By Charlie Houssiere

For many people trying to avoid foreclosure, the process of renegotiating their loans can be difficult to understand. To ensure that you are adequately prepared and able to present your case in the best possible light, if you are considering contacting your lender to try and arrange for a loan modification in order to avoid foreclosure, get as much information upfront as you possibly can. I have compiled here a list of the Top 10 Questions about Loan Modifications to enable you to be better informed about the way the loan modification process works and what you should expect from it:

1.      What is a loan modification, exactly?

A permanent change to one or more of the terms of a borrower’s home loan which enables the loan to be reinstated and results in a payment the homeowner can afford is known as a loan modification.

2.      Can the Loan Modification include late charges inserted by the lender?

According to HUD, those late charges which have been accrued should be waived by the lender at the loan modification (depending on the type of loan), but make sure that you get a complete breakdown of all fees, and make your lender explain it to you.

3.      Is the bank able to force you into an interior inspection if the property condition is questionable?

Yes. In order to verify that the property possesses no physical conditions that could adversely affect the value, the lender could conduct any review it considers necessary.

4.      How do I determine whether of not I will qualify for a loan modification?

The primary consideration on the part of your lender is going to be whether you have the ability to make the new modified payment both now and in the future. You will have to show the lender proof of your income, along with a detailed financial statement showing your income and expenses to prove to them that if granted the loan modification, you will be able to afford the new, reduced payment.

5.      Do I have to already be behind on my payments to get a loan modification?

The majority of lenders have begun accepting applications for loan modifications from homeowners who are not yet behind on their payments, if these homeowners can demonstrate to the bank that they will not be able to afford their payments. 

6.      What constitutes a valid Hardship situation?

Lenders typically consider divorce or separation; the death of a spouse, co-borrower or family member; illness; loss of income; job relocation; or military service to be acceptable reasons to entertain a loan modification, although each situation which caused a homeowner to fall behind on their home loan is different. A very important part of a loan modification application would be a compelling letter.

7.      Can a foreclosure be stopped due to a loan modification?

Of course; that is the point of a loan modification. Figuring out a loan workout solution with your lender can bring your loan current and have the foreclosure process stopped.

8.      Is it possible to have missed payments added back into my new loan modification? Yes, past due payments can be added to the new loan principal and amortized over the life of the loan.

9.      Do I need to hire someone to help me or can I do a modification of a loan independently?

Since most loan modification companies require a substantial fee upfront, your current financial situation, along with your comfort level in dealing with your lender, will have to be considered when you make this decision. Regardless of the choice you make, your number one priority should be to learn everything you can about the process of loan modification, what is involved in getting a loan modification application approved, and what are your legal rights.

10.  What are the procedures to have my loan modified?

Do your homework - learn as much as you can about the loan modification process before contacting your bank’s loss mitigation department or a loan modification company so you can make informed decisions.

if you are in need of loan modification, Call today and find out the quickest and most

professional way to achieve your modication.

Charlie Houssiere, Mortgage Loan Credit Specialists with Secure Mortgage Company, is a nationally recognized expert specializing in helping release his clients from the “credit prison” that too many people find themselves in.  When you or one of your friends find yourself “Payment Pinched”needing real answers and real solutions to credit issues, you can confidentially contact him at  713- 33-1 1894  or at choussiere@comcast.net

Did you know that identity theft often occurs when you are obtaining your Government Free Annual Credit Report? Therefore, you must protect yourself before you become another victim of America’s fastest rising crime.

So How Is Identity Stolen With The “Free Credit Report” Scam?

1.  “Phishing” is the name of one of the primary scams. It has become increasingly popular. It happens when you receive emails requesting your contact and social security number from individuals pretending they are a legitimate company.  For instance, your bank will never request your social security number or private information so that they can verify your account or check your credit.

2.  Another popular way is to go to a website advertising a “Free Credit Report.”  It asks you for your name and social security number which you happily provide.  Well guess what….. If it is a fake website, you have just had your identity stolen. 

In either case, you may actually even receive a copy of your credit report, because they forward your information to a real website which in turn sends you a free copy of your report.  In reality, the identity thieves have started your nightmare and you don’t even know it.  This is a very good reason of why you should NEVER put your personal information into a form from an email.  If it is a link from an email, don’t share your info either.

Here are some obvious signs of Internet Identity Theft

·   Statements and bills are coming late or not at all to your home

·   Collection agencies or creditors will contact you about accounts you do not have or charges you have not made.

·   There are transfers or withdrawals that have not been made by you on your financial account statements

·   You have been denied credit or are being offered unfavorable credit terms (i.e. a high interest rate with no underlying explanation)

·   You are getting letters or calls from businesses or debt collectors about products or services that you did not purchase.

Identity Theft: How bad is it?

In the past year, 7 million people became identity theft victims.  The average loss to an American is thirty hours of their time and over $500 in financial losses.

In the last year, total personal losses have been over five billion (with a “b”) dollars.

On average, one out of every seventy-nine shopping sprees is one involving stolen identity.

What you should do if you become the victim of Identity Theft:

1.First, alert the fraud department of the three agencies which monitor credit. Tell them you are a victim of identity theft and ask them to put an alert on your credit information. (Unfortunately, you may be required to pay for this service.)

2.In addition, get your credit report from these three large credit bureaus Experian, Equifax and TransUnion and closely scrutinize your credit reports looking for credit cards you did not order, inquiries you did not make and other suspicious activities.

3.Next report your case, including all the details to your local police department.

4.To report identity theft to the central department of the American government for fraud protection, call the toll-free hotline at 1-877-IDTHEFT.

5.Close all accounts on the credit reports that you believe were opened fraudulently utilizing your name.

6.If your bank or checking accounts, or even your ATM card, have been compromised then shut those accounts down as soon as possible.

7.Your local postal inspector should be alerted, as they undoubtedly have used your personal address info, this address needs to be immediately terminated and you should create a new postal box.

8.Contact the Social Security Administration to make sure that your name and earnings are all correct.

When trying to get a credit report it is important that you know the possible scams and how to avoid them.  You can receive a free credit report today by calling me at choussiere@comcast.net.  Together we can review your report and help you avoid an identity theft nightmare.

