What is the difference between a manual credit repair system and computerized credit repair system? All too often, consumers get sucked into buying a DIY credit repair system and a computerized credit repair system. “A setup fee of $$$ and a low monthly fee of $50.00 a month for…” Sounds familiar? A manual hands on credit repair system is a step by step process and not a cookie cut process; it is a credit repair program customized to each client’s circumstances.
A Pleasure to Meet to You
A few weeks ago, I had the pleasure of meeting two clients who purchased computerized credit repair systems that failed them. One client was aware of the differences between a manual credit repair system and the other client had no idea that there was difference in credit repair systems. Both clients were disappointed with the results of the computerized credit repair system. Why? Because the computerized credit repair system is generic, just like the DIY credit repair system kits. Basically, the computerized credit repair system is software that scans your credit report then generates a reason for your credit dispute, which is based upon your credit derogatory. Client number 2 was deceived because there were no results of any improved credit for months. I recommended Client number 2 to provide some type of documentation to assist the reprocessing of the credit restoration process, since he was no longer permitted to dispute his derogatories without any proven documentation with the credit bureaus. Client number 1 had no results whatsoever because nothing was started or completed with his credit restoration process. As a result for with both clients, I generously discounted their credit restoration fee, an amount that would benefit my clients results.
Be Prepared
If you have not received a 1099c for your short sale or foreclosure be prepared in receiving a deficiency judgment or collection from the lender. Client number 2 foreclosed on his property and had not received a 1099c for his second lien, which created an open liability. Settle the balance that is owed to the lender after you close your short sale. Don’t wait at the 11th hour in resolving your open debt with the mortgage company; it will result in a deficiency judgment or collection or at an attorney’s desk down the road that will be reported to your credit report.
Occasionally, it is necessary to incorporate a manual collection audit with some of our client’s credit restoration process. We are able to locate loop holes with collection agencies that are collecting on behalf of the mortgage company and the promissory note that was signed off at your closing. A collection audit is also suggested if the collection agency is collecting interest on the collection account or for whatever other reasons a client may have with that agency. At times, a collection audit is used as a discovery tool for our debt negotiations. After providing Client number 2 a free consultation, he understood that his debt will not magically disappear by disputing his credit to the bureaus alone. Our recommendation to Client Number 2: Process his debt settlements, and prepare a collection audit for his second lien on his behalf before he starts our credit restoration program. This step by step process will complete an accurate credit restoration program.
First Pro Capital and Credit Consulting Professionals do not discourage clients of hiring an attorney, they are still recommended to eliminate deficiencies in any foreclosure defense case, if your mortgage debt is still not resolved with your lender or agency. Actually, we have some attorneys who are business affiliates.
When you start any credit restoration program, be accepting of paying off and settling collections or debt that you actually owe. Depending on your overall credit report and credit situation, credit disputes alone cannot deliver the credit results that you’re looking for.
Related Articles:
- 5 Misconceptions about Credit Repair
- How Worthy is Your Personal Credit and How Can You Improve Your Credit?
- 6 Ways to Win a Better Credit Score
- 8 Credit Score Myths
- 10 Simple Credit Dos and Don’ts
- Your Credit is Your Report Card for Everything
For more information on how we can best serve your Pinecrest FL and Sunny Isles FL personal credit and business credit needs , please fill out the online contact form about your concerns or give us a call at 855.477.9007. Read what our valued clients have to say about First Pro Capital on our Testimonials page.
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