Legislation Would Give Consumers 120 Days To Resolve Medical Debts Before Dinging Credit Reports

Some of the homeowners from San Jose and Sunnyvale that work with ForeclosureHelp are struggling with their mortgages in part because of medical debt and medical bills. Damaged credit can also be an issue if you’re trying to refinance. This post from the Consumerist highlights recently introduced legislation that would give consumers 120 days to resolve medical debt with collectors before that debt is reported to the credit bureaus.

Consumerist

Consider the following: 1-in-10 insurance claims are processed incorrectly; debt collectors are using account information that may be incomplete, inaccurate and out-of-date; once reported to a credit bureau, medical debt — whether real or erroneous — can do severe damage to your credit score. Perhaps it couldn’t hurt to give consumers a chance to challenge or resolve medical debts before collectors report them to the credit bureaus?

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HARP Refinance Option for Homeowners in San Jose and Sunnyvale

A recent announcement from the “Know Your Options” website (sponsored by Fannie Mae) highlights the Home Affordable Refinance Program, (HARP) as an option for homeowners who are struggling to pay their mortgages.

The announcement includes the example of a retired Air Force officer who bought a home in 2007 in Sacramento, but who was reassigned to the East Coast.   Unable to sell his home in  a sluggish market, the homeowner found a renter, but was still losing about $1,000 a month.

While his original mortgage company wouldn’t refinance because he owed more than the house was worth (known as being “upside down”), he also spoke with a lender who offers the HARP loan, and was able to refinance his mortgage (at a rate that was almost 3% lower), saving about $760 a month.

The release explains that over 400,000 people obtained HARP loans during the first six months of 2012, making up about a third of the 1.5 million homeowners who have used HARP since the program began.

The loan needs to be owned by Fannie Mae or Freddie Mac to qualify for a refinance.  You can see if they own your loan using these two websites:

To read the original announcement, visit: “How Much Could HARP Save You?

You may also find our earlier post about the differences between a modification and a refinance helpful:

Refinance vs. Modification: What are the differences?

Foreclosure Help is a program funded by the city of San Jose through a HUD Community Development Block Grant and the city of Sunnyvale, and we can directly assist homeowners  and tenants in San Jose and Sunnyvale who are facing foreclosure.  However, we are unable to assist homeowners/former homeowners in other cities and states.  If you need housing counseling, we suggest using the interactive map on HUD’s website.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose through a HUD Community Development Block Grant and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

fair_housing_logo

FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

It is the policy of ForeclosureHelp not to discriminate against any person because of that person’s race, color, religious creed, sex (gender), sexual orientation, marital status, national origin, ancestry, familial status (households with children under the age of 18), source of income, disability, medical condition or age. Color or “ethnic group identification” means the possession of the racial, cultural or linguistic characteristics common to a racial, cultural or ethnic group, or the country or ethnic group from which a person or his or her forebears originated. As required by law, we agree to take the affirmative steps needed to further fair housing.

ForeclosureHelp will consider any and all requests for reasonable accommodation in the application of its rules, policies, practices, and services, and in the use of its physical structures, in accordance with the requirements of state and federal laws. You can ask ForeclosureHelp to consider any reasonable accommodation you may have. Please consult with the Program Manager to request this accommodation.

Revisión Independiente del Embargo de Vivienda: Actualización en los $3.6 Billones de Pago en Efectivo y $5.7 Billones en Asistencia de Modificación.

Revisión Independiente del Embargo de Vivienda

(English Version: Independent Foreclosure Review: Update on $3.6 Billion in Cash Payments and $5.7 Billion in Modification Assistance.  Vietnamese Version: Các chiến lược cho việc tìm kiếm xét Tịch thu nhà độc lập: Cập nhật trên $3.6 tỷ USD trong thanh toán bằng tiền mặt và $5.7 tỷ USD vào việc sửa đổi trợ giúp.)

Nota del editor: Foreclosure Help es un programa fundado por la ciudad de San Jose y la ciudad de Sunnyvale y podemos ayudar directamente a propietarios de casas y personas que alquilan viviendas que estén pasando por un proceso de embargo. Sin embargo no podemos ayudar a personas en otras ciudades y estado. Si usted necesita asesoría de vivienda, le recomendamos utilizar el mapa interactivo del portal de HUD y si tiene preguntas acerca de la información que esta a continuación, por favor contactar Rust Consulting (1-888-952-9105).

