Mortgage Credit Fraud —- No Law Against It! - By: Andrew Bloom, Posted on: 2007-02-03

I was doing some research the other day and happened accross an article that while written last year is still as important today as it was then.

The article writes about credit repair fraud. Now, my area of expertise is mortgages, so I wanted to write a little about what I call “Mortgage Credit Fraud”. The fraud that I’m speaking about is how people are being advised.

Most mortgage companies down to the individual loan originators spend the bulk of their efforts (and money) in acquiring customers. With over 500,000 mortgage professionals nationwide — it’s dog-eat-dog out there. Once a “lead” is acquired there is an all out effort to “sell” that lead. Hey it’s business…. no one eats unless deals are done.

What many consumers are unaware of is many times the difference between qualifying for one loan vs. another with a much better interest rate can be just a few points on your credit report. I’m speaking of your credit score. Each of the three bureaus (Transunion, Equifax, Experian) issue a score based upon your credit profile. Some lenders have loan programs that have a minimum credit score of 620. If you have a 615 (yes even 619) you will be disqualified and forced to accept a loan program with much worse terms and interest rate.

I’m not saying what the lenders do is unfair. After all, they don’t know you personally —- it’s about all they have to rely on for a judgement call about your ability to repay your debts. What I AM saying is that with a little guidance (and consequently time) you could easily get that score raised the additional 5 points. There are many ways to go about it. But, loan originators NEED a deal now. They don’t want to wait another month or two. Worse yet, you may not even realize just how close you are to a much better loan.

The first step for the consumer (before taking out a home loan) is to obtain their credit report. You can do this by requesting it directly from the 3 bureaus but I don’t recall if your score will be divulged. You could also go to places like My Fico.com Word of warning however, if you use an on-line service there is a good chance that your information will be sold to a great multitude of vendors, lenders, etc…. That is how those companies make their money — not by providing you with a free credit report.

Once you have your report there are a tremendous number of things that you can do to improve that score. I’ll cover some of these strategies in a future article. But, let’s suppose that you need some help. Who do you turn to? Certainly not the loan originator. The article that I referred to earlier was written by Dennis Rockstroh for The Mercury News and can be found Here. This article tells you who NOT to use. There are a lot of companies out there advertising to those in dire straights — at least credit wise. You really should read this article so that you know what to watch out for.

I like to recomend Consumer Credit Counseling. One can be found just about anywhere you live. They make their money primarily from donations from credit card companies. The cc companies gladly donate money because they would much rather be paid a portion of the debt owed than to completely write it off as bad debt. Consumer Credit Counseling services have a lot of programs that will cost you nothing or very little. One company will go to bat for you and help clean up things on your credit that shouldn’t be there for a measly $50.

It’s a busy world with less and less time for people to do something “outside” of their routine, but when you can save yourself Thousands of dollars —- isn’t it worth it? Another way that you can save Thousands on a home loan is to go to http://www.freeloanadvice.net and get your FREE copy of “The Ultimate Mortgage Shopping Guide”. This informative guide will teach you the ONE thing that you must know in order to guarantee yourself of getting the absolute best deal on a home loan.

Article Source: http://www.southerncaliforniarealestateagent.com/submit-real-estate-articles

With over 20 years experience in real estate / mortgages, Andrew Bloom has agreed to reveal the ONE true way to get the best deal. Get the FREE "Ultimate Mortgage Shopping Guide" found at the Spam-Free site www.freeloanadvice.net You are free to re-print this article but only if the resource box remains intact. Copyright 2007 andrew bloom

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