Charlie Houssiere of Secure Mortgage is a nationally recognized expert specializing in helping release his clients from the “credit prison” that too many people find themselves in.  When you or one of your friends find yourself needing real answers and real solutions to credit issues, you can confidentially contact him at 713 331 1894 or at choussiere@comcast.net

There are times in our lives when circumstances may prevent us from paying our bills. Divorce, loss of job, medical bills or even the loss of a loved one can start a chain reaction that is difficult to stop. Bills mount, debts go unpaid and you get further and further behind. You owe money, but you just can’t pay. And then the phone calls start. Debt collectors are hired to recover money that creditors have lost and they use endless phone calls and/or threatening letters to contact you.
There are ways to deal with collection agencies, and if you want the incessant phone calls to stop, you need to know them. It can be quite taxing to deal with the problems associated with debt collectors, but if you remain calm and follow these guidelines, the stress can be reduced:

1) When speaking to collection agencies, make sure you know your legal rights.

• One of your rights is that your privacy must be respected and you should be dealt with fairly. Request that they not contact you at inconvenient times, such as when you are at work.

• The debt collectors should treat you respectfully; they must not abuse or threaten you, publish your name, or speak to you in an obscene manner.

• They should not do the following when collecting your payments: imply falsely that you have committed a crime, that they are attorneys or representatives of the government or that they work for a credit bureau.

• When collecting payments for your debts, the agency should not engage in unfair practices.

2) Keep very detailed records. When speaking with a representative of a collection agency, make sure you write down their information.

• You should ask for the following: the caller’s name, his/her agency’s name, the agency’s address and fax number as well and the lender’s name and the amount of money they say you owe.

• Keep a record of who you spoke with, their title, and a brief summary of your conversation. Unless you inform your caller, you are not allowed to tape the conversations you have. When conducting physical communications, make sure that you retain all copies sent or received.

• Write everything down. You’ll need to draw up a letter to send to the collection agency if you wish to dispute a debt or of you simply want to request that they stop calling you. Make sure any additional requests you make are also documented in writing.

3) If you owe any debts, pay them off. There is no other way that would be more effective for handling collection agencies. Once you have cleaned up your account, you should not hear from the collection agent again. If you are currently unable to meet your financial obligations, contact the agency to which you are in debt and explain the reason for your hardship.

4) Ask the agency if they will refrain from adding any more negative marks on your credit report if you make new payment arrangements. You can do so by making sure that the agency has reported all of your payments to the credit bureaus, and if not, keep reminding them until they do so. You have the right to request that the creditor give you any terms for payment in writing.

While facing debt can be extremely scary, it must be done, especially for those with large amounts of debt. Having the knowledge about your rights can be your best weapon. It’s not difficult to deal with collection agencies as long as you are aware of all of your rights. You and your family can stay sheltered from unnecessary harassments if you stay informed.

Charlie Houssiere, Loan Officer with Secure Mortgage Company specializes in helping release his clients from the “credit prison” that too many people find themselves in. When you or one of your friends finds yourself needing real answers and real solutions to credit issues, you can confidentially contact him at 713-331-1894 or at choussiere@comcast.net.

10 Facts You Must Know To Avoid Getting Ripped Off
 
As difficult as it may be to stay cool and collected when debt collectors hound you, knowing what to expect when dealing with these agencies will help you formulate a plan and lessen the chance of being taken advantage of.

Ten Rules for Handling Collection Agencies

1. Realize that Credit collection agents are usually working on commissions.  This is a JOB to them and the more they getyou to pay, the larger their paycheck.  They will be persistent, so be prepared.
2. Don’t argue with the agent, because you will lose.  This is what they do all day, every day and they have heard every excuse in the book.  They are prepared with an answer to everything.  State your case but don’t argue.
3. It usually doesn’t help to ask to speak to someone’s boss.  In this case, talking to the supervisor normally won’t help (in fact it could be worse).  Remember, he ended up with his job because he was good at what he did and was able to squeeze every dime out of past consumers who had disputes.
4. Never give information out over the telephone to a collection agency.  This includes your driver’s license number, social security number, debit card numbers, check numbers, credit card numbers, or bank account numbers. They should already have this information. 
5. Use a money order or certified funds to make all payments.  Make a copy of it and staple it to the bill.
6. Keep records of everything (including dates of phone calls and what was said), and make sure that anything sent through the mail has a return receipt.
7. Make sure you get written confirmation of any deals or negotiated payoffs.  Make sure you have something that says the collection has been satisfied.
8. Never take their first offer when negotiating a lower payment as they will always call back with a better offer.
9. Use powerful sentences like, “This is all I can afford to pay,” rather than “this is all I am going to pay."   This is a much better negotiation tactic when you are trying to lower the payoff with the collection agent.
10. When repairing your credit, it is a good rule to keep copies of all your credit reports.  That way you can track the process of what has been repaired and make sure that what you negotiated is coming to pass.

While it would be impossible to include everything there is to know about dealing with collection agents, these 10 tips will almost always result in more money in your pocket and less in theirs.

Charlie Houssiere, Loan Officer with Secure Mortgage Company, specializes in helping release his clients from the “credit prison” that too many people find themselves in.  When you or one of your friends finds yourself needing real answers and real solutions to credit issues, you can confidentially contact him at 713-331-1894  or at choussiere@comcast.net.

 The 12 Steps You Must Know

As the number of foreclosures continues to rise, buyers will find some amazing “garage-sale” priced homes.  While these deals may be hard to pass up, buyers do have opportunities to buy homes through a “short sale” before a home goes into foreclosure.

What is a “short sale?” A short sale is defined as the sale of a home at a price less than the existing mortgage balance.  The ultimate price of a short sale lies in the willingness of the bank to negotiate terms. This is a complicated process and, up until recently, rarely occurred. Short sales are becoming more frequent and there are some great buys because of it.

When you are looking to buy a home at bargain prices, consider hiring a professional to help you. There are so many legal loop holes that the average person could be taken advantage of during the negotiation process. Make sure the professional you hire is experienced.  A majority of lawyers and real estate agents have little or no experience in these types of sales.  Choose wisely as it could save you thousands of dollars in the long run and a lot of heartache. 

The most important point to consider is this: Going it alone when purchasing a home in foreclosure or that is listed as a short sale will significantly increase your chance for failure with the bank.

The steps in the process are:

1.  Locate homes which are in default, as early as possible, even possibly before the formal non-judicial foreclosure begins.  A knowledgeable Real Estate Agent should be able to show you a list in the Multiple Listing Service of tens of thousands of these.

2.  Search foreclosed homes with plenty of lead time before the Trustee’s Sale (you may need weeks or months of lead time.)

3.  Once you have created a list of such homes, narrow that list to only those homes you would have likely purchased for yourself, even if it wasn’t in foreclosure.  In other words, don’t buy the house just because “it’s a great deal.”  Look at buying it if you like the house AND “it’s a great deal.”

4.  Complete an accurate Comparative Market Analysis (CMA) using sold homes with similar features, via a good database such as the local Multiple Listing Service (MLS).

