100% Refinance with Bad Credit
Things a lender is looking at
to give you 100% Refinance, 80% refinance your mortgage with a 500 FICO score, and below 500 FICO 65% LTV refinance, no seasoning is not a issue. In foreclosure or default, we can still refinance you
1. The first thing you need is your tri-merge credit score. I would
suggest going to MyFICO.com because it will NOT
affect your credit going there. Reminder, make sure you run the tri-merge
with all three credit bureaus
2. What is your credit score?
Most mortgage lenders will use the middle of the three scores. Your goal should
be at least a 580 if you are going to do a full doc program and 620 if you
are going stated, 640 stated will give you more options.
* Don't worry if not 580, I will go into a few steps to help you correct the
errors and/or how to correct them.
* Also check out the credit repair link articles I have included on here.
3. Is your middle credit score is below 580, you can either go
to a credit repair company or do it yourself. Doing it yourself is
easy and I have included articles here which will help you repair
it also. Remember, it is easy, just takes time. Before you know it,
your credit will be cleaned up.
4. Do you have a bankruptcy or foreclosure in your past? Has it
been 2 years since it was discharged? If it has,
great but remember to check on the credit report to match up accounts
on the BK are also stated as BK on the credit report. Most subprime
lenders will give you a 100% loan if your BK is 2 years old. If your
BK is only 18 months out, you can still get a 95% refinance loan.
Refinance
with bad credit summary
- FICO 580 or above
for 100%
Can refinance above a 500 FICO score with a lower Loan to value.
- FICO 620 or above for 100% Stated income
Can refinance above a 500 FICO score with a lower Loan to value.
- Bk must be older than 2 years for 100% Refinance
Yes, refinance with bad credit is that easy, WE make refinancing
easy, no matter the reason, we can refinance your mortgage fast.
There are always exceptions to guide lines and yes, they are changing
all the time. If you work with these as a general guide line, you
will have a better understanding of 100% refinance programs with
bad credit. We are here to work with you and yes, help you getting
your refinance you need.
3 Credit Bureaus ( TransUNION, EQUIFAX, experian )
What the Credit Bureaus Don't Tell You,
and how to repair your credit.
What the Credit Bureaus
Don't Tell You,
and how to repair your credit
In this section you will learn the ways of removing negative items from your
credit file. These methods are sometimes referred to as "Credit Repair".
These are the exact same methods credit repair clinics and attorneys charge
up to $3,500 to perform. Since they do not always do it correctly, consumers
have been taken for millions of dollars over the past years. We will also show
you all the jealously guarded secrets on how to outsmart creditors who are
damaging your credit!
What the Credit Bureaus Don't Tell You
1. Each item on your credit report must be proven or it cannot
remain in the report. If the credit bureau cannot verify the item
when investigated, it must be removed from your file whether or not
it's true.
2. Every negative entry on your report can be denied or challenged
at any time. The bureau must reinvestigate and if that item cannot
be verified within a "reasonable amount of time," it must
be removed from the file.
3. Items when challenged can be mistakenly erased. Consumers say
they often experience computer operator mistakes.
4. Many times the creditor does not re-verify in time or the credit
bureau is busy and does not handle your dispute properly. It must
then be deleted.
5. The older an item, the more difficult re-verification is. It
is possible it cannot be verified because records may no longer exist
after 1 or 2 years.
Steps to Repair Your Credit
1. Obtain your three credit reports.
2. Review the reports and locate the negative items.
3. Dispute the negative items with the credit bureaus.
4. Disputed items are removed or corrected. Items that were not
re-verified are removed.
5. Negotiate with creditors and collection companies.
6. After negotiating and making payment, creditors delete the negative
accounts or change them to a positive rating.
7. State the item you are disputing, but do not use dispute forms
or file numbers provided by the bureau. This will cause fewer delays
by the credit bureau asking for clarification.
8. Do not confirm the account if any information about the item
is wrong.
9. Do not use letterhead (you don't want to raise any Red Flags).
10. Do not photocopy a fill in the blanks form letter (another
Red Flag).
11. Send disputes during busy times of the year. For Example: The
first to middle of November can cause a delay in verification because
of Thanksgiving. Christmas rush for the creditor and the bureau can
catch them before they can thoroughly investigate within a reasonable
time.
Your Six Basic Rights under The Fair Credit Reporting Act
1. You, the consumer, have the right to challenge the accuracy
of your credit report any time.
