Category Archive: Uncategorized

Aug 05

Power of Attorney Epidemic

POAs in Louisville Kentucky

Just for fun I searched the Jefferson County Clerk’s online database to see how many Power of Attorney documents there are in the public record.  Okay, I can’t count that high, but it is easy to get an idea by searching for a particular time period.  This is how I searched, first, selected to search by Party Name but left the name boxes blank, selected date(s) to search and in the Doc Type box scrolled down to POA.

If you are searching a large time line there are five listings per page, so just add 5 for every click on the Next Page link.  I looked at a recent random week, Monday to Friday and drum roll, there were 214 document tabs.  Each document will have at least two names, so the 214 listings probably represents 107 Power of Attorneys.  It is possible for one individual to name more than one Attorney-in-Fact but most do not.  Now that I think about it, naming more than one individual and requiring both to sign is a good safety measure.

Let’s go with 107 POAs filed in one week.  That means that slightly over 21 people per day signed away some of their rights to another individual.  Many of these were elderly individuals handing over their assets to the care of a child.  Some of them will be ripped off by their own children.  Ask any bank teller, adult children frequently steal money from their parents, it is a dirty little banking secret.  Why don’t you see it in the news every day?  Because the parents refuse to prosecute their children.

That Mushroom Cloud is not a Nuke, it’s POAs

I have been writing about this a lot lately because almost every deal I close one side or the other tries to use a Power of Attorney instead of attending the closing themselves.  It is a very strange phenomenon, why the explosion of POAs this year?  Something has shifted, I have been asked about using a POA more times in the last six months than the previous 20 years combined!

I do not want the mortgage and note signed with a POA, period. With all of the trouble in the last couple of years with the validity of mortgage documents no lender in their right mind wants the borrower to skip signing the note.  That is crazy!

What I think is going on is a combination of several factors that have never coincided in the recent past if ever.  A decrease in property values in some areas, a decrease in the number of qualified buyers, cash flow problems on both sides all add stress to a real estate transaction. Add to that a very high unemployment rate and some people that have jobs are simply scared to miss even an hour of work for something as important as buying a home.

Jul 23

Sub-Prime Mortgages

Sub-Prime Will Return

The overall condition of the economy is creating an environment that will hasten the return of the sub-prime mortgage.  I was never an advocate of the sub-prime industry but it served a need.  That need is stronger today than ever before.  I predict sub-prime mortgages will return soon.  They may be called something different, may be touted as new and improved, but a rose is a rose.

There are many factors that will push my prediction forward.  Unemployment is very high with disposable income being the lowest it has been in modern time.   This is causing many homeowners to defer maintenance on their home opting instead to put food on the table.

Home inspectors are being super critical as their industry matures, causing many pending transactions to implode.  Not long ago the National Association of Realtors reported the highest fall out ratio since they have been keeping stats.   The number of real estate listings reported as a pending sale then changed back to an active listing is where that bit of information comes from.

Buyers and sellers are both more difficult than I have ever witnessed prior to the last couple of years.  Prior to last year I never had a buyer and seller disagree on a day and time for closing the deal.  This year it has been difficult to get both sides on the same page on any subject, let alone a closing date.  I mentioned in an earlier post that people searching for information on Power of Attorney or POA is the number one subject people are looking for when they visit this site.  They  just don’t want to attend the closing!

Another factor is the middle ground on credit scores seem to be disappearing.   I see either very high or very low credit scores, not much in the middle.  This is a personal observation; I haven’t read anything that supports this.  You would expect a general distribution, a third low, a third in the middle and finally a third on the top.  Not what I see these days, either very high above the top credit tier or very low below the minimum threshold.  Last week I saw several above 800 or in the high 700’s and an equal number in the low 500’s dipping into the high 400’s with none in the mid 600’s.

Finally, the wreckage caused by foreclosures and loan modifications will linger for at least a decade.   The buzz topic has been short sales, but in reality they are a very tiny slice of the pie.  They are a symptom of the times but I don’t think they are as serious to the overall market as the other factors mentioned above.

All of the dynamics mentioned here have one result, stress.   Sellers want to sell and buyers really want to buy but never has it been as stressful even back in the days of very high interest rates.

As the gap widens the mortgage industry will figure out a way to serve the demand that is having trouble moving above the minimum credit score threshold.   That segment of the buyer pool is the only one that is expanding.  The market conditions are not pushing people upwards, only down.   Individuals that have never been late on credit obligations are suddenly finding themselves below the credit thresholds.