5.  Determine the exact mortgage balance and status of default or foreclosure.

6.  Be sure to find out if there is a second or third mortgage on the house.  This has foiled many potential buyers after they have spent weeks of time on the deal.

7.  Research the possibility of other liens (tax liens, mechanic’s liens, labor liens, state liens, etc.)

8.  Determine how best to talk and negotiate with the loss mitigation department of the bank or mortgage holder.  Do not take this step lightly.  It takes a trained professional to do this for you as it’s not like your standard negotiation.  You have to know what facts to present to them to get them to accept your offer.

9.  Determine whether or not purchasing via the short sale will negate any subordinate loans or liens (another trap for the unwary.)

10.  Know which costs and fees in addition to the mortgage balance can be compromised and by how much (experience is the best teacher.)

11.  Prepare a comprehensive package to present to the mortgage holder, which is the most critical step in closing a short sale. This should include the Purchase & Sale Agreement, and a thorough analysis of the home, prices, the local market, and justification of your offering price. Your offer must be prepared very professionally or the bank will merely overlook you, without giving your offer a second look.  You have to be able to make a case to the bank, as to why they should sell to you at this price, and they can smell a rookie a mile away.

12.  In order to close on a deal in a short sale, you must follow through with all parties involved.

The complexity and difficulty of closing short sales should never be underestimated, even under the best of circumstances. It is hard to find a buyer of foreclosure properties through the short sale process, despite what con artists would like you to believe. You should have some experience before purchasing foreclosure or short sale properties.

Buying a foreclosure can be a fast way to lose money if in the process you make major mistakes. On the other hand, because the purchase price is below the current market value of the home, it can be a great way to pick up equity immediately the day of closing.

Charlie Houssiere is a Loan Officer with Secure Mortgage Company and has helped hundreds of people buy their first “short sale home”. Call or e mail for his class on  “Short Sales, How to Avoid Getting Ripped Off.”   you can reach him at 713-331-1894  or visit his website, www.texasmortgagetips.com.

It is vitally important to have good credit today.  Not only does it determine the interest rate you will pay when you buy a car or a home, but a good credit history is also a factor when you are applying for a job, renting an apartment, obtaining car insurance rates or applying for a credit card.  What may seem like a tiny mistake to you, can actually drag you down for many years.  One late payment, maxed out credit cards, or taking out several loans at the same time all appear to be minor mishaps, however, the credit bureaus view them as a black mark on your credit report and creditors respond accordingly. 

It is not that hard to establish and keep good credit, especially if you are just starting out.  Follow these simple rules, and your credit will sparkle.

Check your credit report

Before anything else, you want to see what creditors are saying about you.  Do this by checking with the three major bureaus: Equifax, Experian and Trans Union.   Credit reports are used to create a credit score, which is a three-digit number lenders typically used to gauge your creditworthiness. Scores range from 350 to 850 and lenders respond best when the score is over 720.  Lenders also may look at the report itself, as may the landlords, employers and insurance companies who use credit to evaluate applicants.

Establish checking and savings accounts

Lenders view checking and savings accounts as signs of stability, yet many people overlook this simple thing.  Opening an account is also one of the few things you can do as a minor to start building a financial history. While you can’t get a credit card in your own name until you’re 18 and can be legally held to a contract, many banks have no problem letting you open a bank account.

Understand the basics of credit scoring

A basic knowledge of credit scoring will help you build your score.  Two of the most important factors in building your score are:

·     Whether you pay your bills on time.

·     How much of your available credit you actually use.

It’s absolutely essential that you pay all your bills on time. All it takes is a single missed payment to trash your credit score — and it can take seven years for the effects to completely disappear.

You also don’t want to max out any of your credit cards, or even get close. You will get the best possible credit score and prevent yourself from getting over your head in debt if you keep your credit balances to less than 30% of your credit limits.  (This means if you have a $3,000 limit your balance should stay below $1,000.)

And remember, you don’t need to carry a balance on a credit card to have a good credit score. Paying your bill off in full is the best way to keep your finances in shape and build your credit at the same time.

Piggyback on someone else’s good credit

The fastest way to establish a credit history can be to “borrow” another’s record, either by being added to a credit card as an “authorized” or joint user or by getting someone to co-sign a loan for you.  Keep in mind though it is a two edged sword.  You can gain good credit, however if either of you default, both parties suffer. (The co-signer has basically promised to make good on this account, so any delinquencies will show up on her credit report as well.)

Keep in mind that even if you get added to someone’s credit card, you may not be able to piggyback on his or her credit. Some credit issuers won’t report authorized users to the credit bureaus, particularly if the user is not married to the original card holder. If the point is to give you a credit history, the person who’s adding you as an authorized user should call the issuer and ask how (or if) your status as a user will be reported.

Apply for a secured credit card

If you can’t get a regular credit card, apply for the secured version. These require you to deposit money with a lender and your credit limit is usually equal to the deposit.

You’ll want to screen your card issuer carefully because there are a lot of bad guys in this particular niche of the credit world. Some charge outrageous application or annual fees and really high interest rates.

The first place you should look is your credit union if you belong to one. You can also check at www.bankrate.com for a list of secured credit card issuers.  You may also call my office for a list of cards I recommend.  Ideally, the card you pick would:

·     Have no application fee and a low annual fee

·     Convert to a regular, unsecured credit card after 12 to 18 months of on-time payments

·     Be reported to all three credit bureaus.

If the issuer doesn’t report to the credit bureaus, the card won’t help build your credit history.

Get a finance company card

Gas companies and department stores usually use finance companies, rather than major banks, to handle their credit transactions. These cards don’t do as much for your credit score as a bank card (Visa, MasterCard, Discover, etc.), but they’re usually easier to get.

Again, don’t go overboard. One or two of these cards is enough. If you get many more, you may find that later in your life these accounts could prevent you from getting the highest possible credit score. That’s not a reason to avoid them completely, because right now they’ll do you some good. Just don’t apply for half a dozen.

Get an installment loan

To get the best credit score, you need a mix of different credit types including revolving accounts (credit cards, lines of credit) and installment accounts (auto loans, personal loans, mortgages).

Once you’ve used plastic responsibly for a year or so, consider applying for a small installment loan from your credit union or bank. Keeping the duration short — no more than a year or two — will help you build credit while limiting the amount of interest you pay.

Apply for credit while you’re a college student

There’s no easier time to get a card than while you’re a college student.  Lenders are willing to take risks with you that they won’t once you graduate, probably because they know that your parents’ willingness to bail you out will end once you get your diploma.

Be careful, though. Look for a card with a low or nonexistent annual fee and low interest rates. For now, just get one: Opening a slew of credit accounts in a short period of time can make you look like a risky customer.

