For these reasons, the second edition of The Foreclosure Survival Guide (which I wrote about the same time as the Making Home Affordable Program launched) strongly recommends that you hook up with a HUD-approved housing counselor to help you deal with your bank under its--and the Making Home Affordable--guidelines.

New Landscape: Not Enough HUD-Approved Counselors

Unavoidably, the number of people seeking assistance from HUD-approved housing counselors ballooned with the advent of the Making Home Affordable Program, and from all accounts HUD's housing counselor program has not kept pace. My clients have consistently reported that working with HUD counselors provides little or no advantage over working directly with the bank, and that counselors, like banks, lose paperwork and require redundant submissions over a long period of time without any tangible results.

Old Advice May No Longer Hold True

In short, my previous universal answer to people facing foreclosure ("call 1-888-995 HOPE and hook up with a HUD-approved housing counselor") may no longer be operative in all -- or even most -- cases. On the other hand, you have little or nothing to lose by starting with a HUD-approved counselor, provided you approach the relationship with a tad of skepticism. And my advice in The Foreclosure Survival Guide about not paying for modification help still holds. In most cases it won't help you to hire a lawyer or real estate broker to assist with your modification request. The fact is, too many people are seeking modifications for most banks to respond in any reasonable time frame.

What we do with your score

At Auto Credit Express, we deal with FICO scores every day. Through our bad credit car loan web site at www.autocreditexpress.com we have helped thousands of applicants reestablish their auto credit by financing a new or low-mileage used car at one of our affiliate dealers. If you’re reading this, there is probably a good chance that you have bad credit and you need a car. If this is the case, read on.

Getting back on your feet can be difficult enough even with good credit, but if unforeseen circumstances such as a job loss, layoff or medical bills have lowered your credit score, your problems can get even bigger. This is where we come in. You can begin the process simply by filling out our online car loans with bad credit loan application. What we offer can help you because unlike tote the note dealers, the second chance auto loans our dealers can offer you originate with lenders that report your payment history to the credit bureaus. By making timely monthly payments, you can raise your credit scores and eventually position yourself to re-enter the prime auto loan market.

IF you are applying for auto loans for bad credit, you should already know what your FICO score is. But you also may be wondering how your credit scores (you have more than one) are computed and what information is used to come up with that all-important three-digit number.

The FICO score

There are 5 factors that FICO (the company formerly known as Fair Isaac) uses in order to determine your credit score. Where you fall in this ranking can determine a number of things ranging from how much you pay for car insurance to whether or not you’ll get approved for an apartment lease. It also has a great deal to do with whether you can finance a car with a traditional lender or whether you’ll need to apply for a bad credit auto loan.

Here are the 5 factors that FICO considers in determining a credit score:

Payment History - Payment history affects approximately 35 % of your score. Making all of your monthly payments on time goes a long way towards being able to finance a car through a traditional lender such as a bank or a manufacturer’s captive finance company. If your payment history shows a pattern of missed or late payments, your only alternative may be a bad credit auto loan. Of special note: recent late payments will have more of a negative impact on your score while those from the past will not affect your score nearly as much.

Balances - How much do you currently owe to creditors? Your current debt load will affect about 30 % of your FICO score. If your credit cards are at their limits and your revolving credit is maxed out, this will have a negative effect on your score. Bad credit car loan buyers, especially, should try and lower the ratio of debt to available credit before applying for a loan. The lower your balances (a rule of thumb is to keep your current balances at 30% of your credit limit or lower), the higher you will score. Even if a bad credit car loan is your only choice, having a lower debt load will increase your chances of an approval.

Credit Utilization - The types of credit you are currently using impact your credit score by approximately 15 %. Banks, finance lenders, credit cards, mortgages, and all other financing is included in this category. You will have a better chance of an approval for car loans with bad credit if you have auto loan installment credit history.

Depth of Credit – How long have you been using credit? Your time “in the bureau” accounts for approximately 10% of your credit score. The longer you’ve been using credit, the higher your score will be. Most bad credit lenders look for a minimum of 3 to 5 years of credit history.