The Solution

I don’t have an answer to the overall problem, but I see lots of opportunity.  A few people are doing very well, but most are not.  What I know for sure is the market has changed.  People have changed.  Those that are moving forward have a chance to improve greatly, interest rates are low and prices are good.  It has never been a better time to buy in the last 50 years.

Part of the solution to get things moving is going to be the return of some of the aspects of the sub-prime industry.  I am not calling for a movement, just predicting this is going to happen.

Jul 19

Continuing Education

Spent the entire day in class, continuing ed.  We covered RESPA, ECOA, TILA, Dodd Frank Act, and a lot of other wildly boring topics, most of it a rehash of info that I have reviewed every year for the last two decades.  Guess what wasn’t on the menu.  Not one item aimed at making the process easier for the customer. 

Don’t get me wrong, some of the legislation has done much to weed out the bad guys, but the rest of us are paying the price, including you.  I think it is time the rule makers shift their focus to what the consumer wants, not what someone in an ivory tower thinks we need. 

The instructor mentioned a recent news item about the Bank of Scotland manipulating the LIBOR index, give me a break.  Did it happen? Of course it did.  Our guys are lining up to point the finger across the pond. 

What about one of the largest investors of US mortgage backed securities buying 30 year bonds with proceeds from short term notes?  No one is complaining because the result of the manipulation here is low interest rates.  Everyone wins right?  Not the elderly that are getting paid less than 1% interest on their cd’s.  Think about it, $2,000,000 stuck in FDIC insured cd’s would generate less than $20,000 a year, that should be a crime. 

 

Jul 15

Power of Attorney AKA POA

What is a Power of Attorney?

A Power of Attorney is a written document authorizing one individual, referred to as the Attorney in Fact to act on behalf of another regarding legal matters like signing a contract, deed or other instruments.  The signature of the Attorney in Fact is binding on the part of the individual that conveyed the POA.  There are different forms of POA’s, they can be general and all inclusive or specific for a single transaction.  They must be notarized to be binding.

In theory, when an Attorney in Fact signs on behalf of another it is the same as if the individual signed for them self.  Obviously a POA is a very unique document and requires attention to detail not only in content but in form as well because the agreement signed using one is binding on the party that is not signing on their own behalf.   If a mistake is made it could be a binding error.

When to Use a POA

You should not use a POA unless absolutely necessary.  If a contract or document is important enough to require a signature it should be signed by the individual that is bound by the terms of the agreement.  There are times when this is not possible, that is when one should be used.  For example, an individual that is in the military and is stationed overseas would not be able to attend a real estate closing back home, a POA would be required if the closing is to proceed.

Other examples of when a POA is appropriate would be for an individual that is senile or incapacitated by illness or injury to the point they are not able to conduct their affairs.  In events like these it may be necessary to obtain a court order appointing a relative Attorney in Fact or some other legal capacity.  Another example, in the event of relocation where one spouse moves in advance while the other remains behind to complete the sale of their home.  There are many circumstances when using a POA is appropriate.

When Not to Use a POA

A power of Attorney should only be used if you can absolutely not be present for signing the agreement.  I am not an expert in legal matters, only those regarding the real estate mortgage process.  In the past year I have had more buyers and sellers inquire about using a POA than in the previous 20 years combined.  This is very strange.

In every case this year the request to not attend a closing was not because of distance but simply because they individual did not want to attend the closing.  It doesn’t matter what you would rather do, nothing is more important financially than a real estate closing.   Think about it, if you earn $20 an hour compared to buying or selling a $150,000 house, which is more important?  Take a long lunch hour or use a sick day and attend in person.

One lady that was selling a home told me she just didn’t want to be in the same room as the buyers.  Okay, I can understand that, but there are other ways to accomplish non-contact.  Recently I had a buyer in one room the sellers in another room and the Realtors wanted a little privacy for a chat so we put them in yet another room.  That was a first for me.  I have put many divorcing couples in separate rooms but never used three rooms until then.

Using a POA for Real Estate is NOT Automatic

Lenders do not want the buyer or seller to use a POA.  Especially when it comes to the buyer signing the note and mortgage, most lenders want an original signature of the person that is borrowing the money.  Do not assume that you can use a POA as a buyer or seller.  This is something that should be reviewed and approved long before arriving at the closing.

