Real Estate and Credit Collapse of 2008
The real estate and credit collapse has devastated millions of American homeowners. Millions of Americans lost their jobs and were forced into bankruptcy. Others were hurt so bad by the economic collapse of 2008 that they could not even afford to file bankruptcy and to this day have bad credit and outstanding collections and judgments on their previous unpaid debt. Millions of Americans lost everything they have worked so hard for and saw their home values plummet where a large percentage of them had mortgage loans that were substantially higher than the value of their homes. Many were left with high monthly mortgage payments and could not afford their housing payment. They were forced into foreclosure. I used to own just under 3,000 residential units ( 7 apartment complexes ) and personally lost my entire net worth due to the real estate and credit collapse of 2008. I personally lost millions of dollars and all of my commercial and residential properties. That is why I got into mortgage lending and decided to help others who were in my shoes and specialize in bad credit mortgage loans.
Home Loan After Bankruptcy And Foreclosure
Over 50% of the people who call me to inquire about a mortgage loan have had either a bankruptcy, foreclosure, deed in lieu of foreclosure, short sale, open collections, open judgments, late payments, tax liens, charge offs, and other types of prior bad credit and are now on their feet and rebuilding their lives again and are ready to be homeowners again. The good news is that everyone who has had prior credit problems and contact me, I will be able to get every single person a residential mortgage loan. The question is not if I can get them a mortgage loan but WHEN can I get them a mortgage loan. I work with folks with credit scores under 500 FICO scores all the time. What I normally do is get them on a credit repair regiment for no charge and prepare them in re-establishing their credit the day they contact me. I will also help them repair their credit and see if we can get derogatory items removed from their credit report and guide them on how to improve and re-establish their credit and boost their credit scores.
What if I did not file bankruptcy and still have outstanding debts and collections
I specialize in bad credit mortgage loans in California, Illinois and Florida and manage a team of licensed mortgage loan originators who are licensed in over 40 states and can refer to those folks in other states to one of my mortgage loan originators under my management. I do understand that millions of Americans did not even have the legal fees to file for bankruptcy and time flies. Traditionally, mortgage lenders want open debts and collections to be paid before they will approve you for a mortgage loan. However, I have wholesale mortgage lenders and correspondent mortgage lenders who will APPROVE you for a mortgage loan even if you have open collections and judgments.
Home Loan With Judgment
Judgments are tricky. Judgments is probably the worst derogatory item you can have on your credit report and the statute of limitations are normally 10 years and can be renewed for an additional 10 years in most states. The way I can approve you for a mortgage loan with an open unsatisfied judgment is if you make payment arrangements with the judgment creditors. Mortgage lenders will want to see at least two months of steady payment history and will want to see the payment agreement and copies of cancelled checks. You do not have to file bankruptcy in order for you to qualify for bad credit mortgage loans. Consult with a mortgage broker that specializes in bad credit mortgage loans before you initiate anything. It does not cost you anything to consult with a mortgage broker that specializes in bad credit mortgage loans.
Do not pay old collections or old debt without consulting with mortgage broker specializing in bad credit mortgage loans
Under no circumstances pay an old collection account or old debt. By paying an old collection account or old debt, your credit scores WILL PLUMMET at least 80 points and in some cases, it can drop as much as 200 points. By paying old collection accounts or old debts, you are reactivating the derogatory on your credit report which will trigger as a recent derogatory and plummet your credit scores. You need to know that most statute of limitations on old collection accounts and old debt is 5 years depending on which state you live. Also, as your old collection accounts and past due debt ages, it will have less and less impact on your credit scores.
Establish new credit by getting secured credit cards
The best, fastest, and quickest way to boost your credit scores and improve your credit is by getting at least three secured credit cards. You can order your new secured credit cards here at www.gustancho.com by going on the HOME page and clicking on the Get Your Credit Cards Now. All secured credit cards on www.gustancho.com report to all three credit reporting agencies. You can also try your bank and see if they offer secured credit cards but make sure they report to all three credit reporting agencies; Transunion, Equifax, and Experian. Each secured credit card will boost your credit scores by 20 or more points. I have seen clients whose credit scores improved over 100 points with just three $500 credit limit secured credit cards. Your credit scores will continuously improve as your secured credit card ages.
Never be late on your monthly credit payments including your utilities
Mortgage lenders normally want to see three credit tradelines that has been seasoned for at least a year with no late payments. I can still get you a mortgage loan with one or two late payments but not with a late payment in the past six months. You should enroll in a credit monitoring service as well to alert you any changes on your credit report. You can order credit monitoring services here at www.gustancho.com .
Good Credit Scores Yields Low Mortgage Rates
Having good credit is so crucial and important that you should always be conscious of your credit and credit scores. Having bad credit will cost you thousands, if not hundreds of thousands, during your working life because you will be paying higher mortgage rates on your home loan, higher interest rates on your credit cards, and higher insurance premiums. Most employers now do background credit checks as part of their employment hiring and promotional process. Bad credit can potentially cause you a job of your dreams.