Posts Tagged Foreclosure
A New Horizon Credit Counseling Reports Mortgage Modification Chances Double with Foreclosure Counseling
Posted by admin in Consumer Credit Report on January 9, 2012
A New Horizon Credit Counseling Reports Mortgage Modification Chances Double with Foreclosure Counseling
Fort Lauderdale, FL (PRWEB) January 03, 2012
National Foreclosure Mitigation Counseling (NFMC) in a report issued by NeighborWorks America reported that homeowners who received NFMC counseling were nearly twice as likely to obtain a mortgage modification. Those homeowners also received a new payment that averaged $ 176 lower than before. Even more important, the report found that 67 percent of the homeowners were more likely to remain current on their mortgage nine months after receiving the modification states A New Horizon Credit Counseling Services, a nonprofit credit counseling organization that has been helping consumers since 1978.
Stephen Marcus, President of A New Horizon Credit Counseling Services said, “The program also provides the homeowners with more long-term sustainability. Not because of the payment reduction, but because of the financial counseling that is a part of foreclosure prevention and helping homeowners improve their financial management skills”.
The study was conducted to compare the counseling provided by NFMC with mortgage modification applications from individuals without assistance.
A New Horizon provides credit counseling, financial education and debt management assistance for distressed consumers. “A well planned debt management program, in conjunction with proper financial skill training and assistance through a mortgage modification is a powerful solution to the anguish caused by foreclosure,” added Marcus.
If a homeowner is faced with difficulty paying their mortgage, experts advise that they don’t avoid the problem, instead take action immediately. The further behind you fall on your mortgage payments, the more difficult it is to cure the defaults and the more likely you are to lose the home. Contact your lender who can suggest options to help the borrower and be prepared to explain your financial hardship. Consult with a Certified Credit Counselor at a reputable credit counseling organization and consider a debt management plan to assist with your other finances.
A New Horizon Credit Counseling Services is a nonprofit debt consolidation organization that has been helping consumers since 1978. For more information about their programs, contact 1-800-556-1548.
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A foreclosure on a credit score: How much credit report damage it causes?
Posted by admin in Consumer Credit Report on May 1, 2011
A foreclosure on a credit score: How much credit report damage it causes?
Delray Beach, FL (Business Wire) 21 October 2010
NationalCreditReport.com, a leader in the credit report, credit score and assigning monitoring services, advises consumers who have a favorable credit history tin help a consumer buy good interest rates for loans, but credit Report burning resulting from a foreclosure sale can last for several years when they may think.
“We have said that going housing and credit scores go hand in hand,” said Samuel S. Ambrose, Vice President of Marketing and Operations of NationalCreditReport.com. “When a bank forecloses on a home, it is noted in the homeowner credit file. This negative mark will stay there for several years and make it difficult to ensure the homeowner to other loans or credit lines.”
could ask also: “How long does a foreclosure stay on my credit report?” Foreclosure can remain on a credit report for seven to 10 years. Partitioning of the influence a credit score is credit report damages, even if the consumer starts with a richly score. Essentially, a foreclosure takes place when a bank through the process of adjustment of the mortgage and re-acquisition of property of a borrower who goes on unpaid debts. Usually missed out payments to creditors and lenders to damage credit report. In the case of something as bad as a foreclosure, the credit report is especially threatening damage.
Unfortunately, many of those who are forced into foreclosure must now rent a place to live and isolation can influence the impact a credit score, whether they are in a position to a rental property can be obtained. Often, the potential landlords want a credit report review to assess with the tenant’s consent if they make timely payments in the past.
for many is foreclosure’s impact on their ascribe score to keep them for at least seven years. When the time come to be removed for the isolation of a credit registering, the credit reporting agencies to report even higher. Consumers should start the process of getting the foreclosure of their ascribing file by writing letters to the credit describing agencies that reporting it will be withdraw.
About NationalCreditReport.com
Since 2004 NationalCreditReport.com specializes in providing assigning information and credit monitoring services for consumers so that they understand their credit account and score. NationalCreditReport.com encourages consumers to check their credit report regularly.
Contact:
Allison Tomek
NationalCreditReport.com
561-805-8000
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Things You Should Know About Your Credit Report
When applying for credit or taking out a loan, the first thing that your creditor will do is to check your credit report. Based on your credit report, a lender can either grant you an approval or reject your application. For this reason, everyone is advised to personally check on their credit report first before sending out an application to a prospective lender. This way, rejection and unnecessary inquiries in your credit report can be avoided.
What factors affect the status of your credit report? Your credit report is divided into four sections- the identity information, credit history, public records and inquiries. Checking the accuracy of the details in your ID information section is important. One minor error can cause serious problems or mistaken identity.
Meanwhile, your credit history section is what your lenders is most interested about. The types of accounts you own, your debts, your payments, credit limit, and everything that concerns you and your creditors are listed here. Naturally, you’ll want to check if all the charges that are billed in your account are correct and if all the payments you’ve submitted to your lender are recorded accordingly.
The next part of your credit report is the Public Records section. You’ll want this section to be empty unless you’ve filed for bankruptcy once or if you have tax liens or have been through foreclosure. Obviously, a remark listed in this section of your credit report will have a negative impact on your status and your credit score.
Last but not the least, the inquiries section of your credit report contains information about past and present lenders who have made an inquiry in your report. If you frequently submit applications to various lenders and often get rejected, this will all be reflected in your credit report. Take note that too many inquiries and rejections will badly affect your credit score.
Now that you know the factors that make up your credit report, take the time to review every detail in your report. In case you’ve errors, you are free to dispute about them by sending a dispute letter to the credit bureau who issued your report and to your creditor as well. Remember, being aware about the status of your credit report is your personal obligation and is the best way to protect yourself from erroneous reporting and fraud.
What if you found out that your credit score isn’t enough to get an approval from a lender? Do not lose hope. You can still work out on improving your credit score by paying your unpaid debts and keeping up with your payments to your present creditors. By being timely in submitting your payments, significantly reducing the amount owed, and staying within your credit limit, you can be assured that your credit score will improve. So instead of rushing in submitting your credit card or your loan application, take a moment to review your credit report and see if you are in the right position to apply for new credit.
VINCENT
What are the specific facts related to real estate short sales and your credit report?
I have researched this topic as thoroughly as I can. I am aware of all the anectdotal evidence out there that range from it being no different from a true foreclosure to just a short term blemish in the range of 100-200 points on your credit.
If you have direct, personal experience with credit reporting guidelines, can you please respond? I need to understand exactly how this shows up on the credit report, its effect on your score, and how long it lasts and why (if it lasts less than 7 years). Please assume no late payments on the borrower’s part and no deficiency judgment sought by the bank against the borrower.
Thanks!
Thanks for the response- the formula provides great detail. Would the short sale be considered a foreclosure line item?
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