Wednesday, June 11, 2014

How to Repair Your Credit Score

In this article, we’ll explore just what you need to know in order to begin the process of repairing your credit score.

Should you find yourself in the position of having obtained a less than satisfactory credit score, all is not lost. There are a number of very definite steps you can take to address the problem and over time bring about improvements in your overall credit score.

The first thing to understand about your credit score is that, in the US, your FICO credit score is normally the one that really matters as their information is used in approximately 90% or more of all credit decisions, especially in order to buy a house.

So, the obvious starting point is to check your credit score properly before you begin. You can obtain a free copy of your credit reports from the three biggest credit bureaus in the US. They are TransUnion, Experian and Equifax. Note that you’re entitled to one free copy of your credit report from each of these bureaus every 12 months.

If you haven’t already done so, get a free copy of your credit score from these three sources
The first and most important step is to check your credit reports for errors. Bear in mind that your credit reports contain the data which is used to calculate your credit score. Any errors that you find that may be adversely affecting your credit score therefore, needed to be disputed without delay.

The key to repairing your credit reports and therefore your credit score follows a number of logical steps, the following will help you:

  • Be sure to make your credit payments on time. If necessary setup payment reminders so that you are not late in making payments. Making payments on time is a major factor in improving your credit score.
  •  Reduce the amount of credit you have. This is often easily said but in practice is more difficult to do. However, this is a major step towards improving your credit score.
  • Credit cards – it is absolutely crucial that you stop using your credit cards. This is by far the most expensive way of spending money. By using your credit reports you can make a list of all your current credit cards and then, go online, and check their current balances. Once you have done so, use what available budget you have to come up with a payment plan giving priority to the card which has the highest interest rate. At the same time maintain the minimum payments on cards with a lower interest rate.
  •  You must get into the habit of paying your bills on time without fail. If you have missed payments you need to get up to date as soon as possible. Note that the longer you pay your bills on time after having fallen behind in payments, will increase your FICO score.
  •  The effect of your older late payments decreases over time. This means that if you can get up-to-date and develop a pattern of paying on time this will begin to outweigh your previous bad credit history.

Finally, you need to understand that paying off a collection account doesn’t remove it from your history. It will stay on your credit reports for seven years. Having said that, if you can get your good payment history moving in the right direction your FICO score should gradually improve.


I hope that you have found the above tips useful and a good starting point to begin improving your credit score.  Click here for your free credit repair e-book.



Thursday, June 5, 2014

Help! My House is in Foreclosure! How Do I Avoid Foreclosure?

Choosing an Alternative Route to Avoid Foreclosure
The economic downturn of the last few years has impacted nearly all Americans who have lived through it in one way or another. Some have lost their jobs, while others have lost their homes. The job market is slowly starting to rebound. However, many still live with the threat of losing their home due to a foreclosure situation resulting from the inability to pay their mortgage. While this situation is likely to be extremely scary and stressful for those going through it, there are alternative routes available.
When faced with the possibility of being foreclosed on, many do not realize they may have the power of stopping foreclosure proceedings. This can be carried out in a variety of different ways including finding another party to outright buy or take over the payments on the property. If you do find yourself needing to explore this route, then it is important that you also avoid disclosure on the property.
Honesty is the Best Policy
The first step in finding an alternative route that will allow you to possibly avoid foreclosure is to be honest. Honesty does not stop with your family. Rather, in this situation, it also extends to your mortgage lender.  Once you miss a mortgage payment, you need to work quickly to restore your lender's faith in you, according to HUD.  This is when the honesty should kick in. Write them a candid type of letter and be open when explaining your situation. Do not leave any details out as you want them to fully understand why you have missed your payment, and what they can expect from you in the future.
Once you are honest with them, the lender may be willing to work with you if they can. This may happen on a case by case basis, so talk to your specific agent to see what they can do. Look into the possibility of a mortgage modification. In this situation, a lender works to lower your payment to something that can work better for you according to, Consumer Financial Protection Bureau. 
Sell Before Foreclosure
If modifying your loan is not a viable option for you, you may want to try to sell your home before it is officially foreclosed on. This type of sale is different from a normal real estate transaction. The goal of this situation is to sell the property before it damages your credit rating too badly, according to Desert News. You will likely not make the kind of money you want on the home, but this loss is better than damaging your credit rating.
When looking to sell before foreclosing on the property, do your best to keep it in good condition. This can shorten the time it is on the market. If the home is in need of repair, try to make the ones you can as this will ease your buyer's mind, since there are many things that buyers who are looking for a foreclosed property consider, according to CNBC.
Losing your home is not an easy idea to digest. However, going into foreclosure can create damage that may take a significant amount of time to recover from. Instead of facing your credit rating retreating, consider some of the alternative routes available. Talk to your lender to see how they can help you. Look for an investor to take over the payments on the home or buy it from you. The loss you suffer from the sale price will be easier to handle than a foreclosure on your credit report.
If you are in the Central Florida area and would like to discuss your foreclosure options then please give us a call at 321-800-2001 or visit http://ibuyandleasehomes.com/stop-foreclosure.htm.