Use revolving accounts lightly but regularly

For a credit score to be generated, you have to have had credit for at least six months, with at least one of your accounts updated in the past six months.

Using your cards regularly should ensure that your report is updated regularly. It also will keep the lender interested in you as a customer. If you get a credit card and never use it, the issuer could cancel the account. Just remember the credit tips mentioned earlier:

·     Don’t charge more than 30% of the card’s limit.

·     Don’t charge more than you can pay off in a month. Keep in mind, you don’t have to pay interest on a

     credit card to get a good credit score, and it’s a smart financial habit to pay off your credit cards in full each month.

·     Make sure you pay the bill, and all your other bills, on time.

Charlie Houssiere, Mortgage Loan Credit Specialists with Secure Mortgage Company, is a nationally recognized expert specializing in helping release his clients from the “Credit Prison” that too many people find themselves in.  When you or one of your friends find yourself needing real answers and real solutions to credit issues, you can confidentially contact him at              713 331 1894  or at choussiere@comcast.net

Myth No. 1  Paying off a past-due account, like a collection account or a charge off, will result in it being considered as having been “paid” and it will no longer reflect negatively.

It is nearly impossible to completely fix your credit unless you settle your unpaid debts. As strange as it may sound, paying off a debt can even have a negative impact on your credit rating. Aside from bankruptcy, which can appear on your credit report for up to ten years, negative items may be kept on your report for up to seven. The date of last activity starts the 7 or 10-year time period. Making a payment will result on the clock being reset because of new activity. The goal is to have all negative items marked as paid, even if it is noted that it was late. This will damage your report, as it looks like the credit bureau had to hold a gun to your head in order to get you to pay up. It is usually sensible to have an expert on hand to help you so you do not do any more harm to your credit by trying to do the right thing.

Myth No. 2 the second myth is that a negative item that is successfully removed from your credit report will simply reappear again.

The credit bureaus have managed to spread this falsehood through clever use of the media and government agencies. The reality is that, if they have not received a response from a credit grantor within 30 days of an item being disputed, the credit bureaus often will temporarily delete a negative listing. However, the information will be re-instated if verification is received from the credit grantor within a week or two. A soft delete occurs when a creditor simply doesn’t respond and the negative credit item is deleted. Even if an item is later verified, it can still be challenged and removed later.  My experience shows me that 96% of the time, the items is permanently deleted when using my preferred attorneys.

Myth No. 3  Bankruptcies, foreclosures and tax liens can never be taken off your credit report.

Approached correctly, any negative listing can be removed.

Myth No. 4 it is easy to dispute a credit report. It is possible for a customer resolve an issue.

It is simple to challenge a credit report. As an everyday person it is amazingly difficult, and entirely frustrating, to get results from the credit bureaus. Most complaints to the Federal Trade Commission involve credit bureaus than any other type of company. The major credit bureaus have paid fines of $2.5 million over the years because of their failure to respond to charges properly. Remember that the main objective of credit bureaus is to protect their profits. Investigating consumer disputes consumes these profits. The bureaus do just about everything in their power to make restoring your credit exceedingly difficult short of sparking mass lawsuits.

Attempting to restore your own credit means you must be willing to spend time learning about the processes, admit that you are inexperienced and may be less effective than if you hired a professional, and realize that the credit restoration will probably take longer than you expected.

Myth No. 5 The credit agency will let me enter a 100-word account of my side of the situation. When a creditor reviews my statement they will consider this item.

Sadly, few if any creditors will consider information you submit.  When you submit a 100 word explanation, frequently this is viewed as an admission of guilt and hurts you, not helps you.  The only items verified on this statement are the negative items on your report, not explanations.  The first item that we would want to be deleted from your credit file would be the 100-word explanation.

Myth No. 6 Credit bureaus are part of the government and are unquestionable.

The credit bureaus are in business to make an impression on the stockholders since they are publicly traded companies. They are not agencies of the government. In fact, the industry is one of the most heavily regulated abuses and mistakes have led to the strict regulations that are in place. It has recently been revealed in a survey, by an independent group, that 70% of all credit reports have errors. Due to the prevalence of mistakes, consumer protection legislation has been drawn up which will allow the consumer to challenge the bureaus and force them to remove any incorrect, out-of-date or improvable data.

Myth No. 7  Many people share a belief that by getting a federal tax ID or altering a few numbers of their social security number, a new credit file will be created.

It’s extremely difficult to create a new credit file by scheming, not to mention illegal. Because of a link in computer systems, giving fraudulent information on a credit report is near impossible to get away with, in addition to the fact that it is a criminal offense. It is in your best interest to hire adequate representation and face the music by confronting the credit bureaus armed with the rights congress has granted you through the consumer protection laws.

Myth No. 8 some people believe that a poor credit report can be off-set by building new credit.

Even one negative item on your credit report can have serious, negative consequences. The decision to approve is rarely made by an actual human being. A computer determines the total number of points. One negative credit report can send interest rates on other loans soaring. Often even a small amount of negative credit (regardless of how much good credit you have) will cause you to get declined.

Myth No. 9 Credit counseling services can help you restore your credit.

People that are in debt or are trying not to go bankrupt may seek help from nonprofit debt counseling services. Consumer Credit Counseling Services (CCCS) are controlled and funded by both credit bureaus and credit grantors. Your creditors will usually make a note on your credit report if you are working with CCCS. Potential credit granters are scared off by this- as much as by a Chapter 13 bankruptcy. Some of the very worst credit reports that I see are, or have been, participants in the CCCS or similar programs.

Myth No. 10 it is against the law for creditors to remove a negative-listing on my credit record. Negative-listings are required by law to remain on the credit report for at least seven years.

When talking to collection agencies, credit grantors or bureaus, keep in mind that you can expect to be given all kinds of quasi-legal drivel by a largely inexperienced staff. The law states that negative information must be removed after seven years maximum.  The credit bureau may prefer to remove the item whenever it suits them, but that’s not the law.

Charlie Houssiere, Mortgage Loan Credit Specialists, specializes in helping release his clients from the “Credit Prison” that too many people find themselves in.  When you or one of your friends finds yourself needing real answers and real solutions to credit issues, you can confidentially contact him at

713-331-1894 or at choussiere@comcast.net

It is sad to say but our society seems to decide our value by our credit line or credit worthiness. With a good credit report, it is likely you will participate in and enjoy many of the finer things in life. However if your credit report is “challenged”, you probably will not.

Few creditors, if any, will extend individuals with bad marks on their credit history loan options.