Una Nota de Prensa emitida de manera conjunta con la Oficina de Control de la Moneda (OCC por sus siglas en inglés) y la Reserva Federal provee a los propietarios de vivienda con información adicional acerca de los cambios hechos a la Revisión Independiente del Embargo de Vivienda y cómo estos cambios pueden impactar a los propietarios de vivienda.

En Enero de 2013 los reguladores anunciaron que muchos de los banco y agencias de servicios habían aceptado remplazar el programa original debido a problemas con el costo, tiempo y administración de las revisiones (para mayor información acerca de este tema revise nuestra nota anterior: 7 razones para posponer le Revisión Independiente del Embargo de Vivienda).

Los 13 bancos que son parte del programa de remplazo incluyen a:
Aurora, Bank of America, Citibank, Goldman Sachs (Litton Loan Servicing), HSBC, JP Morgan Chase, MetLife Bank, Morgan Stanley (Saxon Mortgage), PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.

Sin embargo tres bancos (GMAC Mortgage, Everbank, and OneWest/IndyMac), no aceptaron cambiar su programa y continuarán utilizando el proceso original de la Revisión Independiente del Embargo de Vivienda que tuvo el 31 de Diciembre de 2012 como fecha límite de aplicación. De acuerdo con la nota de prensa emitida: “Los reguladores esperan que las revisiones de estos bancos se completen durante el transcurso del siguiente año.”

¿Qué sigue?
De acuerdo con los reguladores, Rust Consulting, Inc. ha sido seleccionada como la entidad reguladora de pagos y empezarán a contactar a los propietarios de vivienda a finales de Marzo 2013. Los propietarios pueden contactar a Rust Consulting para actualizar su información de contacto (que es importante hacer ya que la información proporcionada por el banco o agencia de servicio es la dirección de correspondencia y número de teléfono de la propiedad que fue parte del proceso de embargo). El número de teléfono para contactar a Rust Consulting es 1-888-952-9105, y los representantes pueden también verificar la elegibilidad al programa.

¿Soy Elegible?
Al igual que la Revisión Independiente del Embargo de Vivienda original, el programa que lo remplaza es solo para propietarios de vivienda que fueron parte de una acción de embargo (pendiente o completa) entre el 1ro de Enero de 2009 y el 31 de Diciembre de 2010. El propietario NO tiene que haber perdido su propiedad para calificar, pero necesita haber estado en “cualquier etapa del proceso de embargo” durante ese período de tiempo.

¿Cuánto Dinero?
El dinero será dividido en dos categorías: Pagos en Efectivo y Asistencia para Aliviar la Pérdida.

Pago en efectivo: Los 13 bancos y agencias de servicio han acordado pagar un total de $3.6 billones a los propietarios de vivienda. Los montos individuales para cada propietario dependerán de la severidad de los errores cometidos por los bancos/agencias de servicio y pueden ser de unos cientos de dólares hasta $125,000. El Washington Post ha creado una tabla de ayuda que categoriza a los propietarios por categorías: Waterfall of Borrower Categories (incluido en el articulo:“Foreclosure victims to get compensation alerts in $9.3B agreement starting Friday”

Asistencia para Aliviar la Pérdida: Los13 bancos/agencias de servicio proveerán $5.7 billón en asistencia a los propietarios a través de esfuerzo para aliviar la pérdida” dando preferencia a las actividades designadas a mantener a los propietarios en sus viviendas a través de acciones de retención que sean asequibles y sostenibles en el largo plazo.” Los bancos y agencias de servicio tienen hasta el 7 de Enero de 2015 para completar esta asistencia.

