Georgia Mortgage FHA

Why?

Simple – they are potentially illegal at worst and a rip-off at best. Here is one I recently uncovered from craigslist.com

“Get A Clean Credit Report Instantly”
Having problems getting a mortgage? Need a better rate? We can build a brand new credit for you and it’s completely legal! We’ll get you a 700 plus FICO score in just 48 hours. You’ll have 5 seasoned trade lines showing all payments made on time for the past 2 or more years. You won’t have any judgments or charge-offs and no negative information on your credit report. Use your new, clean credit report to get the best loan you can get.

Wahoooo!!!

So the best part is where the ad says “and it’s completely legal”.

Let’s start with the first reason it’s going to lead to a felony, at least one count, when you use this “new, clean credit report” to apply for a loan. It’s a false statement. That’s not your credit report. You know it’s not your credit report and we, as lenders, have more investigative tools at hand than you can imagine.

Here’s another reason it’s going to head you into trouble: “5 seasoned trade lines”. Listen, you can’t just pull a trade line out of the air. Know this: when certain tradelines show up on a credit report our Loss Mitigation department gets a red flag and they go to work. When they see those other four, the same four showing up on other credit reports with high scores but no credit reports with low scores, bells and sirens go off.

NO MATTER HOW TEMPTED YOU OR YOUR CLIENT IS TO TRY THIS IT IS ILLEGAL AND YOU WILL BE CAUGHT.

Let me add here that you would be blown away by the intelligence departments at most lenders today. They are trained, skilled and experienced at sniffing out fraud. This is one of the easier forms of fraud to uncover. And, to make it worse, Loss officers do – by law – report to the FBI.

On the other hand so many of these are just plain scams. You send them $250 to have your credit repaired and the only thing that happens is you never see your $250 again. I traced one of them down to a UPS Store in Nevada. Try tracking that for yourself! Fortunately the FBI is now watching his mailbox. He’ll get nailed for wire fraud, theft by conversion, grand larceny, and more.

(c)2006 Ken Cook. All rights reserved. Permission to reprint this article is granted with the following limitations: The article must not be edited except for spelling. This copyright must be included immediately following the article as it appears here. This article may not be included in any materials commercially available for sale or where any fee is charged even for other materials without prior written consent.

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