New Credit Repair – Free Credit Repair Help

Reader’s Question:

What is the best consumer credit counseling company to use to repair damaged credit scores? Does anybody have any experience with a consumer credit counseling service?

Irma

Salt Lake City, UT

Consumer credit counseling service is a very reputable company who can help people take control over their debt. If you qualify for the program your accounts will be closed. You will be required to make payments directly to CCCS and they will distribute that money to the various creditors depending on how much they have worked out your payments to be. One program is for financial hardship wherein they actually lower your payments and interest. This will also stop the annoying collection calls. The second program is for people who just want lower debt but don’t have financial hardship just yet. They actually increase your payments but lower the interest to help pay it down faster.

The best Consumer Credit Counseling Service to use will be the one who will put it in writing that they will not put on your credit file you are going to a consumer credit consul co. If they report it to the bureaus, and most do but not all, it will be on your record for the next seven years noting that you could not be responsible enough to take care of your own finances.

Reader’s Question:

I have recently filed for bankruptcy protection. I just want to know if I can still get a mortgage loan.

Gerry

Denver, CO

I know someone who was able to get a mortgage loan after filing for bankruptcy, and also a loan for a new car. You will have to do some research for banks that offer these kind of programs, and you will also have to pay extremely high interest rates on your new loans. I’m not sure what the home loan rate was, but her auto loan was set at 27% interest. If you want to wait a few years after filing, and prove yourself capable, you will have better chances and slightly lower interest rates.

Reader’s Question:

How do you repair a low credit rating after declaring bankruptcy?

Marian

Los Angeles, CA

Make sure to pay all of your bills on time. After you declare bankruptcy, you will have to pay all of your household bills, like telephone, gas and electric, etc. on time. It is not very difficult to get your credit ratings back to normal, because you do not owe any bills now. I know people who declared bankruptcy in 1995, and in 1996 bought a new car, without any problem. If you make all your payments on time, this will not take very long. It is the best thing to do, if you can make your payments, one month ahead of time, so if you ever get sick, or lose your job, you will still have an extra 30 days to make a payment, and still not be late. Good Luck.

Reader’s Question:

What is refinancing and how can it help me out of foreclosure?

John

Fresno, CA

By refinancing essentially you are taking another loan. This new loan is based off a new appraisal of your property. One benefits of refinancing is that you can sometimes get a lower or reduced interest rate, and in turn, decreasing your monthly mortgage rate. But, refinancing is really not for everyone. It can put you also at higher risk for foreclosure depending on a number of factors. Do a lot of research and talk to someone who can advise you well on this option.

Reader’s Question:

When I am in judicial foreclosure, what happens if I do not file an answer to the lawsuit?

Richard

Daly City, CA

The lender gets a judgment by default in this case. The court will then appoints a referee to find the total amount due, including interest and attorney’s fees. Then the lender must put out an advertisement of notice of sale in the newspaper for 4-6 weeks. However, if after this process the total amount is still not paid, then a public sale will commence, headed by the referee, on the courthouse steps. The lender will then must advertise a notice of sale in the newspaper for 4-6 weeks. If the total amount due is not yet paid, a public sale is conducted by the county sheriff or another officer of the law on the courthouse steps. Other lenders or banks usually bid up to the amount of the owed debt at the sale unless there is significant equity in the property, the only bidder at the sale will be a representative of the lender. If no other buyers bid, then the lender will receive title to the immovable property in return. If the proceeds of the sale do not cover the amount owed still, then (in some states) the lender may issue a deficiency judgment against the borrower and all others that guaranteed this loan. This whole process can take sometimes as little as three months and as long as twelve months, depending on the volume of court cases.