But what if you had no other option? What if you were forced to choose between buying food, and making the payment on your car? What if you were prevented from making timely payments by a lack of employment, a medical emergency or some other personal crisis? Should just one late payment result in up to ten years of being punished by having to pay higher rates and fees?

One wonders why this system is allowed to operate as it does. In a court of law, judges will give you a chance to defend yourself before deciding your fate - this is one very important difference not to forget. In America, we are guaranteed the right to face our accusers before judgment can be passed. With your credit record, however, this is completely untrue.  The credit bureaus have the final say on your credit report.

Unbeknownst to us, creditors and credit bureaus have been trading information about us for a long time. They trade your personal information (name, address, social security number), they trade your private information (who pulled your credit, what you purchase, and the terms of your loan) and they trade your painful information (late payments, liens, bankruptcies.)  Much of it amounts to hearsay, which can end up bringing you financial hardship.

Under the current credit system, your credit file is stamped with negative and damaging information, whether it is yours or not, before you have the opportunity to defend yourself.  Ironically, YOU are expected to prove whether negative or erroneous information on your report is wrong.  Remember, the credit bureaus will assume that you are guilty unless you can be proven innocent. This is a direct contrast to the common American principle that one is innocent until proven guilty. Why do the credit bureaus not offer us this same courtesy? It doesn’t seem fair that we don’t have any chance to defend ourselves before negative information is put on our report. The truth is that consumer rights would decrease the credit bureaus profits.

Credit bureaus exist to make a profit and their product is your credit file. Credit bureaus sell your credit information, which their buyer’s (credit card companies, etc…) rarely question.   Creditors, in return, give the bureaus whatever data they may have collected about you.  Mistakes, however, are frequent.  It doesn’t matter if the credit report is right or not, it will be hard and expensive for you to prove that your information is false.

What can you do about it?

Every person living in a democratic nation is entitled to a defense.  Consumers have the legal right to retain an attorney to defend themselves against unfair accusations. Instead of you being forced to disprove negative items, the credit bureaus should have to provide information verifying the accuracy of their report. The law and Congress are in agreement.   Because of the unfair nature in which your information is collected and distributed, credit repair is both a legal and ethical right of every American.

You will probably need more than just a standard form letter to corroborate your credit worthiness. This is where our preferred attorneys come into the picture.  Just as you may choose not to repair your own vehicle, you do not have to repair your own credit either.  Using an attorney will strengthen your chances of having negative items removed from your credit report.  After all, are you more likely to act if you get a letter from an attorney or a letter from an ordinary person?

Our attorneys question everything.  If the credit bureaus issue statements that items have been verified, they are not accepted and our preferred attorneys will continue to press for validation of all negative items.

Credit bureaus have been in the driver’s seat for too long.  They continue winning unless you take action, so don’t put it off.  If you are tired of being in “Credit Prison”, contact me now for solutions.

Charlie Houssiere, Mortgage Loan Credit Specialists with Secure Mortgage Company, is a nationally recognized expert specializing in helping release his clients from the “credit prison” that too many people find themselves in.  When you or one of your friends finds yourself needing real answers and real solutions to credit issues, you can confidentially contact him at 713 331 1894 or at choussiere@comcast.net

If there are any unsold houses or condominiums near you the following will show you how to profit from Lease-Options (rent to own) as a Buyer, Seller or Real-Estate Agent.

When you drive through town do what do you see? Several houses and condos up for sell, right? Unsold houses are sitting for sale even in the few cities that enjoy a fairly healthy real estate market. There is always an extensive inventory of homes for sale no matter what the market is like.

You can easily figure out how healthy your local real estate market is by getting the total number of homes and condominiums listed for sale in your local MLS (multiple listing service) and then dividing that number by how many homes have been sold in the last 30 days. This simple calculation will tell you if it is currently a “buyer” or “seller” market and if you are unsure of how to get the necessary information ask for help from a MLS member real-estate agent, as they can pull it up for you quite easily.

HOW IS A LEASE OPTION DEFINED? You’ll hear many complaints from realtors about the softness of the market, and the market is down quite a bit from 2005 and 2006; however, the reality is that few of these agents are changing their business practices to conform to the new market reality. If the smartest agents have to earn well, they know that the marketing trends used in selling homes about one or two years back, may not be successful at present. Mortgage lenders have changed their lending requirements recently making 90%, 95% and 100% mortgages very difficult or even impossible to obtain, even if you are a well-qualified borrower.

The lease option or “rent to own” technique combines a sale, a real estate rental, and financing. More than anything, this is a lease, with the tenant paying rent to the landlord every month. Secondly, a lease option purchase gives opportunity for the tenant to buy the property from the landlord making an agreement on the price and terms, although the lease option does require the landlord to sell the property, the tenant is not required to purchase it. It is a unilateral contract, which is a promise from the owner to the tenant to sell the property to them on stated terms. The lease-option becomes a bilateral contract, a guarantee to sell for a promise to buy, once notice is given that the tenant plans to purchase the property.

Realize that a lease-purchase plan is also an option; an installment sale is also named this. The tenant must buy when a lease-purchase plan is selected, typically within a 12 to 24 month period.

I have been able to use lease-options as a buyer and a seller and it has been a great for all markets at all times. As many subscribers will remember, I acquired my residence through a lease-option. The stark truth was that I just didn’t have the funds for the typical 20% down payment and I certainly didn’t want to pony up for the expensive private mortgage insurance that I would have to buy if I only put 10% down.

Make sure that both the seller and buyer of the home benefit from the lease-option. A person having the experience of buying and selling homes for about thirty years feels that they are good transactions for both the parties; hence it is unnecessary to take advantage of the other party in the transaction. Sometimes landlords take advantage of new renters by offering a 10% credit, which is hardly a good incentive for purchase.

BENEFITS AND DRAWBACKS OF LEASE OPTIONS:

One of the drawbacks is that there is always an abundance of lease-option buyers but always a shortage of lease-option sellers. The reason for this is mainly a problem with education, since most real estate agents are clueless as to how lease-options work, which is the only reason they don’t often recommend them to their client buyers and sellers. Once you have read this special report you will know how to put a lease-option sale together, which will give you a great advantage over your competition.

If your house or condominium is already listed with an agent, don’t hesitate to talk to them about your lease-options. Be sure to show him or her this special report. If a listing is about to expire and no prospective buyers have been produced, it may be prudent to sit down with your listing agent and explain that using a lease-option to create a future sale is better than not selling the home at all. If you don’t currently have your house listed with a real-estate agent it is possible for you to still sell your private property with a lease-option sale. After reading this special report you will know more than 99% of professional real-estate agents about lease-option benefits.  Make sure you are working with an agent that has lease option experience.

