by
Carl Hampton
09/25/09
Buying
a home is for most people the largest single
commitment we will ever make, so why after
we have “signed on the dotted line” are we
left to sink or swim on our own?
Up to the point of
closing, we are surrounded by people, the
real estate agent, the loan officer, the
underwriter, the escrow agent and last but
not least, the insurance agent. All of
these new found friends have a vested
interest in us reaching it to the closing.
They all MAKE A LARGE AMOUNT OF MONEY off of
us. As soon as the sale is over, they just
like all fair weather friends, are all gone
until they can make more money from us.
Now we get to the part
that makes no sense whatsoever. The Lender,
who has never met you, knows nothing about
you, apart from what they were supplied on
countless bits of paper by the loan officer
(who for the most part is independent and
paid to get them loans) gave you all this
money based on “Numbers”, your credit score,
your bank statements and pay stubs.
Most of these lenders
have customer service centers run from
outside the country. Their only contact
with you, their client, is a monthly coupon
statement sent through the mail.
Whatever happened to
“Knowing your Clients”. For those of us old
enough to remember the days when you went to
a local bank and talked to someone who knew
you, knew your family and also lived
locally, their decision was always based on
your ability to pay the loan, not some
numbers on a credit report.
The main street banks
like to lend on “Numbers” because it allows
them to sell the Home Loans into a secondary
market so we need to ask ourselves this, do
they really care what happens after they
have sold the loan?
When the secondary
market closed up on them, they ran to the
government crying with their hands out
begging for tax dollars. They should be
ashamed of themselves. Most of the tax
dollars they received came from those
hardworking Americans they call “Sub Prime”
clients. The clients they can’t or won’t
lend to because their credit scores fall
below their base line of 640, which is
nearly 60% of the total population.
I noticed that they
have no problem asking the government for
the tax dollars of these “Sub Prime”
Americans to BAILOUT their so-called “Prime”
clients and shareholders.
The Banks and Press
will have you believe that these “Sub Prime”
clients all have bad credit and can’t be
trusted to pay their bills on time. This in
fact is not true.
Most Americans that
fall into the lower credit scores have
“poorly run” credit not bad credit. A lot
of this has to be put down to poor financial
education.
Why is it no one ever
teaches us how to run our financial
affairs. Using a simple self-help book or
program it normally takes less than six
months to get your credit score above the
650. There really is no need to pay a
company to “repair your credit”.
Almost everything
required to clean up your credit report can
be done by sending out letters to your
creditors.
Have an opinion or a
question you would like me to answer, then
write me!
http://www.CarlHampton.com
“Your” Money Matters By
Carl Hampton
From the Author of
“From Credit Despair To Credit Millionaire”
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