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You may have wondered why there are credit repair companies out there, since the credit reporting agencies have to allow any Lewes consumer to dispute incorrect line items on their own. The big Credit Reporting Agencies (“CRAs”) even have online systems for challenging erroneous information. The Agency must act speedily to investigate and correct any false information. Soooo, why pay someone else to just fill out their form?
The answer seems to be the same one that makes practitioners in the legal profession permanently in demand: it’s in the fine print. And in this case, it could be that some of that fine print is written in invisible ink.
As you can well imagine, speed is vital when a would-be Lewes mortgage applicant finds a credit score that’s lower than expected. The mortgage companies will decide whether you qualify (and how much interest to charge) based largely on that credit score. The actual details about how speedily the CRA must act are all contained in the fine print located in the FDIC’s Consumer Protection regulations, “Procedure in case of disputed accuracy” (6500, § 611). Once you notify the CRA, they have to investigate the validity of your claim and (without charging you a dime) determine within 30 days whether the item is accurate. More fine print describe further protections you have—
PARAGRAPH 2: The CRA has but 5 days to notify the company or person who provided the information about your challenge.
PARAGRAPH 6: The CRA has to provide you the results of their investigation in writing, and, if you’ve asked for it, describe the steps they took to arrive at their decision.
PARAGRAPH 7: If you didn’t know that you had the right to receive the above description, they must furnish it within 15 days after you later request it.
Those sound like pretty solid protections—vitally important, since the CRA can’t just sweep your dispute under the rug, stall, or ignore you altogether. After all, they have to detail in writing how strenuously they worked to protect you! Right?
Except for one problem, which is in PARAGRAPH 8. If the CRA simply drops the disputed item from your current report within the first 3 days, that’s officially considered an expedited dispute resolution. Since the item has been dropped, that might seem to be a solid win. But PARAGRAPH 8 says that if the CRA does that, it no longer has to do anything demanded in Paragraphs 2,6, and 7! It’s as if those protections were written in invisible ink…so that next month, if the company or person just reports the same thing, voila! your credit report might once again go back to Square One. The CRA is supposed to notify you 5 days in advance; but let’s face it, the phrase ‘Catch-22’ comes to mind…or ‘Credit Score Whack-a-Mole’…
What can you do, short of hiring repair agency experts to fix your credit score? Most commentators are in agreement: just stay away from the online dispute forms. Send a registered letter with your dispute, because it usually takes the CRA longer than three days to act on it, so they can’t skip the protections.
And while you’re waiting, why not give me a call? We can start scouting for your new Lewes home! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestate.com.
During the overture to the film version of The Sound of Music, before the hills come alive with Julie Andrews, the camera first flies us high above the Alpine peaks. Ever since its premiere in 1965, Delaware audiences have been thrilling to the feeling of being suspended over those mountaintops before ultimately swooping down as Fraulein Maria whirls around for her opening song. It’s a warm-up that works every time—one of the most crowd-pleasing exercises in applied movie magic ever.
Right now, a dissimilar overture is tuning up in Washington. The cameras aren’t allowed to swoop down into the congressional conference rooms, and Rodgers and Hammerstein are nowhere in sight. Whatever your political views, it’s a possibility that when the first words are sung out, the sound won’t be the sound of music so much as the sound of Delaware homeowners howling in dismay. At least that’s what the National Association of Realtors® is trying to prevent.
The current state of affairs are, as is inevitable, shrouded in mystery. That isn’t because of Congressional skullduggery so much as necessity: while you’re putting together tax changes, if you publicize every separate provision before the whole package is formulated, the whole thing won’t ever get to be formulated. But the original starting provisions are on the record.
What the NAR is not objecting to is one provision that Delaware homeowners will be happy to hear: nobody is suggesting that the tax deduction for mortgage interest payments be eliminated, or even scaled back. It’s going to be retained in its entirety. As one of the financial plusses that encourages homeownership by making buying and selling more affordable, it’s certain to be part of any tax reform package.
The main proposal that has raised the real estate industry’s ire is one that would eliminate state and local tax deductions. That could include Delaware real estate taxes, resulting in what amounts to double taxation. Since U.S. homeowners already pay between 80%-90% of federal income taxes, the NAR is crying “foul.”
They aren’t alone. The New York Times cites a “raft of organizations”—including the National Governors Association, U.S. Conference of Mayors, and the National Conference of State Legislatures—which have united to denounced the measure.
At any rate, it’s going to take a while before the Hill is Alive with the sound of anything that’s nailed down for certain. I’ll keep an ear out, and let you know. In the meantime, as the busy Delaware spring selling season heads into what looks to be an equally lively summer, I’ll be by the phone, ready to answer your real estate queries! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.