Pennsylvania Real Estate Update

Myths The Credit Bureaus Want You To Believe

John Rainville — Sat, 16 Aug 2008 00:50:00 GMT

Myths The Credit Bureaus Want You To Believe

-By John Rainville

Myth No. 1 – It is easy to dispute a credit report. Consumer’s can resolve their own issues.

To be honest, it IS simple to challenge a credit report. However, as an everyday person, it’s amazingly difficult and frustrating to get results from the credit bureaus. Here’s why.

This is a little-known fact. More complaints to the Federal Trade Commission involve credit bureaus than any other type of company. The major credit bureaus have paid fines of $2.5 million over the years due to failure to respond properly to charges.

The main objective of credit bureaus is to protect their profits. They are NOT government agencies. They are for profit organizations. Anytime they have to investigate a consumer disputes it eats into those profits. Investigations take up time and energy too. The credit bureaus do everything in their power to make restoring your credit exceedingly difficult, short of sparking more massive lawsuits.

Attempting to restore your own credit means you must be willing to spend time learning about the process. This is why it is so difficult when you are inexperienced. It most cases you may be less effective than if you hired a professional. Realize that credit restoration will most likely take longer than you expected.

Myth No. 2 –A negative item that is successfully removed from your credit report will simply reappear again.

The reality is that a creditor has 30 days to verify a dispute. If the credit bureau has not heard from the creditor within that timeframe, they must delete the item from your report. Sometimes the bureaus will perform a soft delete. This is where they delete the item from your report but, will reinsert the item if they hear from the creditor within a week or two of the 30 days.

If this happens, the item can be disputed again. However, most of the time, once an item is deleted, it is gone for good. By using our preferred attorney’s, you can be sure your item will be disputed over and over again until it is removed. We have experienced a 96% success rate with this.

Myth No. 3 – Bankruptcies, foreclosures and tax liens can never be taken off your credit report.

Approached correctly, any negative listing can be removed. That is why it is best to work with a professional. They have the experience and know how to remove these items.

Myth No. 4 – The credit agency permits a 100-word paragraph to be entered on an account to explain the situation. Creditor’s take this statement into consideration when they’re weighing they’re options about extending credit.

This seems reasonable, but it’s not correct. When we talk about creditors, we’re talking about companies who are loaning money – for credit cards, mortgages, cars, department store credit cards. Very few of these companies will consider any information you submit in a paragraph explanation. The only items verified on the statement are the negative items on your report.

The first thing we want to delete from your credit file would be the 100-word explanation. In essence, the explanation is seen as an admission of guilt. It’s actually the last thing you want to do. It verifies that something happened. You don’t want to do that.

Myth No. 5 – Paying off a past-due account (like a collection account or a charge off) will change your account to a "paid" status and it will no longer reflect negatively.

It is nearly impossible to completely fix your credit unless you settle your unpaid debts. However, as strange as it may sound, paying off a debt can have a negative impact on your credit rating. Aside from bankruptcy, which can appear on your credit report for up to ten years, negative items may be kept on your report for up to seven years. The date of last activity starts the 7 or 10-year time period. Making a payment "resets" the clock because it is considered new activity. So if this item was two years old, when you make a payment on the collection, the two years are wiped away and you start at day one again. It appears to the credit scoring computer as an item that happened yesterday.

Anything that happened yesterday affects your credit score more than something from two years ago does. This will damage your report, as it looks like the credit bureau forced you to pay up. Since you can do more harm than good, even though your intentions are right, it is always best to work with a professional when trying to restore your credit.

Myth No. 6 – Some people believe that a poor credit report can be off-set by building new credit.

Even one negative item on your credit report can have serious negative consequences. In today's computer world, the decision to approve a new loan is rarely made by a human being. Your score is determined by a computer program. One negative item can send interest rates soaring.

You can have a small amount of negative credit a year or two ago. The last year or two has been great. A couple of those older accounts, regardless of how much good credit you now have, can cause you to be declined for additional credit, make you pay higher interest rates and waste thousands of your hard earned dollars.

Myth No. 7 – Credit bureaus are part of the government and are unquestionable.

The credit bureaus are in business to make an impression on their stockholders since they are publicly traded companies. They are NOT agencies of the government. In fact, the industry is one of the most heavily regulated. It has recently been revealed in a survey, by an independent group, that over 70% of all credit reports have an error on them. Due to the prevalence of mistakes, consumer protection legislation has been drawn up which allows the consumer the right to challenge the bureaus and force them to remove any incorrect data, information that is out-of-date or data that cannot be verified.

Myth No. 8 – It is against the law for creditors to remove a negative-listing on my credit record. Negative-listings are required by law to remain on the credit report for at least seven years.