Recent Credit Opened - Recent credit applications impact your score by about 10%. If you are constantly applying for new credit (such as a personal loan, credit cards, etc.) this will be reflected in a comparatively lower credit score. Be sure to keep this activity to a minimum in the months leading up to applying for a car loan

The Bottom Line

At Auto Credit Express we have helped thousands of people with bad credit find a dealer that can help get them financed so they can buy a car and reestablish their credit at the same time. Our national network of affiliate dealers specializes in bad credit car loans and, since our inception, we have processed over 1 million online bad credit auto loans and our dealers have closed over $2 billion in auto loans.

So if you are serious about getting your credit back on track, why not begin a new chapter in your life by filling out our bad credit car loan application now.

Here’s a look at some of the numbers released recently by the Mortgage Bankers Association and various government organizations and what they might mean for the housing market:

• According to the MBA, the number of homes currently in some stage of foreclosure fell in the second quarter of 2010, marking the first such decline since 2006.
• Sources note that foreclosures on subprime loans may have already peaked and are likely now dropping off; however, it seems that prime loans are now in danger of default, partly because of continued high unemployment.
• Mortgages that are 90 days past due (considered to be in “serious default”) accounted for 9.11 percent of all loans in the second quarter, a drop from 9.54 percent in the first quarter of this year.
• Sources note that existing home sales in July 2010 were 26 percent lower than they were in July 2009.
• Sales of new homes, it seems, were down 32 percent in July 2010, compared to a year earlier, apparently making the month the slowest on record (with stats going back to 1963).
• As many as seven million households were behind on mortgage payments in July, according to sources (down from the high of eight million, reached about eight months ago).
• Numbers suggest that banks and lenders are starting to clear the foreclosure logjam: in July, 279,685 foreclosures were started, an increase from 225,700 in June.

Clearly, these numbers don’t exactly point at recovery in the housing market—and some analysts have reportedly predicted that as many as four million American families could lose their homes to foreclosure before the crisis eases.

And such a high rate of foreclosures could have a seriously detrimental effect on the overall economy:

• Less money, less spending: Consumers who are struggling to make mortgage payments are likely to spend less in other areas, meaning that consumer-supported economic growth may be weak.
• More foreclosures, more houses: As banks start foreclosing on homes, more vacant properties will flood an already saturated market.
• More houses, lower prices: This inundation of homes will mean that supply is far higher than demand, and could lead to further drops in housing prices.
• Lower prices, more underwater mortgages: As home values continue to decrease, more borrowers will likely find that they owe more on their homes than those properties are currently worth.

There is no clear end in sight for this cycle of foreclosure.

Additional Resources

Home Insecurity

Filing bankruptcy is a last ditch option for many people who find themselves unable to pay off their debts and many use a chapter 7 bankruptcy attorney. Often the cause is due to a loss of job or unexpected medical expenses that can be financially devastating to a family quite quickly. If you have run out of options and are considering whether or not bankruptcy is the right option for you, here are some things to consider.

First bankruptcy is filed in federal court, not at the state level so it is not something that is easily undertaken without the assistance of a chapter 7 bankruptcy attorney.

The paperwork required to file bankruptcy is quite involved. And there are a lot of rules and regulations in place that can make filing a difficult process to go through if you don’t fully understand what you need to file. For example the court will want to see a list of your assets as well as a list of your debts and living expenses to decide if you are a candidate for chapter 7 bankruptcies. If you forget to include a debt it won’t be included on your judgment and even after your bankruptcy the undeclared debt will remain active. This is another reason why it is imperative to have the assistance of an attorney if you decide to file for bankruptcy.

Another factor to consider is the fact that not all types of bankruptcy are equal. If you file chapter 13 you will essentially be coming up with a court approved repayment plan to keep your debts and your assets while a chapter 7 will allow you to walk away from most of your debts depending on what they are. Some debts cannot be discharged including student loans, child support, alimony and debts to the IRS.

What debts that you can discharge and which debts you cannot discharge is the third factor that you need to consider. If your major debt won’t be discharged in a bankruptcy, your attorney will advise you of this in the initial consultation and help guide you to other resources that may be more valuable to your circumstance.

