Credit and Credit Management: Reasons to Pay Attention

Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI


Credit and Credit Management:  
Reasons to Pay Attention

    It's not hard to find advice on a full-range of credit issues today.  Experts (or so called experts) are everywhere.  So I find that most of my clients come to me with the understanding that credit scores are very important ... and growing more so each day. 

Link to FREE Consultation with Gene Mundt, Mortgage Lender      But experience with Borrowers pertaining to credit management has made it abundantly clear to me, that way too many do not spend enough time or pay the proper attention to their finances.  That simple steps needed for credit maintenance are often overlooked, forgotten, or dismissed.


     I also find that in most cases I see, that poor credit scores are not the result of malicious intent towards spending itself.  Rather it's a lack of understanding of how spending, payment, or non-payment of financial obligations reflect on a credit report (and when those become reflected there) that causes the issues.

     This basic misunderstanding, paired with a somewhat cavalier attitude towards credit management, is what leads me to believe that courses addressing credit and credit management are sorely needed (and by that, I mean should be mandatory) in our high schools.  And in a growing number of areas, they are

     These courses are most beneficial and timely when they are offered prior to a child heading-off to college or entering the adult world.  Prior to a time when they can start doing damage to their credit standing.  How to establish, then maintain a proper credit score should be the focus of these classes

     To lend credibility to my view, I'll illustrate examples of how "not knowing", paired with that cavalier attitude I mention, adversely effected two hopeful Borrowers ... 

     In one case when my Borrower came to me, he had several "bruises" on his credit, including a prior  income tax lien.  While my client had paid and satisfied the debt (done through garnishment of his wages via his paycheck) and there was no longer a balance owed, neither the  IRS  or the client had notified the  Credit Bureaus, those being  ExperianTransUnion, and  Equifax,  of that satisfaction being accomplished.  

     In the second example, a judgment had been court ordered against my client.  A public filing, again resulting in a wage garnishment, had been inacted.  And once again, the debt had been fulfilled in its entirety without any of the participating parties reporting it to the 3 Credit Bureaus.  

     In both cases, the debts still appeared as though they were still owed, according to the "known" status of the account.  Since judgments and liens must be paid in full ... AND require an actual written "Release"  be issued and recorded by the local court jurisdiction (typically the County Recorder or Clerk of the Circuit Court), a very integral part of the repayment process was missed.  

Contact Gene Mundt, Mortgage Lender     In both instances, my Borrowers argued that it was someone elses responsibility to have seen that the "Release" was filed and recorded.  And there may have been some truth to their arguments.  But the bottomline is this ... it's ultimately the Borrower's responsibility to see that their account status is correctly updated.   No one is more effected than the client if the Release is not recorded.

     I will also point out that in both cases, the Borrower did not know that their Release had not been recorded.  Neither client had followed-up on that important step or taken the time to check their credit or credit standing ... until they made mortgage application with me.  

     The wheels of credit and credit repair do not turn quickly.  Valuable time is lost while searching for past documentation, older statements, or proofs of payment.  Often, a  Letter of Explanation  must be written by the Borrower addressing the circumstances still showing on Credit Reports.  Reviews and updates must then be made by the Credit Bureaus.  All this eats-up precious and valuable time during contract time constraints and creates stressful situations. 

     The results for my two Borrowers?  One eventually closed on the home he initially transacted for.  The Sellers extended the Contract until he could get his credit issues resolved.  They were lucky.   The second?  They did not fair as well.  They did buy a home ... eventually, but not the one they had originally found and loved so much.

     Remaining educated, paying attention, seeing to details, taking charge of your own finances, credit, and credit management are positive and pro-active actions that every adult should take.  That is true, whether they are hoping to buy a home or notThe best management and pro-active action can be accomplished relatively quickly and simply by running your credit report at minimum, on an annual basis.   Go to  for your free annual credit report.  Or  contact me,  should you be hoping to buy a home or refinance in the future. 

     Credit and Credit Management:  Reasons to Pay Attention.  It's my opinion that if these two issues alone became "non-issues" ... the number of mortgage approvals would rise dramatically. 

     Hoping to Buy a Home or Refinance soon or in the future?  Work with a  Mortgage Lender  experienced in all phases of the financing process ... from early credit assistance, through the mortgage process itself, and beyond.  Contact me today!  I'll put my 35+ years of mortgage experience and expertise hard to work on your behalf.
     I can be easily found at any of the following:

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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656


Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 


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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Bruno & Noel Tarquinii 01/14/2013 04:28 PM
  2. Pamela Seley 01/14/2013 04:29 PM
Lending / Financial
Illinois Will County Joliet
Chicago Area Real Estate BUZZ!
Advice for Buyers
credit scores
credit reports
credit management
paying bills
paying on time
teen financial classes

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Show All Comments
Kim & Kristine Halverson
Compass - Santa Monica, CA
Sisters, Realtors

Gene, it's a part time job if you don't keep up with it.  Great stories, and info.  Kristine :)

Jan 14, 2013 08:23 AM #7
Pat & Steve Pribisko
Keller Williams Greater Cleveland West - Westlake, OH

Gene, very good analysis.  I believe our high schools should provide a mandatory class on managing finances.

Jan 14, 2013 08:55 AM #8
Carie Shapiro
North Shore Suburbs & Chicago Real Estate - Evanston, IL

Hi Gene,

Not sure where I learned about good credit and finance management.  When I was in school, they were still teaching sewing and shorthand to girls.  Gosh, I'm old <sigh> :)

Anyway, it's good to hear schools are incorporating these important issues into their curriculums.  Something that should definitely be learned and adopted early in life, for sure!

