November 30, 2007

Credit Repair Experiment

Filed under: Credit Repair

Credit Repair Experiment

EDIT: zero spots remaining 

The Broken Credit Blog is looking for ten people desiring to add 50 or more points to their credit score.  Let’s call this a credit repair experiment.  Here’s the dealio:

  • Must have mistakes/errors on credit report
  • Must have three or more negative accounts on report
  • Must talk with the Broken Credit Blog’s professional credit expert by phone
  • Must be willing to write a testimonial once work is completed

Does the above describe you? 

The first ten Broken Credit Bloggers that leave a message at 702-430-9390 or email paul @ brokencredit dot com will be enrolled in our case study.

*The credit repair science experiment is now underway*

P.S. What I’m really looking to do is to put one of my credit repair friends to the test with some difficult cases.  I’m hoping I can count on you to write a testimonial for the blog as to your results.  Don’t let me down y’all.  It’s not right to take a 50 point credit score boost and not say thank you!

Market Bailouts and the “Fed Put”

Filed under: Miscellaneous

Federal Reserve policy actions starting this past August to temper strains in financial markets have generated considerable commentary, some of which reflect concerns that policy action in such circumstances creates moral hazard. The issue is extremely important, and given that it is so current, this is a good time to reflect in general on the Fed’s reactions to financial market developments. The concern over moral hazard is that monetary policy action to alleviate financial distress may complicate policy in the future, by encouraging risky investing in the securities markets. There are so few instances of market turmoil similar to the current situation that I’ll broaden the analysis to include significant stock market declines. Doing so gives us a substantial sample to discuss. Thus, my topic is whether Federal Reserve policy responses to financial market developments should be regarded as “bailing out” market participants and creating moral hazard by doing so. (more…)

The Credit Card King Strikes Again!

Filed under: Credit Cards

Who is the Credit Card King?OTHER PEOPLES MONEY IS SURELY UNDERVALUED AND UNDERRATED PAUL.

I HAVE PROUDLY AMASSED A WHOPPING 1.625 MILLION IN UNSECURED CREDIT. I AM ENJOYING A 6.5 % CD RATE FOR MORE THAN HALF OF THAT CREDIT WHILE TAKING ADVANTAGE OF THE 0 APR ON THOSE CARD PRODUCTS.

IT CAN BE DONE. GOOD LUCK TO ALL!!

ALEX

November 29, 2007

Oh Susannah, oh don’t you pay for me

I recently learned that a $1,300 credit-card debt I thought I had paid off years ago is still lingering. I have been given the option (with only 24 hours to decide) of settling for $700 with the collections agency, or having the debt turned over as unreported income to the IRS.

I can do a payment plan with the collections agency, and have the $700 settlement offer paid off in a month.

However, I am wondering if having the debt turned over to the IRS as unreported income would actually be the cheapest option. I would pay taxes on that $1,300, which would be less than the $700 offer to settle. I could pay those taxes in full immediately.

Can you shed light on the best option for me? Thanks for your time.

Susannah (more…)

November 28, 2007

Bogus Dental Claim

See Ya Later, Debt Collector AlligatorThis may be long but here goes. I have creditors specialty services going after me for a bogus dental claim from back in 2003 (I have the proof it is bogus)

They started calling me in the beginning of 2007 and I informed them that the debt was a no go and I was not paying. They decided to go for a judgment. They say I was served but I was not. They said my sister a cotenant signed and the mane of the person that signed the paper is not the name of my sister. I was actually out of the state on the date the papers were served and no one was at my home.

Anyway the creditor called me the Friday before the court date (Mon) and told me I should just pay it or they would get a judgment against me and take my house and car and garnish my wages. I told him I was unaware of the court date and just chalked it up to harassment.

I got the judgment papers a couple of weeks later and there were actually 2 court dates. I did not attend either because I was unaware. The judge said they did not have paperwork testing that I agreed to pay and made a continuance upon such paperwork. (After getting my records I found the form that they forged my sig. on)I guess they made something up and went back to court and issued the judgment.

I filed a motion to vacate on the grounds of not being properly served.