If you are ready to act you need to make sure you have an attorney and you need to make sure that they specialize in bankruptcy law. Take advantage of your initial consultation to let your attorney know your debt amount and your income, what your assets are and why you feel you need to file bankruptcy. Your attorney can help you fully understand your rights under the law when you file bankruptcy, explain how long the process can take and help you decide if chapter 7 is the right form of bankruptcy for you to file.

A chapter 7 bankruptcy attorney in Warrenton can help you file your Virginia bankruptcy if filing it on your own scares you, please see the following link: http://www.bankruptcyattorneyinva.com/.

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Chapter 7 Bankruptcy Attorney – Explore Your Options is a post from: Bankruptcy Court Online

We’ve done a lot of consulting work in the past, covering a wide range of topics in the realms of credit repair, debt relief, and personal finance as a whole.

Recently, we were approached by a dating website, Vali-date.net, asking us to consult on identity and profile verification.  The site, which should be launching by the end of the month, wants to make a name for itself by validating your dates.  That is, actually running background checks on its members before it sets them up to meet.  Nothing too comprehensive; the site claims they won’t be requiring a blood sample, just verification you are who you say you are and whether or not you really DO have that summer house in the Bahamas.

It’s an interesting concept for an online dating site, requiring validation from both parties before they attempt any sort of meaningful matchup, and one that makes perfect sense for today’s  scam-conscience society – where some couples go so far as to check each other’s credit histories before committing to a serious relationship.  

Now more than ever, you should protect your information – especially on Dating Websites

There was a time when you only had to worry about as far as identity protection was some ne’er do well stealing your ID and claiming it as their own long enough to empty your accounts into theirs.  Now we have to worry about potential significant others leafing through them before they get to know us better?  Hell, the first date could be over before the first course of a meal!

With your romantic future in mind, not to mention protecting your identity as well, here’s a list of steps you can take to insure your identity makes it past first base:

• Clean out your wallet.  Try to carry only one credit card, and leave your Social Security card at home.  • Don’t carry any pay stubs, shred your receipts when you’re done with them, and obviously don’t write your PIN number on a cocktail napkin and forget about it.  

• Reduce your paper bills and switch to banking and bill-paying online.  Doing so will result in your statements being sent to your email.

• Review your credit and bank statements every month – if anything on them looks off, contact your provider.  

• Always require photo ID verification.  Write “See Photo ID” on the back of all your cards to make sure anyone who wants to swipe your card makes sure it belongs only to you.

• Shred all credit card offers, bank statements, and anything with your personal information listed on it.  

• Check into software to set up firewalls and run checks every couple of weeks for spyware and viruses.

• Be very wary of where you shop online.  If a site looks particularly suspicious in any way, it’s probably best to find what you’re looking for elsewhere.

• Don’t leave your credit card information online, even on sites you may frequently shop at, like Amazon or Best Buy.  You’re better off taking the extra couple of seconds to enter your card numbers in from scratch whenever you wanna buy something.

• Limit access to your computer.  Put passwords on every one of your accounts, and keep them to yourself.

Keep these tips in mind and you’ll not only have gone a long way towards protecting your wallet, and even perhaps, scoring your way towards home plate.

Cautiously optimistic

The second of the three main credit reporting agencies, TransUnion, released its own report following Experian’s report on Monday of this week and here at Auto Credit Express we find ourselves cautiously optimistic for the first time in quite a while. For us, as for many consumers in both the U.S. and Canada, the past two years have been exceedingly difficult.

Through our web site at www.autocreditexpress.com , we have, in the last 20 years, helped thousands of applicants reestablish their auto credit and raise their credit scores. By filling out our online car loans with bad credit loan application and avoiding a tote the note dealer, consumers with bad credit have been able to begin a new chapter in their lives by getting approved at one of our affiliate dealers for a second chance auto loan. Along with paying the rest of their obligations on time, they are able to eventually qualify for better interest rates on everything from their next auto loan to other types of credit, as well.

