May 18, 2012

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Foreclosure Scammers Posing As Homeowners Rent Bank-Owned Properties In Florida

May 9, 2012 By

Perception is not reality.

Randy Lutz learned that important lesson firsthand when he attempted to relocate his family, which includes a handicapped son, from a “crime-ridden” Rhode Island neighborhood to a seemingly more friendly Winter Park, Fla., community. Lutz, responding to a home-for-rent ad listing on CraigsList.com, had no idea that the lease he signed on a new place — and seemingly a new life — was a complete fraud.

That’s because two opportunist scammers, a local boyfriend-girlfriend tag-team, were lying in wait in the “Sunshine State.” The duplicitous pair had broken into the home, which was a vacant foreclosure, changed the locks and marketed it as if it was their own, according to the Palm Beach Post.

Greed was apparently their undoing when another couple who had also “rented” a a property from the imposters came to the Lutz-rented house looking for their landlords. From that point forward, with the help of a neighbor who knew the house was in foreclosure, the scheme unraveled.

In fact, the couple — who Lutz described as “fairly nice people” — were soon tracked down and arrested.

“There was no reason to think that they were anything but what they said they were,” Lutz was quoted as saying.

The good news is that the bank that truly did own the home that was illegally rented out to the Lutz family agreed to let them remain in the house. Clearly, a new — and legal — rental agreement was drawn up, providing a rare happy ending in an otherwise twisted foreclosure tale.


Filed Under: Foreclosure, News Tagged With: , , , , ,

Stafford interest rates still in limbo

May 9, 2012 By
On Tuesday, the Senate voted on the future of Stafford Loan interest rates. The rates for subsidized loans are currently at 3.4%, but without action from the government, will jump to 6.8% come July 1, 2012. A majority of 60 votes were needed to pass the bill which would lower these rates, unfortunately, the votes were split 52/45.
Filed Under: News, Student Loan Debt Tagged With: , , , , , , , ,

Credit Repair using Debt Settlement

May 8, 2012 By

Debt settlement may not be the best way consumers with less than perfect credit try to turn themselves around

Credit repair

Quite often credit-challenged applicants want to know if there are quicker or easier ways to fix bad credit.

And while everyone’s credit situation is different, we know it usually takes time to do this because here at Auto Credit Express we’ve been working with car shoppers with less than perfect credit for the last two decades. It’s also why our website contains information on issues ranging from no credit auto loans to today’s topic, debt settlement.

Questions about debt settlement

But since we’re not experts on the topic, we’ll turn to those who are.

Not that long ago the Illinois CPA Society issued a press release dealing with this very topic. Here are some questions and answers it contained:

How Does Debt Settlement Work?

Simply stated, debt settlement is an approach to debt reduction in which the debtor and the creditor agree on a reduced balance that will be regarded as payment in full. A credit company must have a solid reason to believe that you are actually unable to pay them before entering into a debt settlement agreement. Unfortunately, you prove this by not paying them which is an instant black mark on your credit score that doesn’t go away for seven years. Once you’ve proven you can’t pay them, you must negotiate a balance you can pay. The debt doesn’t go away, it just gets lowered.

What are some of the Consequences of Debt Settlement?

In addition to having already hurt your credit score by non-payment, you must pay the negotiated balance immediately. Also, any debt that is forgiven is considered income – and you will have to pay taxes on that income.  

Are There Alternative Solutions?

You can call your credit card companies and ask them to reduce your rate. Point out that you’ve been a loyal customer who’s paid on time in the past. If the first person you speak to isn’t authorized to lower your rate, ask to speak to a supervisor.  Be persistent and assertive.

Also try to get rid of your payments faster by trying to pay more than the minimum; even $5 makes a difference.

How do you get on top of already large minimum payments?

Cut out extras to make it work and pay your credit balances down first – no more premium cable, expensive data packages on your phone or eating out too many lunches or dinners. What you save goes to paying your credit card.  Also consider selling through consignment shops or eBay things you bought but aren’t using.  Look at your budget and lifestyle carefully to see where you’re living outside of your means and identify where you can cut back.

The Bottom Line

As the Illinois CPA society puts it, “Debt settlement is a serious decision with serious repercussions. It’s important to think beyond your current situation. With debt settlement you’ll have a black mark on your credit report that could keep you from any number of new things you’d like in the future – a house, apartment, job or car.”

