Beware of Credit Scam! Yes, it affects Real Estate too!

Taking excerpts from an Inman News Story, Wednesday, January 16, 2008 By Ilyce R. Glink; Every day, thousands of people type the words "credit repair", "bad credit" or "bad credit repair" into an Internet search engine in an attempt to find some help. Only problem is some of the Web sites that come up in a search like that can do more harm than good. The typical credit repair scam works in one of a couple of different ways; 1) The promise that your credit history will be wiped clean, or 2) The credit repair organization will tell you that you'll get a brand-new Social Security number, then you'll be asked for a large payment upfront, sometimes as much as $1,000 to $1,500. Another common credit repair scam is to dispute all of the negative information on your credit history. Under federal law, a credit reporting bureau must investigate all disputes within 30 days. If the bureau can confirm the negative information, it stays on your report. But if it can't confirm it, the information is pulled off of your credit history. But here's the key: While the information is being disputed, it temporarily disappears from your credit history. So, your credit history looks perfect, even though it isn't. At the end of the 30 days, the credit repair company will dispute all of the charges again. For a big fat fee! Credit repair companies promise you the moon. Unfortunately, all you're going to get is trouble -- and a much thinner wallet.

Now, where does this fit in Real Estate? I am embarrassed to say this, but there are Mortgage Brokers and Lenders out there that are partnering with these companies to "clean up a customers credit" so they can qualify for a loan. Once they qualify, and get the loan (everyone gets paid), the customer is left to clean up the mess. you as the Agent who recommended the Mortgage Broker (who has closed the office and opened a new one under a different name) are the only one left to "take the blame". It is an ugly scenario. We will always have thieves in our business, and that's why it's best to do your "Due Diligence" as a consumer when choosing a Real Estate Professional, and our Fiduciary duty as professionals to stay committed to the consumer's best interests. "can't we all just get along?" (sorry, needed some humor injected into a serious subject)

So "Take Care" and "Beware" when times are tough, the dishonest get tougher. Find a friend in the industry you can trust, and listen to their advice.

See ya soon, The Coach