References

Wednesday, May 14, 2014

Alternative Options for Selling Your House: Take Over House Payments


If you’re facing foreclosure or you need to sell fast, you may find yourself running out of options to sell your house.  Selling your house to a real estate investor is one way to avoid foreclosure, but what about homeowners who need immediate debt relief?  To fill this need, many investors are now offering to take over house payments.

Take Over Payments House for Sale


One of the first questions homeowners ask when faced with this option is, “Why would I want an investor to take over my house payments?”  The idea of having a stranger take over your house payments may be unsettling.  However, there are several advantages to taking over payments for both the buyer and the seller.
For starters, the seller is able to see immediate debt relief.  The buyer takes over the mortgage payments, which prevents the seller from going into foreclosure.  For many homeowners, this is the best option simply because the process is quick and they see immediate results.

How the Process Works


The simplest and easiest way to transfer payments is through an assumable mortgage.  This allows the seller to simply transfer both the property and the mortgage over to the new owner.  Unfortunately, many loan contracts have a “due on sale” provision, which prevents the mortgage from being assumed.  However, there are some exceptions to this rule.  Lenders are often willing to forgo the “due on sale” clause if it means that they will start receiving immediate and steady payments from the new owner.

That’s where the real estate investor comes in.  With the ability to bring the mortgage up to date and continue to make regular on-time payments, lenders will be more willing to waive the “due on sale” clause.  As a result, the homeowner avoids foreclosure and the investor can take over the property.  It’s a win-win situation for both parties.  For homeowners who are facing foreclosure or needs to sell fast then this may just be their only option.   Contact us if you are in Orlando, Kissimmee, or Central Florida and you need for an investor to take over your mortgage payments


Visit us at http://www.iBuyandLeaseHomes.com or call 321-800-2001.


Saturday, May 3, 2014

Should I Sell My House to an Investor?

What is the first thing that you do if your home has not sold within a month?  Most people reduce the price.  Then another month goes by and what happens?  The price gets reduced price again! 

In Orlando, Florida a home will be on the market for an average of 76 days or about 2 ½ months (as of February 2014).  

What is your strategy if your home has not sold within 3 months? Do you just keep reducing the price?  What do you do if you don’t have any equity in your home and you can’t reduce the price?  What if you’re facing foreclosure or need immediate debt relief?

If you need debt relief then you could always keep the home and rent it until market conditions change.  Just make sure to fully weigh all of the pros and cons of being a landlord.   Some people can handle being a landlord and others can’t.  You must be okay with evicting the tenant if necessary and you must have enough cash reserves on hand for repairs and vacancies.

The other option is to sell your house to an investor.  Here is a list of just some of the benefits of selling to a real estate investor. 

  • In most cases an investor will pay with cash.  This is a huge benefit to you, because you do not have to worry about a buyer getting approval from a bank for the mortgage.  There are fewer and fewer buyers that can immediately qualify for mortgages, because the lending guidelines keep changing.  Even if a buyer makes an offer on your home there is not a guarantee that they will be able to close.  You could end up waiting months to get a qualified buyer to make an offer on your home and actually close. 
  • You can close on the date of your choice.  Real estate investors are flexible with the closing date.  You can close quickly if needed or delay the closing in order to get things in order.
  • You don’t have to make any repairs to the property.  Investors love to buy houses that need lots of repairs, the uglier the house the better.  Rundown houses give investors the opportunity to gut the home, start from scratch and be creative.  If you want to list your home with a realtor in many cases you will need to make some repairs before listing on MLS.  The repairs needed to get the home ready to sell could cost thousands of dollars.  By working with an investor not only will you save money on repairs, but you will get rid of the hassle of trying to sell your house, which could take months.
  • You don’t have to worry about making repairs based on the buyer inspection report.  Many buyers use the inspection report as a negotiation tool.  The result is you could end up selling the home for a lot less than the original offer or spending money on repairs.  In most cases investors will purchase the home as-is without a lot of contingencies. 

If you need to sell your house fast then you should contact a local real estate investor in your area to discuss options available.  If your home has already been on the market for months then don’t you owe it to yourself to at least explore all options? 

Contact us today at 321-800-2001 or http://www.ibuyandleasehomes.com if you are in Central Florida and you need to sell now.