Comments for SmartCredit Blog http://www.smartcredit.com/blog How to get a better Credit Score, Save Money and Stop Identity Theft | SmartCredit Blog Tue, 31 Jan 2012 22:16:45 +0000 hourly 1 http://wordpress.org/?v=3.3.1 Comment on Loan Modifications, More About the Failed Program by Matthew Tarr http://www.smartcredit.com/blog/2011/02/08/loan-modifications-more-about-the-failed-program/comment-page-1/#comment-10674 Matthew Tarr Tue, 31 Jan 2012 22:16:45 +0000 http://www.smartcredit.com/blog/?p=969#comment-10674 This is absolutely true. Loan modifications, while they appear to help, may in fact be the worst thing you can do. While there are no guarantees, a short sale (HAFA and co-op) may be the best thing. Also, the Bank pays the commissions and taxes (in most cases). A co-op short sale is not like a HAFA. A co-op short sale is a lender program. Bank of America does have co-op short sale program available for select homeowners. This program is wonderful because it does something that HAFA can't, no documentation. All you need is three pieces of paper signed and that's it. The bank hires an appraiser and will determine the list price. The homeowner has 4 months to find a qualified Buyer and the homeowner will receive 2,500 to assist with moving expenses. Now if you really want the 3,000 that HAFA offers, that extra $500.00 is going to cost you a lot of time and uncertainty. You will need to provide full documentation including utility bills, copy of tax returns including providing the bank permission to receive back year taxes and you may still not be approved. With the co-op short sale program, you know going in you are approved. This is absolutely true. Loan modifications, while they appear to help, may in fact be the worst thing you can do.

While there are no guarantees, a short sale (HAFA and co-op) may be the best thing. Also, the Bank pays the commissions and taxes (in most cases). A co-op short sale is not like a HAFA. A co-op short sale is a lender program. Bank of America does have co-op short sale program available for select homeowners. This program is wonderful because it does something that HAFA can’t, no documentation.

All you need is three pieces of paper signed and that’s it. The bank hires an appraiser and will determine the list price. The homeowner has 4 months to find a qualified Buyer and the homeowner will receive 2,500 to assist with moving expenses.

Now if you really want the 3,000 that HAFA offers, that extra $500.00 is going to cost you a lot of time and uncertainty. You will need to provide full documentation including utility bills, copy of tax returns including providing the bank permission to receive back year taxes and you may still not be approved. With the co-op short sale program, you know going in you are approved.

]]> Comment on Who are the Strategic Defaulters? by Quinn Mallory http://www.smartcredit.com/blog/2012/01/25/who-are-the-strategic-defaulters/comment-page-1/#comment-10466 Quinn Mallory Mon, 30 Jan 2012 23:39:13 +0000 http://www.smartcredit.com/blog/?p=3353#comment-10466 I'm one of the strategic defaulters, having just done that a month ago. Was laid off several years back and was forced to move in with relatives until I found another job. Rather than default on my mortgage at that time, I managed to get a renter in there, but still had to horse up some of my own money to make the full mortgage payment. It's that extra amount I have to add to the tenant's rent to make up the full mortgage payment that has been holding me back from finding another place. Rented a place several months ago and then walked away from mortgage (so the foreclosure wouldn't prevent me from renting a place). Would I have preferred not to have defaulted? Yes. But, I didn't want to wait a decade for my underwater house to become sellable again. Will the forclosure hurt me? In theory, I suppose, but over the past several years I've managed to wean myself off of credit. I have only one credit card and there's nothing on it. Already have a car that will last a decade or more, so I won't be hunting up a new car anytime soon. Since I'm not a user of credit, damage to my credit score will not impact me much, if at all. My score should recover long before I need to apply for new credit again, if I ever do. I’m one of the strategic defaulters, having just done that a month ago. Was laid off several years back and was forced to move in with relatives until I found another job. Rather than default on my mortgage at that time, I managed to get a renter in there, but still had to horse up some of my own money to make the full mortgage payment. It’s that extra amount I have to add to the tenant’s rent to make up the full mortgage payment that has been holding me back from finding another place. Rented a place several months ago and then walked away from mortgage (so the foreclosure wouldn’t prevent me from renting a place). Would I have preferred not to have defaulted? Yes. But, I didn’t want to wait a decade for my underwater house to become sellable again. Will the forclosure hurt me? In theory, I suppose, but over the past several years I’ve managed to wean myself off of credit. I have only one credit card and there’s nothing on it. Already have a car that will last a decade or more, so I won’t be hunting up a new car anytime soon. Since I’m not a user of credit, damage to my credit score will not impact me much, if at all. My score should recover long before I need to apply for new credit again, if I ever do.