Also keep in mind that if you have auto credit issues and you’ve been turned down by a traditional lender, you have more choices than just a tote the note dealer.

That’s because here at Auto Credit Express we work with dealers that understand a broad range of credit issues and, even with poor credit, can offer you your best chance for approved auto loans.

So if you’re ready to establish your car credit, you can begin now by filling out our online car loan application.

Filed Under: Auto Loan Debt, Credit Repair, News Tagged With: , , , , , , , , , ,

Rent to Own Auto Loans

May 7, 2012 By

Consumers with less than perfect credit should not confuse rent to own auto loans with new car leasing or even loans that can establish their car credit

Credit repair

Credit-challenged car buyers needing a bad credit car should understand why a rent to own program won’t help their credit situation while some other finance programs will.

We understand their confusion here at Auto Credit Express because for over two decades we’ve been helping applicants with low FICO scores find a dealer that understands these credit situations. We even designed our website so that people with poor credit can review issues such as bankruptcy and income requirements as well as today’s topic, understanding the difference between the loans our dealers offer and those who advertise rent to own cars.

Car leasing

With traditional new car leasing, the payments are lower than retail auto financing because you’re only paying for the portion of the car that you use.

This means that for a 2 year lease, you’ll pay 24 months of interest charges plus the vehicle’s depreciation during that same period.

Since a typical new car lease doesn’t require a down payment, the person leasing the vehicle is usually “upside down” (the vehicle is worth less than the buyout) during the entire lease term. As a result, lenders consider leasing to be a higher risk than retail financing and usually offer this option only to the most qualified applicants – customers with very good to excellent credit.

Rent to own

Rent to own cars, on the other hand, are similar to a typical buy here pay here finance program. As such, loans taken out at a rent to own car lot require a down payment plus a fixed number of weekly or bi-weekly payments (with a small buy-out at the end of the contract). Like in-house financing programs, these payments are usually made in person at the lot where the car was rented.

Customers who fall behind in payments or who encounter other issues deal with the rental company regarding any payment arrangements. Failing to follow the terms of the rental contract will result in the rental company repossessing the car.

Like most tote the note dealers, the rental company has the option of whether or not to report loans and payments to the credit bureaus. Most do not. Not only that, but the vehicles available for rent are typically older used cars because most of these rental agencies are not franchised new car dealers.

The good and bad

Good:

•    Most rental vehicles are in the moderate to lower-price range and some people actually prefer to make payments on a weekly basis.
•    Rental payments are made face to face so you know your agent.
•    Many rental companies won’t run a credit check before renting you a car.

Bad:

•    Rent to own car companies typically won’t report loans or payments to the credit bureaus.
•    Because these rental vehicles are usually older, many are not that reliable. In addition, for many people, it’s usually not convenient to visit the rental agency every week to make a payment.
•    Rental terms typically range from 12 to 24 months, limiting the vehicle selection to lower-priced, older cars.

As we see it

Car buyers with poor credit scores shouldn’t confuse the term “rent to own” or dealers offering used car leasing with traditional new car leasing.

If you’re interested in cheap transportation without a credit check, then the rent to own cars dealer wins. But even with a credit score below a 640 FICO or a credit rejection from a traditional lender, you should only consider a rent to own or buy here pay here dealer after you’ve checked out another option.

We offer that option here at Auto Credit Express where we’ll help you locate a dealer for your best chance for an auto loan approval that can help rebuild your car credit.

So if you really want to get your auto credit on track, you can begin now by filling out our online auto loans application.

Filed Under: Auto Loan Debt, News Tagged With: , , , , , , , , ,

Woman Buys (And Renovates) ‘Wrong’ Mississippi Foreclosure Home

May 7, 2012 By

Just kidding!

First-time real estate investor Terry Jordan in Tate County, Mississippi, thought she scored a steal in Senatobia. Her husband recently lost his job, so the couple turned to the opportunity-rich distressed real estate market “to help them while they go through a tough time,” according to WREG.com.

They settled on a nearby fixer-upper that they hoped would generate quick cashflow. And by all accounts, did everything that most buyers are supposed to do, hiring a local agent, touring the property three times and then making an offer that was ultimately accepted.

There was just one problem: After sinking “thousands” of dollars into their newly-purchased investment property — new roof, electrical upgrades, etc. — the Jordan’s learned that they were sold “the wrong house.” Indeed, a post-sale property survey revealed that a nearby ‘pitiful’ home that is half the size and filled with mold, was actually the one that was legally purchased.