Banco/Agencia de Servicio

Pagos en Efectivo

Asistencia para Aliviar la Pérdida

Aurora Loan Servicing

$93 millones

$149 millones

Bank of America

$1.1 billones

$1.7 billones

Citibank

$306 millones

$486 millones

Goldman (Litton Loan Servicing)

$135 millones

$195 millones

HSBC

$96 millones

$153 millones

JP Morgan Chase

$753 millones

$1.2 billones

MetLife Bank

$30 millones

$48 millones

Morgan Stanley (Saxon Mortgage)

$97 millones

$130 millones

PNC

$69 millones

$69 millones

Sovereign

$6 millones

$9 millones

SunTrust

$62 millones

$100 millones

U.S. Bank

$80 millones

$128 millones

Wells Fargo

$765 millones

$1.2 billones

Total

$3.6 billones

$5.7 billones

Nota: Los montos han sido redondeados. Fuente: Amended Consent Orders publicado en las paginas web de la OCC y la Reserva Federal.

¿Cuál debe ser mi siguiente paso?
Es de seguro que Rust Consulting estará saturado de llamadas telefónicas de los propietarios de vivienda durante los días siguientes, pero vale la pena tomarse el tiempo para llamarlos dentro de las próximas semanas y confirmar que tengan su información de contacto correcta y para verificar su elegibilidad al programa.

Para mayor información visite:  Nota de Prensa de la Reserva Federal: “Amendments to Consent Orders Memorialize $9.3 Billion Foreclosure Agreement”

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

New Report: 1 in 10 Consumers Have Incorrect Credit Score

FTC Finds High Number of errors in credit reports

By Sean Coffey, Program Manager, Foreclosure Help

The Federal Trade Commission released a report today (focused on credit report errors at the three large credit reporting agencies (Experian, Equifax, and Transunion) and found significant mistakes, with one in ten consumers reporting a change in their credit score AFTER they contacted the agency to dispute inaccurate information.

Regular readers of our blog may recall that the Consumer Financial Protection Bureau also released a report  (Analysis of Differences between Consumer- and Creditor-Purchased Credit Scores) with a similar focus in September 2012, which found that one in five consumers would see a different score than their lenders.   See our blog on the topic here: “1 in 5 consumers receive a different credit score than their lender”

In the most recent report by the Federal Trade Commission, (Report to Congress
Under Section 319 of the Fair and Accurate Credit Transactions Act of 2003) the researchers found:

  • 25% of consumers identified errors on their credit reports, potentially affecting their credit scores;
  • 20% of consumers had their errors corrected by at least one of the agencies after the consumer disputed it;
  • About 1 out of 20 consumers saw their credit score change more than 25 points, while 1 in 250 customers saw a credit score change of more than 100 points.

We’re glad to see that the Consumer Financial Protection Bureau is now overseeing credit reporting agencies.  The consumers who were interviewed last night on 60 Minutes (40 Million Mistakes: Is your credit report accurate?) had some pretty harrowing tales about trying to correct their credit reports, with some choosing to hire attorneys because the process was so slow/unsuccessful when they attempted to contact the credit reporting agencies.

You may find our previous blog postings helpful:

If you are struggling with foreclosure in San Jose or Sunnyvale, please give us a call. The sooner you pick up the phone, the sooner we can help, and the earlier you start in the process, the more options you will have to create a plan forward.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.

Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.

Nuestros consejeros aprobados por HUD puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.

Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

What is a Credit Report and Why is it Important to You?

Why is a credit report important?Editor’s note: If you haven’t applied for the Independent Foreclosure Review yet, there is still time, but the deadline is December 31, 2012.  For more information, visit our blog: Independent Foreclosure Review Deadline is December 31, 2012. Learn How to Apply Here.  Spanish: La fecha límite para La Revisión Independiente de la Ejecución Hipotecaria es el 31 de diciembre 2012. Aprender a aplicar aquí!  Or visit the website: www.independentforeclosurereview.com, or call the program: 1-888-952-9105

By JoAnn Parrott, Housing Counselor at Project Sentinel, one of the members of ForeclosureHelpSCC.

A credit report is more than a collection of financial information and statistics. A credit report displays and represents your financial picture.   A credit report is an accounting of how you have handled your past finances and debt and is a gauge of how you will continue to do so in the future. The credit report determines if you are credit worthy or may be a credit risk to those who offer credit (also known as creditors).  The credit report helps creditors decide who gets credit or who does not.

