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Credit DNA and the Real Estate Genome

By
Real Estate Broker/Owner with Beth Butler - Big Mouth Consulting

rockhouse peering inI was never the science scholar, so any scientific reference typically makes my eyes glaze over.  However, this week when I first heard the term Credit DNA... I was listening.

According to Wilkipedia  "the main role of DNA is the long-term storage of information and it is often compared to a set of blueprints, since DNA contains the instructions needed to construct other components...".  Given that definition... this is what I understand about Credit DNA.  There are internet based "credit cleaners"  that offer to raise a borrower's credit score by 50 to 250 points in 30 to 90 days

The scanario goes like this... the credit cleaner has a roster of people with good credit (750 and above) that have credit cards with high balances and good payment history. Apparently, there is no limit to the number of additional cardholders a person may have on any one account.  The Credit cleaner offers a fee to the good credit person to add people as additional cardholders ( up to $500 per month).  The low credit score borrower is added as an additonal cardholder to the good credit person, without having access to the card itself.  Over a short period of time, the good credit score person's dna transfers to the lower credit score borrower thereby increasing the low credit score buyer's credit score and allowing that person to qualify for a prime mortgage program that was not available to them prior to the credit score increase.

 Amazing? yes... Illegal? still to be determined, but I have to think someone will make this go away fast. 

Meanwhile, I am ever amazed at the Real Estate Genome... which I will define as the study of real estate practices and related organisms.  Everyday at my lab, we are discovering new and interesting species.  I think I have found my blog voice and have renamed my blog as such. 

Note:  My son is studying biomedical engineering, hence my latent interest in genomes.  In his time away from the books, he takes some great pictures which I like to feature in my blogs.  Like them?  Feel free to use them, just give him the credit... "photo by Corey Butler".  Thanks.

 

Comments(11)

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Beth Butler
Beth Butler - Big Mouth Consulting - Miami, FL
Shekeria:  I understand this program is being solicited to mortgage brokers, that's actually how I first heard about it, have you gotten any of these solictiations?  Thanks for reading.
Apr 29, 2007 06:10 AM
Kevin Tomlinson
One Sotheby's International Realty- Miami Beach Real Estate - Miami Beach, FL
Miami Beach Real Estate

Credit score for sale!

 

Interesting ---learning more and more!

 

 

Apr 29, 2007 08:26 AM
Beth Butler
Beth Butler - Big Mouth Consulting - Miami, FL
Good call Shekeria!


Apr 29, 2007 08:51 AM
Beth Butler
Beth Butler - Big Mouth Consulting - Miami, FL
Kevin - thanks for dropping... glad you are learning
Apr 29, 2007 08:52 AM
JoAnn Hostutler
EWM Realtors - Weston, FL

Beth, this is amazing!  What and who will think up the next scam!  Corey is amazing and that's my new hoppy, so will send you some pictures.  JoAnn

Apr 29, 2007 01:49 PM
Maggie Dokic | Indialantic
Magdalena Dokic - Indialantic, FL
Selling the beach in Florida's space coast
Beth, I, too, did not know that there was an organized effort to work the credit scores like this.  It defeats the whole purpose of the scoring system.  Amazing.  Thanks for posting this.
Apr 29, 2007 02:28 PM
Beth Butler
Beth Butler - Big Mouth Consulting - Miami, FL
Hi JoAnn - you never know what a day will bring...see you are getting the hang of active rain... welcome!

Maggie - you are right - a work around credit scores... who woulda thunk???  Thanks for stopping by.
Apr 29, 2007 03:33 PM
Randi Rapp
Randi Rapp - Aventura, FL
I cannot believe how creative people can be ( I mean that in a negative way!). Who is going to bail these people out when their property is being foreclosed on cause they really did not qualify for the mortage. The internet companies will surely be gone! Great photos you son is very talented...must take after you!
May 01, 2007 01:40 PM
Caroline Carrara
EWM/Christie's-Las Olas, Real Estate - Fort Lauderdale, FL
That is really creepy...Especially right now as I am disputing a phone debit from my checking account to a JCPENNY account, which I don't have and do not shop at...and previously a credit card that someone opened in my name from Brooklyn, that I discovered before they used it...
May 02, 2007 04:00 AM
Beth Butler
Beth Butler - Big Mouth Consulting - Miami, FL
Randi: thanks for the comments and the kudos - Ill share with my son.

Croline:  I had my identity stolen a few years ago - it is stil a nightmare.  Good luck!

May 02, 2007 08:37 AM
Patrick O'Connell
EWM Realtors - Coral Gables, FL

Hey Beth,

I don't know how you find the time to write all of this new and insightful stuff.    This is just the sort of thing that leads people into greater debt and financial hardship; they think they are receiving help when in fact they are being placed in harms way. 

May 08, 2007 04:42 AM