We’ve also helped them by advising on how to pick the right vehicle, since choosing one that’s too expensive could stretch their budgets and, in some cases, even result in repossession. If this happens, the only remaining choice is usually a tote the note car dealer. It also means that credit repair and rebuilding their car credit has to be put on hold for at least a year, since even bad credit lenders will only consider applicants with a repossession on their credit report that’s over than a year old.

We also like to keep our applicants updated on what’s happening in the lending industry – something that happens to be in the news this week.

TransUnion second quarter report

In news from TransUnion this week, the consumer credit site released its latest report on automotive lending – this time dealing with auto loans in the second quarter of 2010. These auto delinquency reports, it should be pointed out, are extracted from a huge database consisting of 27 million anonymous credit-active consumer records that are randomly sampled every quarter.

According to Trans Union, the national auto loan delinquency rate fell 19.7 percent between the first and second quarters of 2010, while the year-over-year delinquency rate fell by 27.4 percent in the second quarter.

The analysis

“The national trend we are seeing continues to point to a clear improvement in payment behavior. Although part of the reason for the turnaround in delinquency rates is the influx of new, lower risk loans as we have noted before, consumers do not see a quick fix to the short term economic and employment situation and are focusing their attention instead on savings and lower consumption of discretionary goods,” said Peter Turek, automotive vice president in TransUnion’s financial services group. “This movement toward fiscal responsibility is reflected in year-over-year results as auto delinquency rates now have dropped 27.4 percent since second quarter 2009 – the largest decline since the summer of 2001. On a state-level basis, 46 states experienced a drop in their quarter-to-quarter delinquency rates, while only 3 states showed an increase on a year-over-year basis.”

TransUnion’s report also shows that national bank auto originations increased by “the largest margin since the recession began in 2007” – 18.7 percent on a year-over-year basis.

Bad credit car buyers

The bottom line for bad credit car loan applicants is that the general loan landscape has improved considerably and bad credit auto loan lenders are beginning to increase the actual number of loans they are writing. At the same time, these lenders are only backing off slightly from the conservative lending stance they’ve taken since the beginning of the recession three years ago. When comparing current loans to those approved more than three years ago, this means that an individual with bad credit and a given credit score will still be subjected to higher interest rates (probably with a shorter loan term) and will be asked to put down a larger down payment than in, say, 2007.

Our advice to credit-challenged consumers applying for car loans with bad credit remains the same as it has been for the past 3 years:

•    Know your credit score and what’s contained in your credit report
•    Plan on coming into the loan with at least 10 percent down in cash or trade equity
•    Keep the loan term as short as possible
•    Buy a compact of midsize vehicle and put off financing your dream car until after you’ve reestablished your credit.

As we see it

At Auto Credit Express, we have helped thousands of people with bad credit find the right dealer that can help them get financed. More importantly, the car loans with bad credit that finance these vehicles have started these people “on the road” to reestablishing their auto credit and lay the foundation for a good credit history.

We make no promises in regards to guaranteeing you credit, but we are associated with dealers that have some of the best special finance departments in the country, giving you the best chance possible at securing an auto loan.

So if you’re serious about reestablishing your credit, you can begin the process right now by filling out our secure online bad credit car loan application.

The problem now becomes a choice of which type of credit card is best for the client to build their credit back up as quickly as possible.  More than a few immediately think to sign up for a retail credit card with their favorite shopping outlet. 

And why not?  Just about every one of these stores offers some kind of incentive to sign up for their credit card on the spot.  I was at Barnes & Noble the other day, picking up a couple of books, and was offered 15% off my purchase today if I signed up for their credit card.  A tempting offer to be sure, but I ultimately decided to pass, and the next time you’re presented with a similar offer, you might want to as well.  Why?

• High interest, low limits.  Most retail chains that offer their own credit cards try anything they can to get you to sign up on the spot, including offering to take as much as 20% off your in-store purchases then and there.  But while the immediate savings may sweeten the deal (especially if you’re already seriously considering the offer because you shop there a lot), you might be regretting the decision in the long run.

