In Tip 9, I discuss dividing up your accounts, and why it is important to do this early so you can prepare to move forward as soon as the divorce is done.
I have posted a video series to the MyCredEd YouTube channel discussing how you can protect your credit during divorce. Remember, your divorce will be over soon, but the effects of a credit problem can last years longer!
You can view the Tip 9 video here:
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
The law prevents harassment by a debt collector. It is harassment if they call you at work?
My latest Ask Brent video discusses this. You can watch it here: httpv://www.youtube.com/user/MyCredEd.
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
Posted In: Collections, debt collection
In Tip 10, I discuss how to start watching your finances and why it is important to pay attention to your money.
I have posted a video series to the MyCredEd YouTube channel discussing how you can protect your credit during divorce. Remember, your divorce will be over soon, but the effects of a credit problem can last years longer!
You can view the Tip 10 video here:
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
If you are going through a divorce, your thoughts are probably not focused on what your credit score looks like. However, this is exactly the time to think about these issues!
I have posted a video series to the MyCredEd YouTube channel discussing how you can protect your credit during this tough time. Remember, your divorce will be over soon, but the effects of a credit problem can last years longer!
You can view the Introduction video here:
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
The statute of limitations for your state determines how long you can be sued for a debt. However, if you treat your debt wrong, the state of limitations can be reset and the clock starts over.
My latest Ask Brent video discusses this. You can watch it here: httpv://www.youtube.com/user/MyCredEd.
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
If you have filed for bankruptcy, you are going to have to repair your credit.
The question becomes when do you start? My latest Ask Brent video addresses this. You can watch it here: httpv://www.youtube.com/user/MyCredEd. You can also see my blog entry on this subject by clicking here.
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
The debt collector can get a lot of information about you. However, do they have the right to see your bank records?
My latest Ask Brent video addresses this. You can watch it here: httpv://www.youtube.com/user/MyCredEd.
Remember to ask your questions about credit and debt in the form to the right. I will answer via blog or video as soon as I can!
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
Recently, I have been getting a bunch of questions about credit, debt, foreclosure, bankruptcy, and other topics about credit.
The first couple of entries are already on YouTube, and you can see them here: httpv://www.youtube.com/user/MyCredEd
It can take a long time to write a blog entry, and I just don’t always have the time. So, I decided to go ahead and release some videos that answer the questions.
Here is how this works:
See the form to the right? You ask your question there. Just type in what you want to know, and I will work on answering it. Now, I can’t guarantee that I will answer every question, but I will do my best.
When you fill out the form, your question goes straight to my email inbox. I am an email addict, so I will see it quickly. If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.
I am working hard to grow this blog, and I want to grow it in a way that helps you. So, please ask your questions!
Again, you can find the videos on YouTube right here:
http://www.youtube.com/user/MyCredEd
I was talking to my Realtor today, and heard some interesting information.
She is helping a young couple and their kids relocate from another state. They have a fairly limited budget, and are trying to stay under a $150,000.00 purchase price. This couple has been pre-qualified through a lender they chose, and have a pre-qual letter, so they can purchase up to that $150k mark.
They found a house they like, and decided to put in an offer on it. The house is owned by Countrywide Mortgage, and they had a little surprise that went along with the offer.
They told the couple that they would have to fill out a Countrywide mortgage application before the offer would be considered!
Now, I know that times are tough for mortgage companies. I know they have taken a beating. But this seems really extreme. Let’s take a look at what this does:
1) The couple applying for the loan are going to take a hit on their credit scores. Queries against your report that are similar in nature, such as several mortgage applications within a short amount of time, are considered ‘shopping’, and do not ding your credit. However, since this couple qualified several months ago, the new app will be a big hit. It is only 5 to 20 points, but if that drops their credit scores a bracket, it will affect other rates that they may be eligible for.
2) The original mortgage company may be out of luck on this loan. Countrywide may win the mortgage, and that means another company loses business. Normally I am fine with this, but not if the application is coerced and is not what the couple intended to do originally.
3) This adds extra time to the whole process. This couple is relocating for work (he is in the military and is being re-assigned), and they have to move quickly. Now they make have to stay in temporary housing for several months, much longer than they had hoped, before their place will be available.
4) Unless the mortgage company is being really generous, the purchaser might have to pay for the privilege of filling out yet another loan application.
Why would a mortgage company do this?
Well, financially it makes a lot of sense. The mortgage company has taken a loss on the principle of the house. Let’s say this was originally a $180,000.00 loan. It now sells for $150,000.00. That is a $30,000.00 loss, correct? Well, not exactly.
The first several hundred payments on a property are largely interest. If this house had a $1,000.00 payment for, say, 5 years, $60,000.00 would have been paid out. Let’s be conservative, and say that $40,000.00 of that was interest (that is pretty conservative). In that case, after the mortgage company paid back their expenses and the interest they had to pay on the loan from their financers, it probably made a profit on that interest of $20,000.00 or so. My numbers aren’t exact, obviously, but they make a profit on every payment. Otherwise they wouldn’t be in business.
They also wrote off the bad debt on taxes. That takes even more away from their loss.
They had to eat some bucks on the short sale. Fine. That is part of doing business. Now they are looking to make money back.
When a short sale happens, the original lender loses any monthly profit on the loan, unless, of course, the new loan is through them as well. They want that loan! The new buyer has to qualify, of course, but if they can hang on to the loan they can make up some of the loss. So, it makes perfect sense that they want an opportunity to get the loan.
I can see why they do this, but I am not happy about it. Any time I have to fill out additional paperwork, take a credit score hit, and get nothing out of it other than the privilege of being able to buy something, I feel wronged. This is a business practice that feels predatory, and I would hope that enough people boycott companies pursuing this practice that it will soon come to an end.
