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Credit Repair is Illegal: Now What?

Recently, I posted a note about Credit Repair is Illegal. The post read – Credit Repair companies can’t deliver an improved credit report for you using the tactics they promote. It’s illegal: No one can remove accurate negative information from your credit report. So after you pay them hundreds or thousands of dollars in fees, you’re left with the same credit report and someone else has your money.

The Credit Repair Organizations act prohibits payment before any promised service is "fully performed." Services must be under written contract, which must include a detailed description of the services and contract performance time.

With all that said, there is a program that is available it is called a Rapid Rescore. This is it how it works, you have a buyer who is looking to buy a home. Their credit score is 622 but your buyers; lender credit underwriting guidelines says 640 or no deal.

Call me I`ll send your borrowers credit through our What-if Simulator, it will tell us the highest and best chances of improving the buyers credit.

Because of the new program, I am in the middle of closing two deals that could have went south, thanks to you they are CLOSING!!! This has been a great selling tool. Awesome product, best scoring the first time around means another potential closed Buyer! Thanks again. --“Malvin, FC Tucker” 

What does it take to get my Buyers started? As of this note the costs for this service is $30 per tradeline/per bureau. For example, to correct a Orchard Bank credit card account tradeline at Equifax, Experian & TransUnion would cost a total of $90 paid directly to the bureaus not the lender. That could be just enough to get the buyer approved and can possibly increase the credit score by as much as 50 points. 

Acceptable documentation for this process

• Letter from Creditor or Collection Agency or an online statement—Letter must be from the company reporting the information and on company letterhead with Signature, telephone number and full account information including: The date the account was paid in full or closed if applicable.

• Court Issued Documents—Required for all public record information updates: Release or satisfaction of judgments or liens stamped by the court house
• Bankruptcies— require a letter of discharge and schedules D and F

Acceptable documentation for changing an entry on a credit report

• Letter from the creditor reporting on the credit report. It must be on company letterhead.
• Western Union quick collect receipt.
• Printed receipt from creditor reporting on the credit report.
• HUD1 settlement statement for mortgage loans only.
• Bankruptcy papers. The creditor listing as well as the discharge letter is required.
• Divorce Decree papers are accepted but are not enough to delete an account or change the manner in which it is reported. The account will be annotated with ** BORROWER NO LONGER RESPONSIBLE FOR THIS ACCOUNT PER DIVORCE DECREE **

To get more information regarding this program contact me:

Always positive information, never negative, always on time and keeping you informed on what's new in the processing and underwriting of your mortgage loan application.

Robert B. Summers

Senior Originator

NMLS ID: 231330

Southwest Funding, LP Branch 777

2105 N. Meridian St. Suite 101

Indianapolis, IN 46202

317-925-1877 Office

317-229-6430 Fax