A car repossession can definitely affect your credit. Here is how the process works. Let's say you can no longer afford to make your monthly payments. By the time your discover that you are probably two or three payments past due. This is already showing up on your credit report as 30 or 60 days past due.
It gets even worse if the repossession takes place.
Now ABC company repossesses your car and let's assume you owe $9,000 on your auto loan. Once the company repossesses your car they will sell it for whatever they can. If they sell it for $5,000 you still owe $4,000 and they will bill you and expect you to pay the balance even though you no longer own the car. This shows up on your credit report as a repossessed item and it will show up as a charged off account or an I-9. An I-9 stands for an installment loan, ( I), and when a loan is charged off that means company ABC is submitting your loan account as a loss because they feel it is no longer collectible.
If you ever try to apply for credit for another company they will take a look at your credit report and see that you have a repossession and this will severely impact your ability to get credit in the future. This could remain on your credit file for seven years.
This will also lower your credit score again reducing your ability to receive additional credit from other organizations. Even if you clear this matter up by paying it off in full it remains on your credit file for seven years. Sometimes you can negotiate with creditors if you pay off such a debt. However if you do decide to negotiate so that this does not show up on your credit file make sure you do so in writing. Also you want to make sure the creditor puts their agreement in writing.
There have been some creditors that promised not to report certain things on your credit file but have done so anyway. That's why it is so important to get all information in writing.
Wants your credit file gets destroyed it is very hard to correct it. That does not mean it can never be corrected it just means it will take some time to do so. The best way to correct this situation is to payoff any debts remaining and then after a year you may want to apply for a secured credit card. This is a card where the creditor will approve you for a credit card with a $500 line of credit. And you have to leave $500 on deposit with their organization in the event you default they have your money on hand to cover the delinquency.
After you have paid on this account for one year with on time payments the organization will more than likely increase your credit limit and not require you to have money on deposit with them as security.
Bad credit can sometimes stop you from getting a job, a credit card and sometimes you will be forced to pay higher premiums on your auto insurance.
To Your Great Success
Mel Richardson
VisionStar Enterprises
Melvin21@msn.com
Thursday, February 7, 2008
The Aftermath
It would now appear that the situation with the mortgage industry is having another effect. Now it's spilling over into the credit card industry. Because of the losses a lot of banks are experiencing they are looking to recoup their losses by increasing the interest rates and fees on credit cards even if you have not been late.
Fees across the board are going up it would appear, including atm fees, late fees, balance transfer fees, or even exceeding your credit limit. These are all fees that will definitely affect us.
It would appear that the end is not in sight.
To Your Great Success
Mel Richardson
VisionStar Enterprises
Melvin21@msn.com
Fees across the board are going up it would appear, including atm fees, late fees, balance transfer fees, or even exceeding your credit limit. These are all fees that will definitely affect us.
It would appear that the end is not in sight.
To Your Great Success
Mel Richardson
VisionStar Enterprises
Melvin21@msn.com
Sunday, February 3, 2008
Getting Help
According to the UsaToday nearly 58% of those with delinquent mortgages don't actively seek help from their lenders because they don't know that the lenders may offer some type of help or remedy.
Another 56% don't know that some sort of counseling is available. Most don't know that a missed mortgage payment can be added to the back end of the mortgage and thereby extending the term.
Other obstacles surface because the lender is unable to contact the delinquent mortgage holder and offer help.
It would seem that no remedy is readily available however communication between the homeowner and lender is the first step towards finding a remedy. There needs to be more counseling between mortgage holder and customer during the loan closing process. Communication should be stressed.
Mel Richardson
Melvin21@msn.com
Another 56% don't know that some sort of counseling is available. Most don't know that a missed mortgage payment can be added to the back end of the mortgage and thereby extending the term.
Other obstacles surface because the lender is unable to contact the delinquent mortgage holder and offer help.
It would seem that no remedy is readily available however communication between the homeowner and lender is the first step towards finding a remedy. There needs to be more counseling between mortgage holder and customer during the loan closing process. Communication should be stressed.
Mel Richardson
Melvin21@msn.com
Friday, February 1, 2008
Foreclosure update
I was reading an article in the Usa Today and came across some incredible news. Did you know that 1.3 million homeowners are in some phase of the foreclosure process last year. Approximately 1% of homeonwers are facing foreclosure during not to mention an astounding number of homes have had the values reduced substantially.
Even with the lenders negotiating mortgages in default there is still a forecast for an increase in the number of foreclosures. Due to the volume of homes in default any type of help seems to be minimal at best.
The subprime adjustable-rate mortgages is clearly at the center of attention. The question now is what can we do to solve this problem?
If you have an answer let us know
Mel Richardson
Melvin21@msn.com
Even with the lenders negotiating mortgages in default there is still a forecast for an increase in the number of foreclosures. Due to the volume of homes in default any type of help seems to be minimal at best.
The subprime adjustable-rate mortgages is clearly at the center of attention. The question now is what can we do to solve this problem?
If you have an answer let us know
Mel Richardson
Melvin21@msn.com
Foreclosure crisis
Do you know someone that is facing a foreclosure? Do you know someone that is past due on their mortgage due to the mortgage crisis.
What tips do you have for helping out with the mortgage crisis
To your great success.
Mel Richardson
VisionStar Enterprises
Melvin21@msn.com
What tips do you have for helping out with the mortgage crisis
To your great success.
Mel Richardson
VisionStar Enterprises
Melvin21@msn.com
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