Lower Your Debt and Maintain Your Credit during This Holiday Season

Holiday season is right around the corner, Thanksgiving, Christmas and Hanukkah, who doesn’t like gifts? At any time, your creditor can reduce your available line of credit; their decision is based upon your overall credit history and your total monthly debt that is reported to the credit bureaus.

Blooming Looming Inventory

Day to day, we see the actual losses that banks take on with foreclosures; furthermore, the shadow foreclosure inventory has not been accounted for. A number of potential clients who contacted us during the year had not paid their mortgages for 3-5 years, and their bank had not foreclosed on their property.

Question: How does the shadow foreclosure inventory affect me?
Answer: The shadow foreclosure inventory is unsettled debt, it affects the real estate recovery, housing prices will go up regardless, it generates additional credit restrictions for home purchases and refinances, and more inventories with less available financing will cause another real estate meltdown. Plus, the shadow foreclosure inventory is a domino effect to business lending and auto financing, creating a massive credit crunch. Maintaining your credit and reducing your debt in 2013 is very crucial for you to do,  lending will become more challenging for consumers who are in the mid to high 600(s) credit scores.

Question: How much longer will banks hold onto the shadow foreclosure inventory that is over 3-5 years old?
Answer: Not too long at all, a big wave of looming inventory is on its way, its estimated arrival is the first or second quarter or both of 2013. Where else would it go?

Question: I am renter, how does the shadow foreclosure inventory affect me?
Answer: The demand for renting than buying a home will cause rent prices to go up even further.

Don’t Get too Red on Black Friday