Roger Herrick

Do Credit Repair Companies Actually Work?

Professional credit repair companies do not advertise on the freeway off-ramps.

Look for a company from a referral or one that is worthy of your referral. It's an amazing feeling to be able to finance a car or home, be approved for a credit card or even be able to apply for a job without worrying about your credit rating. With a good credit rating, you can finance items with a lower interest rate and a payment that your family can afford.

The Fair Credit Reporting Act gives you the legal rights. Utilizes a company state-of-the-art computer technology so that you keep up and view your progress. Find a company has a tracking system that will not allow anything to "slip through the cracks." You need to find a company with extensive computer backed knowledge of the Fair Credit Reporting Act and the Fair Debt Collections Practice Act. Use a firm that has many years of experience and time proven letter writing, forms and Lawful Notices. A good service can remove inaccurate negative, unverifiable and incomplete information from your credit reports with all three major credit reporting agencies.

This includes removing: Bankruptcies, Foreclosures, Tax Liens, Civil Liens, Student Loans, Judgments, Repossessions, Charge Offs, Medical Bills, Slow Pays, Inquiries, Old Information and Late Payments.

The credit bureaus will tell you that it is easier and less expensive to do it yourself. While it may be true that you have the right to repair your credit yourself, many individuals do not have the time, experience and organizational savvy necessary to deal with bureaucracies. You must also spend hours of study to gain a working knowledge of the consumer laws available to you. Many who start repairing their credit turn to a credit repair company after months of work.

Once you begin it is a work in progress and you must be committed to sending your updates as you get them. You want to work with a company that keeps in touch with you and you can monitor your progress of the phone and on your computer. Continious customer service is necessary for any professional company. Look for a referral based company and expect your counselor to be proactive and professional.

After utilizing a solid credit restoration service, many clients have been able to buy a new home, a new car, adopt a baby or just meet the credit needs of their family. Your good credit in todays world is right up there next to food. Many more transactions today are being denied because of credit issues. Take your credit profile seriously.

Now, here is the pitch. www.4cmax.com TRW Credit Group has helped thousands of people restore their credit and raise their credit Score. There are companies out there that guarantee results, but they do not care about you or your credit situation. If you don't send your reports back to them, they don't care because they already have your money. We stay in contact with you to make sure you are sending your credit reports to us so we can continue disputing the information. We charge a one-time fee for our complete service. There are no ongoing fees and we will refund your money if we don't improve your credit profile!!!

Pitfalls & Solutions

As a homeowner considering a short sale, it is important you understand the process. Following are some of the most common mistakes agents and homeowners make when handling a short sale. Remember 100% of the agents will tell you they understand the process and may have taken a class on the subject. 10% actually do the work and close those most difficult transactions. 86% of short sale listings become foreclosures. Do not be a statistic. Call me to discuss your specific situation.

Pitfall: The Buyer's Contract is Not Strong Enough
Especially in our current economic climate, willingness to make an offer on a property does not mean that a buyer is truly qualified to purchase. The reality is that buyers need to be preapproved for financing, closing funds must be verified, and their ability to buy needs to be confirmed.

Solution: An Agent Familiar with Qualifying Buyers
Your agent should be familiar with what must be verified in order to qualify a buyer to submit an offer on your property. Otherwise, these offers may have little chance of closing. Don't risk this process with an uneducated agent who does not appreciate this aspect of short sales

Pitfall: The Buyer's Offer is Too Low
Many agents will encourage you to submit any offer that comes in. The reality is that a short sale is not the same as a fire sale. In order to have a legitimate chance of getting your deal approved, you must have an offer that is more attractive to the lender than a foreclosure

Solution: Proper Negotiation
The right agent will work with you to properly negotiate any offer that you receive to get the ‘highest and best' from each potential buyer. This ensures you are presenting the best possible solution to your lender.

Pitfall: Your Deal is Not Submitted Properly
If you do not follow the directions you receive for submission, then you are expecting an over-worked, under-staffed department to go out of their way to handle your file. There is very little likelihood of this situation working out in your favor.

Solution: Follow Instructions Closely
If you are instructed to fax your file, fax it and send a backup copy in the mail. If you are instructed to mail two copies, mail two copies. When you reach the point of having a contract, all your information, and a completed proposal, you do not want your deal to fall apart because no one sees it.

