If you have tax liens civil judgements or no credit at all, July 1 could be a big day for you.

Credit scores for millions of Americans may soon increase due to two major changes in credit scoring.

Starting July 1, the three major credit agencies — Experian, Equifax and TransUnion — are dropping certain negative information from credit reports, including tax liens and civil judgments.

This forthcoming change comes after FICO’s announcement last year that it has begun using wireless and cable bill payment history, along with utilities payments and background checks, to determine credit scores. The FICO XD aimed at individuals without a credit history and will also run from 300 to 850.

Tax liens and common obligations can have an important and negative effect on your FICO assessment. As indicated by FICO, in spite of the fact that the effect of a tax lien reduces after some time, its nearness on a credit report is “very serious.” Various FICO score simulations show that a tax lien could take upwards of 100 points off your score, making it hard to acquire credit or costly in the event that you do.

In the event that you have a tax lien or common obligation records on your credit report, the removal ought to have an important positive effect on your score. The change should occur on July 1 2017, and you ought to see a quick lift. You can track your VantageScore on free sites/apps like CreditKarma.

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5 Reasons You Might Need To Consider Non-Traditional Financing

Private Money financing refers to loans collateralized by real estate, where the source of the funds used to close Real Estate transactions come from private investors.

The decision by the investors to make a loan is based primarily upon plenty of equity in the real property securing the loan thus reducing the risk of loss.

The ability to repay, and the borrower’s character is also considered along with how the borrower will pay the investor back in time.

Private Money loans are needed when a borrower or a property falls outside the standard underwriting rules of conventional lending sources like banks or other lending institutions.

The Primary Decision For Private Money Is Typically Based On The Simple ThreeFour Cs Of Private Money Lending:

  1. Capacity to repay the loan back
  2. Credit/Character of the borrower
  3. Collateral or property type

With risk of loss lessened, a loan may be a sensible deal from the Private Money Lender’s point of view, but it remains discarded to institutional lenders. To meet the continuing financing needs of these borrowers, an ongoing demand for private money has been created.

Mortgage brokers and bankers solicit and process these types of loans but the private investors are the ones that underwrite and close these private money loans.

After a loan request is processed and underwritten, the loan is funded by a loan investment product arranged by a Private Money Specialist. Private investments may come from individuals, entities, or pension funds. Your private money investor or a private servicing company will service each loan until it is paid off or the property is sold.

The Reason Why People Need Private Money:

1. Loss of bank loans, including denial due to:

• Use of cash out

• Not perfect credit

• Needing stabilized income

• No reserves

• Not operating with a bank account

• Debt ratios to high

• Property type or condition

• Borrower type (i.e. trusts)

2. Borrower’s election to avoid the excessive loan conditions of an institutional loan saving time

3. Private Money Lenders ability to arrange loans secured by property types unacceptable to Institutional lenders

4. Borrower’s circumstances make it difficult to obtain institutional loans

5. Property’s characteristics make it difficult to obtain an institutional loan

If any of these scenarios sound familiar to you or you need more information about Private Money Loans contact me directly and I will help answer questions about Private Money loans.