headlines. Trading in National Cityshares was briefly halted Monday amid a panic-driven plunge before the company tried to quell what it called market rumors, and fell 25%. WaMu shares were also down over 25% in one day. M&T Bank Corp., of Buffalo, N.Y., shares fell 16% yesterday. SunTrust sank 8.6% Monday, and is down 55% this year.

Many banks are down 75% just on the year.  Good time to buy or run?  Only time will tell.

Credit Repair Needed More

With all the hype of guidlines changing and FHA of all loans going to credit based,  that number is becoming so important.  It is said that 32% of people have an error on their credit report and that can relate to not only higher monthly payments on your mortgage but also higher payments on your insurance.  That’s right, insurance has gone to credit base also.  Many folks seem to think if they just pay and close those accounts that score will be great.  This is simply not true.  When an account is closed the bureaus don’t have an opportunity to score us.   If ever needed a free credit report WITH THE NUMBERS,  please just call or log on to www.BuyorRefi.biz