Is Credit Standing In Your Way Of A Home? Getting Negative Items Deleted From A Credit Report - Fact or Fiction? Tips From The Experts - And Credit Repair Questions Answered - part 2

By
Mortgage and Lending with Peoples Home Equity, Inc. NMLS-274839 NMLS 274839

How much money are you leaving on the table?????Part 2 "Getting Negative Items Deleted From A Credit Report - Fact or Fiction? Tips From The Experts - And Credit Repair Questions Answered" explains specifically WHY negative items are successfully DELETED from a credit file enabling the credit score to jump by leaps and bounds.

The Fifth Amendment of the U.S. Constitution reads, in part, "No person shall be ... deprived of life, liberty, or property without due process of law ..." We often hear that the United States Constitution guarantees that an accused is "..innocent until proved guilty.."

It is evident that the credit industry is drumming to their own beat!

Fact or Fiction????? - If a negative item is successfully deleted from my credit report, it will just come right back on my report.

The credit bureaus have cleverly spread this myth through the news media and government agencies. In truth, the credit bureaus will often temporarily delete a negative listing if they have not heard from the credit grantor for 30 days since an item has been disputed. Should the credit grantor submit verification a week or two later, it will be re-inserted. (This is called a soft delete.) Most of the time the creditor simply fails to respond and the negative item is permanently deleted. If the creditor verifies the item the account may still be deleted later in the process as the challenging process is intensified.

There are items such as bankruptcies, foreclosures, and tax liens that are impossible to remove from the credit report. Not True -

According to the Experts. there is no type of negative listing that has not been removed from a credit report thousands of times.

Before I continue; It is very important to point out that the purpose of this information is not intended to defend those who habitually do not pay their bills.  My intent is to educate and provide solutions to a growing problem that is keeping many good people from getting ahead in life.

Please review other articles in this series:

Will Paying Off Old Debt Increase My Credit Score? part 1

Unfortunately today, we live in a society that determines our net worth and value as human beings by our credit file. If your credit report is good, chances are you will partake in many of the better things in life. The complete opposite is true if your credit report is bad. Did you know that very few creditors will extend fair credit with blemishes on a credit history.

What if it wasn't your fault? What if you had to make the simple choice between eating and making a car payment? What if a job lay-off, medical emergency, or some other personal crises prevented you from making a timely payment? Should you be forced to pay for this for the next 7 to 10 years serving a credit prison sentence? I don't think so! Yes, there needs to be accountability,but not a decade or life sentence!

Think about it; How is a system like this allowed to operate in our democracy? The credit bureaus have placed themselves in the position of both judge and jury in relation to the consumers credit file. Do not forget one very important difference... A judge will give you a chance to defend yourself before ruling. We are supposed to have the opportunity in America to face our accusers before judgment is passed. This is entirely untrue when it comes to your credit records.

The truth is creditors and credit bureaus have been swapping information about behind the backs of comsumers and may I add, without permission, for a long, long time. In effect, it is hearsay and can cause severe economic hardship. Just look around. I see it every day.

The current system does not give one the opportunity to defend themselves before inscribing the credit file with negative and damaging information (even if it is not verified). Their perspective is that you must prove to them that the negative information on your credit report is incorrect, invalid, erroneous, or otherwise non-verifiable before they will remove it. In other words, in the eyes of the credit bureaus... you are guilty until proven innocent.

We are brought up to believe that one is innocent until proven guilty. Why we are not extended the same courtesy by the credit bureaus? Why do they not give us a chance to defend before placing  negative information on a credit report? The simple fact is, consumer rights cost them money.

The sole focus of credit bureau companies is profit.

Your credit file is their product. Did you know that contrary to popular belief, the credit bureaus have no government affiliation, with the exception of spending millions on lobbying efforts. These private corporations sell your personal financial information to anyone that will pay for it...and the recipient generally accepts the information as gospel, and then reciprocate by giving back to the bureaus any information that they may have on you. . . and the cycle continues.

I hope this information has been useful and please look for the next article in this series titled :

"Is Disputing a credit report is easy --- And, Can any consumer can do it themselves? part 3

Please review other articles in this series:

Will Paying Off Old Debt Increase My Credit Score? part 1

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Credit Restoration and Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net

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Proudly Serving the Residential Mortgage needs of the wonderful Veterans & People in Wisconsin. Green Bay, Appleton, Oshkosh, and throughout the greater Fox Cities areas.

My team works with each client to determine the best finance package for every scenario; Not only the impact of the loan on their finances today, but 5 and 15 years down the line. Need Credit restoration; We can help. Click Here for a no cost ~ no obligation pre-approval or consultation.

Gwenn Tanvas is a Certified Mortgage Planning Specialists who truly enjoys working with First-Time Home Buyers and Government Programs such as FHA, Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. http://www.WisconsinLoanTips.com or http://www.WisconsinVetLoans.com she can also be reached for comment or to answer questions via email at gwenntanvas@gmail.com

 

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Rainer
10,274
Jeanette Meggers
Keller Williams Realty Signature - Rockford, IL

Very helpful.  Thanks so much Gwenn.  Nice to be guided through the maze of info.

