The Credit Repair Organizations Act (CROA) And You

If you have negative information in your credit file, as
reflected by the Big Three reporting companies, Experian,
Equifax, and TransUnion, proves to be accurate, there is little
you can do about it. Only the passage of time will guarantee
that information's ultimate removal from your file. The
reporting companies will generally list negative credit
information for seven years, and bankruptcy information will
remain on your report for ten years. The time limits generally
begin being counted from the time the event initially took place.

There are other limitations, as well, such as unpaid judgments
against you. Those can be reported in your credit file either
for seven years or until the statute of limitations for that
particular type of judgment expires, whichever is longer.
However, there are no limitations as to how long criminal
convictions may be listed. The same is true for information that
was reported due to your applying for employment that would pay
more than $75,000 a year, or because you've applied for credit
or life insurance in excess of $150,000.

If you decide to seek professional help, the Credit Repair
Organizations Act (CROA) has clearly detailed your rights as a
consumer. You must be given a copy of the booklet Consumer
Credit File Rights Under State and Federal Law BEFORE you sign
any legal contract with an organization. Your contract must be
in writing, and must clearly spell out all your rights and
obligations. Of course, it's then your duty as a diligent
consumer to read all the documents you're given, and then to ask
questions if they contain anything you don't understand BEFORE
you sign.

The CROA contains a number of quite specific provisions designed
to protect consumers. The most obvious provision is that no
credit repair company can make deliberately false or misleading
claims about the services they're capable of providing to their
clients.

There are a number of specific points that must be clearly
addressed in a contract with a credit repair company. The
company's name, address, and contact information must be
included, the contract must specify the total cost for their
services, as well as a detailed description of the services
they'll perform in order to earn those fees. The time frame for
the work's completion must also be clearly specified, as well as
any guarantees they may offer for their services.

You can't be charged up front for a credit repair company's
services, and you can't be required to pay until they've
performed all the services they initially promised you in the
written contract. Credit repair companies are also prohibited
from performing any services in your behalf until you have
signed a written contract and then have been given a three-day
waiting period. At any time during those three days, you have
the right to cancel your contract with a credit repair company
without being required to pay any fees.

Don't let your difficult financial situation blind you to your
rights under the CROA. You have specific rights when it comes to
dealing with credit repair companies. Insist on them.

Copyright Jeanette J. Fisher

Buying Before You Sell

Many buyers have to sell their current house before they purchase a new one. If you find a house you love before you sell your current one, what do you do?

A contingency is a provision in a real estate contract which states that if something doesn\'t happen, such as selling your own house or obtaining financing, the contract becomes null and void. The standard contingency for selling your own house would state:

This contract is contingent until 9 p.m. on the day after the Date of Ratification (Deadline upont the sale of the Purchaser\'s property located at ). If the Purchaser does not satisfy or remove this contingency by the Deadline, then at any time after the Deadline, but prior to the Purchaser satisfying or removing this contingency, either the Seller or the Purchaser may declare this Contract void by providing notice to the other party.

This language clearly protects the Purchaser. If you aren\'t able to sell your own home by the deadline, you don\'t have to buy the new one.

As you can probably imagine, many sellers do not want to deal with the uncertainty of such a transaction. A seller wants to know that they have a deal or not -- when will the house be sold?

To balance this out, there is a compromise position which is acceptable to many sellers: a kick-out clause. With this, the seller accept the buyer\'s contract which contains a contingency for the sale of the buyer\'s house, but adds language to the affect that if another offer is received, the first buyer will have X numbers of days to decide whether to \buy or walk\.

This is how it is usually stated:

The Seller may continue to offer the Property for sale and accept bona fide back-up offers to this Contract. If during the term of this contingency (the sale of Purchaser\'s present property), a back-up offer is accepted, the Seller will Deliver notice to the Purchaser requiring that the contingency be satisfied or removed not later than 9 p.m. on the day after delivry of the notice, or this Contract will be null and void.

How do Purchasers remove the contingency for the sale of their current home?

