Credit Correction

We would love to have your mortgage loan business. To that end, here is a link to our website www.jamesspray. You will also find other useful mortgage tools and you can learn more about how our office specializes in helping folks that are in Chapter 13 and those Discharged from Chapter 7. This is all we have done since 1994 and I have been in the business since 1976. The reason you were referred to our office is that the person who sent you to us knows we will give you the straight information. And, we will help you get the best mortgage loan we can.

Did you know that you can qualify for an FHA loan without working on the credit issues first? This will allow you to get to the current prime mortgage interest market rate right now, while rates are still low. If you have had no new bad credit since the bankruptcy and if we can prove your income you will qualify for a mortgage right now. If you would like for us to check it out for you, all you need to do is send us a Secure loan application, it is on our website.

CREDIT CORRECTIONS, WHY, WHAT and HOW
Written and compiled by James Spray, Copyright 2003, 2004.

This is somewhat generic. Please advise if you find it helpful. All I ask in return for this base of knowledge is that you please advise me of what you learn that may be helpful to those I advise on this most common situation in the future.

Following are a few thoughts for your near future use as you get your credit report cleaned up. About this first link. Read same closely, the information contained therein will help you determine what steps you will need to take to get your credit report corrected.

Regarding so called Credit Repair companies. The vast majority of them are ploys to part you from a tidy sum and provide no benefit in return. On this, I suggest you read the comments published by the Colorado Attorney General on this subject. http://www.ago.state.co.us/UCCC/CREDREP.HTM

The 3 addresses below are to each of the three national credit reporting agencies (CRA). What you will need to do is US Mail launch disputes with the CRA's respective to the current information showing on your post Discharge credit reports. We have found the CRA's are not set up to deal with this type of dispute on the Internet. We have also learned that you can accomplish very little by calling the CRA's regarding disputes.

By Colorado State Law you are entitled to one free credit report per year. These reports will not contain your credit scores. For the credit report credit scores, expect to pay a small fee to each CRA. Each CRA is likely to have a different score as different creditors use the CRA or CRA's of their choice. The results can vary by large degrees.

While the creditors are responsible to notify the CRA's of your bankruptcy filing, many, if not a majority, ignore this responsibility altogether. This is greatly to your detriment as such practices artificially and dramatically decreases your actual credit score, or FICO. An example would be XYZ Credit, listed in your BK, is still also showing as a CHARGEOFF account with a high credit of 1,000.00, a balance due of 1,001.00 and showing payments of 30 days late within the last 24 months and, a Judgment. Now, you are getting hit with at least 4 subtractions from your credit score that are facetious and very harmful to your credit scores.

Here is an illustration of how that works against you. The Bankruptcy, a legal item, and let us say it is worth 45 points. OK, the BK is a fact. But you are also getting subtractions from your scores due to: Judgment -45; Late pays -25; CHARGEOFF -30; High Credit Limit to High Credit Balance -20. These numbers are for illustration purposes only and not based on fact. Yet, I think you see the point of the illustration. Your scores are quite severely artificially deflated.

The adverse impacts to you range from no credit available or access only to high cost and very high cost credit. At the appropriate time, after your Chapter 7 is Discharged, launch your disputes by copying your Chapter 7 Petition (1st 2 pages) as well as the Schedules D, E and F (G and H if there are any creditors thereon listed and reporting to the CRA's) as well as the Discharge. Submit these documents with your cover letter stating that XYZ Creditor is listed in your Discharged Chapter and that, pursuant to the Revised Fair Credit Reporting Act you demand the specific CRA to correct your report immediately and copy you with your corrected credit report. This will improve your scores immediately. (Perhaps some enterprising attorney will file a class action lawsuit to put a stop to this deplorable practice - to my knowledge, thus far, none has.)

Given we are aware your credit scores are quite low, and based on our experience with reviewing credit reports of clients in bankruptcy, you should increase your scores up by a few hundred points once your disputes are resolved.

How does all of this help you? Well, if you have had 30 late pays on your mortgage(s) or bankruptcy payments (Chapter 13 only) or, if you have new bad credit since the filing of the bankruptcy, your mortgage application will be rated purely by the credit scores.

Can you hire someone else do this for you? No. Only you can file a dispute with the CRA's.

Please feel free to email us with questions or comments: bkrefi@aol.com. In the subject line kindly refer to our BKRefi Credit Correction Link. Thank you.

Equifax
PO Box 740241
Atlanta, CO 30374


Experian (TRW)
PO Box 2104
Allen, TX 75002


Trans Union
PO Box 390
Springfield, PA 19064