The actual POA document should be reviewed in advance by the closing attorney or Title Company that is going to officiate the closing.  In addition to this step it should also be pre-approved by the lender long before setting a closing date.  Power of Attorneys are custom documents, no two are exactly alike.  There are different types, some are general in nature while others are specifically designed for a single transaction.  A POA for a real estate transaction should be very specific, spelling out who, what, when, where and how.

Obviously, if an attorney is acting on behalf of a title company they will be very picky about the content of a POA.

Who Can Act as Your Attorney in Fact?

The best individual to act as your Attorney in Fact would be your spouse.  Next would be a very close blood relative, a parent or sibling.  Anyone you appoint that agrees to accept the responsibility is allowed as long as they do not have a financial interest in the transaction.  For example, a seller should not act on behalf of the buyer regardless of the relationship.

What about your Realtor?  This is another bad choice because they are receiving a commission from the sale.  It happens, but it is not a good choice and may not be allowed by the lender or closing attorney.

How about a friend or co-worker?  These are not as good as a close relative but are better than the Realtor.  Keep in mind if something goes wrong you are stuck with the consequences.  Is that really something you want to put on the shoulders of a close friend?

Helpful Hints for Using a POA

If you must use a POA have it prepared by the attorney that will close the deal.  This would eliminate the document being rejected by the closing attorney over form or format.   If this is not possible have it prepared and signed well in advance and provide the closing attorney a copy as early as possible, do not wait until the day of closing!

If it is not possible to attend the closing the documents may be sent overnight to the absent party, they can sign in front of a notary and returned to the closing attorney.

I hope this information is helpful.  If you have questions just give me a call, my direct line is (502) 753-4127.  If you found this information interesting please share it with others.

Jul 09

Searches Leading to The Hub

From POA to Me

Behind the scenes this web site tracks where my traffic originates and creates a list that shows what search terms brought them here.  Thousands of terms and phrases are on the list but a few dominate the top.  A few of the leaders are amusing, some are flattering (specifically looking for me) and a couple are disturbing.

Number one on the list and a winner by a long shot is Power of Attorney or POA.  It shows up more than twice as often as any other search, strange because I advise people not to use a POA if it is avoidable. 

The other words and phrases that head the list remain fairly constant over time with the top three staying the same month after month.  Searches for me personally slip back and forth between the fourth and fifth slots, rotating with the one that I find disturbing, Mortgage Fraud.  People actually search for “How to commit mortgage fraud.”  Good grief!

Here is the top five for the previous 12 months:

1.  Power of Attorney or POA

2.  Creditxpert

3.  Down Payment Assistance Kentucky

4.  Jim Simms

5.  Mortgage Fraud or How to commit mortgage fraud

Some of the phrases about fraud were alarming; many were questions beginning with “how to” while others were obviously worried about crimes they already committed.  

Jun 28

Condo Approvals Not Required

Why is it Hard to Finance a Condo?

Financing a condo has always been tricky. In the last few years it has become almost impossible. Conventional and FHA guidelines have both changed the approval process to get a condo community approved. The irony based on my personal experience is that all of my loan applications in the last year from people buying or trying to refinance a condo is that they all had top-tier credit profiles. If I separated all of my applicants based on the type of property without question those attempting to finance a condo were by far better credit candidates, not even a close call.

So if this is true with other loan officers why is it so difficult to get a condo community approved for a traditional mortgage? The answer lays in the mortgage guideline changes I mentioned above. 

First let’s look at FHA. For as long as I can remember once a condo was FHA approved it was good to go, the approval never expired. That changed drastically last year, now all FHA condo approvals must be renewed every two years. That means someone local associated with the property must fill out paperwork, gather documents, figure out some ratios and then send all of this junk to FHA and do it every 24 months. By the time you finish one cycle it is almost time to start getting ready for the next review.

Second, the conventional review process can go two directions; one covers the entire development and makes the approval status available to any lender and the other is lender specific. The full-blown approval process is very expensive therefore seldom used in our area. The second method is  CPM which I believe stands for Condo Project Manager and it is basically free or I should say lender funded in most cases. CPM is preferred by the consumer or the Home Owner’s Association because it is free. But it is a constant source of trouble because every unit and every mortgage application requires running CPM. What a pain.

