I am working my way back into real estate investing. I lost all of my rentals back in 2011 due to foreclosures. What strategy should I employ that can help in improving my credit.
I would pull a free copy of my credit reports from the 3 providers to get an idea of where i stand. Challenge any inaccurate or misreported items.
Then, one by one, as I save some money, call the debtors and ask to settle in full. The % you have to pay will depend on your status and the age of the debt. Do not send money until you have the settlement offer in writing and NEVER give them access to your checking acct.
A lot of shady credit repair people will probably join this thread. They may even provide a link to the FTC (the last one just showed how the industry is no longer allowed to take pmt up front). Do your own legwork. It will take time.
Having gone through what you have, losing your rentals, is a tough thing. You are now a wealth of experience to all those that want to cash out retirement and borrow everything from everyone BP people out there. I hope you will share your story with some of them @Eddie Pitts . Their risk meter is broken and they see no downside. Best wishes!
Did you know paying off old collections and charge offs lowers your credit score? Disputing items on-line doesn't work? See http://www.cbsnews.com/news/the-one-thing-to-know-about-your-credit-report/. How important is your credit too you? Hire a professional! This is probably one of the most important decisions you will make or fail to make this year. It will determine the level of purchasing power you will be able to command in the future. While I do agree the credit repair industry is riddled with shady companies, there are many who do a great job. That would be where your time should be spent finding a company who can/will do the job for you.
The first thing before jumping back into the industry is to practice due diligence. The economy is slowly moving upward.
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