I had bad credit...so now I have no credit cards or debt....

By
Real Estate Agent with EXP Realty 414-525-0563 57026-90 Broker

. Once again this month, our monthly purple envelopes were hard at work with a referral from a past client.  He had a co-worker that wanted to escape suburbia and move out to an area that was a "little bit country." He knew that we had orchestrated the sale of his house For saleand the purchase of a new one without a problem and was confident we ccould do this for his referred Seller/Buyer.

   We began "at the beginning" and had the Seller/Buyer talk with one of our preferred lenders for a prequalification. We also knew a range of what he could expect from the sale of his current home.no credit cards

     OOOOPS....the word came back from the lender...the wanna be Seller Buyer had fallen off the credit score chart...nothing was in his name ...he had cancelled all his charge cards...and the current home was financed in his fiance's name.  Oh Oh....we talked with him and learned years before he had gotten into "credit trouble"....so his solution was to cancel all credit cards and pay cash for everything thinking that would mean he had "clean credit."

    We well understand having worked with many divorced spouses that needed to establish their own credit that this would take some time and effort on the Seller/Buyer's part to establish a healthy credit score. 

He would have to be patient and follow oir instruction and we promisewd that he would gain a good score and be able to buy another house.

hesitant   He was hesitant to begin the process of applying for credit with the prospect of being turned down looming in his head.  We assured him that the contacts we gave him were very familiar with people starting over and while he may have a small credit limit at the beginning...faithfully paying the balance in a timely manner would reward him with a higher limit later...AND would establish and increase his credit score as well.

    Sometimes you have to wait a little longer for a "happily ever after"...but when it comes...it will ben the result of self discipline and hard work...sooo rewarding !

     If you or anyone you know is looking to sell or buy a home in the southeastern Wisconsin counties of Kenosha, Racine, Walworth, Milwaukee, Waukesha, Ozaukee, Washington or Jefferson....call the Hansons ..414 525 0563...we are honored to be of service for all things real estate.

 

Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Rainmaker
2,729,940
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

Good morning Sally. What sounds and feels logical is sometimes not! Enjoy your day.

Jun 13, 2018 04:14 AM #6
Rainmaker
4,375,370
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

Good morning, Sally K. & David L. Hanson (Sally)... that referred potential buyer was fortunate to have you there give guidance.... he'll be on his feet and back in the game again if he follows what you say....

Jun 13, 2018 04:30 AM #7
Rainmaker
3,486,386
Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Sally K. & David L. Hanson,

This future seller/buyer is lucky to have linked up with you so you could get him pointed in the right direction. Sound practical advice that is followed will ensure a higher credit score and he can make a move...thanks to your guidance!

Jun 13, 2018 05:12 AM #8
Rainmaker
4,363,262
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Sally and David.  He found the right realtors to work with.  I hope he will follow your advice.

Jun 13, 2018 05:14 AM #9
Rainmaker
1,348,843
Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Sally and David, this future seller/buyer is lucky he was referred to you. If he follows your guidance he will be back in the good credit saddle again soon. Credit seems to be so misunderstood, no credit score is no good!

Jun 13, 2018 05:46 AM #10
Rainmaker
3,080,026
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Sally and David. Patience is not my strong-suit but I get this.

Jun 13, 2018 06:40 AM #11
Rainmaker
2,037,850
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Paying cash for everything allows you to spend less, as you can only spend what you have, but it certainly won't allow for you to get credit from others, when you need it.

Jun 13, 2018 08:01 AM #12
Rainmaker
1,570,085
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Sally and David - I am sure the your client appreciated the coaching.  Some people over react.

Jun 13, 2018 08:02 AM #13
Rainmaker
2,661,723
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello SallyandDavid, I had a client that I sold 3 homes to overthe years but when it came to number 4 we had a problem.  his mom pass away and heto all the money that he got from her estate and paird off all his credit card and his mortgage, no debt.  Well we got him a house but his wife had one Kohls card and that got him the home hat wanted.

 

Jun 13, 2018 08:29 AM #14
Ambassador
3,510,388
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Sally and David several people make that mistake.  Trying to gain credit again can sometimes be tougher than fixing bad credit.

Jun 13, 2018 10:05 AM #15
Rainmaker
4,702,910
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

This is a good story to share. Many consumers do not understand how to build a good credit record.

Jun 13, 2018 11:03 AM #16
Ambassador
2,780,830
Paul S. Henderson, REALTOR®,CRS,
RE/MAX Professionals. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

I just love your purple envelope stories and the results you blog about Sally and David...

Jun 13, 2018 02:07 PM #17
Rainmaker
3,614,743
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Sally, it is tough to start over, especially after a divorce.  Just had a sale with a couple that just were finalized.  Tough to start over.

Jun 13, 2018 06:46 PM #18
Rainmaker
2,363,796
Rebecca Gaujot, Realtor®
Vision Quest Realty, Martha Hilton, Broker - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Sally, great advice and I am sure the seller/buyer will be very grateful when he is ready to buy.

Jun 13, 2018 07:08 PM #19
Rainmaker
2,919,395
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

JHello Sally and David - this post once again underscores how you can assist buyers/ sellers who are knowledgeable and who need to be informed/ guided. I like how your purple envelopes work for you.

Jun 14, 2018 05:52 AM #20
Ambassador
3,381,210
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Sally and David- Buyers as well as sellers have no idea what they're missing out on if they try to do it on their own or go with a less knowledgeable agent. You are caring as well as educated on your local real estate. 

Jun 14, 2018 04:55 PM #21
Rainmaker
2,790,234
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Sally & David, I always tell my clients before you do anything check with my lender what you should and should not do....Endre

Jun 14, 2018 10:49 PM #22
Ambassador
3,636,769
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Good work on your part, Sally and David. Hope things work out.

I suspect there are many who do not understand how credit works and the things you should, and should not, do. Seems it's much harder to improve your credit than to ruin it.

Jeff

Jun 15, 2018 09:59 AM #23
Rainmaker
1,012,314
Carol Williams
U.S.: I specialize in helping agents who have been in the business 2 years or less create a thriving business. - Wenatchee, WA
"Customized Mentoring & Marketing Services"

Hi Sally,
This story reminds me of the time I inherited a listing from an agent quitting the business.  The family wanted to sell their current home and get something in a better location.  In my introductory interview, I discovered they have horrible credit and if they sold I was pretty sure they wouldn't be able to buy and would even have a hard time finding a rental.  Selling their home could have led them down a dark path.  I asked them to sit down with a lender and confirm my suspicions... and they did.  We took the home off the market.  As far as I know, they are still in the home. 

Jun 16, 2018 08:00 AM #24
Rainmaker
606,089
Jane Chaulklin-Schott
TEAMCONNECT REALTY - (407) 394-9766 - Orlando, FL
TeamConnect Luxury Homes - Orlando, Florida, 32836

There are definitely steps one can take to rebuild and regain ones credit/credit score.  It may take a little time but in the end, very rewarding. As Realtors, we perhaps have seen this played and replayed many times.We are in a position to help...

Jun 17, 2018 09:18 AM #25
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Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce
For All Things Wisconsin Real Estate...Call the Hansons
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