June 2011

Investment Exchange

An educational real estate newsletter

MAXIMIZING YOUR CREDIT

If your credit score seems like a great big mystery, we're here to help you crack the code once and for all.

Potential real estate buyers who plan to apply for mortgages to finance their home purchases must have pristine credit reports ... or as close as possible.

The first step to a great credit score is understanding your credit report.

This month is dedicated to teaching you how to understand your credit report and your credit score and, more importantly, what to do if you don't like what you see.

Repairing damaged credit isn't impossible. It doesn't even have to be difficult or complicated, as long as you have the right tools and the right education.

Learn easy-to-implement tips for boosting your credit, where to get free credit advice, how to put your best foot forward when applying for a mortgage and more.

It's all right here in this month's edition of the "Investment Exchange".

Site feature spotlight

MASTER YOUR CREDIT SCORE

The day you finally get your credit score under control is coming.

Specifically, it's coming on Thurs., June 23, 2011, at 8:30 p.m. ET. And it's coming in the form of a live webinar taught by credit guru Jay Robins.

The webinar is called "Use your Credit Score to Save $100,000 on your Mortgage" and it's going to take a limited number of participants (first come, first-served) through the ins-and-outs of understanding and managing their credit scores for optimal results.

Your credit score is a reflection of your financial integrity, so it's critical that your record is as unblemished as possible whenever you go to apply for financing of any kind.

"Use your Credit Score to Save $100,000 on your Mortgage" will show you definitively:

• Why credit scores matter
• The consequences of bad credit
• What affects your credit score
• How to optimize your credit score
• Your step-by-step action plan

Jay Robins has been dubbed "America's #1 Real Estate Credit Specialist." He has helped many thousands of consumers repair their credit scores, optimizing their chances for financing approval if and when they need it. He is hands-down the best person to be teaching our brand new live webinar.

To secure your spot in Jay's "Use your Credit Score to Save $100,000 on your Mortgage" webinar, make sure you register now. Space is limited — you don't want to be left on the outside looking in!

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WEBSITE SEARCH TIPS

DEMYSTIFY YOUR CREDIT

Does it seem impossible to keep tabs on your credit score?

Foreclosure.com makes it easier with our free Credit Management Center.

All of the valuable information in this section of our website is available free of charge. It is absolutely vital for anyone who may be lacking credit confidence before going into a property purchase.

You are entitled to annual credit reports. And getting those reports is absolutely the best way to stay on top of your credit score and deal with any issues before they become more serious problems.

Our Credit Management Center shows you how to:

• Get free access to your credit scores
• Fix your credit without the help of a professional
• Navigate credit laws so they don't stand in your way

It is also dedicated to educating you about how your credit will be affected in the event of a short sale, foreclosure or bankruptcy. The goal is to get you back on your feet financially so that you will be able to qualify for credit down the road.

You'll also benefit from our complimentary Top 10 Tips to Better Credit, including how to clean up your credit, find out your FICO score, avoid bad credit debt and much more.

If you feel like your credit is spinning out of control, it's time to get things back on track with the Foreclosure.com Credit Management Center. Take charge of your credit now so that you can skyrocket your real estate investment career as soon as possible.

Thank us later.

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Hot off the press

YOU'RE NOT OUT OF THE WOODS YET

When you apply for a mortgage and finally hear those exciting words, "You've been approved," you may be tempted to relax and forget all about your credit score.

Not a good idea, according to a recent article in "The Real Deal," a New York City-based real estate magazine.

As of Feb. 1, 2011, credit transparency standards have changed. What this means is that your credit needs to be good enough to qualify for a mortgage, not just before your initial credit request, but for as long as it takes to close on the property in question.

The first big change is the new requirements that insist lenders examine your credit history for the 120 days leading up to your request for mortgage financing. They will be looking for any instances of you asking for credit anywhere else — on other properties, for a new car ... anything.

Any records of a credit request during those four months could hamper your ability to qualify for credit now, so if you're planning on applying for a mortgage in the near future, avoid seeking credit for other items.

The second big change is that lenders must also keep tabs on your credit between the time that you apply for your mortgage and your actual closing date. Lenders require, among other things, a certain debt-to-income ratio to approve your mortgage. If your level of debt changes during the window of time before your closing, you might be facing a "Dear John" letter from your bank.

To mitigate this risk, don't do anything to increase your debt load. Avoid applying for a new credit card and definitely avoid dramatic credit card balance increases.

In addition, wait to buy items for your new home such as furniture or appliances, unless you can pay for them with cash. Otherwise, you might not end up with the home you were trying to furnish after all.

Your credit is a delicate thing and it's up to you to guard it fiercely. Keep to these common sense tips to make sure your closing goes off without incident.

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Our success stories

CREDIT TIPS FROM AMERICA'S #1 REAL ESTATE CREDIT SPECIALIST

When it comes to credit management, Jay Robins is simply the best in the business.

An expert in loan modification, Jay is the Director of Business Development at a South Florida real estate brokerage company, a branch manager for an FHA-approved mortgage firm and a Certified Mortgage Planning Specialist, which makes him an expert in credit education.

Jay has also been featured as a credit expert in local Florida real estate magazines and is an instructor for both the Realtor Association of the Palm Beaches and the Realtor Association of Miami. Plus, he founded his own successful institution for credit education, Jay Robins University.

Oh, and he's also been in real estate investment for the last seven years.

If Jay's credentials don't impress you, his track record will.