If you have been financially responsible in the past and have good credit, you probably don’t think twice about credit.  It is just there for you whenever needed.    However, if you have no credit or poor credit, managing your daily financial life may be difficult.

WHAT IS IN A CREDIT REPORT?

If you have never applied for personal credit, you probably don’t have a credit report history.  But, if you have applied for and used credit in the past, a basic credit report consists of your name, current and recent addresses, Social Security Number, date of birth and current and previous employers.  The report also displays each credit account registered in your name,  the date the account was opened, the credit limit on a credit card or loan, the payment terms, the balance owed, the monthly payment amount, and a record of your payment history (i.e., how many times you paid on time or were late).  This information is contained in your credit report even if you personally have not applied for credit but have agreed to be a co-signer or authorized user on someone else’s credit account.

TIP:   If you are a co-signer on a credit card or loan account, you are responsible for the debt if the other party fails to keep the monthly payments current.  If you are an authorized user, you are not responsible for the monthly payments or the balance due if the account is not kept current.  So, be VERY careful about agreeing to be a co-signer on an application for credit.

A credit report also lists each time you have applied for credit – these are known as ‘inquiries.’  By viewing the ‘inquiries’, creditors can determine if you have applied for too much credit or have been recently approved for additional credit. If the number of applications or approvals is too high, creditors may deny you if it appears you are trying to acquire too much credit too quickly.

TIP:  This can happen to new homeowners or young adults when they want to decorate a new home or apartment.  If you apply for and are denied credit, this may have a negative impact on your credit report and credit score.

WHAT IS NOT IN A CREDIT REPORT?

Information NOT contained in a credit report consists of checking and saving account balances, bankruptcies that are more than 10 years old, charged-off debts or debts placed for collection that are more than seven years old, gender, ethnicity, religion, political affiliation, medical history or criminal records.  Judgments generally remain on a credit report for 7 years from the date filed, whether the debt was paid or not.  If paid, the judgment entry changes from UNSATISFIED to SATISFIED but still remains for the required length of time.  Unpaid tax liens remain indefinitely.

NO CREDIT?  WHAT SHOULD YOU DO?

In the everyday world of credit, there are two types of credit cards and loans – Secured and Unsecured.

SECURED CREDIT CARD If you have poor credit or no credit and know you will have a need, you may want to apply for a secured credit card.   A secured credit card is an account in which you deposit your own money (generally a minimum amount) to be used for future credit transactions.   A secured credit card gives you the ability to use the money (up to a certain amount) as a credit card – i.e. charge movie tickets or order a pizza – until you can apply for a less restrictive unsecured credit card.  Most secured credit cards do not allow the total amount of money deposited into the account to be consumed by charge transactions.

The creditor retains a portion of the money as a ‘cushion’ to cover unexpected events, such as non-payment.  If your charges exceed the allowed amount, there can be substantial fees and penalties applied.  If you don’t keep the account in good standing, the creditor can deny future credit transactions you attempt to do.  Not a happy thought if you want to treat a friend to lunch and your card is denied!  In some cases, if the past due amount becomes too high; the account may be closed or suspended.  The account will continue to accrue interest charges, fees and may even be subject to collection action.  Most secured credit cards also carry annual expense fees.

TIP:   Secured credit cards physically look the same as unsecured credit cards.  There is no way of telling that your card is a secured card.  After a period of time if you have established a positive payment history and adhered to the secured credit card terms, you may apply for an unsecured credit card or loan.  There is no specific time period to do this.  Just be cautious about applying for too many cards.

SECURED CREDIT LOAN: This type of loan is used for high dollar purchases that cannot be paid in full each month – i.e. the purchase of a car or house.  This type of loan is for a specific dollar amount and time period.  If the loan payments are not kept current, the owner of the loan can repossess or take back the item – i.e. the car.  In this case, the car is security for the debt.   Generally without exception, a mortgage loan is secured by the property.  If the mortgage payments are not made, the mortgage holder will take the property in a foreclosure sale.