2. The credit bureaus must reinvestigate anything you challenge
without a charge.
3. The credit bureaus must reinvestigate within a reasonable amount
of time. 30 days constitutes a "reasonable amount of time" unless
the bureau notifies you otherwise (so keep accurate records).
4. If the credit bureau finds an error in the challenged item,
they must delete or correct that information in your files immediately.
5. If the credit bureaus cannot or do not confirm the challenged
item within 30 days, they must delete that information from your
files immediately.
6. You have the right to submit a Consumer Statement of your view
of the problem. If you, as a credit consumer, dispute the accuracy
of certain information in your credit report and it is verified by
the creditor as correct, then the credit bureau is required to include
your explanation of your dispute, if you request, in your credit
report. Limit your explanation to no more than 100 words.
Removing Negative Credit
Important: You do not want us or any other company to file a dispute
for you because if the dispute is sent from anyone other than you,
the credit bureau will suspect that you have paid someone to repair
your credit and this will not work as well as it could have if you
sent it directly.
As the Credit Bureaus did not lend you money, they are not as concerned
as you if the information they have is correct or not. They are only
paid to store the information.
Consumers working on their credit reports say many times their
letters are ignored by the credit bureaus. It is believed the credit
bureaus try to discourage consumers from working on the reports by
making it difficult. Consumer's say even with proof an item is not
theirs, its removal from their report can take three or four challenge
letters. When the credit bureaus say they have verified or confirmed
an item, it seems all they have done is verified it is in their computers.
THIS IS NOT ENOUGH PROOF!!! They need to provide greater proof, so
read on.
Sending your dispute letter by CERTIFIED RETURN RECEIPT MAIL greatly
increases your chance of a response. This should not be done with
the first attempt. Keep a record of when you sent the dispute letters
and what date you should expect a response. If you have received
no answer to your dispute after 30 to 37 days, attack the credit
bureau with a certified return receipt letter, for an updated credit
report demanding the disputed items be deleted. If the bureaus do
not reply within the 30 days, it must be that the information was
either inaccurate, or it could not be verified. In either case, according
to the Fair Credit Reporting Act, the items must be immediately deleted.
Consumers have found it possible to eliminate negative marks on
credit reports simply by going through this process of disputing
items over and over again. Since many creditors won't take the time
to defend the negative item, eventually you can "repair" your
credit through default by your creditor not responding to the credit
bureaus request to verify the item. This commonly occurs. The creditors
do not always have time to deal with a bothersome piece of paperwork
and that is your advantage. We'll go into this more later.
When you get the updated report carefully review it to see if you
have lost the negative items and to see if anything else has changed.
Consumers working on their credit report have found while disputing
one negative item, for no apparent reason, another negative item
or two disappeared. Usually some progress is made each time you challenge,
but do not get discouraged if you don't get results each time. Remember,
the credit bureau would like you to quit bothering them because if
you aren't disputing the report, they can legally continue selling
it as profitable information.
After you have received your response, repeat the process all over
again. Consumers who have successfully cleaned their credit report
say that they have denied a bankruptcy or judgment and have received
verification from the credit bureau that it was in public record.
They denied a second time and some even a third time, and finally
the credit bureau deleted the bankruptcy from the report. So do not
get discouraged! Patience and persistence are important keys to incredible
success in repairing a damaged credit report.
The creditors who reported the items to the bureaus must be the
ones to provide information to verify the dispute. These creditors
do not always have the staff and proper records to verify all disputes
within 30 days to keep the item from being removed. So you can see
how possible it is to remove negative information from your credit
file. How well is this going to work for you? The only way is to
try. However, our research has shown that certain items are easier
to remove than others.
Easier Items To Dispute And Have Removed
* Items older than 2 years * Discharged bankruptcies
* Charge-offs * Inquiries
* Repossessions * Late payments
* Accounts that were late but are now paid off
The reason these items are easier to remove is simple; when you
dispute an older account or an item that is now charged off, the
creditor is not too concerned with the account any more. They may
not even be able to find the necessary information to verify the
dispute. Even if the account was once seriously past due, but now
is paid off, they usually will not take the time to verify the dispute
since they have already been paid.