The agency that showed and sold her the “wrong” home has since explained that the mortgage company “gave them misinformation.” Nonetheless, at this moment in time, the Jordan’s are still without a resolution to the fiasco, owning a home they don’t want and having sunk thousands into another that isn’t legally theirs because of a very odd (and large) mistake.

And, in the process, giving new definitions to old familiar foreclosure expressions such as “buyer beware” and “as-is.”

Check out a video from the local news broadcast that details the sticky situation:


Filed Under: Foreclosure, News Tagged With: , , , , ,

True Free Credit Scores

May 6, 2012 By

There is at least one website where consumers can get a free credit score any time they want

The best things

Even credit-challenged car buyers might finish the above title with the words “in life are free.”

But we know this usually isn’t the case here at Auto Credit Express, where we’ve been involved in helping people qualify for bad credit auto loans through a nearby dealer for over 20 years.  We even developed a web site so applicants understand aspects of the loan process including credit life insurance as well as today’s topic, how to get a free credit score.

Improving your karma

As far as free goes, you can probably count outdoor parks, the occasional art gallery and one credit report per year from each of the major bureaus. But practically everything else, including your FICO scores, requires that you cough up some bucks.

In the case of credit scores, that either means signing up for a trial version one of the services offered by either the credit bureaus or an outside company or making a one-time purchase at a cost of $14.95 (Experian) to $15.95 (Equifax) per month (try finding a price on the TransUnion site and good luck to you).

So this is what you were faced with. You were, that is, until San Francisco-based CreditKarma.com came onto the scene.

Here is how the company explained it in one of their initial press releases:

Credit Karma, a resource that helps empower consumers to actively manage their financial health, today (12/12/08) announced an agreement with TrueCredit.com, a leading provider of credit reports and consumer credit education, that will enable consumers to obtain their TransUnion credit scores at no cost. Both companies believe that it is more important than ever to provide consumers with the tools and information to better understand how lenders are evaluating them.

“Credit scores are being scrutinized more than ever before, so it is critical for consumers to know what their score is and how it’s likely to be viewed by a lender,” said Lucy Duni, vice president of Consumer Education at TrueCredit.com by TransUnion. “Since your credit score is derived from the data in your credit report, reviewing your report on a regular basis is also essential to gaining a truly holistic view of your overall finances.”

“We are proud to partner with TrueCredit.com to provide consumers with the chance to access their score for free,” said Kenneth Lin, founder and CEO of Credit Karma. “Credit scores are a window into one’s financial health, and Credit Karma remains committed to giving consumers free access to that score as well as educating them about the tools they can use to understand it.”

To obtain your free TransUnion score from Credit Karma, visit their web site at: http://www.creditkarma.com/

The catch

Since your free credit score comes from TransUnion, it’s important to remember that it can vary from bureau to bureau. This means the scores from both Equifax and Experian could be either higher or lower than the one you receive through Credit Karma.

One other thing that should be pointed out is that in order to receive your score from Credit Karma you have to endure marketing offers from various companies that are based on your credit score in order to view the results.

The flip side, however, is that by signing up you can also use the tools supplied by the web site to track your credit score as well as take advantage of the credit and finance information found on the site.

The Bottom Line

Even taking into consideration the marketing pitch hassles, one free credit score is better than none and it will give you a real idea of where you currently stand. From this perspective, maybe this does qualify as one of the best things in life.

Another thing that probably qualifies can be found at Auto Credit Express, where we forward your information to dealers that understand a wide spectrum of credit situations and can offer applicants their best chance for an auto loan approval.

So if you’re ready to reestablish your car credit, you can begin now by filling out our online car loans application.

Filed Under: Auto Loan Debt, Credit Repair, News Tagged With: , , , , , , , ,

Your Credit and Identity Theft

May 5, 2012 By

Even if you are just beginning your efforts at credit repair you should still be concerned about preventing identity theft

Credit repair

Rebuilding your credit can be tough. We know because our business here at Auto Credit Express is to match up credit-challenged applicants with auto dealers that can help them secure bad credit car loans.

Our web site also provides potential applicants with as much real world information as possible so that they are able to make decisions on how to approach the auto credit repair process, since a poor decision could result in some negative consequences including trapping them in a loan they can’t afford.