UNSECURED CREDIT CARD:   An unsecured credit card is a line of credit that is available to you with no restrictions (up to the credit limit), as long as the account is in good standing.   For example, if you charge the purchase of clothing on your unsecured credit card and you don’t pay the full or minimum amount by the Due Date,  the creditor will not repossess or take back the clothes.  However, the account could still be assessed fees and penalties and may be closed or suspended if the matter is not resolved.  Any past due payments will be recorded on your credit report.

UNSECURED CREDIT LOAN:    This type of loan can be for any amount and time period, but is generally not a standard product offered by creditors for large loan amounts.   Creditors want their loans secured by an item of value if there is a default on the account.  The best use of this loan type would be for personal loans among family members or friends where, if payments are not made, no property is attached to the loan and therefore there is no repossession.

TIP:  For most secure and unsecured credit card accounts, it is recommended that the full amount charged be paid in full each month to avoid interest charges and to assist in building a good credit history.  Keeping  any loan in good standing is a good idea.

HOW TO GET A COPY OF YOUR CREDIT REPORT?

On November 22, 2003, through the Fair and Accurate Transaction (FACT) Act, consumers were given the right to obtain a free copy of their credit report every 12 months from each of the 3 major credit bureaus.  These credit bureaus collect and analyze credit transactions for their clients (AKA creditors) i.e., banks, credit unions, and retail establishments for example.    The 3 major bureaus are:  Experian (www.experian.com, 1-888-397-3742), TransUnion (www.transunion.com, 1-800-916-8800), and Equifax (www.equifax.com, 1-800-685-1111).

To obtain a copy of your credit report or reports, you can contact the credit bureaus directly, visit their websites, or use the website:  www.annualcreditreport.com .  This website provides access to each credit bureau report.  A consumer can apply online for a single report or for all 3 reports at the same time.  There are companies who will help you track the contact and accuracy of your credit report for a fee.

TIP:  It is recommended that a consumer stagger their credit report requests every 4 months between each bureau.  In most cases, the same credit information is on each bureau’s report, but sometimes in a slightly different format.  By staggering the reports, a consumer can track activity over the time period as well as the contact of each report.

TIP:  Each time YOU look at your own credit report, there is no ‘inquiry’ activity recorded. However, each time you apply for credit through a third party, there is an ‘inquiry’ recorded.  So, if you apply for too much credit, the next third party you apply to will see the ‘inquiry’ activity and possibly may deny the application for credit due to excessive applications.  Also, there is a chance that the volume of applications may affect your FICO score.  BE CREDIT SMART!

WHAT IS A FICO CREDIT SCORE AND WHY IS IT IMPORTANT TO YOU?

Attached to each report is a credit score known as a FICO (Fair Issac Corporation) score.  The FICO score can range from 300 to 850, but the majority of scores usually fall within the 600s and 700s.  Your goal is to have the highest number possible based on your use of credit and the history contained in your credit report.  Each one of the credit bureaus has their own FICO score criteria.  A FICO score may differ between the 3 credit bureaus because not all creditors submit to each bureau.

A FICO score is a combination of many credit associated items.  Based on the type of credit, a FICO score is made up of the following percentages:

  • 35% for history;
  • 15% for length of credit;
  • 10% for newly acquired credit;
  • 10% for types of credit; and
  • 30% for amount of debt owned on credit cards and loans.   A few examples of what can lower a FICO score are:  late payments, too high of credit used against credit limit, past due payments, too many credit cards, judgments, collections, or too many applications for credit.

It is possible to obtain your FICO score by contacting each credit bureau for their process or at the www.annualcreditreportcom website, but there is a fee.  However, if you pay a credit reporting and tracking agency, you may be able to obtain the FICO score free of charge.

If you discover errors within your credit report, you should contact the providing bureau directly.  If they don’t correct the errors, you can contact the Consumer Financial Protection Bureau (CFPB) at 1-855-411-2372 or TTY/TDD 1-855-729-2372 and/or file a complaint with the CFPB at  http://www.consumerfinance.gov/blog/headline-now-accepting-credit-reporting-complaints/ ; or send a letter to Consumer Financial Protection Bureau, P. O. Box 4503, Iowa City, Iowa 52244.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.   Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org. Nuestros consejeros aprobados por HUD puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio: www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

How Can the Consumer Financial Projection Bureau Assist You With Credit Reporting Issues? Our Blog Explains How.