Mar 14, 2009 09:04 AM #1
Rainmaker
69,121
Gwenn Tanvas
Peoples Home Equity, Inc. NMLS-274839 - Appleton, WI
The Mortgage Gal, 920.267.7891~ SMART - INNOVATIVE

My client was referred to me by a Realtor who had represented a lease option that was due to expire. The client had put down $10,000 and needed to exercise his options or loose his deposit. His credit score is in the mid-500's, has great credit on a few credit cards and a car loan, however several collections that are old and continue to report monthly.

He was some what of a naughty kid and as is so often the case, irresponsible in his younger days. He has been paying on the collections, however they do not report a timely payment, just the collection month after month. While he is paying his other obligation on time, the collections are keeping his score from moving in the right direction. Thus the vicious cycle of doom!

It is imoportant to point out that the balance on the collections is up by about 35% due to additional interest and fees. He is enrolled in a restoration plan and the collections have been deleted. He has since been in contact with the collection agengies, made settlement agreements (average of 50% to 70& of last reported balance) and is on his way to resolution.

 

Mar 14, 2009 09:12 AM #2
Rainmaker
590,363
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

The good part about credit is that time does heal the old wounds, but not if you let them fester!  The farther away from the bad, the less important it is.

Mar 14, 2009 09:54 AM #3
Rainmaker
69,121
Gwenn Tanvas
Peoples Home Equity, Inc. NMLS-274839 - Appleton, WI
The Mortgage Gal, 920.267.7891~ SMART - INNOVATIVE

Hey Rob: How are you????? I agree, but as you probably well know, it is wreaking havoc on qualifying due to the guideline changes, not to mention risk based pricing!

Mar 14, 2009 10:02 AM #4
Rainmaker
318,861
Tony Toto
Freelance Writer & Photographer - Travel - Kenosha, WI
The Walking Traveler

You can always purchase a home with seller financing if your credit is bad.  Great post!

Mar 14, 2009 10:57 AM #5
Rainmaker
69,121
Gwenn Tanvas
Peoples Home Equity, Inc. NMLS-274839 - Appleton, WI
The Mortgage Gal, 920.267.7891~ SMART - INNOVATIVE

Hi Guys: Yes you can, but at some point an exit strategy needs to be addressed. Your post brings to mind a problematic thought. We as professionals need to look long term and provide solid solutions to the problems that are facing so many today. Getting a home sold and financed by the seller is fine and well, however the problem of compromised credit has only a band aid and is sure to raise its ugly head in the future. Hope all is well with my Southern Friends......

Mar 14, 2009 11:11 AM #6
Rainmaker
18,895
Khash Saghafi
Proficio Mortgage Venture, LLC - Cleveland, OH
Mortgage Loan Officer, Cleveland Ohio

Hey Gwenn,

  Now that was an impressive post!  Well thought through, well written and very easy to follow.  So many loan officers out there have absolutely no idea how to properly advise or direct a customer on credit.  Knowing what you know also helps you work with those difficult loans in which you have to properly position the customer to give them the best opportunity to get approved.  Very nice post!

Mar 15, 2009 02:27 PM #7
Rainmaker
69,121
Gwenn Tanvas
Peoples Home Equity, Inc. NMLS-274839 - Appleton, WI
The Mortgage Gal, 920.267.7891~ SMART - INNOVATIVE

Khash - Thanks for the kind words. In my book, Credit Is King. A proven strategy is a necessity in this market. Often times it is very time consuming, but the rewards for all is unmeasurable.  Clients are forever greatful and I am greatful for the friendships that are forged in the process.

Mar 15, 2009 03:12 PM #8
Rainmaker
590,363
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Gwenn.... OHHHH I KNOW!  that one point difference can not only be the death of a loan approval, it can also be a huge swing in rate and or PMI !!!

Thank  God for FHA.  As an industry, did you ever think we would groan when we saw a 680 credit score? 

Mar 16, 2009 10:27 AM #9
Rainmaker
599,086
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Gwenn - Great post!  Like you, I am also very concerned and passionate about helping my clients not only improve their score but also preserve it once they have improved it.  It's so vital to get this kind of info out to our clients and the consumer.

Apr 17, 2009 11:42 PM #10
Rainer
182,519
Dave Sullivan
www.TheCreditGuy.TV - Birmingham, MI
The Real Story on Your Credit Score - TheCreditGuy

Great information I did some testing on the MYFICO estimator and found the best level to have your revolving balances and it is not $0 check it out here http://www.thecreditguy.tv/how-to-pay-bills-in-a-way-to-maximize-your-credit-score/

Mar 14, 2012 04:35 AM #11
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Rainmaker
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Gwenn Tanvas

The Mortgage Gal, 920.267.7891~ SMART - INNOVATIVE
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