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Legal Credit Repair

Credit Repair or Mortgage Fraud?

Traditional credit repair in order to be approved for a mortgage is usually fraud.  Most credit repair companies tell their customers to dispute everything on their credit report that is negative.  They quote a federal law that protects the consumer by placing the burden of proof on the creditor not the borrower.

This is a very good law that protects your rights.  It was never intended to be used to commit fraud.  If you misrepresent anything, including the information on your credit report in order to obtain financing it is mortgage fraud. 

Honest people that would never dream of altering other documents like the pay rate on their pay stub or tax returns think nothing of disputing negative information on their credit report. Just because someone tells you it is legal doesn’t make it true.

What is a credit dispute?  It is a letter sent to one or all of the credit repositories that states a specific bit of information in the individual’s credit file is incorrect. This is perfectly okay if the disputed information is actually incorrect. But it is a crime if the information is accurate.

The information in your credit file is either right or wrong; if you were late making a payment then the payment was late.  There is NO in between, it is either right or wrong!  If it is wrong, dispute it, if it isn’t wrong, don’t dispute it.

Do not listen to the “Credit Repair Experts” on this topic.  Listen to your inner voice; something like this is either right or wrong.  



Here is the Danger

EVERYTHING is in writing. The dispute must be made in writing.  The check that was posted late is in writing.  Your checking account statement is in a printed form. 

It is very simple to prove and prosecute mortgage fraud if everything is documented in writing.    

The same government that audits you and your bank also audits the creditors listed on your credit report.  They have a copy or access to a copy of everything.


So is there a legal way to repair credit?  Absolutely!  Stop the negative postings, and re-establish a good credit history.  But that takes time, yes, but so does obtaining a low credit score, neither happens overnight.