When talking to collection agencies, credit grantors or the credit bureaus, keep in mind that you can expect to be given all kinds of quasi-legal drivel by people who are over worked and under trained. The law states that negative information must be removed after seven years. It sets a maximum, but not a minimum. The credit bureau can remove an item whenever it suits them.

Myth No. 9 – Many people share a belief that by getting a federal tax ID or altering a few numbers of their social security number, a new credit file will be created.

It's extremely difficult to create a new credit file by this scheming, not to mention illegal, activity. A lot of people do it, but a lot of people also get into big trouble for doing it. This is not something that you want to do.

It might have worked 10, 15 or 20 years ago. But because of all the computer linking systems now, giving fraudulent information on a credit report is nearly impossible to get away with, let alone the fact that it's a criminal offense.

It's in your best interest to hire adequate representation. Face the music and confront the credit bureaus, armed with the rights that Congress has granted you through the consumer protection laws.

Myth No. 10 – Credit counseling services can help you restore your credit.

Credit counseling services are agencies that are set up to help you renegotiate your credit cards and other debt. They put you on a budget and you make one payment to them. They in turn pay all the bills for you.

People who are in debt or who are trying to avoid going bankrupt can seek help from these nonprofit consumer credit counseling services. (CCCS’s) However, these companies are controlled and funded by the credit bureaus and the credit grantors, like the big credit card companies. They actually fund these agencies.

Your creditors will usually make a note on your credit report if you’re working with one of these consumer credit counseling services. Potential credit grantors are scared off by this almost as much as a Chapter 13 bankruptcy. Some of the worst credit reports out there have been participants in a credit counseling service or similar program.

John Rainville, Broker, Realtor, CSP, RECS, LTRS Certified - when you or one of your friends finds yourself needing real answers and real solutions to credit issues, you can confidentially contact him at 717-554-7430 or at john@brokersrealty.com.

Price Reduced on 317 Woodland Avenue in New Cumberland

John Rainville — Fri, 15 Aug 2008 11:36:00 GMT

New Cumberland, Cumberland County - Announcing a price reduction on 317 Woodland Avenue, a 2,560 sq. ft., 4 bath, 4 bdrm single story "Ranch". Now MLS® $329,900 - Reduced! Owner Says SELL!.

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Price Reduced on 299 Stevens Road in York Haven

John Rainville — Tue, 12 Aug 2008 19:24:00 GMT

York Haven, York County - Announcing a price reduction on 299 Stevens Road, a commercial. Now $399,900 - Reduced!.

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Can you get your credit "fixxed" so you can buy a home? YES! We can help...

John Rainville — Wed, 06 Aug 2008 19:27:00 GMT

WOW! Everyone seems to have problems on their credit report...mistakes, and other items that are just penalizing them and stopping them from buying a home!

We now have a solid way that works to get your credit report cleaned up and you on your way to getting the home or property you have always wanted.

Watch this short video to get more info: www.creditrepairproof.com

Or if you want to know "how" we're going to get it done: www.35minutevideo.com will explain more of the ins and outs of the process.

Questions? or want to get started now? Call me John Rainville 717-554-7430.

It will take more CASH after September to get in a home if using...

John Rainville — Tue, 05 Aug 2008 22:14:00 GMT

FHA financing changes go into effect the last day of September! The downpayment requirement will go from 3% to 3.5%.

AND the charity programs such as Nehemiah that let buyers get in with "100%" financing will be done also.

SO if you are looking to buy, do it now and make SURE you will be able to settle BEFORE the end of September or be prepared to come up with more money.

The way I see it you have 4 to 6 weeks to cash in on the current programs.

So what are you waiting for?

Call me at 717-554-7430 so we can start to get you in a home!

Open House in Freeland, PA on Sunday at the "Montana Log Home"!

John Rainville — Fri, 01 Aug 2008 16:44:00 GMT

Not In A Devlopment, Freeland - We invite everyone to visit our open house at 11 Veterans Road on August 3 from 1:00 AM to 3:00 AM.

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4 Day Work Weeks, Blue Laws and more...

John Rainville — Sun, 27 Jul 2008 15:24:00 GMT

Well, I've been watching the news (scary huh!), and hear that some school districts across the country are considering moving to a 4 day week to save bus fuel and reduce heating costs in the buildings. I think that is a GREAT idea! Let's DO IT!

If you're old enough and live in PA you may remember "back in the day" when stores, etc were closed on Sundays the old "Blue Laws". I think we need to bring that back. Can you imagine how much fuel we could save if NO ONE was running around on Sundays? What would it to to return the moral fiber to the country? t Wouldn't it help strenghten our families?