Jan 14, 2013 09:33 AM #9
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Gene-Great  explanation and your suggestion about early education on credit is on the mark.

Jan 14, 2013 10:16 AM #10
Jeanne Kozak
RE/MAX In Action - Martinsburg, WV
REALTOR and Broker/Owner in WV and VA

I have participated in a program at the junior high school that teaches students how to manage their money. It is sad to me that the majority had no idea what to do

Jan 14, 2013 10:55 AM #11
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Nancy:  Funny you mention that.  Guess what the next post about credit is???  Yep ... what is actually reported and will show on a report ..

MaryKay:  Thank you so much!  Such kind words ... and much appreciated ...

Patricia:  They say the youngest generation is exactly that.  Money and expenditures means less to them ...and they hang on to their money.  Hopefully this mindset lasts ...

Kristine:  Definitely!  Piecing finances and documents together after the fact is a pain and very time consuming.

Pat and Steve:  I agree.  And I hope that the lessons learned last a lifetime ...

Carie:  Kids still learn best at early ages ... and from the adults in their lives, typically their parents.  But paired with classes within the schools, the lessons could have better impact.  I hope more schools join in with making these classes mandatory in the future ...

Wayne:  Thank you.  The earlier the lessons are taught, the better ...


Jan 14, 2013 11:02 AM #12
Dianette Busbin
Darren James Real Estate Experts, LLC - Denham Springs, LA
Realtor - Baton Rouge, LA Real Estate

Great advice

Jan 14, 2013 12:25 PM #13
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Great info! :)


Love and light,


Jan 14, 2013 12:33 PM #14
John G. Johnston
John G. Johnston & Associates, LLC - Westcliffe, CO
An Exclusive Buyer's Agent ~ Westcliffe, CO

Gene  Paying attention and caring for details...yep.  That says it.  I remember in the eighth grade they taught us how to write a check.  My be the only thing I learned in the eighth grade!

Jan 14, 2013 12:47 PM #15
Reba Haas
Team Reba of RE/MAX Metro Eastside - Bellevue, WA
Team Reba, CDPE

Absolutely spot on post!  I have a class that my real estate team teaches that covers elements of lending and credit with speakers from those industries.  It is one of our most recommended classes.

Jan 14, 2013 12:56 PM #16
Teral McDowell
Referral Patners LLC - Murphy, TX

Nice post! Gene, I am finding it helpful for the buyer to be preapproved with letter in-hand during the negotiations. That letter can be like money in their pockets. It is so sad to see a buyer miss out on a home they really wanted and I tell my buyers this as a reason to get that preapproval upfront.

Jan 14, 2013 01:14 PM #17
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Gene, your clients are fortunate to work with you.  I can tell that you go the extra mile for everyone that you work with!

Jan 14, 2013 03:59 PM #18
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Gene, this is so timely and important message. Having a cavalier attitude to one's finances can end up in many kinds of problems. In my state, the California Department of Real Estate offers workshops in home buying and financial literacy. I agree, personal financial management courses should be mandatory in public high schools. 

Jan 14, 2013 04:26 PM #19
Lenn Harley
Lenn Harley,, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

The biggest mistake I see consumers make is believing that the "grace period" or "due by" means that you can wait until the last day to put a payment in the mail.


Jan 14, 2013 07:29 PM #20
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I hope consumers will read this post. I know they will learn a few things.

Jan 14, 2013 07:53 PM #21
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Gene, I totally agree with credit card management education. The credit card companies make it way too easy for consumers to get over their head. The minimum monthly payment seems small compared to the increasing debt that can be acquired.

Jan 14, 2013 10:06 PM #22
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Gene, you do a great job of explaining the importance of properly managing one's credit. Do you put on seminars in your area? If not, perhaps you and a Realtor should partner up and do so. I'm glad this post was featured.

Jan 14, 2013 11:03 PM #23
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Jeanne:  Now THAT is a Re/Max in ACTION!  Good for you!  I offer something similar and it truly is rewarding ...

Diane:  Thank you!

Laura:  Glad you found it beneficial ...

John:  It's getting so we're dating ourselves if we remember how to write a paper check!  But that's a great age to begin teaching kids in classrooms about finances ... begin young!

Reba:  I love hearing that our industry is contributing in these ways.  I applaud you!

Teral:  Definitely!  Begin the process early ... just in case things need to be spruced up a bit.  It paysoff ...

Sharon:  Thank you ... your kind words feel great!

Pamela:  Totally agree.  Maybe we can spare the next generation from the pain ours experienced ...

Definitely true, Lenn.  We flirt with disaster, if we do that.  I see the results of it each day on credit reports.  Not awful scores, but scores that could have been so much better if they had just gotten a payment in the mail on time!

Thank you, Gita!

Michael:  That's still true ... even though protections were put into place.  Credit card debt is on the rise again ... right along with the improving economy.

I do offer them, Lottie.  I wish more schools took me up on my offer!  And I like the idea of forming a "team" to present them ...



Jan 14, 2013 11:51 PM #24
Nancy Conner
Olympia, WA
Olympia/Thurston County WA
That's great that you're going to be posting about what does or doesn't show up on credit reports - another topic full of confusion for many! You give such wonderful....and useful....information to inform and educate (for all of us!). Have you, or could you, also do one answering some of the questions around when it's harmful rather than helpful to close accounts? Thanks!!!
Jan 15, 2013 01:12 AM #25
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Nancy:  Will definitely try to broach that subject within the context of these posts.  I like that you asked me to cover a specific topic!  Thank you!  I also appreciate your kind words ...

Hope the remodeling is going well out your way.  Will be looking forward to more updates, as they occur ...


Jan 15, 2013 06:17 AM #26
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