Pitfall: There Isn't Enough Time
It is critical that your agent understands the foreclosure laws in your area. They should be able to show you an estimated timeline for the process, from start to closing. In addition, they should know how to communicate with your lender. Certain information can be provided to lenders to postpone your foreclosure for weeks or months in order to negotiate a sale.

Solution: Provide Accurate and Useful Information
Make sure you provide your agent accurate information as to exactly how many payments you have missed and any correspondence you have received from your lender. This will allow your agent to understand your situation and work to improve it.

Pitfall: There has been Inadequate Follow-up and Communication
As your property goes through each stage of the short sale process, an agent can jeopardize the transaction by not properly communicating with everyone involved. As the homeowner, you may not know that your file has been delayed, and that you again may run out of time to close and avoid foreclosure.

Solution: Select an Agent With Experience
The right agent knows exactly how to follow up to ensure that your lender's issues are addressed in a timely manner, and will make certain you do not have unnecessary delays.

Pitfall: Your Short Sale Proposal is Incomplete
This is one of the most frequently seen causes for the rejection of short sales proposals. Most agents do not understand the short sale process and what your lender will be looking for

Solution: Understand All Aspects of the Process
Your agent should understand the short sale process in detail and be able to explain it clearly. The agent should also be able to communicate effectively with both you and lenders to produce a complete and cohesive proposal.

Pitfall: Your Property is Priced Incorrectly
This is the most common mistake made with all properties, and the most common reason a property doesn't sell.

Solution: Agent Providing Understanding and Transparency Your real estate agent will go through a detailed listing price strategy with you, allowing you to see exactly where your property should be priced based on its current condition, sales in your area, and most importantly, how much time you have left to sell.

In conclusion, While these pitfalls may seem troublesome, the right agent can help you navigate your way to a successful closing. Don't endanger your financial future and the potential sale of your home with an agent who does not fully understand the process. Contact me to discuss your specific situation at no charge. Real experience is what this process requires. We understand what you are going through, and are here to serve and help save your family's interests. Remember, 100% of agents will tell you they know everything to know about this process. Reality is that unless you are engaged daily in this process that is the only way to know what is happening regarding these tricky real estate transactions. Mitigations are not traditional real estate sales and there are few real "experts".

Short Sale Myths

A short sale can be an excellent solution for homeowners who must sell and owe more on their homes than they are worth. Unfortunately, a number of myths about short sales have developed, and it is important to understand the reality of this process should you find it meets your current needs.

Myth #1 - The Bank Would Rather Foreclose than Bother with a Short Sale

This is one of the most common misconceptions. The reality is that banks do not want to foreclose on your property because the foreclosure process is incredibly costly. Banks, investors, and even the federal government have all publicly stated that if a person is qualified for a short sale, the deal needs to be considered. Overwhelmingly, banks receive more on their investment through a short sale than a foreclosure.

The qualifications for a short sale include:

1. Financial Hardship - There is a situation causing you to have trouble affording your mortgage.
2. Monthly Income Shortfall - "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
3. Insolvency - The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

Myth #2 - You Must Be Behind on Your Mortgage to Negotiate a Short Sale

While this may have previously been the case, today lenders are looking for verifiable hardship, monthly cash flow shortfall, or pending shortfall and insolvency.

If you meet these three requirements and believe that you soon may be unable to afford your mortgage, act immediately. Any delay could limit your options. Do not wait until the countdown clock to foreclosure has started and you have even less time left.

Myth #3 - There is Not Enough Time to Negotiate a Short Sale Before My Foreclosure

This is a myth that probably hurts homeowners the most. Many do not realize that foreclosure is a process, and that there is time to make decisions that may result in better outcomes.

The foreclosing party-in most cases a lender-can stall a foreclosure up to the final day of the process. Today, many lenders will stall a foreclosure with as little as a phone call from you explaining that you are trying to sell, and almost all lenders will stall a foreclosure with a legitimate contract. For real estate professionals who understand foreclosures and short sales, there is time available until the foreclosure process is complete.

Myth #4 - Listing My Home as a Short Sale is an Embarrassment

It is understandable to have reservations about letting the world know that you owe more on your home than it is worth. However, according to recent estimates, one out of five homeowners in the U.S. is in the same situation. You are to be congratulated for admitting you need help, taking action, and finding a professional who can work with you toward a solution.

With recent estimates showing 40-60% of U.S. sales will be short sales or foreclosures, you are not alone.