More Difficult Items To Dispute And Have Removed
* Accounts that are currently past due
* Recent Bankruptcies
* Judgments
* IRS or State Tax Liens
* Current collection accounts
These are more difficult because creditors keep these types of
accounts in their current files and they are expecting you to pay
them. That is why it will be much easier for them to verify the information
and keep the item on your credit file. However, it is always worth
a try.
Important: It is completely legal for you to dispute items on your
credit file even if you know they are correct. You are simply testing
to see if your creditors have maintained the proper records to verify
the dispute. You have a very bad memory and forgot that the negative
accounts on your credit file are really yours.
Free Credit Repair Tips: Removing Negative Credit
Step 1: To dispute a negative item on your credit file you need
to first identify the negative items that you want removed.
Once you know which items to dispute, DO NOT complete the Dispute
Forms that the Credit Bureaus included with copies of your credit
file that they sent you. It's much more effective to easily follow
the outlines of these sample letters.
Be sure to include a copy of your credit file and keep the original
for your records. Highlight or underline the items you are disputing.
Mail the dispute forms to the address listed on each credit file.
To dispute an inquiry, simply write that you never applied for
credit with that company.
Make a photocopy of your dispute letter for your records and be
sure to send it by Certified and Return Receipt Mail from your local
Post Office. Mail your dispute form to the address provided with
your credit file. Repeat the above process for each item that you
want removed or changed.
Step 2: After reviewing your updated credit file and finding that
most or all the negative items have been removed, you may now focus
on building a positive credit profile. Positive information will
always outweigh a few negative items that may remain on your file.
Step 3: This technique is extremely effective in removing any negative
information that was supposedly verified as correct after your dispute.
Important: Always remember that if the dispute is sent in from
anyone other than you, the Credit Bureau will suspect that you have
paid someone to repair your credit. This raises all sorts of Red
Flags. Since they make so many mistakes it is imperative that they
believe you are working alone and trying to fix a real legitimate
mistake.
If there is a negative item that you want removed from your credit,
such as a bankruptcy, charge off or collection account, you may want
to write that this is NOT your account and you want it removed immediately.
If the account is now paid off, but was seriously past due at one
time, DO NOT write that it's not your account. Instead, write that
it is your account but was NEVER past due and you need it updated
to say that everything has always been current.
Free Credit Repair Tips: Removing Negative Credit
An Extremely Powerful Technique...
This auditing technique is usually only practiced by attorneys. It would be
very expensive to hire attorneys to do this for you. However, by following
the instructions you'll get similar results as any attorney (you just won't
have to pay).
If the Credit Bureaus were able to verify any disputed information
as correct, it would remain on your credit file. So you'll need to
contact the creditor who is reporting the information. The creditor
who reported the item is listed on the left or bottom of your credit
file. If their phone number is not provided, call directory assistance
in their city and ask for the creditor's telephone number. Call and
ask them to mail you written proof and documentation that this is
actually your account, since you do not believe the account belongs
to you.
Almost all creditors and collection agencies use computers to store
information about debtors and they throw out original, signed contracts
along with other original documents. This makes it easy for creditors
to store and organize information BUT makes it impossible to actually
prove the account is really yours and not just another mistake.
Federal Law requires that upon your request, all creditors must
show you written proof that the account in question is in fact yours.
Written proof is a copy of the contract you signed with the original
creditor. As we explained before, you are stored on the creditor's
computer and chances are excellent that they have thrown out all
the proof that this is your account.
The only creditors that may have proof are the courts (Recent Bankruptcies,
Unpaid Tax Liens, Unpaid Judgments & Unpaid Child Support).
Again, all Federal Laws are in your favor. If you say an account
is not yours and the creditor does not have written proof that the
account belongs to you, they must remove the account from your credit
file and cease all collection activity. If they don't have written
proof that the account is yours, there are two ways to get the item
removed (see items A & B in the next section).
Important
Only allow a creditor 7 days to get the proof into your mailbox (3 days to
find it and 4 days for the mail). If it takes any longer they probably do
not have proof and you should start taking the action listed below. If the
creditor does supply you with all the written proof that the account belongs
to you, go to Step 4.
Get The Edge Above Your Creditors
A. Contact the Attorney Generals Office in the city of the creditor
who is damaging your credit. Get the phone number through directory
assistance. Tell them that you have a creditor who is damaging your
credit by reporting an account that is not yours. You have requested
proof that the account belongs to you and they do not have it. They
will contact the creditor and have the account removed from your
credit file. This is free legal service and almost guarantees they
will get the item removed.
