Credit Reports: What You Need to Know

creditForeclosures, bankruptcies, and losses by credit card companies for non-payment of your bills will have an obvious negative impact on your credit score. There are numerous other matters that are taken into consideration by credit agencies concerning credit scores.

Making Minimum Payments on Your Bills

Creditors make a lot of money from consumers who make minimum payments on their credit card bills. However, making minimum payments can have a negative impact on your credit score. Nessa Fedis, the Vice President of The American Bankers Association, states “it suggests you’re under financial stress.” Try to pay more than the minimum amount on your credit card bills. Minimum payments can be interpreted that you’re in financial difficulty.


A friend, family member or child may require you to guarantee their debt. When you co-sign for their debt, their entire debt appears on your credit report. The debt will be considered yours. If the primary obligore under the agreement misses payments or makes late payments, it will have a negative affect on the credit score of the co-signer.

Short Sale of Real Estate

A short sale takes place when the bank agrees to allow the sale of a residence they have a mortgage on for less than the amount due and owing on the mortgage. This causes the financial institution to lose money. This will have a negative impact on your credit score. You should negotiate with the lender prior to the short sale. It is important you request that the lender not report that you paid less than the balance due and owing to the credit agency. If they report to the credit agency that you paid less than the balance due on the note and mortgage, it will have a significant negative impact on your credit score.

Numerous Inquires

When you apply for credit with a lender or other institution, an inquiry is made against your credit report. When the credit agency sees numerous inquiries, your credit score is impacted in a negative manner.

Having good credit is important if you seek to buy a house, obtain credit cards, lease a car or engage in other financial transactions.

foreForeclosure and Bankruptcy

Foreclosure and bankruptcy have a significant negative impact on credit scoring. Bankruptcy can act as an escape valve to prevent the loss of a home, stop foreclosure, eliminate a second mortgage and stop debt collection harassment. Your credit can be re-established after filing either a Chapter 7 or a Chapter 13 bankruptcy One bankruptcy myth is that you will never receive credit again after filing bankruptcy. This is simply untrue.

Should you have questions or issues concerning your financial situation or are considering filing for bankruptcy, feel free to call the Law Offices of Schlissel DeCorpo. We’ve been helping our clients for more than 45 years deal with foreclosure defense and bankruptcy matters. We can be reached at 1-80–344-6431, 516-561-6645 or 718-350- 2802.

Bankruptcy and Foreclosure

The main reason for homes going into foreclosure in the United States is the high unemployment rate. Homeowners who lose their jobs can’t pay their mortgages and, eventually, their homes go into foreclosure.

Subprime Loans

President Obama’s programs to deal with the foreclosure crisis in the United States were originally focused on individuals who had taken out subprime loans. It was originally thought that the subprime loan crisis was the primary cause of the high foreclosure rate in the United States. But there is a new villain in the real estate crisis – constant high unemployment rates in the United States.

Federal Programs Dealing With Unemployment and Foreclosure

The Obama Administration does have programs to help individuals who have lost their jobs delay mortgage payments. Unfortunately, the programs are designed to delay mortgage payments for a period of only two months. Since the average length of unemployment is now nine months, these programs don’t work. As of the present time, only about seventy-four homeowners have qualified for these programs.

Bank Bailout Program

The Bank Bailout Program undertaken by the Obama Administration provided $46 billion for the purpose of allowing homeowners whose homes have fallen into foreclosure to keep their homes. The Treasury Department has only spent $1.85 billion dollars to date. It is estimated that more than a million homes have gone into foreclosure because of insufficient assistance from the government for unemployed Americans.

An Obama Administration spokesperson has stated the problems with the programs to assist homeowners whose homes have fallen into foreclosure and are currently unemployed are related to the fact that the programs are voluntary. It is up to the financial institutions, the mortgage servicers and the investors to decide who receives aid and who doesn’t. James Parrot, an adviser at the White House’s National Economic Counsel, stated, “We are trying to be careful in designing programs that, at the end of the day, aren’t just about spending money but getting people back on their feet.”

Home Affordable Mortgage Modification Program (HAMP)

The Home Affordable Mortgage Modification Program was designed as a foreclosure prevention initiative. Approximately 675,000 homeowners have received mortgage modifications under this program. This represents less than 10% of the homeowners who required financial aid to keep their homes from being foreclosed upon.

Department of Housing and Urban Development Program

There is a program that has been initiated by the Department of Housing and Urban Development to deal with unemployed homeowners. More than a million dollars has been allocated to finance this program. The program is designed to provide loans to homeowners who have lost their jobs. These loans can last for a period of up to 24 months. As of the present date, there are only five states that have implemented this program.


The foreclosure mess in the United States, initially caused by granting sub prime loans to unqualified homeowners, is further exacerbated by the unemployment crisis that continues to exist in this country.

Bankruptcy and Foreclosure

We are foreclosure defense lawyers. We help homeowners stay in their homes, even when they’re in foreclosure. We assist homeowners with mortgage modifications and mortgage modification programs that fail to meet their needs.

We litigate predatory lending issues, defective foreclosure lawsuits, defective mortgages and issues involving federal laws and foreclosure. We attend foreclosure court conferences on behalf of our clients. We discuss foreclosure related bankruptcy issues.

In the appropriate circumstances, we file Chapter 7 and Chapter 13 bankruptcieson behalf of our clients. We discuss with our clients why bankruptcy filings will be helpful to them and the types of bankruptcies available to them. Filing bankruptcy can stop foreclosures from moving forward and stop debt collection from collection agencies and collection lawyers. At the end of the bankruptcies, we can help our client in re-establishing credit. We appreciate your spending time on our foreclosure blog.

Foreclosure Defense in Valley Stream, Lynbrook, Baldwin, Malverne, Freeport, Oceanside, Long Beach, Elmont, Lakeview, West Hempstead, Hempstead, Merrick and Bellmore, New York

We represent individuals throughout the New York Metropolitan area with divorce and child custody, personal injury, car accident, wrongful death, estate administration, nursing home and medicaid issues

The information you obtain at this website is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your particular legal issue. This is attorney advertising.

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