If you get a derogatory item removed, it will just come back.  Not if it is removed legally.  When it is removed with cause under the Fair Credit Reporting Act it cannot legally be placed back on your credit report.  The same law that required its removal prohibits it from being placed back on.

Myth #9

The past equals the future.  This is the biggest myth of all.  The concept that once bad, always bad, or at least for 7 years is totally false.  Anybody can run into hard times or an emergency situation, but that doesn’t automatically mean that they are a poor credit risk for a magical 7 years.  The simple truth is, no credit report or scoring model can predict the future.

Myth #10

I cannot restore my credit on my own.  Yes, you can!  You can try to do it yourself (just like you can represent yourself as an attorney in a court of law).  But it is usually best to allow experienced professionals to educate you and assist you in restoring your credit profile.

Studies have revealed that millions of Americans (79% or more) have significant errors in their credit profiles.  These errors affected credit scores by 50+ points.  If you feel that you may have errors in your credit report, call me and I will refer you to those who may be able to help.

Credit reporting and credit scoring were developed to educate and inform consumers.  False.  The Big 3 and FICO serve the banking community along with any other service provider looking for an excuse to “rate” their service to consumers.  Evidence: why do bankruptcies, parking tickets, public records, etc. report twice?

Who in the heck are the Big 3 and FICO?  The Big 3 are Equifax, Trans Union, and Experian.  FICO is a company that was founded in 1956 by Bill Fair and Earl Isaac.  FICO stands for Fair Isaac Company.  In 2007, FICO sold it’s 100 Billionth (that’s with a B) FICO score.

Surprise!  The Big 3 and FICO sell your credit scores to make a profit.

The burden of proof rests with the consumer to validate information contained on your credit report.  The opposite is true under the Fair Credit Reporting Act, both federal and various state laws REQUIRE that the credit agencies bear the burden.

Myth #5

It is illegal or immoral to have the information on your credit report altered or removed.  Not only is it not illegal or immoral, but it is what the Fair Credit Reporting Act is all about.  It was enacted by congress for the very purpose of protecting consumers from the intrusion of the credit agencies into our lives

Myth #6

Paying a past due debt removes it from your credit report.  Just because you pay an old debt does not change or erase the fact that at one time you were not paying on it as you agreed.  Can this record be changed?  Absolutely!

Myth #1

Credit agencies are empowered with some kind of governmental authority.  Credit agencies have no legal authority at all.  They are simply billion-dollor corporations who are in the business of gathering and selling credit information.

Myth #2

The credit agencies are required by law to keep derogatory items on your credit report for 7 to 10 years.  There is no law that the credit agencies report anything on you at all.  Just the opposite is true!  Credit agencies are required by law to automatically remove all derogatory items older that 7 years or in the case of a bankruptcy, 10 years.

Myth #3

It is impossible to remove an item of public record.  Bankruptcies, tax liens, etc. come off just like any other item that is incorrectly reported, obsolete, erroneous, misleading, incomplete, or that cannot be verified.  Remember, the nature of the item has nothing to do with its removal under the Fair Credit Reporting Act.

I certainly don’t have all the answers to our economic and housing problems, but it seems to me that we’re getting too far away from the free market economy that made our country great.  What do you think?

Ogden City – Cheryl Hurley (801)629-8906,  www.ogdencity.org

Provo City - (801)852-6160, www.provo.org

Utah County - Jeff Vanchiere (801)687-3696, www.housingservicesut.org

Washington, Kane, Beaver, Iron and Garfield Counties - Dana Alvey (435)865-0195, Darren James (for St. George City) (435)673-3548, www.fcaog.state.ut.us

Hope this is helpful to someone.  Call me if you have any further question.  Gary Kennard (801)403-4965

Clearfield City:  DCHA administers the Clearfield City Down Payment Assistance Program for first time homebuyers.  This Federally funded program assists qualified applicants who meet the program income guidelines with a maximum grant amount of $5,000 to be used toward closing costs or down payment.  The funds are given out on a 3 to 1 match of the money the home buyer provides.  Buyers must complete an approved homebuyer education class and purchase a single-family dwelling that is located in the city of Clearfield.

Davis County – DCHA provides a $2,000 no interest loan to assist with the down payment and closing costs for first time homebuyers.  Qualified applicants who meet the program income guidelines must complete an approved homebuyer education class and provide at least $500 towards the purchase of a single-family dwelling that is located in Davis County.

For further information, go to daviscommunityhousing.com or call Mary at (801)939-9198.

Family Size                 1                 2                 3                4                 6                8

Income Limit – $38,000 $43,400 $48,850 $54,250 $62,950 $71,600

All applications will be subject to the following Debt Ration Reviews:

Housing Ratio – The combined monthly payment, taxes, insurance and Homeowners Association Fees, cannot exceed 35% of the applicants gross monthly income.

Total Debt Ratio – The total debt of the applicant cannot exceed 45% of the applicants gross monthly income.

Submission of the application does not automatically qualify the buyer for assistance.  A real estate purchase contract for the property must be included with the application.  This is different from the West Valley City program.  In West Valley City, you must be approved before making an offer on the property.  I have a copy of the application that I can fax or email to you if you’re interested in the West Jordan program.

West Valley City will provide a $5,000.00 grant/loan for low-to-moderate income families to purchase a home not to exceed $180,000 within the limits of West Valley City.  Once the application is approved, the applicant is required to complete one of the approved First Time Home Buyers Classes on finance and budgeting and submit a copy of certificate of completion.  No online classes will be accepted.  After the applicant has been approved and the class certificate is turned in at the WVC office, the applicant may then submit an offer on a property.  Prior commitments, and/or offers made before being approved and completion of the class will cause immediate disqualification from the grant program.  The applicant must be able to qualify for a fixed rate mortgage loan using: FHA, VA, or conventional financing.  Applicants must qualify on their own credit (No co-signers).  All co-applicants must be listed in the mortgage loan.  No creative financing such as variable rate, adjustable rate, interest rate only, balloon payment, and/or 80/20 split, will be allowed.  In addition, the applicant must contribute a minimum of $2,000.00 toward the cost of the purchase of the home prior to closing.  The purchase price of the home may be equal to, but may not exceed $180,000.  The loan/grant must be repaid in full if the applicant sells, changes title, refinances, or moves within the first five years from the closing date.  The buyer must have had no ownership in a principal residence during the three year period ending on the date of purchase of the property.  This includes a spouse.  The annual household income of applicants cannot exceed 80% of the area median income as determined by HUD.  If you are interested in applying for this grant through West Valley City, call me and I will send you a copy of the application.  Remember, you must be approved for the grant before making an offer on a home!