This usually results in repossession and, if this happens, the only remaining choice for buyers is a tote the note car dealer. It also means that the credit rebuilding process has to be put on hold for at least a year, since even subprime lenders will only consider an applicant if the repossession listed on a credit reports is over a year old.

This also underscores the need for customers with poor credit to exercise caution when it comes to sharing their personal information online at this critical time.

But a press release from the Texas Society of CPAs reminds us that we need to watch our offline habits, as well.

Identity theft

The press release reminds us that there is more to identity theft than just information tampering online. Here are three tips from TSCPA to help you guard against offline identity theft:

Tip #1: Do away with pre-screened credit card offers.

You see junk mail, thieves see an opportunity to raid your finances. You can opt out of receiving pre-screened credit card offers by calling 1-888-5OPTOUT.

Tip #2: Check your credit report regularly.

Order a free credit report at least once a year from each of the three credit bureaus – Equifax, Experian and TransUnion. Just go to www.AnnualCreditReport.com or call 877-322-8228. You can space it out to get one copy of your credit report every four months and review them carefully for any unauthorized address changes and new accounts that you didn’t open.

Tip #3: Treat mail with care.

Don’t put bill payments in your home mailbox for pick-up by the mail carrier. Instead, drop them off at the post office. Or, consider installing a locked mailbox at your residence or using a post office box. If you’re going out of town, be sure to contact the U.S. Postal Service and request a vacation hold on your mail.

TSCPA also has more prevention tips, as well as a compilation of online resources, at its web site: www.ValueYourMoney.org

Helping you reestablish your credit

You should also know that at Auto Credit Express we help people experiencing car credit difficulties find a dealer that will treat them with understanding and respect and give them their best chance for an auto loan approval.

So if you really want to get your auto credit on track, you can begin now by filling out our online auto loans application.

Filed Under: Auto Loan Debt, Credit Repair, News Tagged With: , , , , , , , , ,

‘Octomom’ Nadya Suleman Foreclosure Sale Delayed (Again)

May 4, 2012 By

The most bizarre foreclosure case in recent memory must belong to Nadya Suleman, who is also known as “Octomom” for delivering eight children at once (via in vitro fertilization) while on government-sponsored welfare to help support her other six children back in 2009.

Her unique story captured major headlines throughout the United States at the time, sparking debate about whether or not a cash-strapped, public-assisted single mother of six should be allowed to pursue excessive fertility treatments and have taxpayers pick up her tab. More than three years later, Suleman still knows how stir controversy, as well as avoid foreclosure.

According to The Orange County Register, the four-bedroom, three-bathroom home in southern California the Suleman “purchased” right around the same time as the birth of her octuplets, will remain her’s for at least another two weeks. Suleman stopped making the $3,000 monthly payments way back in 2010 on her “wrap-around mortgage,” which essentially means she holds the deed and makes payments to the original property owner, Amer Haddadin, who in turn pays the bank.

This is the second time the foreclosure sale has been postponed. She (and Haddadin) owe approximately $477,288 on the La Habra, Calif., home.

Suleman has recently filed for bankruptcy, claiming her debt-to-asset ratio is in the neighborhood of $1 million to $50,000. It’s possible that the bankruptcy claim could have delayed the latest foreclosure sale.

Meanwhile, to make ends meet, Suleman has reportedly embarked on an adult film career. We told you this was bizarre.


Filed Under: Foreclosure, News Tagged With: , , , , ,

Low Credit Score Car Down Payment Requirements

May 4, 2012 By

Why down payments are required and how they can help if you are applying for a problem credit auto loan

What we can tell you

Credit-challenged loan applicants often don’t understand the importance of a down payment even as they are exploring different approaches on how to clear bad credit.

We know this to be a fact because at Auto Credit Express we’ve been sending car shoppers with less than perfect credit to dealers that can help them for the last two decades. It’s also why our website features tips on issues from tote the note auto dealers to today’s topic, what type of down payment you’ll need for a car loan if you have low FICO scores.

Down payment

Nearly all non-prime lenders require car buyers to have a down payment in the form of cash or actual trade equity. For the most part, they do this because they see it as a way to increase the odds that a borrower will make regular, timely loan payments. Here’s why:

•    With little or no money invested in a vehicle, especially during the early stages when it’s worth less than the loan balance, it’s fairly easy for a borrower to just walk away from a loan.