B. If you want to make some money off of the creditor then take
them to Small Claims Court. To do this, you will need to call your
county courthouse and ask about the proper procedure to follow to
get a court date. It's very easy and you can do it all yourself.
You'll be asked to fill out one or two simple forms stating your
complaint. You may want to write that you wish to remove the item
from your credit file since it is not yours and the creditor has
no proof that it is your account. After you receive a court date,
mark it in your calendar and make sure to attend at the proper time,
place and date. Bring in the receipts from the registered mail you
used for your disputes along with your phone bill and sue the creditor
for your expenses and emotional stress. Remember, if they do not
have proof that this is your account you will win and the account
will be removed from your credit file! Also, if the creditor is out
of state and does not show in court, you win by their default.
So far, we have not yet heard of any creditor showing up in court.
They are simply far too busy to waste time on one person when they
have thousands of other people to be concerned with. You may contact
an attorney in your area for a free consultation about what your
rights are concerning your particular situation.
Step 4: If the creditor is able to supply the written proof you
request, offer to settle the debt for 10 cents on the dollar provided
that you have the money. If you don't have the money go to Step 5.
If you owe $1,000, offer the creditor $100. If they refuse, tell
them that you will file Bankruptcy and they will get nothing. This
will certainly open them up to negotiating with you. Whatever you
agree to pay them, it should be a lot less than you originally owed
them. Do not agree to pay interest charges or penalties on past due
or collection accounts.
Step 5: If you don't have the money to make payment arrangements,
start back at Step 1 of this section. Remember that the laws are
in your favor and you are legally allowed by Federal Law to dispute
the negative items on your credit file every 30 days. You are allowed
to repeat this process as many times as you wish until the Credit
Bureaus cannot verify the item and must remove it. As you already
know, the creditors do not have the staff to handle all the disputes
they receive, so if you persist, eventually the items may be removed.
Sometimes the Credit Bureaus may sometimes reply telling you that
they already verified the information as correct. If this happens,
write back telling them that it's a Federal Law that they must verify
your disputes and that you'll sue them for $5,000 for each dispute
that they do not handle properly. Once they know that you are aware
of your rights, they'll become very cooperative.
Extremely Important
If you agree to make payment arrangements with any creditor, do so only under
one condition. The condition is that before you pay any money, the creditor
must mail you a written agreement that they will report the account to the
Credit Bureaus as current, paid off and never late! Otherwise, it may still
remain on your credit file and may not be worth paying.
What is Rapid Rescoring
Is available on ALL credit products: Corrects erroneous reporting,
such as mixed credit lines Changes status by updating collection
accounts Meets Fannie Mae & Freddie Mac guidelines Cannot be
used to update trade-line balances Makes lending decisions faster
and easier by having clean repository data May or may not result
in a change to the borrower's FICO SCORE
Rapid Rescore is the fastest way to correct information on a credit
report and raise a persons FICO score, typically within 72 hours.
This product is only available to Mortgage Companies, Mortgage Brokers,
and Banks, and cannot be used for a consumer who is acting on their
own behalf.
The Rapid Rescore Process requires proper, and precise documentation
directly from the creditor in order to be disputed. Basically you
submit correction information to your mortgage broker, they contact
their credit reporting company and submit the correction information
to them. Since they have specialized relationships with the CRA's,
they can submit your items to be processed at a priority rate - for
a nominal fee. It's expensive and I recommend it only when you can
not afford 3-4 weeks to wait for creditors & CRA's to communicate.
** The cost for mortgage brokers and banker can run up to 50 to 75 dollars
per item on credit report for "simple" items. For complicated (tax
liens, judgment, collections) can be very expensive because it is time consuming
and companies have actual staff doing this work.
The dispute process is done directly through the 3 Bureaus, and
is completed within 3 days.
TransUNION EQUIFAX
experian
With FICO scores becoming the number #1 factor in
determining your customers interest rate and/or credit line, this
product can save your customer thousands of dollars. An inaccurate
late payment or recent collection on their credit report can lower
their score as much as a 100 points. Correcting that information
quickly becomes vital! Turnaround time is 3 business days!!
Refinance your bad credit mortgage and pay off your credit cards and work on your credit repair. Refinance can get you out of foreclosure ( default ) and more important, refinance can give you freedom of mind on your finance you have been looking for.