As a quick note, I recommend working with a real estate agent anytime you are looking to buy, sell, or rent a home.  You wouldn’t go to court without an attorney to represent you, think of this the same way.

I will explain how real-estate agents and private home sellers easily market their lease-option property, and then I will describe the pros and cons of lease-options (please note that lease-options can be used to sell commercial properties, however they are predominantly used with private property).

An effective ad would read something like this (using applicable numbers for your situation): $5000 moves you in! 3 BR, 2 BA home, Rent-To-Own, $500 of $2000 Monthly Rent goes toward total purchase price, Open House Sunday 1-3 PM, Come ready to sign, Won’t Last! -777 Easy Street, Pleasant Heights.

One thing I suggest is to run this ad every Friday, Saturday, and Sunday in your local newspapers in their “Houses for rent” and “Houses for sale” sections. To spread the word, talk to anyone who might be looking to buy a home, including friends, neighbors, and relatives.  If you were looking to buy a home, or if you were a real estate investor, would the ad grab your attention? Of course it would.

Using the example above, the complete lease option move in total should include the first month’s rent ($2,000) and non-refundable option money ($3,000). In order to succeed, you must keep this total amount within acceptable limits.

Before I finish, let me emphasize that you should AVOID putting your phone number in the advertisement. By advertising my number my phone rang almost constantly with people asking questions.

A suggestion I have is to post an information sheet in the front window of your house because usually you will have “early birds” that will drive by a day or two before you have your open house. One thing you can do to judge the prospective interest level in a buyer is to place your phone number on the window information sheet and then if they call you they are showing you their interest.

1. Advantages and Disadvantages for Lease-Option Sellers

There’s a perception among sellers and realtors that lease options benefit the buyers and hurt the sellers. I certainly do not agree with this. For me, lease-options have been very good to me both as a buyer and as a seller. As a seller you will have the pick of the buyers if you market your lease option correctly. This is a great opportunity as a seller.

The following are seller pros and cons for a lease option:

A - Seller Benefit: There are significantly more buyers than sellers with lease-options. The buyers who are serious are not dummies. They are often more connected to the neighborhoods and understand market values of the homes better than the real estate agents selling homes there. When a lease-option is structured properly you will be surprised at the buyer demand for the property no matter what its value or location.

B - Seller Benefit: The tenants will usually treat the house as if they own it since they will probably buy it when the lease-option terms are up. The importance of screening potential tenants is something that landlords must learn. The same concept is valid for lease-option homebuyers. The lease option applicants that I have seen tend to treat their houses well, since they would like to own their own home someday. I’ve had good experiences with lease-option tenants except one. Since I failed to conduct a thorough check on my applicants, this was my own responsibility.

C - Seller Benefit: If you apply a portion of the rent as a credit towards the overall purchase the tenant will generally be willing to pay higher than market rent. The tenant who chooses a lease option knows that it is a good bargain; hence they are ready to pay a rent which is higher when compared to the market rent for a similar house. How much more? I don’t possess this knowledge. Start at 10% more, but realize it is often be even higher than this. People who enter into lease-option agreements realize that this is an excellent way for them to have the home they have always wanted. Even if it isn’t the home they want to stay in forever, it will allow them to improve their Fair Isaac Corporation (FICO) credit score and improve their overall financial situation so they can qualify for a mortgage loan in the future.

Lease option sellers also need to record all monthly rents they receive as rental income on Section E of their 1040 income tax forms. The IRS cannot claim a landlord didn’t report all rental income if a tenant chooses not to utilize their purchase option. The landlord can equalize the rental income making it essential tax-free by using the Schedule E form, which accounts for the rent received less the applicable expenses for lease-option property such as insurance, property tax, repairs and depreciation.

D - Seller Benefit: When a tenant decides to purchase the property, they will be given an “adjusted sales price” which is the gross sale price minus the rent credit that was accrued while they were leasing the property.

Depending on the circumstances, especially when you are the lease option buyer, it may be advantageous to negotiate for the buyer to pay for all repair bills. As a lease-option buyer, it is wise to have complete control of what happens to the property so that you can decide how and when to make repairs and improvements.

E - Seller Benefit: One of the advantages for the seller is getting the non-refundable money for the option and possibly pre-paid rent as well.

To have a valid option to purchase a property, the buyer-tenant will have to pay a form of non-refundable option consideration, which is usually money. One dollar would be sufficient.

Experience shows that if the amount of option money is higher, there is a greater possibility of the tenant to purchase. I usually try to get several thousand dollars in non-refundable option money as an incentive to the buyer. These funds act like a security deposit in a regular rental agreement, except that deposits cannot be refunded with a lease-option.

Until the exercising of the purchase option, the option consideration money does not need to be reported as income to the IRS. This is because if the money is used as part of the buyer’s down payment part of it becomes non-taxable return of investment and the other portion is taxable capital gain. The non-refundable option money becomes taxable income to the landlord if the tenant decides not to buy the property.

Some tax advisors will recommend the option for the money to be reported to the IRS in the tax year of its receipt by the property owner. Yet many don’t understand what to do if the option to buy is not exercised and the money has been reported and taxed as regular income. It is also unclear how to account for a situation where the property is purchased and a portion of the money is used as a non-taxable return of investment and part of it becomes capital gain.

F - SellerBenefit: Lease-option buyers will ultimately pay the maximum for the option purchase price. As a long-time seller of houses using lease-options and determining my option purchase price on recent sale prices of comparable nearby homes, buyers have not questioned the prices I have set. I make the price at the high end of the going rates for the location. Lease-option buyers are thrilled to find a lease-option, so often buyers won’t argue over the price or terms, unless they are unreasonable.

Sellers would probably prefer twelve-month lease options. However, as a buyer, the longer term you have the better so that the option purchase price is locked in and you have a better chance of cashing in on any appreciation of the property. My experience has shown that when the lease-option expires in 12 months many of the tenant-buyers are not ready to exercise their purchase option. I think that’s great!

At that time, we can renegotiate the (a) monthly rent, and/or (b) option purchase price. In a rising market, it is especially important. When selling, I have often extended an annual lease for up to as long as five years, but usually with different terms.

G - Seller Benefit: Throughout the terms of the lease the person selling the property gets to take all tax deductions, including income and depreciation. Purchasers and real estate agents should strongly emphasize this point to potential sellers, for it is a great benefit to lease-option sellers. However, once the property is purchased, the seller has to report the sale on Schedule D of their income tax return and include any “recapture” of depreciation that may have been deducted while the property was rented.

