With tighter restrictions on loan approvals and credit scores becoming an integral part of qualification, many consumers find themselves in a panic due to circumstances that seem to be out of their control.
Recently we were hired by a consumer who had an excellent Fico score of 780 just a month earlier. He was negotiating on a purchase of a second home and was just about ready to apply for a loan. Since he needed to travel for business and was very concerned about his credit, he decided to have all of his bills paid automatically online to insure that his credit would be protected. Unfortunately, he did not realize during the set up with BOA that the transaction did not thoroughly process. His good intentions backfired and when his banker pulled his credit report three weeks later, it indicated a late payment on the BOA mortgage of his primary residence thereby dropping his score down to a 670. Since his scores were very high, the late payment prompted an extreme score drop (the higher the score, the more of a drop with new late payments). With a 680 score, he now could not even get an approval for the loan. The client and his wife had spent a long time searching for the property and knew it was a wonderful deal. Needless to say, they were highly emotional and disappointed with the news.
Luckily, the banker advised him to get current on the payment and to call us immediately before contacting the creditor direct. We were hired within the day and within a week were able to negotiate the late payment off the credit profile. This resulted in a very positive outcome to a difficult situation…but things don’t always turn out that way.
Many consumers try to deal directly with the creditor without fully understanding the law and how to handle the creditor. Some even give creditor’s information that solidifies the negative information staying on the credit. It is essential to speak to a professional before jumping to react.
Call us for advice or a credit analysis “Great Credit Brings Great Opportunity”
(Source: northshoreadvisory.com)
Ed bought an apartment in a popular city 5 years ago when he was earning $350,000 a year in the finance industry. His property decreased substantially and so did his salary. Although the bank was willing to approve the short sale his credit scores were already lowered due to high debt on credit cards and a late payment. His current score is a 680 and if he follows through with the short sale his credit score will drop between a 575-595. It will take 3 years to recover without credit restoration. He is planning on applying for a new position in the banking industry within a year and he knows his credit can be a factor in his ability to get the job and earn more money. Ed decided to ask his parents for help and opt out of going down the short sale road.
As you can see moving forward with a short sale must be approached with thought and strategy keeping in mind future plans and credit score sacrifices. Although all consumers want to protect their scores it is clear that if you can’t pay your bills, put food on the table, and you are up all night worrying sacrificing your credit is a small price to pay since credit is never terminal. As time goes by and delinquencies age credit scores will improve. We at North Shore Advisory, Inc. can always help with great advice and excellent credit restoration services. Feel free to call us whenever you need our help or feedback.
“Great Credit Brings Great Opportunity”
Many consumers and foreigners are unable to get a loan due to lack of credit. A consumer may have a great income and has never been late on any payments but can very well be denied credit. What has been your experience?
There are laws that can help a consumer force the bank to use alternative credit once rejected. Read more by following the link. Tracy Becker talks about the laws and rights of mortgage applicants.
(Source: northshoreadvisory.com)