The third problem is most board members serving on their Home Owner’s Association are doing so voluntarily. They are just normal people like you and me but are trying to manage their community. Few, if any, have experience managing a multi-family project. Well-meaning attempts to balance a large budget can cause the best run HOA’s to pass by-laws that will cause their property to wash out of the mortgage approval process. One wrong answer during the CPM process will cause a property to be declined.

A Solid Solution for Some Condos

I had calls last week by board members from two different communities asking for help sorting out the mystery of financing a condo. For a year I have predicted that new developments will shift away from being condos to fee simple title similar to row houses in Boston or Chicago. The new communities could still have HOA’s for taking care of common elements like a club house, pools, sidewalks, etc. The difference is in how title is held, my idea is for the owners to actually own the land under their unit instead of just owning the interior of their unit. Of course this requires no upper units, only one unit to a footprint.

So while brainstorming with one board member I asked if their community had any upper units, nope, all ground level. But no one could get approved for traditional financing, FHA or conventional. So I tossed out the idea of not being a condo, Un-Condo is what we decided to call it.

This solution is something they had not thought of but I thought it was a resolution to their problem. If their community is not a condominium development is does not need a condo approval to get financing for a unit. No condo, no condo approval needed.

I was a zoning commissioner in a previous life so looking at development ideas and preliminary plans is nothing new. But it is always a good idea to bounce a new idea off someone you trust. I tossed it out to a couple of other loan officer and they gave it thumbs up. Next I ran it past another mortgage banker and got another thumbs up.

Next stop was legal, ran it past a couple of attorneys that are experts in mortgage matters. Not only did they agree but one said a recent law in Kentucky addresses this very subject,

I read the Kentucky Statute and not only does it tell how to do it, but it says the move does not require a unanimous vote.  Only 80% of the home owners need to vote for the proposition to make it happen.

This post is continued here.

Jun 23

Overpriced Listings

Twice this week I ran across buyers that were attempting to purchase properties that were obviously overpriced. Declining property values have been a growing problem for everyone in the industry for the last few years.  Issues with appraisals run neck-and-neck with problems regarding the condition of the properties. 

The reduction in property values created an almost cottage industry called short sales.  Short sales have been around for as long as there have been mortgages but they have never been as main stream as they are today.  Lenders and the real estate industry were not prepared for the magnitude of the problem.  They have been playing catch up from the very beginning.  

A short sale is what happens when the value of the property is less than the balance of the mortgage and the seller asks the lender to accept less than is owed so the property can be sold.   Explaining this to a seller is not an easy task for a Realtor.  The idea that real estate is the best investment because “They don’t make any more of it” is hard wired in to all of us. 

Not all overpriced listings are an attempt to avoid a short sale, in fact most are simply an indication of greed.  The seller just wants more than the property is worth.

The rules for lending are very specific regarding the value of the real estate being pledged for a mortgage.  The lender must use the lower of the sale price or appraised value when computing the loan-to-value for the mortgage.  This doesn’t mean the buyer cannot pay more for the property than it will appraise for, it simply means they cannot use the inflated price for calculating the size of the mortgage.

How Mortgage Amounts Are Calculated

Let’s assume a property priced at $110,000 but will appraise for only $100,000.  On a standard conventional fixed rate mortgage the minimum down payment is 5%.  Okay, that is the flip side of saying the maximum loan amount is 95%.  But the definition is 95% of the sale price or the appraised value whichever is less.  If the property only appraised for $100,000 then the maximum mortgage is $95,000.  The buyer could still purchase the property for $110,000 but the amount needed for down payment would be the difference between that figure and the maximum loan amount which works out to be $15,000.  

If the property had appraised for $110,000 then the required down payment in our example would have been $5,500, a far cry from $15,000.  This is the primary reason most properties that are priced above the market value will not be sold at the inflated price. 

Some Realtors Will Take a Listing at Any Price

Listings are inventory and the more inventory a Realtor has the more inquiries they will receive from buyers.  Some Realtors will list a home at any price while others will not.  It is a numbers game for those who choose to ignore the comparable sales.  If a buyer calls about a Realtor’s overpriced listing the agent may be able to sell them another home that is not overpriced.  Although there is nothing illegal about taking an overpriced listing it doesn’t help the owner of the property or the marketplace only the Realtor taking the listing.  