]]> Comment on Does it Hurt My Credit Score if I’m Denied Credit? by John Ulzheimer http://www.smartcredit.com/blog/2011/07/21/does-it-hurt-my-credit-score-if-im-denied-credit/comment-page-1/#comment-10435 John Ulzheimer Mon, 30 Jan 2012 16:54:54 +0000 http://www.smartcredit.com/blog/?p=2495#comment-10435 Hi Bob. No, even if you contact the credit bureaus and leverage your rights to a free credit report b/c of the denial it will not become a part of your credit report. Adverse lender decisions do not go on credit reports. By the way, if your bank declined your application b/c of your credit score they're required under Dodd-Frank to provide you with the score they used to base their decision. It sounds like a non-score based decision though. Hi Bob. No, even if you contact the credit bureaus and leverage your rights to a free credit report b/c of the denial it will not become a part of your credit report. Adverse lender decisions do not go on credit reports. By the way, if your bank declined your application b/c of your credit score they’re required under Dodd-Frank to provide you with the score they used to base their decision. It sounds like a non-score based decision though.

]]> Comment on New Bill Proposed Would Remove Medical Collections From Credit Reports by John Ulzheimer http://www.smartcredit.com/blog/2011/07/07/new-bill-proposed-would-remove-medical-collections-from-credit-reports/comment-page-1/#comment-10434 John Ulzheimer Mon, 30 Jan 2012 16:52:10 +0000 http://www.smartcredit.com/blog/?p=2408#comment-10434 You can thank the lawmakers from the 80s who drafted the Fair Credit Reporting Act for the 7 year rule. It's been 7 years since then. You can thank the lawmakers from the 80s who drafted the Fair Credit Reporting Act for the 7 year rule. It’s been 7 years since then.

]]> Comment on New Bill Proposed Would Remove Medical Collections From Credit Reports by jackie http://www.smartcredit.com/blog/2011/07/07/new-bill-proposed-would-remove-medical-collections-from-credit-reports/comment-page-1/#comment-10309 jackie Sat, 28 Jan 2012 21:10:17 +0000 http://www.smartcredit.com/blog/?p=2408#comment-10309 i am all for this bill. this is how it should be for all bills. who came up with 7 years anyway? what no one can make mistakes? 7 year punishment for a bill? ridiculous. i am all for this bill. this is how it should be for all bills. who came up with 7 years anyway? what no one can make mistakes? 7 year punishment for a bill? ridiculous.

]]> Comment on Does it Hurt My Credit Score if I’m Denied Credit? by Bob Brooks http://www.smartcredit.com/blog/2011/07/21/does-it-hurt-my-credit-score-if-im-denied-credit/comment-page-1/#comment-10261 Bob Brooks Sat, 28 Jan 2012 06:05:52 +0000 http://www.smartcredit.com/blog/?p=2495#comment-10261 I was declined for an auto loan because I, currently, do not live in the area served by the bank. I will be moving there. Your article states that the credit agencies are not informed of a declined loan application. It also states I am eligible to get a free credit report and score. I am interested in knowing my score. If I contact the credit agency about this, they will then find out I have been declined. Will that information go in my file and lower my score? Thank you. I was declined for an auto loan because I, currently, do not live in the area served by the bank. I will be moving there.

Your article states that the credit agencies are not informed of a declined loan application. It also states I am eligible to get a free credit report and score. I am interested in knowing my score.

If I contact the credit agency about this, they will then find out I have been declined. Will that information go in my file and lower my score?

Thank you.