And what a GREAT country it would be---three day weekends and family time Sundays.

Anyone else?

Montana Log Home in PA? Say what?

John Rainville — Mon, 21 Jul 2008 21:14:00 GMT

• single story - MLS® $349,000 - $60,000 BELOW Appraisal!

Not in a Development, Freeland

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Do you have brusied, banged up, or totally messed up credit and want to buy a home?

John Rainville — Tue, 10 Jun 2008 14:02:00 GMT

Many of us anymore have credit that is not quite good enough now to get a mortgage, or at least not good enough to get the very best rate. Divorce, illnees, job loss, kids moving back in, bad luck and other life events may have marked up your credit and that can cost you literally thousands if not a million dollars in higher payments for interest on credit cards, car loans, mortgages, insurance premiums and more.

Common Myths about Credit Reports

Bankruptcies, foreclosures and tax liens can't be removed.
It's easy to dispute and resolve issues.
Negative items that are removed will just pop back on down the road.
Paying chargeoffs and collections accoutns won't impact your credit score.
If I write a good explanation it will offset the bad mark.
Credit Bureaus are gov't agencies.
A new social security number will start a new credit file.
New credit fixes poor credit.
Counseling can help restore your credit.
Negative credit can't be removed for 7 years.

We have now created an alliance with a firm that can help get your credit report cleaned up so you can buy a home. Collections, repossessions, charge offs, bankruptcy, medical bills, etc. can be worked to be removed from your credit to allow you to get your score up to buy a home.

If you are serious about buying a home, and willing to do what it takes, we may be able to help you.

E-mail me your name, phone number and best time to reach you if you want to discuss the process.

john@brokersrealty.com

Buy American

John Rainville — Sat, 31 May 2008 15:33:00 GMT

Well, I just filled up my car---OUCH! $3.89 a gallon!

Folks, I have to say, there has never been a better time for all of us to jump back on the "Buy American" campaign and shore up OUR economy BEFORE taking care of the world. We need to save ourselves so we can help other nations again in the future.

I know we borrowed money from China, etc. for our finaincial crisis...isn't that a crock of @#$% when so many nations still owe us billions of dollars? Why are we borrowing when maybe we should be collecting what is owed to us.

This finaincial crisis is not getting any better, it's "great" we have low rates for the few that can qualify to borrow it. I say bump the rates and open up the lending window again for average Americans. Let's crack the ass of the Credit Card companies and force them to reduce rates to 9.9% NOW and a maximum of 3 points over Prime from here on. No more usury, no more raping the public on late fees, overlimit, etc..

Let's start to only "bank" American too! No money to be deposited in foreign owned banks. And let's support Gas companies that use our oil and not the Saudis.

That's another thing...don't you think it's time we stopped protecting the Saudis, who admit to funding terrorism, and jack up the cost of everything the sand people need, LIKE FOOD, SPARE PARTS, etc..

We can all do our part and realize that energy conservation is not too save us money, it is a NATIONAL SECURITY issue now. Let's cut our usage, stop buying their products, enter a period of isolationism and save ourselves!

The Rebates are Coming!

John Rainville — Sun, 27 Apr 2008 20:59:00 GMT

Well, I heard on the news that 8 million people will get their rebates on Monday, Tuesday, Wednesday, None on Thursday and the rest on Friday!

Please think about how you will spend yours carefully. You may be able to buy a house with that money! We have a lender that has a special program for several counties in Pennsylvania where you only need 1% of your own money to get in a home of your own!

Think about it...a $1200 rebate could put you and your family in a $120,000 home of your very own if you qualify!

Isn't it worth checking out? E-mail me john@brokersrealty.com or better yet call me on my cell phone (717) 554-7430 for more details!

Price Reduced on 299 Stevens Road in York Haven

John Rainville — Wed, 23 Apr 2008 12:18:00 GMT

York Haven, York County - Announcing a price reduction on 299 Stevens Road, a commercial. Now $549,900 - Reduced!.

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27 Seats Remain for May 17th Pocono's Foreclosure Bus Tour

John Rainville — Sun, 13 Apr 2008 16:51:00 GMT

Note that this information is outdated.

WOW! Seats are going fast! We only opened up for reservations on April 12th and already 12 seats are reserved! Don't delay send in your reservation request and start the process to get your seat. Remember, we will be touring properties we have cherry picked from all that is out there to bring you some of the very best values and opportunites. And you will be on the bus with a team of professionals to educate and guide you.

YOUCHHH! Something has to give on the fuel costs!