Consumer Financial Protection BureauBy JoAnn Parrott, Housing Counselor at Project Sentinel, one of the members of ForeclosureHelpSCC.

WHAT IS THE CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)?

In July 2010, Congress passed and President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act.  Part of this Act created the CFPB which consolidates most Federal consumer financial protection authority into one place.  The services of the CFPG became effective on October 22, 2012.  The goal of the CFPB is:  watch out for American consumers in the market for consumer financial products and services.

HOW CAN THE CFPB HELP YOU WITH CREDIT REPORT PROBLEMS?

The CFPB can help with:

  1. Consumer reporting agency’s investigations,
  2. Incorrect credit report information,
  3. Improper use of a credit report,
  4. Assistance to get a copy of a credit score or report, and
  5. Problems with credit monitoring or identify protection services.

WHAT DO YOU NEED TO DO?

This step is covered under the Fair Credit Reporting Act (FCRA).  If you are experiencing any problems with your credit report, you should first of all send a letter to the credit bureau in question stating the complaint or error that needs to be addressed or resolved.  You must include copies of supporting documents as well as your complete name and address, and your letter should clearly identify each item in dispute.  You must request that the information be removed or corrected.  Send the letter by certified mail, ‘return receipt requested,’ so you can document that the credit bureau received the letter.

TIP:  Include a copy of the credit report with the error highlighted or circled and keep a copy of the letter and supporting documents.

If the credit bureau deems your complaint as legitimate, they have 30 days to investigate.  They must also forward the information you provide about the inaccuracy to the organization that provided the information.  The information provider must investigate, review the relevant information, and report the results back to the credit bureau.  If the information provider finds the disputed information is inaccurate, it must notify all the credit bureaus so they can correct the information they have in your file.

When the investigation is complete, the credit bureau must give you the results in writing and a free copy of your report if the dispute results in a change to your credit report.  This free credit report does not count as your annual free report.  If an item is changed or deleted, the credit bureau cannot put the disputed information back in your file unless the information provider verifies it is accurate and complete.  The credit bureau also must send you written notice that includes the name, address, and phone number of the information provider.

If you wish, you can request that the credit bureau send notices of any corrections to anyone who received your credit report in the past six months.  You can have a corrected copy of your report sent to anyone who received a copy during the past two years for employment purposes.

If the investigation doesn’t resolve your dispute or problem, you can ask that a statement of the dispute be included in your file and in future reports.  You also can ask the credit bureau to provide your statement to anyone who received a copy of your report in the recent past.  You can expect to pay a fee for this service.

A credit bureau can report negative but correct information for seven years and bankruptcy information for 10 years.  There is no time limit for reporting criminal conviction; information reported in response to your application for a job that pays more than $75,000 a year; and information reported because you’ve applied for more than $150,000 worth of credit or life insurance.  In general the seven-year reporting period runs from the date that the event took place.

WHAT IF THE PROBLEM IS NOT FIXED?

If the problem is not resolved, you can:

  1. Contact the CFPB at 1-855-411-2372 or TTY/TDD 1-855-729-2372;
  2. File a complaint with the CFPB at  http://www.consumerfinance.gov/blog/headline-now-accepting-credit-reporting-complaints/ ;
  3. Send a letter to Consumer Financial Protection Bureau, P. O. Box 4503, Iowa City, Iowa 52244.

You may also enjoy reading our previous blog post, “Rebuilding Credit After a Short Sale”  en español:  “Mejorando El Credito Despues De Una Ejecución De Hipoteca O Venta Corta”

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.  Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org. Nuestros consejeros aprobados por HUD puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293 -6000, o visite nuestro sitio: www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Lee nuestros otros blogs en ​​español:

¿Por Qué Trabajar Con Un Consejero de Casa?

5 Programas importante para los propietarios de California

Help with rental assistance after a foreclosure – What’s out there?

By Yvonne M. Castillo, Housing Counselor at SurePath Financial Solutions, one of the members of ForeclosureHelpSCC.