]]> Comment on Consumer Reports Survey on Credit Cards by John Ulzheimer http://www.smartcredit.com/blog/2011/12/15/consumer-reports-survey-on-credit-cards/comment-page-1/#comment-9659 John Ulzheimer Mon, 23 Jan 2012 19:05:31 +0000 http://www.smartcredit.com/blog/?p=3223#comment-9659 Not other than what's in their survey. It's hard to know why someone defaults when looking from the outside. Could be major medical, job loss, irresponsibility, or a host of other reasons. Not other than what’s in their survey. It’s hard to know why someone defaults when looking from the outside. Could be major medical, job loss, irresponsibility, or a host of other reasons.

]]> Comment on Consumer Reports Survey on Credit Cards by Rajeev http://www.smartcredit.com/blog/2011/12/15/consumer-reports-survey-on-credit-cards/comment-page-1/#comment-9634 Rajeev Sun, 22 Jan 2012 22:31:56 +0000 http://www.smartcredit.com/blog/?p=3223#comment-9634 Great article. Did they cover the reasons for credit card defaults? Great article. Did they cover the reasons for credit card defaults?

]]> Comment on FICO Reveals Score Impact of Mortgage Delinquencies by John Ulzheimer http://www.smartcredit.com/blog/2011/03/24/fico-reveals-score-impact-of-mortgage-delinquencies/comment-page-1/#comment-9577 John Ulzheimer Fri, 20 Jan 2012 14:08:07 +0000 http://www.smartcredit.com/blog/?p=1509#comment-9577 Your scores would get killed by the short sale especially if you've got good credit right now (and don't let your real estate agent suggest otherwise). Silly question, why in the world would you want to buy another house right now? The market is still terrible. I'd suggest renting in the new area. That way you're not locked into a mortgage on a house that might actually lose more value. Your scores would get killed by the short sale especially if you’ve got good credit right now (and don’t let your real estate agent suggest otherwise). Silly question, why in the world would you want to buy another house right now? The market is still terrible. I’d suggest renting in the new area. That way you’re not locked into a mortgage on a house that might actually lose more value.

]]> Comment on Paid and Withdrawn IRS Tax Liens to be Removed From Credit Files by John Ulzheimer http://www.smartcredit.com/blog/2011/02/25/paid-irs-tax-liens-to-be-removed-from-credit-files/comment-page-1/#comment-9576 John Ulzheimer Fri, 20 Jan 2012 14:06:16 +0000 http://www.smartcredit.com/blog/?p=1212#comment-9576 The form numbers listed in my article came directly from the IRS's press release and I've seen several examples of the new IRS policy in action so I'm not sure what you're being told is correct. The form numbers listed in my article came directly from the IRS’s press release and I’ve seen several examples of the new IRS policy in action so I’m not sure what you’re being told is correct.

]]> Comment on Paid and Withdrawn IRS Tax Liens to be Removed From Credit Files by John Ulzheimer http://www.smartcredit.com/blog/2011/02/25/paid-irs-tax-liens-to-be-removed-from-credit-files/comment-page-1/#comment-9575 John Ulzheimer Fri, 20 Jan 2012 14:04:36 +0000 http://www.smartcredit.com/blog/?p=1212#comment-9575 I don't think that's right. An OIC is a settlement and the IRS press release suggested that the lien had to be paid in full in order to get a withdrawal. You can get it released with a completed OIC, but that's not going to result in removal from your credit reports. I don’t think that’s right. An OIC is a settlement and the IRS press release suggested that the lien had to be paid in full in order to get a withdrawal. You can get it released with a completed OIC, but that’s not going to result in removal from your credit reports.

]]> Comment on Why do I have a credit report but no credit score? by John Ulzheimer http://www.smartcredit.com/blog/2011/10/03/why-do-i-have-a-credit-report-but-no-credit-score/comment-page-1/#comment-9574 John Ulzheimer Fri, 20 Jan 2012 14:02:25 +0000 http://www.smartcredit.com/blog/?p=2855#comment-9574 The Equifax credit score and the FICO score are 2 completely different scoring systems. The clearly have two different minimum criteria for scoring if you're able to get one but not the other. The FICO score is the one you should be concerned about, not the Equifax credit score. I doubt you'd find many lenders using that one. The Equifax credit score and the FICO score are 2 completely different scoring systems. The clearly have two different minimum criteria for scoring if you’re able to get one but not the other. The FICO score is the one you should be concerned about, not the Equifax credit score. I doubt you’d find many lenders using that one.

