Top 5 Myths on Credit and the Correct Answers!

I wanted to continue with the Top Five Myths in the Top Ten series that I will be blogging about to inform both customers and my colleagues about to help dispel some of the myths about credit. Improving and making the best of your credit rating has become increasingly important with the tighter lending standards. Don't let these obstacles get in the way of a home purchase!

Myth # 5 - The credit bureau allows me to submit a 100-word explanation as to my side of the story. Creditors will read my statement and take it into consideration.

No known creditors consider the information submitted in you're statement. This statement only verifies some of the negative items on your report. The 100-word explanation should be the first thing deleted from your credit file.

Myth # 4 - Disputing a credit report is easy. Any consumer can do it themselves???

Disputing a credit report is easy. Getting results from the credit bureaus as a layperson is amazingly difficult, complex, and infuriating. The Federal Trade Commission receives more complaints against credit bureaus than any other type of business. In February 2000 the 3 major credit bureaus paid a fine of $2.5 million dollars for ignoring consumers requesting information regarding their file. Remember the credit bureaus are primarily interested in protecting their profits. Investigating consumer disputes consumes these profits. Short of sparking a mass number of lawsuits, the bureaus do everything in their power to impede your progress with credit restoration. Restoring your own credit is like repairing your own transmission or representing your self in court; it is possible, but you have to be willing to invest the time to learn the processes, assume the risks of your inexperience and realize that it will probably take you longer and you probably will be less effective then the correct professional.

Myth # 3 - There are items such as bankruptcies, foreclosures, and tax liens that are impossible to remove from the credit report.

There is no type of negative listing that has not been removed from a credit report - thousands of times.

Myth # 2 - If a negative item is successfully deleted from my credit report, it will just come right back on my report.

The credit bureaus have cleverly spread this myth through the news media and government agencies. In truth, the credit bureaus will often temporarily delete a negative listing if they have not heard from the credit grantor for 30 days since an item has been disputed. Should the credit grantor submit verification a week or two later, it will be re-inserted. (This is called a soft delete.) Most of the time the creditor simply fails to respond and the negative item is permanently deleted. If the creditor verifies the item the account may still be deleted later in the process as the challenging process is intensified.

Myth # 1 - When I pay off a past-due account, such as a charge off or a collection account, it will show "paid" and no longer be negative.

It is difficult to fully restore your credit without paying your outstanding debts. However, paying off a debt can actually hurt your credit. Negative items on your credit report are allowed to stay on your credit report for a maximum of seven (7) years, except for bankruptcy that can stay for up to ten (10) years. This 7 or 10-year clock begins ticking at the date of last activity. Making a payment represents new activity and restarts the clock. When paying an outstanding debt, you will change the account status to paid collection, paid charge-off, satisfied judgment, or paid ‘was x days late". This is still considered very negative and appears as though you had to be strong-armed by the credit bureau to pay the account. It is almost always prudent to have a professional help so as to not further damage your credit by trying to do the right thing.

Garren Grup, REALTOR®, GRI...

Noteworthy Results in Naples, Bonita Springs, Estero & Fort Myers!

A New Saturday Farmers Market on Goodlette Rd, just north of Pine Ridge Rd is set to begin November 1st!

Other Farmers Markets currently operate in Old Naples, off 3rd Street behind Tommy Bahamas Restaurant and another in Bonita Springs at the elementary school on Terry Street, just east of US 41 by Bonita Bay. 

The addition of this new Farmers Market will, like the others, only be held on Saturday and offer a nice addition to area residence in central Naples. 

 The Farmers Market will run from November 1st - April 29th from 8AM to 12PM.

Location: North Naples United Methodist Church
6000 Goodlette Rd.
Naples, FL 34109

 To learn more about the Farmer's Market or obtain a vendor's application, visit www.NorthGoodletteFarmersMarket.com to download an application or contact Merida Hines-Tyler at 249-9480

 Garren Grup, REALTOR®, GRI...

Noteworthy Results in Naples, Bonita Springs, Estero & Fort Myers!

A news piece on NBC Nightly News that ran this week emphasized the incredible values that can be found in Fort Myers, Bonita Springs & Estero for buyers that have the means to purchase and are looking for great deals(video link below).  Sales are up 80% in Lee County! In addition to that report, the market report below shows the same trend in the Naples area as well as the historical numbers and the comments that provide some clarification for those that tend to glaze over when they see all the figures.

I believe the comments on the report speak for themselves.  The market continues to increase over prior year month.  There is good reason to expect that this will continue despite the economic turmoil.  In fact, we are already beginning to see investors and users viewing real estate as a sound investment for these uncertain times.  With prices substantially off their 2005 - 2006 highs, many opportunities await the astute buyer.

***Trouble viewing? ...See the PDF Report

See my review of the news piece at http://naplesbeachfronthomes.activerain.com/   

See the NBC Video piece Here

Garren Grup, REALTOR®, GRI...

Noteworthy Results in Naples, Bonita Springs, Estero & Fort Myers!

*Use the links above to view listings in a specific city or create your own search Here.*

Affordable homes are again available and nearly everything is selling!

I've been reporting for months that there are great values to be had here in many of Florida's most sought after locations... Naples, Bonita Springs, Estero and Fort Myers. Not just good or even great values but truly spectacular home buying opportunities!

What led me to this conclusion is the fact that many, if not most properties are below replacement cost. Even if you could find a comparable location in terms of proximity to the beach, Fort Myers International Airport (RSW), shopping, dining and access to the gorgeous rivers, estuaries and bays that lead out to the warm waters of the Gulf of Mexico the cost to duplicate these properties would be significantly higher than both the current list price and eventual sales price!

This evening on NBC Nightly News with Brian Williams they aired a piece by Michelle Kosinski appropriately titled "Reversal of Fortune". Michelle, in looking at some of the prices wondered if the prices she was seeing were typos? That's exactly what everyone thought 3 years ago... for the exact opposite reason! Three years ago the demand in the market was so red hot that it drove prices well beyond the affordability of even above average buyers that were purchasing for the long term or as a second(winter or vacation) home.

View the video "The Flip side of Foreclosures, Affordable Homes" at the link Here.

See the current, historical and sales numbers by price point... Here (for August) or come back for a future link to our September numbers which I will be posting shortly.

September Market Report - Updated... Here

*Use the links below to view listings in a specific city or create your own Here.*

Garren Grup, REALTOR®, GRI...

Noteworthy Results in Naples, Bonita Springs, Estero & Fort Myers!