Does Credit Repair For Homebuyers Really Exist?
I have long advised my friends and customers to consider working with a company that provides credit repair for homebuyers.
With the thousands of closings of short sales in Tallahassee over the past few years, there is a huge back-log of people who historically had great credit but now are dealing with below-average credit scores. The Tallahassee real estate market needs solutions, and I get a lot of questions these days about how to fix a poor credit score.
But the question that I most often hear when I recommend using a company that provides credit repair for homebuyers is ... "do they work?"
Well, I'm not sure.
So I have decided to perform a real, live case study that will report on a client of mine (name hidden) who is attempting to repair credit that was destroyed through tough financial times and a short sale several years ago!
Is Credit Repair For Homebuyers A Myth?
It won't take you long after Googling "Credit repair for homebuyers" to realize that there is far too much information to absorb. So how do you repair credit if you don't have a trusted adviser in the business?
The first step is to find the right credit repair company to provide you with the guidance that you need. While I have read a good bit on the "do it yourself credit repair" sites, I know I don't want to become a subject matter expert and learn all the paperwork for something that somebody else is willing to do fast, better, and for a relatively low price.
Validating Credit Repair For Homebuyers - A Live Case Study
I will use the John Smith (not his real name) when I refer to the subject of our case study. I will ensure that none of his private information is shown, but he has given me permission to publish as much of his progress as necessary to make this an effective case study in validating credit repair for homebuyers. After all, that is his goal, to buy a home in Tallahassee as soon as possible.
John pulled a credit report (all three credit bureaus) on April 1, 2013 and this is what it showed (note, just page 82 of 85).
So, at the onset, John had a 568 credit score, and he wants to buy a house with FHA or conventional credit. Over the several months, I will post updates and link back to this report so we can see if credit repair for homebuyers is truly possible.
John has signed an agreement with the US Consumer Credit Restoration Association in an attempt to bring his scores up to the mid 600s and then even higher. His current scores will get him denied for the loan product that he really wants to use to buy a house, but he has been cleaning up his finances diligently for the past two years.
So will this credit repair company be able to help him achieve higher scores faster? Time will tell.
If you bookmark this article and return from time to time, you can follow the updates to see the effectiveness of credit repair.
Short Sellers To Consider Credit Repair For Homebuyers
The scores of short sales in recent years means that there are a lot of people who previously had good credit who are now working to regain their old form. Will credit repair work to hasten their return to good graces so they can take advantage of these historically low interest rates? Or is credit repair just a myth? Hopefully, we will see John Smith transform into a ready to borrow homebuyer and be able to answer this question definitely in the near future.
If you have gone through a short sale in the past, and want to be put on the fast track to buying a home again in the near future, simply drop me a note and we can schedule a time for a free consultation to help you determine if you even need to seek credit repair for homebuyers.