Rent to own information in Colorado Springs that explains Judements on credit reports. How to resolve judgments on credit reports so you can successfully rent to own your home

12 months to a 720 Credit Score

presented by

EZQualDreamHomes.com and Swiftcurrent Investment Group

October Newsletter

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The Fed is quietly saying we are out of the recession....

The Washington Post states that: "Economists warn the expansion is fragile and will have staying power only if consumers start spending more money. Rising unemployment that keeps Americans cautions could make for a plodding recovery in the months ahead."

Meeting by the Federal Reserve on September 22 and 23 will shed more light...stay tuned!

Being that I just quoted the above statement, it sounds like I am saying....go spend...have at it....

No that is not what this recession should have taught us. One of the indicators that a recession is over is that people have more savings and then are starting to spend again. That is a HUGE key point here. You always want to spend wisely, not in a hurry and make sure you have some reserves.

Over these past few months our tenant buyers have been responsible and have kept in close contact with us so if they needed some payment arrangements they have been proactive and contacted us and worked reasonable payment plans out.

The key point here is that people have been more proactive and calling before all heck brakes loose and they are able to work things out....this makes for a much better relationship, sleep better at night and you have more control. It is not always pleasant but it does make you stronger as a person and financially.

And that is what owning a house is all about. Its great when times are good and you have money to put into your home but when times are tough you make tough decisions to keep your home and your credit intact. Paying your home first is a huge priority and it has a huge impact on your credit.

If you are hungry for some more great information you can always go to our articles site. We are constantly updating articles to help you in finance, credit and home owning. By accessing and implementing the information in these previous newsletters, new and previous articles, and tools you can help yourself improve your credit

Here is the link:

Archives

So what's in this month's newsletter?

This month's News Update

Every city in America offers "First Time Homebuyers Classes"

Typically it is a one day seminar on a weekend and is Free

We highly recommend you attend one...they are packed with valuable information and a great starting point to owning your home....even if you have owned before

Click here and then click on schedule for Colorado Springs dates and times:

Colorado Springs Agenda

(You can just google first time home buyers class and your city name for one near you)

Don't forget that you can always access your own credit report for free once a year.

Here is how you do it:

Free E-Book

People pay money every day to get their credit report and this shows you how to do it for FREE and not negatively impact your credit score.

We sell this E-Book for $29.97 and it is yours Free because we believe you seriously want to improve your credit and go onto home ownership and will one day be in one of our homes...we want you to have a head start and know about your credit report.

Our tenant home buyers are responsible for caring for their home, making their monthly payments on time and in return they become homeowners.

Our future home buyers reap the rewards of having this independence by making their home their own, and getting qualified down the road for a home they know that they love and want because they have been putting their time and energy into making it perfect for themselves and their family.

Rates are still great right now.

Rates are around 5%....

Look up your credit report....from the free E-Book above. If you can take advantage of the $8000 tax credit plus the awesome interest rates you need to do it now...The tax credit is only in effect until December 1 2009.

If you are not quite there pull your report and lets get to work!

We are already in September....school has started back up, the fund raisers have kicked off and you are busy trying to get to and from work in addition to all the kids activities....when is there time to breath?

That is why we send out these newsletters each month...so you can print them out and read them over your lunch break or get through them when you are browsing through your emails.

That is also why our tenant buyers get monthly online classes. That way they can do them anytime anywhere and not have to come into a classroom each month. It works great for them!

We are well past the half way point of the year and we have covered a boat load of information. Every newsletter builds on the previous one but in and of itself you can use the information and go forward.

Let's review the important highlights so far.

The 5 most important factors that are considered in the credit score formulas are:
1.     Your payment history
2.     The amount of money that you owe
3.     The length of time you have had credit
4.     The type of credit that you have
5.     How many credit Inquires

Your payment history is very important and something that you can start to change immediately. It is the one thing you want to start improving right now. Once your history improves, everything else will follow.

You want your scores to reflect a positive payment history; to show that you make your payments and you make them on time.

The next topic that was very important that we covered was the notorious credit card (always stick with visa® Mastercard® American Express® and Discovery® or get a secured card from your bank) and the concept of the "utilization rate".

Or, the amount of credit you are using. This is where you ideally want to be spending less than 30% of your available credit. So, with your credit cards or lines of credit, you want to keep your utilization rate less than 30% and pay on time. Then you will see your credit scores improve as time goes on and you do this repetitively each monthly.

The majority of people have errors on their credit report.  The credit bureaus just report what is sent to them, it is your responsibility to ensure the information is accurate.

Removing errors from your report is a time consuming endeavor, but it can be a very effective way to improve your credit without paying out extra money.

Send the highest priority mistakes first as they will make the most difference. You want to send the letter with a copy of the document supporting your claim, like bank statements or cashed checks or credit card statements with limits. Remember always send certified mail return reciept and include your copies, never give originals, plus send copies of your id so that they know it is you.

Let's go over the Negative information on Your Credit Report that you can control or take care of...

One of the big Negative Factors on a Credit Report is: Judgments

You CAN”T get a mortgage if you have any judgments on your credit report....period.....they need to be taken care of and released.

So, Here is how you deal with judgments:

Judgments

Judgments are a legal reported document against you personally.

It goes in 1st position before a mortgage and needs to be satisfied before you will be approved for a home mortgage.

Judgments affect a title commitment for real estates, so they have to be paid and or removed prior to closing on a home. In certain cases, you can fight these, and take the creditor back to court. If they didn't actually serve you- or if the debt is not yours and they can't prove it was yours- you may be able to get the judgment cleared.
Unlike collections, you have to settle a judgment with whoever placed the judgment. This may be a bill that started again with a phone service but then was sold to collection companies and then a lawyer bought it and filed the judgment. In this case it needs to be settled with the lawyer.
1. If you have already paid this debt before it became a judgment, you need to contact the creditor to get proof.
2. If you have not paid the debt yet, and you don't know who the creditor listed is- then there are 4 steps you need to follow:

a. Go to the El Paso County Clerk & Recorder Office and get all the account information on the judgment that has been filed (this is a legal document and the county clerk will have the records). They will have the contact information of the creditor.
For El Paso County here in Colorado:

El Paso County Clerk and Recorder:
Centennial Hall
200 S. Cascade Ave
Colorado Springs, CO 80903
8am-5pm (M-F) except holiday
Phone: 719-520-7074
Fax 719-520-6230

b.     Contact the creditor and see if they will accept a settlement for the balance owed. Also- ask to see the original debt owed against you. You may not be liable for all the charges and fees added to the debt.
c.     If the debt is in fact yours- then follow the same rules for collections when paying a creditor (steps 2-7 under collections above).
d.     Take a copy of your receipt and a copy of your check back to the County Clerk& Recorder and get a "Satisfaction & Release of Judgment" letter. This document will be notarized. As soon as you get it- make 3 or 4 copies. Never lose this document!
3.     You will need to provide your lender with a copy of the judgment satisfaction. You will also likely have to bring the original to closing with you. Remember keep copies of this in your folder!
4.     If you have judgments from other states you will need to look up their clerk and recorder offices according to the county. They should be able to help you over the phone.

If you have any problems or questions- contact your mortgage representative along the way. They are here to help you. They can also help with updating your credit report as you get things paid and removed.

Next month we will cover another Negative Factor and how to resolve it!

Dedicated to improving your credit and making you a home owner,

Lori

Swiftcurrent Investment Group, LLC

EZQualDreamHomes.com

719-648-5223