Debt Management – Dealing with Collectors

By: Adam J. Heist

While dealing with debt collection agencies is nothing any of us look forward to, it is sometimes necessary. Here are some useful reminders in helping to deal with them:-

1. Know your Rights
You always have a right to be treated with respect, fairly and have your privacy respected. You do not need to listen to any obscene language, threatened or be called names. You also have the right to dispute all or part of your debt, even though you may actually owe it. You can request that you not be disturbed at work, or at any time and place inconvenient to you. Finally, you can also request that no further attempts be made to contact you.

2. Ask Questions
Whenever dealing with debt collectors you should ask for the name of the caller and the name of the collection agency. You should ask for the address and fax number for corresponding with the agency and you can also ask for the name of the creditor and the amount the collector claims you owe.

3. Maintain a File

From the point of first contact with the debt collection agency you should maintain a file which records the dates and times of phone conversations or messages the collector leaves you. Include details such as the name of the individual and summary of the conversation.

4. Document Dealings
All that transpires between you and the agency should be followed up with a certified letter, return receipt requested, stating the same.

5. Pay the Appropriate Party
Make sure you are paying the right entity for perhaps your debt has been sold to the agency and any payments made to the creditor will therefore not be reflected in your account with them.

6. Don’t be Coerced
People sometimes pay a bill just because they want to avoid harassment. Do not do this as by making the payment you have acknowledged a debt that is not yours.

7. Understand your Dues
Make sure you carefully review, and agree with, the breakdown of your dues from the principal and interest to any late fees or charges.

8. Complain when Appropriate
If the debt collection agency has behaved inappropriately then you must complain to the appropriate authorities.

9. Don’t Ignore
Avoiding a problem rarely makes it go away and usually makes it worse. Make sure to attend and respond to all calls and correspondence of such agencies

About the Author
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Foreclosure listings and bank foreclosures listings

by Rick Martin

Do you want to buy a new house or maybe start a real estate business? The best way to do this is to buy a foreclosed house. In this article you can find the most important things that you should know before buying a property using foreclosure listings.

First of all what are foreclosure listings? Foreclosure listings are detailed lists that give you all the information you need about properties that are in the process of foreclosure (the owner did not pay the mortgage and the bank must recover the debt).

How can these foreclosure listings help you? It is very easy. Using foreclosure listings, you can buy a property under the market price and you can save up to 20% in comparison with the market property value.

Who can help you obtain valuable, reliable foreclosure listings? You can use one of these four sources for foreclosure listings:
- You can go to the local bank and attain bank foreclosures listings
- You can search for bank foreclosures listings over the Internet
- You can call your realtor or ask for help from government agencies

The most efficient way of getting hold of bank foreclosures listings is to go to your local bank. In some cases, if the property is owned by a third party (real estate agency or another owner), you cannot purchase that property directly from the bank. Getting bank foreclosures listings from the bank makes the process a lot easier than any other way of obtaining foreclosure listings. In this way, you can save money, precious time and you can also see the property you are interested in. You can even negotiate the price (since the bank wants to sell it as soon as possible).

Another efficient method to find bank foreclosures listings is to look them up on the websites specialized in this area. These websites can offer additional information: not only do they give you the bank foreclosures listings, but they can also guide you through the process of purchasing a property. However, you must know that this service can cost you somewhere between $10 and $30 per month. In most cases, you have the chance to preview the foreclosure listings before joining the service. A significant observation must be made here: websites' information about bank foreclosures listings is constantly updated and they can offer you information from all around the country. From this point of view, they are the best alternative.

An additional method to obtain bank foreclosures listings is to contact a realtor. Nevertheless, you should know that the bank foreclosures listings that you can get hold of from a realtor are always changing because the access to them is public. This constant shift can be a problem since you can be interested in buying a property that is already sold. Still, you can use this method if you want to immediately buy the property.

Although all these actions are efficient and can put you in possession of bank foreclosures listings, you can be satisfied with doing exactly this, but there is another way of buying a property: working directly with the owner (buying a pre-foreclosure). The advantage of this buying method is that the discount can get up to 30%. However, an obstacle could get in your way: it is rather difficult to locate owners that have failed to pay their mortgages on time. You can still purchase a property at a lower price in an auction (up to 45% savings off the market price). The disadvantage, if you choose to buy a property in this way, is that you cannot see the real estate before acquisition. Another inconvenience is that auctions are sometimes postponed which can lead to a great waste of time.

Whether you choose to purchase a property with the help foreclosure listings (from the bank, the Internet, or a realtor) or you simply find owners that could not pay their mortgage, buying a foreclosed property is the best deal you can close. The aspects against this purchasing way are so few, that we can even ignore them. If you are careful enough, you can buy a property from foreclosure listings without any problem and benefit from all the possible advantages.

About the Author
Buying foreclosure is now easy. We make it easy with our foreclosure listings . Don’t hesitate to visit our website because we have the most reliable bank foreclosure listings on the web!