John Rainville — Wed, 09 Apr 2008 21:38:00 GMT

I know we are all struggling with the gasoline prices, heating oil and propane are out of control as we all well know.

The first time I filled my propane tank around Thanksgiving it was about $700. Then in January I had a stroke when it cost $1200 to fill the tank. And if I thought that was "bad" I should have called the undertaker then!

Today we called to get a 1/2 a tank 250 gallons>>>>$987!!!

How does Washington think Americans are paying these energy costs? I've paid out $3000 for heating in 5 months. We used to do it for $1200 a year.

This summer, I guess I am going to need to seriously look into removing my propane fireplace and installing a coal stove in its place.

Thank YOU MOTHER NATURE for bringing SPRING!

But, for many I fear it may be too late. They have has to choose between gas to go to work, fuel to heat or creditors to pay.

I am starting to think that Washington just "Doesn't GET IT". ANY OF THE PARTIES.

We need to get someone in Washington to figure out a way to get relief to the people. And now I see they are calling for $4 a gallon gas by June....

Open House in Blue Mountain Lake Estates on Saturday

John Rainville — Tue, 25 Mar 2008 21:58:00 GMT

Blue Mountain Lake Estates, East Stroudsburg - We invite everyone to visit our open house at 453 Birch Terrace on March 29 from 1:00 AM to 3:00 AM.

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Price Reduced on 1225 Old Trail Rd in Newberry Township

John Rainville — Tue, 25 Mar 2008 21:53:00 GMT

Newberry Township, Etters - Announcing a price reduction on 1225 Old Trail Rd, a single story. Now $200,000 - Price REDUCED!.

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Colonial For Sale in Blue Mountain Lake Estates

John Rainville — Mon, 17 Mar 2008 23:24:00 GMT

Lots of R-O-O-M

• 3,214 sq. ft., 3 bath, 4 bdrm colonial "Stone Accents" - MLS® $399,900 - Gorgeous Home Awaits!

Blue Mountain Lake Estates, East Stroudsburg - This elegant colonial boasts the extras you deserve! Whirlppol tub and seperate shower in the master bath, stone faced fireplace, vaulted master bedroom ceiling, 9' first floor ceilings, daylight walkout basement with expansion possibilites, first floor laundry plus an office! And what a view from all the windows on the back side of the home and from the dining deck.

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How tough is it to buy a home in the current market?

John Rainville — Mon, 10 Mar 2008 00:45:00 GMT

Good question, prospective home buyer!

And the answer depends on so many things, but really focuses on:

Credit Score
Down Payment

Credit Scores, your "mid" score needs to be 620 or better. What is a "mid" score? Well there are three main Credit Information Repositories--Trans Union, Equifax, and Experian. So that means that 2 out of your 3 scored must be 620 or better. Make sense so far?

IF your scores are 620 or better than you may qualify for a mortgage with as little as 1% of your own money into the purchase, or possibly even 100% financing. However with the 100% programs the seller may be limited as to how much of your closing costs can be paid by them. It will vary fro, 3 to 6% of the loan amount.

OK, but John, my "mid" score is only 570, can I do anything? The answer is maybe. You may qualify for an FHA loan that is guaranteed by HUD and allows more lenient credit, HOWEVER you will need to have a minimum of 3% of your own money to put in the deal.

As your credit score falls, the amount of the down payment you will need rises. And so will things like Private Mortgage Insurance Rates, your Homeowners insurance rate, and the interest rate on the loan.

Veterans still have the option of using the VA Guaranteed Home Loan, where they in theory can get into a home with "no money". But that only happens IF the seller pays all their costs for them. Realistically, veterans will still need to have $1000 to $3000 in to most purchases at a minimum.

Everyones financing situation is different, and not all Lenders do all the types of loans. I strongly suggest that you sit down with an experienced Realtor so theu can reccomend several lenders that may be able to assist you.

And be prepeared to gather documents, and information for the Loan Officer. The quicker a Loan Officer gets accurate and complete information, the quicker they can get you a loan decision.

Right now, as a Buyer, you want to make your offer as strong as possible so you can negotiate a deal that works to get you in the home. Too many Buyers are thinking they can "beat the hell out of the seller", that too a point can be counter productive. Remember, at todays LOW rates that "extra" $500 you feel you need to beat the seller up over, is only going to "save" you ten cents a day.

My two cents worth is to be fair, you never know when you may need the old home owner to help you out donw the road with infromation on the house. And if you werre to tough to deal with when they sold you the home, they may not want to help you later.

If you are thinking about buying a home, business or commercial property, please call me.

John Ranville, Broker, Realtor, CSP, RECS, LTRS Certified

Personal Cell # 717-554-7430