]]> Comment on Paid and Withdrawn IRS Tax Liens to be Removed From Credit Files by John Ulzheimer http://www.smartcredit.com/blog/2011/02/25/paid-irs-tax-liens-to-be-removed-from-credit-files/comment-page-1/#comment-9573 John Ulzheimer Fri, 20 Jan 2012 14:00:59 +0000 http://www.smartcredit.com/blog/?p=1212#comment-9573 #1 - I don't think so. According to the IRS the lien must be paid in full in order to have it withdrawn. And OIC is a settlement for less than the full amount. But yes, if you're able to get the lien withdrawn then the credit bureaus will remove them from your credit reports. #2 - This is only for Federal tax liens. #1 – I don’t think so. According to the IRS the lien must be paid in full in order to have it withdrawn. And OIC is a settlement for less than the full amount. But yes, if you’re able to get the lien withdrawn then the credit bureaus will remove them from your credit reports.

#2 – This is only for Federal tax liens.

]]> Comment on FICO Reveals Score Impact of Mortgage Delinquencies by Belle Hill http://www.smartcredit.com/blog/2011/03/24/fico-reveals-score-impact-of-mortgage-delinquencies/comment-page-1/#comment-9565 Belle Hill Thu, 19 Jan 2012 17:09:03 +0000 http://www.smartcredit.com/blog/?p=1509#comment-9565 I have a question re: short sales. We are not and have not been late on our mortgage. We need to move because the public schools in our area are horrible, and we cannot afford private school. The market has plummeted here, and we'd need to list our house for approximately 100K less than our original purchase. The difference, coupled with the commission is making us consider asking the bank for a short sale. What would the effect be on our credit, since we are NOT late? Would we be able to immediately get another mortgage? I have a question re: short sales. We are not and have not been late on our mortgage. We need to move because the public schools in our area are horrible, and we cannot afford private school. The market has plummeted here, and we’d need to list our house for approximately 100K less than our original purchase. The difference, coupled with the commission is making us consider asking the bank for a short sale. What would the effect be on our credit, since we are NOT late? Would we be able to immediately get another mortgage?

]]> Comment on Paid and Withdrawn IRS Tax Liens to be Removed From Credit Files by RD http://www.smartcredit.com/blog/2011/02/25/paid-irs-tax-liens-to-be-removed-from-credit-files/comment-page-1/#comment-9545 RD Fri, 13 Jan 2012 19:49:00 +0000 http://www.smartcredit.com/blog/?p=1212#comment-9545 In September of 08, the IRS filed a lien against me. After filing taxes from 03 to prove a bankruptcy, it showed that I did not owe them at all. In fact, after filing for that year, I would have been given a refund of $1800, had it been filed when it was due. In August of 11 I was given a Cert of release, along with a substantial refund. My problem is the released lien appears on the 3 credit reports, obviously having an adverse effect on my credit score. I have been working with a tax payer advocate who is telling me form 12277 is used only to release the lien and there is nothing I can do about having it removed from the credit reports. Is this true? In September of 08, the IRS filed a lien against me. After filing taxes from 03 to prove a bankruptcy, it showed that I did not owe them at all. In fact, after filing for that year, I would have been given a refund of $1800, had it been filed when it was due. In August of 11 I was given a Cert of release, along with a substantial refund. My problem is the released lien appears on the 3 credit reports, obviously having an adverse effect on my credit score. I have been working with a tax payer advocate who is telling me form 12277 is used only to release the lien and there is nothing I can do about having it removed from the credit reports. Is this true?

]]> Comment on Paid and Withdrawn IRS Tax Liens to be Removed From Credit Files by SBJR06880 http://www.smartcredit.com/blog/2011/02/25/paid-irs-tax-liens-to-be-removed-from-credit-files/comment-page-1/#comment-9544 SBJR06880 Fri, 13 Jan 2012 19:26:00 +0000 http://www.smartcredit.com/blog/?p=1212#comment-9544 To answer Question # 1, the IRS will only withdraw your tax lien when all terms of the OIC have been met. The offer terms include that for a five year period, beginning from the date of acceptance, that all tax returns and required taxes are paid. To answer Question # 1, the IRS will only withdraw your tax lien when all terms of the OIC have been met. The offer terms include that for a five year period, beginning from the date of acceptance, that all tax returns and required taxes are paid.