Store credit cards generally start you off with a ridiculously low credit limit – usually no more than $500, meaning if you got a Best Buy credit card and plan on using it to pay off that new LED TV you’ve been eyeing all year (I’m right there with you), you’ll drive your credit utilization ratio into the stratosphere, which will drive your credit score into the ground. 

They then follow that up with interest rates that can go as high as 30%, meaning if you make any big charges to your new account and don’t pay it off before the end of the “grace period” many retailers provide, you’ll be facing major interest charges, which can make saving a couple of bucks on your last DVD purchase seem a little less worth the effort.

• They’re really only good in that store.  Yeah, you’re probably not going to be able to pay your cable bill with your Barnes & Noble store credit card, or book a cruise with your JC Penny card.  Store credit cards are only really useful in the one store, and once you step outside they tend to lose their worth.

• They don’t even have as much influence on your score.  While it’s true that having a positive payment history looks good on your credit report no matter what, store credit cards don’t have as much influence on your credit report as other credit cards.  Combined with the high interest/low limits structure, and the fact that they’re essentially glorified gift cards, you can certainly find better options when you’re looking for a good credit card to fill out your history.

WARNING: Foreclosure can be hazardous to your health.

Possible side effects include, but are not limited to:

• Heart palpitations
• Anxiety attacks
• High blood pressure
• Stress
• Depression
• Weight gain
• Canker sores
• Skin problems
• Acid reflux
• Insomnia

The Alameda County Public Health Department and Causa Justa/Just Cause — a housing rights group — recently conducted a study of nearly 400 residents in the Oakland, Calif., area who had to endure the foreclosure experience.

Here’s the bottom line finding:

Foreclosures exacerbate the health problems [of distressed homeowners]. In addition, the deleterious health effects can often spread to tenants and others associated with foreclosed home.

The San Francisco Chronicle provides powerful context:

The survey found that residents who are going through foreclosure or recently lost their homes were more than twice as likely to say that their mental and physical health had worsened over the past two years than those not going through foreclosure. Those residents were also twice as likely to report stress, depression or anxiety over the past month.

To read the full report, which is entitled “Rebuilding Neighborhoods, Restoring Health” click here.

Because those facing bankruptcy are already in financial dishevelment, and there is no law dictating that you must use a bankruptcy lawyer when filing, it may seem sensible to file the procedures yourself. You, however, are advised to consider that, most likely, you would most likely not decided to fix your own roof, diagnose your own illness, or deliver your own child even though there are no laws stating that you cannot. Likewise, it is advised that you seek the advice and guidance of a professional. Handling the case yourself and seeking the knowledge of experience can mean the difference in escaping the trial with enough financial reserves to start anew and having an experience that is stressful and unsuccessful.

Another option for filing bankruptcy is to seek the services of a petition preparer. These are professionals who take your information and transfer it to the correct legal documents. The misconception amid bankruptcy filers is that these preparers have legal training. This is not the case. In fact, these professionals are little more than typists who legally only have to right to enter your information as you present it to them. They cannot give any legal advice or represent you in court, and the only option should legal questions arrive is to be referred to a practicing bankruptcy lawyer. Most filers will now find themselves paying for two separate services. Petition filers, without the advisement of an experienced lawyer, often give general information that results in the client making erroneous decisions, and it should be noted that any legal advice given by petition preparing services is considered practicing law without a license, and such a practice is illegal.

A skilled and trained lawyer is the best option for filing. A bankruptcy lawyer will guide you through the entire process beginning with reviewing your case and suggesting the pros and cons of your options. This area of law is a dynamic field in which the laws are constantly being reviewed and changed, and the upfront cost of an attorney will ultimately save you money as the assets and money lost by inadequate or even illegal advice of petition filers could be exponential.

Filing yourself or using petition services may be a better option if you have no assets or other interests that you stand to lose, but even in this case, it will behoove a filer to partake of the sound experience of a qualified professional.

A Grand Rapids bankruptcy lawyer may be able to help you get through the process if you’re too scared to go it alone, so view the following page if you want to learn more: http://www.bankruptcy-grandrapids.net/.

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Bankruptcy Lawyer – To File on Your Own Or Not To is a post from: Bankruptcy Court Online