What’s out there for me to rent?” and “where to do I begin to research rentals?”With more people becoming displaced as a result of foreclosures, short sales or because of deeds-in-lieu of foreclosures, these questions are being asked by many, many people.

One place you can go to begin your search is at www.scchousingsearch.org. It is a very informative website to search for rental housing in Santa Clara County.  It provides information on various types of rentals including, apartments, townhomes etc. This website can help you find available rentals in different cities throughout Santa Clara County.  You can also call and speak with a live person who will assist you in looking for a rental- call Toll-Free: 1.877.428.8844.

Before you begin your search, it is a good idea to know what size rental you are looking for and how much you can afford to spend on rent. If you are looking to rent something larger such as a house, you can also check out websites such as www.zillow.com or www.craigslist.org. At www.craigslist.org you can tailor your search to different areas of the bay area.

Before you begin your search it is important that you review your credit history and score as a credit evaluation is required with most rental applications. You can order your credit reports from the three bureaus: Experian, Equifax and TransUnion through www.annualcreditreport.com.  Under the Fair Credit Reporting Act, each one of the three agencies (Experian, Equifax, and Transunion) is required to provide you a free copy of your report once a year.  While you are ordering your reports it is a good idea to purchase your credit score.  Your credit report is free but the scores have to be purchased- the fee is around $8.00 per score.

Check to see what is listed on your reports and also what your scores are before you submit a rental application to a landlord or property management company. You want to check for any unpaid debts or judgments within the last two years. If your credit report does have recent unpaid debts you can contact a HUD-approved credit counseling agency such as SurePath Financial Solutions to receive a free consultation to review options on improving your credit.

Note: If your report does show a foreclosure it will remain on your credit report for seven years but, the effects of the foreclosure will lessen with time – refer to the My FICO website.

With so many people seeking rental housing these days, landlords and property management companies can be very selective regarding whose applications they approve. Each landlord or property management company has their own set of guidelines to follow in order to approve an application. For example, a landlord or property management company may require a credit score of 650 or higher and your gross income to be two to three times the monthly rent. Some may require no recent bankruptcies and no convictions for specific criminal activity etc.

If you have a foreclosure or short sale on your credit report, it may be better to mention it to your potential landlord before they pull your credit report.  They may be willing to still rent to you if you put down a larger deposit, or if you have good references.  Or, if they tell you that they absolutely will not rent to somebody with a foreclosure or short sale, then you can save the fee that you will pay for them to pull your credit report.

Landlords will also check for recent unpaid debts or unresolved judgments and if you’ve been evicted from previous rentals or foreclosed homes. If you have recently paid some outstanding balances, it might not show on your credit report right away. If the updates are not reflected on the credit report, make sure to mention it with your application, so you can show proof of resolved debt issues and that may help you through the rental process.

Be prepared to pay a non-refundable fee of approximately $20-$35 per person in the application, for them to run your credit report.  If you are approved, you will be asked to pay a security deposit, first and/or last month’s rent. Some landlords or property management companies may consider a larger security deposit to allow for pets and they may request all adults over the age of 18 who will be living in the home to fill out an application.

If you do not qualify for a rental, some property management companies will send you a copy of your credit report they requested and will include the reasons why you did not qualify.

If you do not immediately qualify for a rental then another strategy is to see if you can possibly rent a room (www.craigslist.org also has listings from room rentals) or stay with family or friends for a short term while you find a more permanent housing. The qualification for renting a room might be simpler compared to an apartment, but you will still need to provide proof of income, a security deposit and possibly referrals from previous landlords. The option of renting a room will give you some time to increase your savings, pay off some debts and work on improving your credit so later you qualify to rent a place on your own.

One thing the rental application does not list but you will definitely need is a lot of is patience. You will need patience as you search for and apply for a rental because more people are looking to rent now. You will also need patience while working on improving your credit. As mentioned before, it may take up to 45 to 60 days for your credit report to reflect activity such as paying off debts. As stated above, if you would like information and assistance improving your credit, you can contact a HUD- approved credit counseling agency for a free consultation. Then, the next time you submit a rental application you will have a better chance of qualifying for the rental you are seeking.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.  Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.