]]> Comment on Loan Modifications, More About the Failed Program by Shirley http://www.smartcredit.com/blog/2011/02/08/loan-modifications-more-about-the-failed-program/comment-page-1/#comment-9385 Shirley Fri, 16 Dec 2011 16:25:00 +0000 http://www.smartcredit.com/blog/?p=969#comment-9385 That's happening to me! My modification was started last December. I made the new payments June, July, August & sent new paperwork in for the 3rd time in November & am now being considered for the modification which I was told will take another 60 days. In the time being, I am being reported delinquent to the credit bureau with additional charges on my bill. What a CROCK!!!! These companies get help & they hang us out to dry. It's a crying shame!!! That’s happening to me! My modification was started last December. I made the new payments June, July, August & sent new paperwork in for the 3rd time in November & am now being considered for the modification which I was told will take another 60 days. In the time being, I am being reported delinquent to the credit bureau with additional charges on my bill. What a CROCK!!!! These companies get help & they hang us out to dry. It’s a crying shame!!!

]]> Comment on Paid and Withdrawn IRS Tax Liens to be Removed From Credit Files by GG http://www.smartcredit.com/blog/2011/02/25/paid-irs-tax-liens-to-be-removed-from-credit-files/comment-page-1/#comment-9377 GG Thu, 15 Dec 2011 15:28:00 +0000 http://www.smartcredit.com/blog/?p=1212#comment-9377 Great info here! Thanks for the update. Question #! I payed off my back taxes to the IRS through an Offer in Compromise. Is that considered paid in full? Can I have the leins completely withdrawn from my credit report? Question #2 or #4 actually. What about State taxes? I payed off my State taxes in full. How do I get State taxes removed from my credit report? Great info here! Thanks for the update.

Question #! I payed off my back taxes to the IRS through an Offer in Compromise. Is that considered paid in full? Can I have the leins completely withdrawn from my credit report?

Question #2 or #4 actually. What about State taxes? I payed off my State taxes in full. How do I get State taxes removed from my credit report?

]]> Comment on Why do I have a credit report but no credit score? by Derek http://www.smartcredit.com/blog/2011/10/03/why-do-i-have-a-credit-report-but-no-credit-score/comment-page-1/#comment-9356 Derek Mon, 12 Dec 2011 02:09:00 +0000 http://www.smartcredit.com/blog/?p=2855#comment-9356 John, I paid for and received an Equifax credit score, but have been told I have no credit when I applied for a car. I also tried to obtain a FICO score from Equifax but received a message stating there wasn't enough info to calculate a FICO score from Equifax. How can I have an Equifax credit score but no Equifax FICO score? John,

I paid for and received an Equifax credit score, but have been told I have no credit when I applied for a car. I also tried to obtain a FICO score from Equifax but received a message stating there wasn’t enough info to calculate a FICO score from Equifax. How can I have an Equifax credit score but no Equifax FICO score?

]]> Comment on What’s the Best Credit Card Debt Percentage? by Christian http://www.smartcredit.com/blog/2011/02/10/whats-the-best-credit-card-debt-percentage/comment-page-1/#comment-9240 Christian Mon, 28 Nov 2011 00:26:00 +0000 http://www.smartcredit.com/blog/?p=1001#comment-9240 Thank you for the information, however I'm a bit confused on something. When I took a look at some credit information on Equifax.com they mentioned that it's not good to have a 0 balance if credit is available to you. I did hear that keeping the balances under 30% is a good idea but now I hear 0% is the best...could you go into a little more detail on why it's better to maintain a 0% balance? Thank you for the information, however I’m a bit confused on something. When I took a look at some credit information on Equifax.com they mentioned that it’s not good to have a 0 balance if credit is available to you. I did hear that keeping the balances under 30% is a good idea but now I hear 0% is the best…could you go into a little more detail on why it’s better to maintain a 0% balance?

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