Dubbed "America's #1 Real Estate Credit Specialist," Jay has helped several thousand consumers raise their credit scores.

What are his insider tips for buyers?

"Pull your own credit report within three months of applying for financing, at minimum," advises Jay. "Go down each account one by one and circle the accounts you know are mistakes or clearly not yours."

You may be surprised, but in fact it's very common for there to be errors on a person's credit report. Those small mistakes can have a dramatic impact on your credit score, which can negatively affect your ability to qualify for financing.

To mitigate the situation, Jay recommends taking immediate action.

"Get in touch with the credit bureau. Within 30 days, much of the time, they will remove some or most of those accounts. It may take longer, but if even two or three out of five or six accounts are removed, it can significantly raise your score."

Jay has personal experience from which to draw.

"A bureau reported something for me once. I simply said it was a mistake; it was removed within 30 days and my credit score went up 57 points."

Even if you've previously been through a short sale or foreclosure, rebuilding your credit is key to your long-term financial health.

"There are banks out there that will give a mortgage pretty much within a month or two after short sale, sometimes immediately if the borrower never missed a payment," said Jay. "As long as the circumstances make sense as to the reason there was a short sale, the bank will lend money."

"Foreclosure is a little tougher," he added. "For the most part you will have to wait two years or more if you are dealing with an institutional bank, but two years is an opportunity to get back on your feet and prepare for a low rate mortgage in the future."

Whether you've been in a foreclosure situation or not, it's in your best interests to have a sparkling credit report when you're ready to pursue financing. It's a common-sense step that could mean the difference between getting your mortgage and getting that dreaded rejection letter.

Thanks for taking the time to share your expertise, Jay!

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Real estate tips

PREAPPROVAL/PREQUALIFICATION PREVENTS HASSLES DOWN THE ROAD

If you're planning on financing your home purchase through a bank, it's a smart move to get your ducks in a row before you even start looking at houses.

Applying for a mortgage is not nearly as fun or exciting as going through properties with your real estate agent and dreaming about how you'll furnish your new home, but it's still the most important step to take.

That's the reason you should take that step first.

Without a solid plan for financing your intended purchase, there will be no purchase of which to speak. Imagine the disappointment of finding your dream house only to discover that you don't qualify for financing.

Getting preapproved or prequalified for a mortgage will not only help ensure that the credit will be there when you need it, but it also signals to sellers, mortgage brokers and even your real estate agent that you are a serious buyer.

Being preapproved or prequalified will make your agent more willing and able to assist with your home purchase. It can also help you win out over other contenders in the event of multiple bids on a property.

These days, sellers must be very cautious because it's more difficult for buyers to qualify for credit than it once was. They don't want to waste time on a prospective buyer who won't ever be able to close the deal for financial reasons. Your preapproval or prequalification will mean a lot come decision time for the seller.

What's the difference between prequalification and preapproval for a loan?

Prequalification is less formal. It can often be done quickly over the phone or Internet. The lender will ask you for basic information to determine your overall financial picture and will evaluate that information to determine whether you are eligible for prequalification. Because prequalification is less detailed, it is not a guarantee you will qualify for a mortgage down the road. It simply means that you are likely in a strong enough financial position to be eligible.

Preapproval is more involved.

An extensive financial background analysis, including a credit check, will be performed by the lender. If you are preapproved, you will be told a certain amount for which you qualify, which can really help you focus your home search. A mortgage preapproval is essentially a conditional commitment from the bank to lend you money, which signals to sellers that you're a serious buyer.

In the best-case scenario, buyers should get both prequalified and preapproved. However, either one of these will help demonstrate your serious intention to buy, as well as confirm just how much financing you can qualify for.

Remember that given today's housing market conditions, you want to be as prepared as possible. Distressed property often moves quickly — your ability to qualify for financing could mean the difference between landing your dream home and watching it slip through your fingers.

Have questions? Visit the Foreclosure.com Credit Management Center today.

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Deals of the Month

HOT FORECLOSURE DEALS!

Orlando, FL
$69,000
3 beds/2 bath
1,379 sq. ft.

Des Moines, IA
$74,900
2 beds/1.5 baths
1,130 sq. ft.

Oroville, CA
$111,150
3 beds/2 baths
1,269 sq. ft.

Linda's Learning Lane

JUNE WEDDINGS

As I sat down to write this article I struggled with what to share.

Since it is June 2011, I finally decided to share with you how I am using credit in a light-hearted way. This month my only daughter will marry my oldest son's best friend from high school. While this is a momentous occasion, it is also an extremely expensive one.

My husband has dreamed of giving his little girl the wedding of her dreams. My biggest dream, meanwhile, was that we would have the funds to pay for this important event. The wedding is happening 2,200 miles away from our home and the guest list invites will reach more than 1,000 individuals with two receptions.

What does this have to do with our topic this month?

It has everything to do with it because if it weren't for credit this process would have been a very painful experience. Managing your credit and using it appropriately can be a blessing. The mismanagement of credit can have the opposite effect.

Becoming knowledgeable about how credit works and how you can make credit work for you rather than you working for it is paramount to your success. Having a plan and working it will allow you to have the flexibility to reach the financial goals you desire.

Seeking knowledge and applying what you learn is a proactive way to determine your destiny. The things we fear are often the things we don't understand.

So push up your sleeves and start exploring those things that are a mystery to you. As you do so, joyous days such as a wedding will be yours to experience.