OC Attorney uses Unique

Strategy for Raising Credit Scores in 15 Days

I have found this method of “raising FICO scores” so effective…I’m willing to waive our processing fee at COE, ($995) to reimburse the borrower for the legal fees.It’s that effective!!!!

How many of prospective buyers have income and downpayments ….but also have PAST credit issues preventing them from buying TODAY?

Many potential buyers/ borrowers are on the sidelines because they have been the victim of:

·       Unresolved disputes between borrower and medical service / insurance providers.

·       Sloppy record keeping by creditors

·       Identity Theft

·       “Identity Confusion”: A common surname shared with your buyer leading to their credit report being inadvertently tainted.

·       Often collection agencies “conveniently” use the common surname to extort consumers into paying monies not legitimately owed.

·       A creditor/collection agency simply refuses to issue a “deletion” letter to your buyer..for no other reason than they “ can’t be bothered” and they see no real downside for complying with the Fair Credit Reporting Act.

The problems with conventional credit “rescoring methods” are:

1)   Even successful efforts can take up to 60 days…(long after the “special home” your buyer wants has come and gone AND now they want you to show them another 40+ homes  ...while they “work” on their credit…. “good luck with that one”)

2)    Most attempts fail because either the borrower is doing it themselves or they’ve paid a “service” hundreds of dollars usually with little success.

3)   The 3 Bureaus work for the large business interests…they have only a marginal interest in helping the consumer (although they are willing to sell you their services...on a monthly basis).

Stephen Cohen a local OC attorney takes a very different.. very aggressive approach.

Instead of contesting inaccurate / false /derogatory information with the credit bureaus..he disputes the information by confronting the “originating entity” (creditor/collection agency) directly by phone and fax!

But only AFTER a loan application has been denied …(based on a low credit score). This exposes the rogue creditor to damages based on slander and libel statues.

Here are the steps:

1)   Borrower applies for a mortgage complete with tax returns W-2s and paystubs

2)   The application is then declined by the Fannie Freddie automated underwriting system because of credit scores.

3)   Upon careful review the borrower and attorney ascertains what derogatory information is primarily responsible for low credit scores. And what is

4)   Not every item has to be deleted immediately…just the most recent.

5)   The attorney’s office then makes contact with the creditor….DEMANDING proof of debt WITHIN 15 DAYS based on the consumer’s rights as outlined in the California civil code.

6)   Refusing to comply with the request exposes the creditor to damage awards and legal fees amounting to tens of thousands dollars.

According to Cohen, “Typically the creditor just blows the borrower off….knowing they have no real access to the legal system on their own…but once they have retained council…that’s a different story.

“In the years I’ve been practicing this type of law….I’ve experienced a  90% rate of compliance….if the creditor has the documentation or proof of debt…then I negotiate the debt..usually for half of what is owed. I

If the creditor does not have 100% proof that my client owes the $$$...then I demand a retraction..directly from them… not the bureau….within days.

“The creditors roll over fairly easily….It’s just not worth it face legal fees, court costs and the risk of punitive damages….and possibly class action lawsuit. A successful class action suit…is the death penalty for a collection agency” says Cohen

7)   The final step in the process is the borrower’s loan officer submits the “letter of deletion” to the 3 bureaus for a “rapid rescore” and in 3-5 days you borrower is ready to close escrow.