November 11, 2012 |
Do you know the difference between credit rescoring and credit repair? Apparently, some lenders don't. As a result, they are refusing to fund mortgages that they otherwise would approve. At the same time, some title companies are starting to play hardball with borrowers who have recently undertaken home improvement projects. Even if the work is relatively minor, and even if it has been completed, the companies are refusing to issue title insurance policies, effectively stopping refinancings in their tracks.
April 18, 2012 |
Legislation aimed at regulating controversial Buy Here Pay Here used-car dealers, which charge steep interest rates and are quick to repossess vehicles, was approved by the state Senate Banking and Financial Institutions Committee. The bill, by Sen. Ted Lieu (D-Torrance), classifies the dealerships, which finance most of their own sales, as state-regulated lenders. "This bill regulates an unregulated industry," Lieu said. The bill cleared the committee on a party-line vote Wednesday, with five Democrats voting aye and two Republicans nay. The proposal now heads to the Senate Appropriations Committee and then to the Senate floor.
January 5, 2012 |
Saying California's working families are being exploited, state lawmakers are moving to impose tough new rules on a little-known segment of the used-car business that sells high-mileage cars to people with bad credit. The dealerships, known as Buy Here Pay Here lots, often sell their cars for far more than market value, impose interest rates as high as 30% on their loans and are known to aggressively repossess cars to boost profits by reselling them over and over. Their customers are typically people in low-paying jobs who need a car to get to work but can't qualify for conventional auto financing.
April 17, 2011 |
Dear Liz: My retired parents are in a financial crisis. They got behind on their credit cards while they were trying to pay the mortgage on their home of 41 years. That home is now in a short sale. An attorney has advised them to file for bankruptcy to discharge the credit card debt and any debt that might remain after the short sale. After the sale of the home, I need to relocate them to my state so that I can further assist them, but I'm not sure if any landlord will rent to them given their terrible credit history, which will look even worse after the bankruptcy.
October 24, 2010 |
Dear Liz: My wife and I sold our house and have to be out by the end of the month, but we can't find a place to live because of our bad credit. If we don't move out, we will lose the sale and still have to pay the real estate agent his commission. We've applied with about 65 landlords and each one checked our credit, which has caused our scores to fall further. We live on Social Security checks of $1,367 a month. We're in our 70s and not in good health and we don't need this stress.
July 12, 2010 |
Battered by unemployment and tighter lending standards, the credit scores of millions of Americans are sinking to new lows. About 25.5% of consumers — or 43.4 million people — had credit scores below 600 in April, according to FICO Inc. Historically, only about 15% of consumers — or 25.5 million — have had scores below that level, FICO said. Consumers with low credit scores will have increased difficulty obtaining credit cards and other loans, said Christian deRitis, director of credit analytics at Moody's Analytics.