How Long Does it Take to Recover from Personal Bankruptcy

You're bankrupt. You're doing all the right things to improve your credit and recover from your bankruptcy (i.e., managing your money and credit well, increasing your credit scores, paying your bills early or on time, and re-establishing credit).

So when does the dark cloud that's been over you since you filed bankruptcy leave?

The answer is, "it depends."

With some lenders, as long as your bankruptcy remains on your credit reports you will be denied credit. The good news is, there are many "normal" lenders who are willing to work with you after bankruptcy. You just need to know where to find them.

It's NOT about working with lenders that are convenient for you. It's about finding lenders that will work with you without taking advantage of your situation. Each lender sets their own "credit guidelines." What are credit guidelines? They are simply the minimum requirements you must have in order to qualify for credit with that lender.

The three common credit guidelines for most lenders who work with people after bankruptcy are:

(1) the amount of time you have since your discharge
(2) How you pay your bills after discharge
(3) Your FICO credit scores.

Time will heal.

The maximum amount of time the dark cloud of bankruptcy follows you is up to 10 years. Remember, this dark cloud is only for a season in your life, not forever. Bottom line: the more time you have after your bankruptcy is discharged the more opportunities you'll have to get credit.

But lenders also need to know you've recovered. Late payments after a discharged bankruptcy are bad news. Lenders need to see an early or on-time payment history to feel comfortable with you after bankruptcy.

There is no escaping a lender who will judge us on our credit scores. This is why it is so important to increase your scores by deleting inaccurate, outdated, and unverifiable information from your credit reports. Your FICO scores are just too important to ignore. You need to make it a priority to keep your FICO credit scores as high as they can be. High credit scores are the key to unlocking opportunities that have been hidden from you.

Let's look at how lenders use credit scores so you can understand what I mean.

GETTING A MORTGAGE

Mortgage companies are pretty forgiving when it comes to lending money to someone who's filed bankruptcy. In fact, after bankruptcy, it's actually easier to get a mortgage on a new home than get approved for an unsecured credit card.

As long as your middle FICO credit score is 580 or above you will qualify for mortgage financing with no money down...just maybe not at the interest rate and terms you want. (This assumes you haven't had a foreclosure in the last 24 months and you have a good payment history since your discharge.)

To get better terms and a lower interest rate, you need a higher middle credit score. A middle score of 600 will give you a lower interest rate and better terms. (This assumes you haven't had a foreclosure in the last 12 months.) A middle score of 620 or above opens up even better options once you have two years after discharge.

PURCHASING A NEW CAR

A FICO credit score over 700 on the credit reporting agency the manufacturer uses will open up the floodgates for you. A score between 600 and 620 seems to be the bare minimum you need to qualify with most lenders for a good interest rate. Slimy lenders (the kind that wear lots of gold chains, polyester suits, and broadcast a hairy chest to the world) will help you if you have a lower score.
Remember, many car dealers use only one FICO score to make their lending decisions. So, you're always better off going to a dealer who uses the credit reporting agency where you have your highest FICO score.

UNSECURED CREDIT CARDS

Some lenders just don't want to do business with a bankrupt person.

Interviewing lenders BEFORE you apply for credit is so important. You need to determine their credit guidelines before you apply. (Read that sentence again!) Many unsecured credit card providers are 100% FICO credit score-based. That's how they can offer you an answer so quickly if you apply by telephone or over the internet.
The only thing they look at to make their credit decision is one of your FICO scores. A FICO score over 700 seems to be what they're looking for.

BANK LOANS

Don't expect too much from your banker until four years have passed and your FICO scores are above 680. However, all bankers are different. Find out what the possibilities are with your banker. Do they have any authority to make credit decisions?

After my bankruptcy I felt lucky to have a bank checking account, savings account, debit card (now they're called Visa/MasterCard check cards), a secured Visa credit card, and a few secured bank loan.

A CREDIT LIMIT INCREASE

You need to be on a constant hunt for higher credit limits. Even if you don't think you need them. It's good for your scores, especially when your spending patterns remain the same.

You "earn" a higher credit limit by paying your bills early or on time. Your next step is requesting a credit limit increase every six months. Credit limit increases are usually based on how long you've been a customer; your payment habits; how long from the last time your credit limit was increased; and your FICO scores.

Again, anything over 700 opens the floodgates of options from most lenders. One key point to remember, when YOU request a credit limit increase the credit inquiry lowers your credit scores. When your lender does it in their normal course of doing business it does NOT lower your credit scores.

If you ask for credit limit increases from banks or credit unions, (I repeat, only banks or credit unions) apply for them all within a 14-day window. All credit inquiries from these sources during the 14-day period will only count as one credit inquiry.

If there was a magic FICO score to aim for (and there really isn't) it would be 720. This score won't open all the credit doors for you...but it will certainly open enough doors at normal interest rates to accomplish your goals.

About the Author
Stephen Snyder is the founder of the After Bankruptcy Foundation http://www.AfterBankruptcy.org a non-profit organization that provides free bankruptcy information and recovery steps. Stephen also writes a free weekly newsletter on bankruptcy recovery.