The seller is hoping for a miracle, somehow their property will sell for a significant amount above what similar properties are selling for.  Even if they are lucky enough to find a buyer that loves the property a problem will occur when the buyer applies for a mortgage.  Okay, the seller hopes a cash buyer will step up that doesn’t need a mortgage.  Possible, but cash buyers think they are special because they are paying all cash and therefore deserve a bargain, not compatible with the seller’s plan.   

What Can a Buyer Do?

This article began because a couple of buyers asked what to do because they found a property they liked but the price was significantly above the market value.  There is actually a fair solution when you receive a counter offer from the seller that is higher than what you believe is the actual value.  Accept the seller’s counter offer provided the seller or the listing Realtor pays the buyer’s lender for the appraisal upfront.  

Oh man!  Can I kick a hornet’s nest or what?  Ask the seller’s Realtor to pay for the buyer’s appraisal?  You must admit that is out of the box thinking.  Leave it up to the selling side, let them decide who is going to pay it, or maybe they split the cost, it doesn’t matter to the buyer.  This little maneuver will at least initiate a serious dialogue between the seller and the listing Realtor about the true value of the property.

I had to toss the listing Realtor into the mix because the problem never would have surfaced in the first place if they had not listed the property for more than it was worth.    

The clause would also indicate that in the event the property does not appraise for the agreed upon price the seller will have the option to lower the price to the appraised value or release the buyer from the contract.  This solution protects both sides; the buyer is not forking out money for the appraisal on an overpriced property yet both parties have the possibility of discovering how much the property will appraise for.  Win, win.   

Please share this article with others if you like out of the box thinking.

 

Jun 22

FHA Reverses Recent Changes

June 15th 2012, FHA issued Mortgagee Letter 2012-10 that rescinds two changes outlined back in February in Mortgagee Letter 2012-3.  Both of the sections covered in this month’s letter refer to issues on the borrower’s credit report.  The first item covers how to address disputed accounts and the other one covers collections and judgments.

A disputed account is when an individual submits a formal complaint with one or more of the credit repositories claiming information on their credit report is inaccurate.  In other words they dispute the information.  This tactic is most commonly used in an attempt to remove negative information, such as late payments or collections.  Any third grader would know it is wrong to tell a lie and their parents should know that doing so in order to get a mortgage loan approved is a felony offence.   

An open disputed account is a red flag for any DE underwriter.  In February FHA removed the flexibility underwriters had when they came across a dispute on a credit report.  Basically, any dispute on an account over $1,000 or combination of accounts that totaled over that amount would cause the loan application to be denied. 

I know, if you read the letter it doesn’t say that exactly, but don’t forget I am bilingual, my language of choice is slow southern drawl but am also fluent in mortgage mumbo-jumbo.  Here is how it translates, before February the subject was left up to the underwriter, after that it is only left up to the underwriter if the amount is less than $1,000.     

Actually, I agree with the change that tightened up this loop hole.  Mortgage fraud is serious and it hurts all of us.  Disputing accurate information should not be allowed period unless the borrower has solid evidence like a cancelled check showing the payment was made on time, etc.

Evidently this little change caused quite a ruckus because it has been reverted by the most recent Mortgagee Letter.  I personally believe this is a step in the wrong direction.  I didn’t like removing any discretionary abilities from my underwriters but thought it was the right thing to do for the overall good of the nation.

Here is the gut level truth; people that actually qualify for a mortgage are not in the habit of disputing garbage on their credit report.  Most, not all, but most of the people that have multiple disputes are trying to commit fraud.  The government should not allow it to be easy to do.   So I believe this recent change is a step in the wrong direction.

The second change covered collections and judgments.  In the past the underwriter was able to make a decision on collections, the change in February limited that to collections under $1,000.  Judgments of any size needed to be paid off.  A judgment is simply a collection that has been taken to the next level so I have never understood the logic of ignoring one and not the other.  A large collection could morph into a large judgment and that would always happen when the individual could afford it the least.  I believe that is some kind of financial universal law similar to Murphy ’s Law.

Both of the changes from February have been rescinded which makes it easier to get approved for an FHA mortgage.   

May 08

Power of Attorney for Real Estate Closing

A Realtor asked me this morning how to get a Power of Attorney for one of their clients in an upcoming closing.  A POA is a document that allows an individual to sign legal documents on behalf of another individual.  An example would be a wife signing the deed or mortgage on behalf of her husband or vice versa.