Today I went to court with all of my papers and ready to fight. The rep from the agency came 15 min late, looked over my paperwork and then just left. The judge called the case and I informed him that the guy just left. A couple of cases later the judge told me to go find the guy! Well, I found him at the clerk’s office and asked him if he was going back and he said no. I was amazed. I said you are just not going? He said yes the evidence you have is too much and I am not going. So I reported back and won my motion to vacate.

I called the creditors agency and spoke with the agent and he informed me that this debt will be there forever and will never be taken off.

My question to you is how do I go about reporting not only the credit agency but the dental center that did this. I want that taken off of my report and all of the falsified documents brought out! Sorry so long winded.

Lenora….frustrated in cali (more…)

Periodic Use of Credit Cards

I am looking to purchase a home within the next 30-60 days and pulled my credit report + score from all three (Experian, Equifax, and Transunion). In less than two months, my scores from Experian and Transunion have gone down by approx 16 points each.

The report from myfico.com stated on one that a negative mark was that I had not had recent activity on my revolving accounts. However, the same was listed as a positive remark from the other bureau!

Should I purchase a few small ticket items on one of my accounts and pay it off, or will that hurt me more than it will help me?

I feel like I’m darned if I do, darned if I don’t!

Craig (more…)

November 27, 2007

Come All Ye to the Credit Repair Discussion

FIRST LET ME SAY , THIS SITE IS AWESOME, I CAN’T QUIT READING, NOW FOR MY QUESTION, THAT NO ONE, NO WHERE HAS BEEN ABLE TO ANSWER. ( I MUST SET UP FIRST) I WAS DIVORCED IN 2004 AND WALKED AWAY FROM THE HOME,MY EX REMAINED AND CONTINUED TO MAKE THE PAYMENTS(SOMETIMES LATE),SO I FILED CHAPTER 7 BANKRUPTCY IN 2005,AND DISCHARGED IN 2005 ,I INCLUDED THE  MORTGAGE IN THE BK,BUT LET ME MAKE IT CLEAR THE EX DID NOT FILE BK, THE MORTGAGE ACCOUNT IS REPORTING ON MY CREDIT REPORT AS AN OPEN ACCOUNT WITH A BAL OF 74,000 WITH MANY LATES AND EVEN A “FORECLOSURE WAS STARTED STATMENT ” WITH MOST OF THE LATES AND THE FORECLOSURE STATEMENT OCCURING IN 2007 WITH NO MENTION OF THE BANKRUPTCY ON THIS ACCOUNT.I ALSO HAVE 5 OR 6 OLD TRADELINES WITH ZERO BALANCES FROM BEFORE THE BK AND 3 GOOD TRADELINES AFTER THE BK , MY FICO SCORE NOW IS 588. MY QUESTIONS IS, WOULD MY SCORE GO UP , IF I DISPUTED AND HAD THE MORTGAGE ACCOUNT TO SHOW INCLUDED IN BANKRUPTCY/ DISCHARGED WITH A ZERO BALANCE.I KNOW THAT THE 30% OF MY SCORE DEALS WITH AMOUNT OF DEBT SUCH AS THE 74,000 MORTGAGE, BUT SINCE 35% DEALS WITH PAYMENT HISTORY HOW DOES THAT ,IF ANY FACTOR INTO A MORTGAGE INCLUDED IN THE BANKRUPTCY. WELL I GUESS THAT WAS THREE QUESTIONS. BOY, IF SOMEBODY KNOWS THE CORRECT ANSWER, YOU WOULD BE MY HERO FOREVER, THANKS FROM TN, LINDA (more…)

November 26, 2007

Countrywide & the FHLB of Atlanta

Filed under: Mortgage

CEO CountrywideNovember 26, 2007

Ronald A. Rosenfeld
Chairman
Federal Housing Finance Board
1625 I Street NW
Washington, DC 20006

Dear Chairman Rosenfeld:

I write to express my serious concern over the lending practices of the Federal Home Loan Bank of Atlanta, specifically in regard to the significant volume of advances made to Countrywide Bank. I am concerned that the loans being pledged by Countrywide to secure these advances may pose a risk to the safety and soundness of the FHLB system as a whole. I urge you to conduct a careful review of FHLB Atlanta’s collateral evaluation policies, as well as Countrywide’s pledged collateral, in an effort to determine the risk that Countrywide’s collateral poses to the FHLB system. During the current market crisis, it is important that the FHLB system perform its critical mission safely without imposing additional risks on an already strained market.

