Why Bad Credit can be Good?
Probably you do not have to go that far to know someone like family or close friend having a very bad time now, bad time like loosing their home, loosing their job, getting the car reposed or max out on al the credit cards, due to all the financial problems with the recession world wide. If you keep talking to them, sooner or later you will find out that some of then have modified their home loan, and now their balance is less or the payments are lower and they can afford them now, thanks to their bad credit, Or maybe all the credit cards knew that since this person or people stop making payments they where going to lose all their money, and these banks decide to give an incentive to pay only 15% to 25% of the balance and they will forgive the rest, yes they will write it off, or maybe you know some who wants to buy a first time home with bad credit, yes there are programs that are giving incentives and credits, big ones to promote the economy, and now the buy their first home and the mortgage is half of the regular rent amount. Well my friend I have researched so much and I have found NO BODY with good credit been able to do anything. O yea I found many that could modified their mortgage but they would have to come out with hundred of thousand of dollars out of pocket to do a loan modification, yes because since they have good credit and they showed that they could keep making the payment, they do not qualify for nothing. Everyone frustrated, people with great credit and with many credit cards with a lot of credit available, most of their credit cards have closed their accounts or reduce the credit line up to 80%. So having good credit means nothing good to the banks, banks increase interest rates, reduce credit line or close credit cards and reject any kind of mortgage loan modification, loan modification are suppose to help people to relief any kind of hardship in financial situation, making you payment harder and harder every month.
Credit was good before, not now and if you have a debt with a mortgage or credit cards, the only way now for they or banks to work with you, is by letting your accounts go bad, is sad, very sad, but this is the only way.
Bad Credit and how you deal with it.
You are surprised finding out if you had a magic stick and you could make you bad credit into a good credit from one day to another one, believe it or not you will need a bigger magic stick to make it bad again, with good credit you can do nothing now. The way banks see you is like a huge risk, so they would do what ever they can to minimize that risk, by closing your accounts or reducing the line of credits. The time has changed, good credit gives you less then bad credit. Every single program out there to help people, is only for people with bad credit or financial struggle having delinquents accounts, and if you managed to survive the crises and if you own a home, you are stuck for ever, you can not sale of refinance you home, unless you pay big money out of pocket, so makes no sense doing it. For example here in California, if someone has a very un expensive home that purchased 3 or more years a go, the only way to get out of it is with bad credit. With good credit you are stuck for ever, you can not sale it or refinance it. (Unless you own it with no mortgage, but this is the exception and if you do, you better keep it, is the worst time to sell now).
If you have Bad Credit
You are not alone, and if you have balances in collection or simple delinquent accounts, call your bank and tell them that you can not pay and if there is any way they can help you, you maybe surprise if they not only reduce up to 90% of your balance and give you the opportunity to make small payments on it, this is something that you could do with any type of account, believe or not any type. A lot of banks received this stimulus money and they have now better chances to write things or balances off now. Now if you have good credit, good luck and nothing that you can do, just complete the original contract with the bank make payments and keep making payment, this is very sad since you can see so many people getting help, but just because you have good credit, there is not help for you... Picture your self as a home owner and most of the homes in your neighborhood where the others only have a balance of one third of yours, yes, if your balance is $300,000 most of the other their balance is only $100,000 or less (The house was already reposesed, short sale or the loan was modified for people with bad credit). The only way of you getting out is by putting out of pocket about $200,000 this makes no sense at all. Do not worried the only people in this situation is the one with good credit, the ones with bad credit the have either lost their home or modified their loan and have now a good loan and lower balance then you. What about the person who lost the home, well now is just paying one third of the mortgage by renting now, if this person has not qualified yet to buy another home under the new programs, where they buy a home at the real price now, or at 75% off from what price was 3 years a go.
Are you an investor with more the one rental home?
The only way of a bank looking at your mortgage and try to help you, is only if you are way late and many moths behind.
Why? Simple, because this is the only way of them taking you seriously, and know that the house is going to foreclosure, and they will be force to loose hundreds of thousands of dollars, so they will try to find a way of you keeping the house and they not to loose that much. Sorry there is no other way, and even this is not sure but your chances are much better. According to most people investors are bad people and they should not get help at all, so the only way of dealing with it, is when you put the bank on the position of getting it worst if they do not help you. But as a investor makes no sense having homes that each month you are negative on the monthly payment, and as the time pass, your balance of the mortgage is growing more and more and the value of the house is less every month.
So if you feel bad because you have bad credit, at this time this is not that bad...
ADVISE FOR EVERYONE OUT THERE: Love yourself, love your family, always put your family first, material things come and go, our family is for ever, especially when you build great family with great moments for our memory for ever, great happy moments are remember for ever.
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IMPORTANT DISCLAIMER: This is only the way of one person ideas, please regarding your credit situation, before you do anything please ask Your Legal Credit Advisor if you do not have one get one soon, this is only for reader to use as a entertainment. Creator and owner of this web site is not responsible for any decision made by any reader of this page. What ever you do with your credit is at your own risk. We have to have this disclaimer to protect us from any possible legal pain. We are not responsible.