•    With a down payment of 10% or more invested in a vehicle, it’s far more likely the borrower will continue making loan payments.

But even from a borrower’s point of view a down payment can help by:

•    Lowering the monthly payment by reducing the loan amount. The larger the down payment, the lower the monthly payment.
•    Helping to shorten the loan term. Instead of lowering the monthly payment, you can use the down payment to reduce the loan term by, for example, financing it for 48 months instead of 60 months. This also reduces the time the vehicle is worth less than the payoff – known as “negative equity.”

Just as importantly, a down payment also reduces the total amount of interest paid. This is especially important with the increased interest rates associated with high-risk auto loans.

One final point

With any car loan, but especially those for people with poor credit scores, a down payments is an important way interest costs can be reduced. Another plus is that it may also enable you to trade out of your car sooner and into another loan with a lower interest rate.

Finally, at Auto Credit Express we work with dealers that understand a broad range of credit issues and can offer you your best chance for approved auto loans.

So if you’re ready to establish your car credit, you can begin now by filling out our online car loans application.

Filed Under: Auto Loan Debt, News Tagged With: , , , , , , , , ,

Tricks Your Credit Cards Are Playing to Get More of Your Money

May 3, 2012 By

If you’ve been choosing plastic over paper for some time now (that is, if you’ve been using credit cards over cash for most of your purchases), you’re probably well aware of just how little your creditors actually care about you.  I’m sure it came as quite a shock when you opened that initial credit card bill, and discovered that a good chunk of your bill was going to pay down interest rate hikes and other arbitrary fees.

Instead of keeping their customer’s best interests in mind, card companies will continually look for ways to screw them out of more of their hard-earned duckets, leaving many looking for debt relief the next time they open a bill.  And now that the federal government has stepped in on behalf of the rest of us and passed laws designed to protect from defaults, interest hikes and the like, creditors are devising new ways to take your happy buck back from you.  If you’re not careful, you’ll end up with a list of unwanted charges and find yourself in need of credit repair services fast.  Here are just a few of the methods to watch out for, so you won’t be too surprised the next time your bill comes in…

  • The grace period. Many with credit cards are already aware of the “grace period” – the time you have to pay off a new purchase before you’re hit with a finance charge.  These grace periods vary by creditor and consumer, so while some people may have a little bit of extra time to pay off a purchase, others have been slapped with the finance charge almost as soon as they make the purchase in the first place, it seems.  Luckily, card companies are forced to send your bill early enough so that you can avoid the finance charge entirely – assuming you have the money in your account to pay the bill in the first place.

  • Weekend/holiday fees. If you’ve ever paid your credit card bill over the weekend, or you received a bill with a due date over a holiday like Christmas, and paid it the following week (say the bill was due Saturday, but you pay it the following Monday), you may have been hit with an extra processing fee.  This can cause real headaches, especially around the holidays, when money flows like eggnog.  Luckily, this is also one of the easiest extra charges to avoid as well.  The Credit CARD Act of 2009 states that card companies are no longer allowed to charge you a late fee for paying the day after a weekend or holiday, but anything after that is fair game.  Avoid the charge by paying a day or two before the weekend.

  • Using your card overseas (or not). I went on a Eurotrip (well, actually more of a England/Ireland trip) a few years ago, and was shocked and dismayed when I saw my credit card bill after I got back home.  I had figured they’d charge me a fee for currency conversion, but damn if it wasn’t a lot more than I had thought it would be.  Some card companies won’t even wait for you to go overseas; if you purchase anything online from another country, like some sweet rims for your ’95 Honda Civic from Japan, and your payment is processed in yen, you’ll be hit just as hard as I was.  The solution?  Don’t buy anything online from a foreign country if you don’t want to pay any more for it than you already are.

  • Inactivity fees. Here’s a fee we’re all hit with at some point in time, assuming you’ve got cards that you stop using for an extended period of time.  Your creditors don’t like being neglected, and so start looking for ways to recapture your attention – which generally translates to charging you an inactivity fee as a wake-up call.  Thankfully, such charges have since been outlawed, but card companies already have a follow-up charge waiting in the wings if you fail to make a minimum amount of purchases by year’s end.  So either keep making those charges, or if you don’t plan on using the card ever again, close it to avoid the hassle.
Filed Under: Credit Repair, News Tagged With: , , , , , , , , ,
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