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Articles Archive for March 2006

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[31 Mar 2006 | No Comment | 303 views]

With so much paper work, laws, rules, terms of service, fees and legal responsibility, it can get a little confusing and overwhelming as to what your rights are. The way mortgage brokers and lenders operate their businesses may be different, but there are certain guidelines that they must always follow. If not, legal action can be taken against them.
By understanding the legal application of mortgages, you can protect yourself from predatory lenders and cheating brokers. Unfortunately these people do exist. The more educated you are, the better. If you know your legal rights, you can immediately remove yourself from a situation that could end up harming you or your bank account.
When working with a mortgage broker, always request a disclosure that you have paid for a credit report, appraisal, or appraisal report. This way, the mortgage broker can transfer any report to another mortgage broker or lender with full documentation. …

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[31 Mar 2006 | No Comment | 269 views]

Getting back to normal after filing bankruptcy can’t come fast enough, especially when you own a home. Two years ago I began working with bankruptcy clients who wanted to take advantage of lower interest rates. I spent months working with banks and new wholesale lenders trying to find the best deals possible. I invested countless hours helping clients scrub their credit reports in hopes of raising their scores. With a little patience and allot of elbow grease I have been successful in helping clients ravaged by bankruptcy get a fresh start. I have found there are three main ingredients necessary for a client to get refinanced.
Good Pay History
The first ingredient is a good pay history since the discharge. Lenders look very closely at credit history following a bankruptcy discharge. If they see late pays on your current mortgage they will penalize you for it and in some case decline the …

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[31 Mar 2006 | No Comment | 290 views]

First, what is a home equity loan? Well a home-equity loan is a second lien against your home’s equity.
I always consider my home equity as a safety net for those difficult times, such as, a job loss or family illness. My rule of thumb for debt management has always been centered on how much equity I had in my house. I would never have my debt exceed my equity.
Now let’s get back to the question. Is a home equity loan a good idea? If you manage your money wisely home equity loans are a good idea but only if you spend the proceeds on items that are a necessity and carry a higher interest rate that the home equity loan. A good example would be home improvements or educational needs. These items usually are quite expensive and require long pay-off periods. By using your equity you will be able to …

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[31 Mar 2006 | No Comment | 258 views]

Someone looking to refinance his/her home mortgage is essentially applying for a secured loan that will replace the existing loan, in order to reduce monthly interest charges and pay off other sources of debt.
In general, homeowners refinance their home mortgage in order to take advantage of a lower interest rate, build equity at a more rapid pace, alter the conditions of the loan to work in their favor, and improve their credit rating. However, refinancing is not for everyone. Before applying, you should consider certain variables, including how long you plan on residing in your home, how many years are left on the outstanding mortgage, will you be able to pay for any additional fees, and will refinancing necessarily save you money.
As well, your financial eligibility is important if you wish to save money by refinancing. However, even those with poor credit are eligible for approval, but may have to …

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[31 Mar 2006 | No Comment | 259 views]

Secret #1
The biggest secret Lenders, or more specifically, mortgage companies don’t want you to know is that mortgage rates and fees are typically different with every lender. In other words, when it comes to mortgages, the rate and fees you pay can be different from one lender to the next, and all mortgage rates are somewhat negotiable. A mortgage – whether it’s a home purchase, a refinancing, or a home equity loan — is a product, just like a car or a boat, so the price and terms are typically negotiable.
The Secret most mortgage companies don’t want you to know is that they typically get paid a bigger commission the higher rate and fee they get you to pay. And the rates and fees at the same company can be different, depending on the level of sales sophistication of the loan officer on the phone. It is not atypical to …

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[31 Mar 2006 | No Comment | 238 views]

If you have a MBNA credit card in default or if you are receiving dunning letters or if you are you being sued by Wolpoff & Abramson, you may have a defense to the lawsuit and/or a claim against them.
Wolpoff & Abramson, LLP is a large national law firm of approximately 850 employees, in the practice of debt collection for large national retail and banking clients.
Since the National Arbitration Forum is a division and/or wholly owned subsidiary of Wolpoff & Abramson, any arbitration by the National Arbitration Forum is an absolute conflict of interest and can not be legally considered independent, neutral and impartial third party in arbitration. Any decision would be immediately be null and void under the federal arbitration act presuming there was an actual agreement between the parties to arbitrate a matter which there is none.
Consumer advocate and credit/debt expert Bud Hibbs has ranks Wolpoff as the …

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[31 Mar 2006 | No Comment | 241 views]

On a scale of 1 to 10, how would your rate your credit? How about a scale of 350-850? If you aren’t too sure, you might want to check into it. There are plenty of sites online where you can get a “free” copy of your credit report and credit score.
Did you know that scores below 640 are considered poor credit? If you are currently in this category, here’s a few tips that may help. If you have pulled yourself up from below 640, see if these tips are familiar. If not, they may actually help push your scores up more!
First, lets talk about time. Time is one of the greatest gifts you have in rebuilding your credit… so don’t waste it. By not doing something now, you only make the process longer! The longer you do the right things, the better your scores will get!
Second, if you have simply …

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[31 Mar 2006 | No Comment | 280 views]

Prepaid credit cards are new twists on the popularity of plastic money. The name says it all. They are cards that function just like credit cards in nearly all aspects, but you have to pay the spending limit upfront. It’s like a prepaid phone card you can use to buy anything at all.
There are a lot of benefits to a prepaid credit card, as well as many different applications for the technology. The most obvious benefit is that you can’t go over your limit. There is no such thing as over drafting from an account. When the account is empty, you simply cannot use the card. You have to refill it before any more purchases can be made. This is very good for people who have poor credit history or impulsive spending habits. It can help people avoid debt and be a good first step in rebuilding a low credit …

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[31 Mar 2006 | No Comment | 230 views]

What’s this new VantageScore credit score?
The three major credit bureaus Experian, Equifax and TransUnion introduced the VantageScore in March 2006 to compete and replace the current FICO score system.
VantageScore has one big thing going for it: It’s easy for consumers to understand. VantageScore scores are on a scale of 501 to 990. If your score is in the 900s, you have the credit equivalent of an A and you’ll get favorable interest rates. If your score is in the 800s, that’s the credit equivalent of a B, with slightly less-favorable rates.
The credit bureaus say they’ve introduced this new system so that the scores being reported to credit grantors are consistent and easier to interpret.
But some observers say that the new scoring model won’t change the biggest problem consumers face when it comes to credit scoring — inaccurate or incomplete data in their individual reports
To understand what that means, you need …

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[31 Mar 2006 | No Comment | 279 views]

The credit card industry is a competitive one; all you have to do to see that is open your mailbox. For many consumers, pre-approved credit card applications can be found every week in the mail, often accompanied by offers to let you transfer an existing balance from another credit card at a low interest rate. Sometimes these rates, known as “teaser” rates, can run as low as 0%, which can make applying for one of these cards rather tempting. Be careful, though. The fine print in the terms of agreement on those cards could hide some very expensive surprises.
Here are some things to watch out for in the fine print when you apply for a card with a low-interest introductory offer:
 
Default rate – How high can the interest rate go if you fail to make a payment on time? This is known as the “default rate.” If you pay late, …