According to the most recent SEC filings, FHLB Atlanta had made $51.1 billion in advances to Countrywide Bank, representing 37 percent of the Bank’s total outstanding advances as of September 30, 2007 and far exceeding advances made to the next largest borrower. Countrywide had pledged $62.4 billion of mortgages as collateral for the FHLB advances, representing 78 percent of its total mortgage loans held for investment at the bank.

I find these numbers alarming as reports continue to emerge about how Countrywide’s reckless and predatory lending practices were a leading contributor to today’s foreclosure crisis. Moreover, it is my understanding that Countrywide’s loans held for investment at the bank have been far from immune from the credit deterioration that has resulted from unsound lending. Countrywide reportedly held $27 billion of “pay option ARMs” as of September 30, 2007, accounting for over one-third of the loans held for investment by the bank. Countrywide’s option ARMs were (and may still be) often underwritten with less than full documentation – according to UBS Warburg data prepared for the Wall Street Journal, 91 percent of Countrywide’s option ARMs underwritten in 2006 were “low doc.” It has been reported that delinquencies on Countrywide’s pay option ARMS are skyrocketing, jumping nearly 75 percent in the last quarter.

Given this rapid deterioration in the credit quality of Countrywide’s option ARMs, I urge you to conduct a review of the loans that are being held as collateral for FHLB advances in an effort to determine if FHLB Atlanta has adequate collateral to secure these advances. I would also like an explanation of how any second lien mortgages during a time of property price declines could be viewed as adequate collateral for large FHLB advances.

Furthermore, I believe that you should consider preventing any further or continuing overnight advances based on collateral that does not meet the joint financial regulators’ guidance on nontraditional and subprime mortgage products (e.g., Interagency Guidance on Nontraditional Mortgage Product Risks and joint Statement on Subprime Mortgage Lending). This quarter, Countrywide reported that 89 percent of their 2006 originations of pay option ARMs did not conform to the joint regulators’ guidance, which increases the likelihood that Countrywide is pledging loans deemed predatory by the regulators as collateral for FHLB advances. Importantly, Fannie Mae and Freddie Mac’s safety and soundness regulator has specifically prohibited any new direct or indirect investment in loans that do not meet this guidance. As the mortgage crisis threatens to get worse from here, it is critical that the FHFB do the same.

Thank you for your prompt attention to this matter, and I look forward to working with you on these issues in the coming weeks and months. If you should have any questions, please contact David Stoopler on my staff at 202-224-6542.

Sincerely,

Charles E. Schumer
United States Senator

November 25, 2007

Attack of the $2 Collection

Two DollarI’m back again!  Wish I had seen your site before the stupid mortgage co. made me pay off some old medical bills before they would finance a house for me (bought for son) and had done pay for delete!  Oh well…. My question is why is there such a difference in the 3 credit bureaus’ scores?  After I did the pay off the 6 yr old $10 debt that was NOT reported along with the 6 yr old debt for $2 that WAS reported, all of a sudden the TU put another blotch on my score….  Could this be it?  Naturally, TU is the one most people use here!

Want to get a HELOC to do some upgrades to my paid for house and TU has me as FAIR with the other 2 in the GOOD range.

Mucho thanks if you could advise what I should do!

Gayle (more…)

Another Seller Helps Buyer!

Filed under: Real Estate

Take a look outside!

A lifestyle community featuring amenities to rival any resort.  Relax by the pool, play sand volleyball, or work out in the state-of-the-art fitness center.  Enjoy a party in the large clubhouse with billiards, or barbeque by the outdoor fireplace.

Relax in Luxury...This 3 bedroom 2 bath luxury condo features upgraded cabinets and silestone countertops.  Located in prestigious Windermere near Walt Disney World.  View the spectacular Magic Kingdom fireworks from your living room.

And rent includes water, valet trash pick-up and washer/dryer in the unit. Luxury Floor Plan

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