It is important for the seller to remember the major tax benefit of Internal Revenue Code 121 if the house or condo has been their principal residence. The seller who has lived in his home for at least twenty of the last sixty months before selling it, then he is eligible to claim tax free capital gains to $250,000 and till $500,000 for a married couple who fulfill the occupancy test. This tax break will be lost to the seller if he uses the lease option for more than three years after moving away. It is highly recommended to consult with a tax advisor.

If an investor owns the lease option property, he can make a tax-deferred exchange under Internal Revenue Code Section 1031 when the tenant elects to buy the property. The property must be of equivalent value, combining cost and equity, in order to qualify to find out all the pertinent information, please check with the person who advises you on your taxes.

H- Drawback for Seller: There is no immediate sale for cash. A leash option is a good idea if you need an immediate cash sale of your property. Although, if you are not in a hurry to sell but need revenue to cover the mortgage payment, taxes or other expenses a lease-option will give you all of the benefits explained previously.

If the property market skyrockets in value during the lease-option term, the tenant-buyer benefits. This is the reason why I recommend that owners only sign one-year lease-options. In order to avoid unforeseen difficulties, I would never advise entering into a lease option, which allows for the option price to be negotiated or determined by an appraisal. Instead, as the seller, be happy for the buyer if the market value goes up, even if you don’t receive absolutely top dollar for the property.

2. The Advantages and Disadvantages of Lease Options from a Buyer’s Prospective

We will direct our attention to lease-option advantages for prospective tenant-buyers:

A - Buyer Benefit: It is less expensive to rent than it is to own. As a person who considers himself to be a real estate investor, I prefer to lease option a house rather than to hold its title. Typically out-of-pocket expenses are significantly less to a renter than to an owner.

B - Buyer Benefit: The meaning of buyer advantage is that the market value appreciation benefits the buyer.

If while you are leasing the property it appreciates in value, then you as the buyer will benefit because your option purchase price was locked previously. Obviously if the property loses value, the tenant will not take advantage of their option to buy it.

C - Buyer Benefit: Little cash needed up front. Depending on the seller’s cash needs, he will usually require one to five percent of the purchase price for a lease option tenant to move into the house. This is a great alternative to the 5-10% cash and mortgage financing stress that is often required when assuming a title to a property, which is why I prefer the lease-option.

D - Buyer Benefit: Controlling a property with a lease-option is far less expensive than owning a property which can often require significant out-of-pocket cash. As a lease option buyer, you get CONTROL of the property without the burden of holding title. With the 15-year lease option I benefited from the house because of the value appreciation in the gradual market. Also, by renting my overall expenses were about half of what they would have been if I held the title and had a mortgage.

It is, however, important as an investor-buyer who will not be residing on the premises that your lease option terms allow you not only to make renovations (such as painting, carpeting and landscaping), but also to sublease the premises to sub-tenants. Many of the lease option owners may allow their tenants to improve the property, but in order to avoid misunderstandings it is important to get the permission in writing as part of the lease option.

E - Buyer Benefit: Making sure the property is what you want before assuming the liability. Have you ever been the victim of a bad real estate deal? I have! Even though you have a professional inspection done before making an investment purchase, they may not catch an unexpected problem that lies within the house or condo.

If you have never seen “The Money Pit,” you should rent it. Even though this is supposed to be funny, financial investors can view this more of a nightmare situation. A lease-option can help prevent the mistake of taking a title to a money pit property.

F- Buyer Benefit: The buyer advantage is the credit toward the purchase price that comes from the rent payments. This is a big advantage to be a lease option buyer. Lease option tenants explained to me that they saw their rent credit of $500 per month (one third of each month’s rent) as forced savings toward their down payment. He rent credit would be lost if their purchase option is not exercised.

Some States do have laws that require lease-option sellers to put aside rent monies in a separate account or escrow. In California, where I happen to live, this is not required. There is no need for an escrow account since the tenant-buyer doesn’t get the money back so this isn’t recommended unless your state law requires it.

Be careful to read the lease-option form that you are using, often it will clearly state that your rent credit is non-refundable to the tenant under any circumstance. Some landlords give tenants that don’t use purchase options a refund, as a good will gesture.

In this section we will show how to the rent credit can be determined. The tenants find the larger the rent credit, the better for them. The seller’s point of view, the smaller the rent credit, and the better it is for them. Everything is open to discussion.

There was one situation with a house I had purchased with no down payment where 100% of the lease-option rent went to a credit towards the tenant purchase because the house was in poor condition and I didn’t have the cash on hand to make necessary repairs.

In retrospect, I should not have been so generous; prior to exercising his option, as a tenant, he was able to perform wonderful updating of the premises. The rent credit that is most equitable to both the landlord and the tenant is about a third of the total rent. A few landlords provide just a ten percent rent credit, which is insufficient for the tenant exercise the purchase option.

G - Buyer Drawback: A disadvantage that the buyer faces is that he cannot itemized tax deductions. Some potential lease-option buyers have approached this subject with me. I simply remind them that the benefit they receive through rent credit is far more helpful long term than a once a year tax deduction that can be taken as a homeowner.

H - Buyer Drawback: There are some mortgage lenders that won’t allow you to use your lease-option rent credit as your down payment. Fannie Mae and Freddie Mac, who are the major purchasers of conforming home mortgages in the secondary mortgage market, (up to $417,000 in the last year) have an intriguing practice that lease-option rent credits count in the down payment formula only if the actual rent paid was higher than the market rent for the house or condominium in question.

There are ways to work around this regulation if it becomes an issue once the tenant decides to make a purchase. For instance, I found out that the rule doesn’t appear to apply to adjustable rate mortgages held by lenders, so a buyer may want to obtain that instead. You can also provide a repair credit at the closing, or the seller can cover some of the buyer’s one time closing costs.

SELLING DEVOLOPED PROPERTY ON A LEASE OPTION: Running a newspaper ad, like the one suggested earlier, is the easiest way to market a lease-option property especially if you are on a time constraint as a seller or real-estate agent.

The house should have a listing that says, “Seller will lease-option (rent-to-own)” if it is listed in the local MLS.  On this subject, let discuss how you will pay your agent their professional fees due to them.  Many agents will want their sales commission paid in full before the buyer actually uses the purchase option. On the other hand, it is suggested that the selling party pays only a typical leasing commission (1 months’ rent) up front and the reminder, at the time when the tenant comes forward to exercise his/her option to purchase the property.

If you don’t already have your property listed with a real estate agent, and you want to know who in your area specializes in this area of real estate, contact me at 877-787-2275.  If this article was given to you by an agent, then I would recommend you call that agent.  They wouldn’t have this article to give you if they weren’t well versed in this specialty.

