credit restructure? (foreclosed, mortgage, mortgage, fee)

[tripleash97]

I recently spoke with a mortgage advisor and was told that we should strongly consider hiring someone to "restructure" our credit. We have a foreclosure on our report and a balloon payment on our land contract due soon.

I have never heard of such a thing AND it costs money. Is this legit? Is this something we could do on our own?

[NinaN]

Hopefully they are advising you to seek out information on how to improve your credit score (legally). Usually, mortgage brokers will do this (for free) for you so they can get your future business. Talk to someone else in the business.

[chicagojlo]

Was the advisor offering his services when recommending you seek out this paid service by chance?

There are free services for managing debts and improving credit scores out there. Don't pay someone for advice you can get for free. If someone offers to get your debt reduced or fix your credit for a fee it's a scam.

[Modification Specialist]

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Over the last ten years have touched thousands of credit reports. At one point did credit repair for free - years ago remember this one guy had over 250 inquires, charged him $500 to remove them. It took me two weeks - his score did raise, the price I charged him was a deal.

After being burned plus seeing the same people getting into the same trouble after worked with them preciously. I stopped. Now spend five minutes telling a person what they need to do on their own.

A foreclosure stays on the credit report for at least 7 years. After 7 years, the foreclosed mortgage account will fall off of the credit history.

You are a text book case on someone asking for help.

What steps have you taken to improve your credit, compared the steps you took to destroy it?

Knowing you already had the foreclosure on your credit report and your existing loan is schedule to recast, is poor judgement on your part because your waiting till the last moment to fix your problem.

I am being hard on you for a reason -
Learning about credit is not hard. You clean up your report on your own.

Items such as a bankruptcy, collections, judgments, other derogatory outdated information, payment lates, over credit limits, how loan have you had credit established, soft/hard pulls, etc. It is important you learn how your credit score is tabulated.

You age is going to determine what you are going to do. Trying to pay someone to fix your credit - you are opening yourself up to being scammed out of money. Nobody can do a better job than you, if you do it yourself.

Ages 20's to 30's - work on establishing credit, opening up a checking account to track payments, opening up secured credit cards, leading to revolving debt. Then secured loans like an auto loan , leading to installment debt.

Ages 30's to 40's - this is the age were most people get into trouble - learning about money management from the school of hard knocks. Learning the ability to speculate what will happen if you do one thing compared to another.

Ages 40 to 50's - at this point you realize you are not getting any younger, and also realize what you do today is going to make you who you are tomorrow. The longer you wait to fix your credit problems, the more expensive it becomes.

50's to 60's it is harder to turn a credit score around, having a bad credit score will mostly lead to you paying higher rates/payment for the rest of your lives.

Ages 60's and beyond - depending on when you start social security, you are going on a fixed income. Your spending ability is reduced. It is very hard to start repair your credit.

As for the loan recasting - there might be an option for a loan modification, into a fixed rate. I do not know your details.

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