Is the Sky Falling?

I could tell you from what we are seeing in mortgage modifications and short sales that things look a little bleak. Every week i meet with would-be investors who are now clinging on for dear life because they bought too much investment property without real income to support them. When I see people they are ready to walk-away, let it foreclose and tragically trash their credit for a decade.

There are choices and sometimes we have to face the music. The way your character is tested is by how well you deal with adversity, I’m finding many people are ready to abandon their leadership capability and run and hide under a rock. Sure there is a little embarrassment that goes with being a failed real estate investor but ultimately you have to face it and do what is right to keep your credit in tact.

First, a little history on credit scores. A company called the Fair Isaac Corporation created the first credit score. It was made available to lenders in the very late 80s and soon thereafter began to pick up momentum and popularity in the lending world. They called it the FICO score  and it became the gold standard in the mortgage and other consumer lending.

For years the FICO score was a mystery to consumers and was only known by the lending industry. Credit scores have only recently been made available to the public in the last few years. In 2001, California passed a law that required credit scores to be made available to California residents.

It also turned into a cash cow for the bureaus. However, for two of the three, instead of selling the actual FICO score, where they had to pay royalties to the Fair Isaac Corporation – they created their own scores to sell to consumers, that’s where the confusion started. Now all the bureaus  sell scores targeted at the consumer market, and unwitting consumers assume that these scores are the same scores a lender would see. Unfortunately, this is just not the case as Edward Jamision, Esq. would point out. His office has one of the best credit repair services that we look forward to bringing on.

Sometimes if you qualify for the loan modification which means you have a current loan that is 7.5% or more or is going to adjust or recast, and you want to stay in the home. Another thing you need to consider is getting your property tax bill reduced which we love to assist people with and you can examine the numbers for your self by going to this link. For a minimum fee you can get your annual tax bill reduced and save some money there.

If you’re looking to consider loan modification or if you owe more than the property is worth and are having financial difficulties you’ll want to download our questionnaire from here and you’ll also find our e-book “How to Avoid Foreclosure- 3 things you can do right now” which gives you great information on your options. Stop the worry and find solutions to your housing problem.

Untaxingly,

James Burns, Esq.