Don’t skimp on preparation when you hold your open house on Sunday afternoon. Good marketing will give you 50 to 100 visitors to a Sunday open house if you are the seller or real estate agent. In order to give detailed flyers to all of your visitors, have enough on hand. Your advertising flyer needs to tout all the benefits that a lease option confers to the buyer and include all other necessary details as well.

Provide a rental application form with each flyer to make the selection of the best applicant easier, and to avoid any accusations of discrimination. Require a $1000.00 or more refundable check for a deposit along with the rental application. The seriousness of the applicant is shown by the deposit in which is made. Clearly mention that the deposit will be returned if the prospect is not accepted after running a credit, income, and background check. Only take a rental application with a large deposit.

By the end of the Sunday open house, if you have timed the option correctly, you should have at least two deposits and completed applications. The first thing you should do when you get to work on Monday is to run each person’s credit report including FICO score. Be sure to check their references, and don’t forget to check previous landlords as well. Now have the top applicant sign the lease option agreement as quickly as possible. It is important to treat all applicants equally and not discriminate.

Once you have received your full CASH payment and have a lease-option agreement signed then immediately return all deposit checks to the applicants who were not selected. But don’t tell them why you are turning them down.

Locate HOUSES AND CONDOMINIUMS Available to buy with lease options. The least used resources for advertising lease options are the newspaper classified ads or local MLS ads. They have to be made!

1. One of the several methods that may be effective starts with looking for houses for sale or rent in your local newspaper. Particularly, look for houses or condos that have been for rent or sale for more than 30 days. Follow up on these ads. Many landlords would prefer to sell, but due to the current buyer’s market they haven’t been able to.

When examining a potential property don’t be afraid to ask if the owner or listing real estate agent would be interested in a lease with the option to purchase and if they are you can explain the extensive benefits such as higher than market rent and continued tax deductions.

Don’t let a real estate agent discourage you. Don’t let real estate agents get you down; good agents know that lease options are a good way to get results when the market is down, whether you are a seller or a buyer.  Make sure you are working with an agent with lease option experience. 

As a reminder, I recommend working with a real estate agent anytime you are looking to buy, sell, or rent a home.  You wouldn’t go to court without an attorney to represent you, think of this the same way.

2. Run your own classified ad under the “House for Rent Wanted” heading. A friend of mine taught this strategy to me. He is suggested publishing a 30 day low cost classified advertisement in a newspaper under Houses Wanted or Houses for Rent Wanted column like Executive needs 3 BR, 2 BA house on a five year rent-to-own” scheme. It’s $5,000 option money. You probably won’t get many phone calls but all you really need is one or two from motivated home sellers, landlords or real estate agents.

LEASE OPTION SELLERS: Be sure to disclose all known defects in the property and sell “as is” which eliminates your liability. Currently, most states mandate that anyone selling a house use a Seller Transfer Disclosure (TDS) form. A tenant with a lease-option must be given a state specific TDS disclosure form. Lease-option buyers should be certain to get a professional inspection of the house before they take up residence so that they will know about any problems that the seller may not have mentioned.

If you are planning to include any rental appliances such as refrigerator, dishwasher, washer and dryer, be sure they are in good working condition. A specification needs to be included in the lease option that any repairs of the appliances are the landlord’s responsibility. It must be specified in the lease-option contract which repairs the tenant must cover, whether it is all repairs or just those costing less than $100.

It’s also a good idea to include a gardener’s services as part of the rent, and the gardener should tell you if the tenant isn’t watering the lawn or is otherwise failing to maintain the property.

Regarding the sales term, in the terms and conditions section of the lease option I suggest wording such as when the purchase option is exercised, the property is to be sold in its then a condition and the seller is not responsible for any appliance or other repairs. Of course, unless agreed otherwise in the lease option, the landlord remains liable for major repairs, such as roof leaks, during the rental period.

CONCLUSION: Both buyers and sellers generally benefit from the lease option or “rent to own” plan. These work for both private and commercial properties, especially when the market is slow and buyers are scarce.

A real estate agent that understands how a lease-option can benefit both the buyer and seller will stand apart from other agents and they will lose far less listings due to expiration. If there is ever any question about legal issues or taxes surrounding lease options it is wise to consult a real estate agent, tax advisor, or real estate attorney.

I also would not accept a lease option without allowing me the option to pre approve the client and see if and where there are any problem with the person’s credit or other areas that could be

Come a problem when the lease runs out. This way if there are any problems we can have

Plenty of times to resolve all the issues so when it is time to convey the property, there are no last minute problems that would ruin your closing.

Charlie Houssiere, Mortgage Loan Credit Specialists with Secure Mortgage Company, specializes in helping release his clients from the “Credit Prison “that too many people find themselves.  When you or one of your friends finds yourself needing real answers and real solutions to credit issues, you can confidentially contact him at 713-331-1894 or at choussiere@comcast.net

1. You can have a spotless record with a credit card company and they can increase your interest rate because of high balances or a delinquency on another card.
2. With risk-based pricing, your interest rate could go up to 28.9%, 30.9% or whatever super high interest rate that is in the creditor service agreement.
3. PDO is short for  Points to Double Odd and it means that for every 40 points difference in your score you either are twice as good or ½ as bad in a lenders eyes.
4. The following service providers often use credit scores to decide whether you can buy a service and at what price: a. Home Insurer b. Mortgage Lender c. Credit Card Lender d. Cell Phone Company e. Electric Utility f. Landlord
5. Chapters 7 & 11 Bankruptcies stay on the credit report for 10 years from the filing date.
6. Its important to use your credit cards every 6 months because if you dont, the card will become inactive with the credit bureaus.
7. The Credit Scoring Model relies on: a. Averages of a like group b. Only information in the credit report
8. Asking for credit limit increases will decrease your debt ratio, ask every 6 months.
9. Insurance carriers are legally allowed to pull a customers credit report to reset premiums based on their FICO scores.
10. A legitimate debt is NOT truly erased only when: a. When it is paid in full b. Erased in Bankruptcy Court c. It is paid in full, with all acceptable fees and charges
11. The best thing to do when contacted by a collection agency about is to hang up and walk away without a conversation
12. If a debt collector calls the consumers place of employment after being told the consumer can not receive collection calls at work is considered harassment under the FDCPA. (Fair Debt Collection Practices Act)
13. You can expect a bankruptcy filing to hit your credit reports within a few days.
14. It is NOT illegal for a creditor to delete accurate information from your credit report.
15. A Collection Agency can NOT always get the Original Creditor to delete their listing on the credit report.
    Charlie Houssiere Mortgage Loan Credit Specialists with Secure Mortgage Company, specializes in helping to show his clients their hidden retirement account. You can confidentially contact him at 713 331-1894 or at choussiere@comcast.net