Myth #5 - Short Sales are Impossible and Never Get Approved

This is a complete falsehood. Are short sales more difficult to execute? Yes. Do you, as a homeowner, need to learn about a new process? Yes. Are they impossible? Absolutely not.

For example, agents with the Certified Distressed Property Expert® (CDPE) Designation receive thousands of short sale approvals on a monthly basis. These professionals have undergone extensive training in methods to help homeowners in distress and process short sales. While there are no guarantees in any transaction, more and more short sales are being approved regularly. This is far from an impossible process.

Myth #6 - Banks are Waiting on a Bailout and Not Accepting Short Sales

You may have heard this, but the reality is that banks (and the U.S. government) are trying to do anything they can, within reason, to avoid foreclosing on properties. It is preposterous to believe they would deny a short sale in hopes that some future legislation would pass and pay them for losses.

Today, more banks are aggressively pursuing short sales and working with agents who understand how to process them. Freddie Mac recently hosted a national training Webinar for real estate agents where they expressly stated the organizational goal of "eliminating distressed assets through modification or short sale."

Myth #7 - Buyers are Not Interested in Short Sale Properties

This is a myth that potential sellers hear all the time. Thankfully, this is just not true. In fact, many agents are getting calls from buyers who say they only want to look at foreclosure and short sales.

For buyers, short sales and foreclosures have become synonymous with "good deals." More specifically, international buyers are targeting these properties. Listing with an experienced agent who is educated in the short sale process will provide you with a great chance of quickly seeing a contract on your property.

In conclusion, While these pitfalls may seem troublesome, the right agent can help you navigate your way to a successful closing. Don't endanger your financial future and the potential sale of your home with an agent who does not fully understand the process. Contact me to discuss your specific situation at no charge. Real experience is what this process requires. We understand what you are going through, and are here to serve and help save your family's interests. Remember, 100% of agents will tell you they know everything to know about this process. Reality is that unless you are engaged daily in this process that is the only way to know what is happening regarding these tricky real estate transactions. Mitigations are not traditional real estate sales and there are few real "experts".

Mortgage Market Report for Friday February 8, 2008

Yesterdays sell off in bonds was prompted by Dallas Fed President Richard "Loose Lips" Fisher. Blurting out comments that were off topic and upset the financial markets as his rambling went along. He was the lone dissenter in the last fed rate cut. This had a very negative effect on the market and prompted a sudden sell off.

The Senate approved an amended version of the Economic Stimulus Plan. It will go back to the House of Representatives for approval again. It is expected that the President will sign this Stimulus plan on February 16^th.

Loans originated between July 1, 2007 and December 31, 2008 may be purchased by Fannie and Freddie, as long as the loan amount does not exceed the higher of $417,000 OR 125% of what HUD determines to be the area median home price, with a maximum cap of $729,750. This will allow some loan amounts higher than $417,000 to have significantly better pricing, at least for a limited time frame.

We recommend to cautiously float your rate for now as many of the comments from Fisher seem to be overblown.

Thank you for listening to http://www.ContactHerrick.com/ We will have another report for you, your family, your friends and your important business contacts tomorrow.

Another quote from Confucius

"Study the past if you would define the future."

Roger Herrick

California Mortgage Broker

www.ContactHerrick.com

Mortgage Market Report for Thursday February 7^th, 2008

Initial Jobless Claims reports were released today higher than expectations. This shows that job growth and the economy are slowing. This is no surprise to anyone.

Dennis Lockhart and Richard Fisher Fed Presidents are scheduled to speak later today and their comments may have a large effect on the markets.

The debate continues in the Senate regarding additional initiatives that for the stimulus package. It was voted to be further amended by a very narrow vote. There were also speaches given regarding the at the American Securitization Forum yesterday.

http://www.federalreserve.gov/newsevents/speech/kroszner20080204a.htm#f6

Daniel Mudd, Fannie's CEO was quoted. "Our business is meeting the increased demand for liquidity and our overall credit book has held up relatively well," he said. "Yes, these are tough times, but that is when you want a Fannie Mae."

The market is again volatile on a day to day basis.

Thank you for listening to http://www.contactherrick.com/ We will have another report for you, your family, your friends and your important business contacts tomorrow.

A quote for Confucius

"Everything has its beauty but not everyone sees it."

Roger Herrick

California Mortgage Broker

www.ContactHerrick.com