There are several ways, including:

if the Purchasers have been successful and obtained a sales contract on their home, they give a copy of that contract to the Seller, with a letter removing the contingency;

if the home hasn\'t been sold yet, but the Purchasers are willing to take a chance that it will sell, they simply present a letter to the seller removing the contingency. However, this time the Purchasers will need to present proof that they can afford to purchase the home. This can be in the form of a letter from the lender stating that financing of the new home is not contingent on the sale of the current home, or the Purchasers can present evidence that they have sufficient funds in order to close on the new home.

No matter how much they want the home, purchasers would be foolish to remove the contingency when they cannot meet either of these two requirements. Otherwise, they are left legally required to purchase the new home without having sold their home, or they would be in breach of contract. Neither situation is a good one.

This is a dilemma for most homeowners. You want to step into a bigger house or move to a different neighborhood, but can\'t afford two houses at once. I don\'t recommend that anyone who absolutely must sell his current home before buy a new one make an offer on a new property.

If you aren\'t sure of your financial situation, go ahead and talk to a mortgage lender before you sign a contract. Because sellers are reluctant to accept any contingencies, especially those for the sale of the purchaser\'s current home, it is strongly recommended that you put your house on the market and test the waters.

You never know, your house could be hot, and you will quickly sell it. Armed with that contract, you won\'t have any problem in buying your new home. But you should still protect yourself.

While a real estate sales contract is legally binding, it is not the same as cash in the bank. Buyers do walk away from contracts, with and without justification. If this should happen to you, you can get a money judgment against your contract purchaser, but it does nothing to solve the problem of your contract with a seller. They may consider you in breach if you aren\'t able to comply with the terms of the contract you signed, leaving you open for a lawsuit.

So, if you are able too, sell your house. Then buy.

Copyright 2006 #1 Loans USA

Martin Lukac, represents http://www.RateEmpire.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Visit http://www.RateEmpire.com today.

Should you rent or buy?

Today's real estate market has had a new buyer in the last few
years - the young, single professional. Male or female, it seems
as if those who used to live a somewhat transient, short-term
renters' lifestyle until marriage, are now no longer waiting.
With more people delaying marriage until their careers take off,
single professionals are now changing from renters to buyers.



But many renters prefer to remain renters. Although buyers (and
agents) will talk your ears off about the advantages of home
ownership, renters enjoy the freedom their lifestyles provide.
>From limited maintenance to the record number of amenities
present in new properties, many renters would rather not buy.



The majority of people, whether single or married, will at some
point ask themselves, Am I ready to buy? Buying a home is a
manor step for anyone. Can there be a perfect time in one's life
to buy a home? Which is better: renting or buying? Each one has
its pros and cons.



Renters



-Don't gain any equity, but they also don't lose it. It doesn't
matter if renters make improvements to their homes or if
property values are appreciating, renters don't gain any equity.



-Don't have to put as much money up front. They usually only
have to come up with first and last month's rent and security
deposit.



-There are no tax advantages - they are enjoyed by the landlords.



-Have the assurance of fixed costs. The terms won't fluctuate
during the duration of the lease. The monthly costs remain the
same.



-Cannot personalize their homes. This includes painting walls or
hanging certain fixtures or dcor.



-Are able to simply leave for another place upon expiration of
their leases. They don't face the hassle of trying to sale the
home.



-Have much less invested in the maintenance of their homes,
inside and out. In many properties, the renters enjoy the
convenience of a full-time maintenance staff to handle appliance
and other minor repairs.



Buyers



-Often gain equity. However, they can also lose it. The market
could remain steady or decline.



-Must sell their homes before they can go to another property.



-Must put down a larger amount of money than a renter. The down
payment and closing costs can be substantial.



-Are subject to variable costs in many circumstances. Mortgage
payments, property taxes and insurance premiums can fluxuate.



-Have maintenance and repair costs to be fully responsible for.
The one exception is planned or gate communities and condominium
facilities, were outside costs are shared.



-Are free to redecorate, remodel and paint their homes as they
wish.



-Qualify for tax breaks and other tax advantages associate with
home ownership.



-Eventually own their own homes. There will come a time when
they will be free and clear of monthly payments.



As you can see, there are advantages and disadvantages to both
buying and renting. Factors such as the stability of your
career, how often you travel for business and whether not you
plan to reside in your current hometown for a long period of
time can affect your decision.

Copyright 2005 #1 Loans USA