The sellers are closing on the sale of their home and turning right around and buying another home an hour later.  It isn’t like the closings are a surprise, it takes a long time and a lot of effort to sell one home and purchase another. 

In the past twenty plus years I have only seen a POA used in a real estate closing a hand full of times, maybe two or three out of a couple of thousand.  It doesn’t happen very often, and really should only be used in an emergency or under extreme circumstances.   

Yet the subject has been brought up more times in the last six months than in the previous twenty years combined.   Both buyers and sellers have approached me about not attending closings.  Where is this coming from?  I had one buyer simply refuse to attend the closing, they are retired, no job conflicts, just didn’t want to come to the closing.  

Now come on, tell me what could possibly be more important than making sure the closing goes down as expected?  I don’t understand. 

Loan applications are becoming just as tricky these days. Another guy told me he couldn’t afford to take off work to drop by my office to sign a loan application on a $150,000 mortgage.  Does he not realize how that sounds?  My budget is running so close I can’t take off work for an hour – lend me $150,000 please.

Perspective

Buying a home is a very long term commitment, something that should not be taken lightly.  Most buyers spend more time looking at homes than they do planning the transaction, the exact opposite of what they should do.  When it comes to the closing I require an original signature on my note, not a POA.

If you are selling a $200,000 home, how much do you need to be earning per hour on your job to make it more important than attending a closing?  Even if the lender allowed it, if I were the buyer I would want to see the seller sign the deed that gives me title to the house.

Reality – It takes almost the same amount of time to sign a POA in front of the closing attorney as it does to attend the closing.  If you have the POA prepared by an attorney other than the closing attorney it may not be approved by the closing attorney, highly possible if the one preparing it is not a real estate closing specialist.  If that happened it would actually take longer than attending the closing. 

This is the largest financial transaction most people have in a lifetime, you need to attend the closing if at all possible.

 

May 07

Collections on a Credit Report

9am this morning, a lady filled out an application on my web site and I received the notification by email.  Her credit report listed multiple collection accounts and a judgment for nearly $1,000.  Four of the collections were sizable medical bills and a couple of small ones from utility companies.  She acknowledged the judgment and the utilities but said the medical bills should have been covered by insurance.  She was not aware they were in her credit file.

She said her tax refund was due any day and as soon as it arrived she would pay off the judgment and the utilities, in the meantime would contact her insurance company and get to the bottom of the medical bills.  Regardless, she would do whatever is needed to clean up the mess so she could buy a home.  I bet she will follow through on her promise to herself, I was just helping out, she wasn’t promising me.

Contrast, around 11am a gentleman called me saying he was ready to buy a home, asked if I remembered speaking with him last year.  Not really, but I pulled up my notes and it was two and a half years ago, not last year.   Back then he had a total of 14 collections on his credit report and I asked if he had taken care of them.  He acted surprised by my question and asked what they were.

When we last spoke I suggested he begin by paying off the smallest collection first because it was only $25.  So I asked if he had paid it as we discussed. Nope, how about the next one that was only $40? Nope, none, nada, zip, hadn’t paid off a single one.  Combined, all the collections totaled $9,000 but he hasn’t paid a single dollar towards any of them.

He is further away from buying a home today than he was back then; underwriting guidelines have tightened up since then.  If he had followed my suggestions he could be moving in a few weeks.

The wrong way to handle collections is to dispute them.  It is what it is, and disputing accurate information on your credit report just because it is negative in nature is fraud if the purpose is to get a loan.  Besides, having open disputes on a credit report can get a loan application declined.  Underwriters do not like loose ends.  Key point, have you ever tried to remove a dispute from a credit report?  You must dispute the dispute, HAHAHAHA!!  Don’t do this!

Can you offer less than owed on a collection?  Absolutely, but it doesn’t look good if you are trying to borrow money at the same time.  Asking one lender to take less than owed on a $1,000 account doesn’t look good to the lender you are asking $150,000 from.  But one is for a house and the other one was dinner and blue jeans.  It doesn’t matter, it doesn’t look good. 

Pay them off?  Where to start?  Start with the smallest amount that reported or updated their info most recently.  A $25 collection that reported or updated their status last week will cost more points on your credit score than a $2,500 collection that hasn’t been updated in a couple of years.  

Check out the related info on the page, CreditXpert™.

 

 

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