New bill that could improve millions of FICO scores

By
Real Estate Agent with Keller Williams Realty CalBRE# 01308620

New bill could improve millions of FICO scores!

Did you know that HUD just wrapped their latest and FAILED program. Imagine that! They were supposed to essentially give away $1 Billion but wound up with $600 Million dollars in unused earmarked dollars that they couldn't get their act to gether to distribute to homeowners who are un or under employed in exchange for keeping their homes out of foreclosure for at least the next 5 years. Even after they were granted an extension, this was yet another failed attempt by the federal government to stave off foreclosures. 

Are you as tired of uneffective ideas for market/economy stimulation as I am? 

Here's a very simple idea that actually makes sense! There is a new bill that could improve millions of FICO scores.

HR2086 will allow any medical collection under $2500 if paid or satisfied to be removed, completely wiped off of people's credit reports within 45 days for good! Since medical debt makes up approximately 40% of all credit reports, this would be an essentially free way for us to improve the economy. There are millions of people with medical collections on their credit reports averaging $456.00. Could you imagine the positive impact this would have on our economy if a million people paid off $456 in debt removing the negative items on their credit reports? Pumping millions of dollars into the economy and simultaneously bumping them up to the "credit worthy" FICO score range, thus enabeling them to qualify for home purchases? Home purchases stimulate the economy in many facets, as when people buy homes, they employ contractors and workers to fix them up, purchase a gamet of products from appliances, to paint, hardware, and home furnishings! 

I have run across many potential homebuyers over the years only to find out they do not qualify for a purchase and the only negative items on their credit reports are medical bills! 

Please write your local congressmen. http://www.contactingthecongress.org/ Lets get HR2086 moving through the House ASAP! New bill could improve millions of FICO scores! 

 

Comments (6)

Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

This has been a long time coming!  This is good info.  Didn't know that it was almost here!  Thanks!

Oct 11, 2011 02:46 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

I routinely discount medical bills from prospective tenant credit reports....they just don't count in my decision

Oct 11, 2011 02:52 PM
Lynn911.com ~ Dallas Real Estate Agent Top Team
Dallas Houses for Rent Dallas Apartment Rentals Lynn911.com - Dallas, TX

Emily thanks for this great blog , amazing what all taking place with mortgages, credit scores and etc.

 

dallas homes for rent by owner dallas houses for rent by owner lynn911.com

Oct 11, 2011 02:52 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Emily this is a great and informative post, your Blog hit home for me a few months ago I was in escrow for an FHA Homepath buyer and the client lost his job go figure....

Oct 11, 2011 03:07 PM
Anonymous
Kishaya K. Perry

Thank you for the info. This whole thing has been so ridiculous! keep the blogs coming, very informative.

Oct 13, 2011 07:08 AM
#5
Allyson Haim
The Noho Agency - North Hollywood, CA
The Noho Agency

Thanks for the info~I agree!

Nov 06, 2011 07:23 AM