Cash Advance & Balance Transfer Checks

You have seen them, everybody has. You open your credit card bill and there it is. A blank check with your name on it, for you to use in any way you want. Best of all, there is a low interest rate...0%... a limited time. Sometimes for as long as six months or more. It looks too good to be true. As is the case most times, when something looks to good to be true, it usually is.

Credit card companies routinely send these magic checks out to people with low balances or who limit the use of the credit card. After all, a credit card that isn't being used isn't doing much for the bank's bottom line. So they make these offers in the hope that their customer will transfer high interest balances, take advantage of low interest for that vacation they have been passing by, or get more air miles just in case. While these are all valid reasons, there are some pitfalls to this plan that many or most people find themselves falling into. Here are some things to remember before you take advantage of these offers.

LOOK OUT FOR THE FEES There is often a transaction fee for balance transfers, often as high as 3%. This term is hidden in the fine print. Be careful. That transfer of $3,000 at zero interest just cost you a cool ninety bucks.

CAN YOU PAY IT OFF IN TIME The low monthly interest is a good idea if you can pay off the amount within the time limit of the offer. It's a good idea to save on interest. But remember that after the six months are up, that interest goes up to the regular interest rate. Make sure that rate is not higher than the rate on your other cards.

DON'T BE LATE If you are late with your payments –even for a day– special rate reverts back to your original interest rate. Often, credit card companies that appreciate your business will raise your interest rate to a default rate, typically over 29%, as a token of their appreciation.

DON'T DOUBLE DOWN Remember, if you pay transfer a balance or use these checks to pay off another credit card, that card now has a zero or low balance. While your intentions may be good, the temptation to use that card is great. Most people will use it. Cautiously at first. Just to buy gas. Maybe to go out to dinner a couple of times. Then they get an email about a great deal on a plasma TV, and before they know it, the six months have gone by and both cards are at the maximum.

DON'T USE THEM If you are not sure that you will be able to make timely payments and control your other debt, the best thing to do is avoid the temptation to take advantage of these offers. If you fail to use the checks in the allotted time, don't worry. You will get more in your next statement. If you don't need them or if it doesn't make sense to use them, don't use them.

DESTROY THE CHECKS IF NOT USED There will be another time to discuss identity theft. But if the banks are enjoying a bonanza with these checks, identity thieves are right behind them. These checks often provide information that can be used by someone else. If you are in the habit of discarding your statements, these checks and other information without destroying them, get out of that habit. People go "dumpster diving" for this information, and often use it to steal identities. It's a sad fact. But it is something we all have to be aware of.
The next time you get one of these offers...check the mailbox...remember this. Credit card companies were given enormous leverage in their ability to recover defaulted debt by the new Bankruptcy rules. Your ability to discharge this debt is severely curtailed. So even if you took advantage of these offers with the best of intentions, you may find yourself strapped with mounting debt and nowhere to turn for relief, or even a claim of fraud from the credit card company. Late fees, over limit fees and 30% interest can turn a $3,000.00 limit to a $8,000.00 lawsuit in no time. For many people, this spiral downward starts when they cash those checks or transfer a balance. Many of them never recover.

So, what do you do with these offers?
1. If you must use them, use them wisely.
2. Make sure you can pay them off.
3. Never make a late payment.
4. If you pay off another credit card, close the account or exercise the discipline it
takes not to use it.
5. Don't pay off a credit card with a lower interest rate.
6. If you don't think you can take these steps, DON'T USE THE CHECKS!
7. Make sure you destroy the checks if choose not to use them.
You have worked hard to get the kind of credit rating it takes to qualify for these offers. Don't let the use of credit be the reason you lose your good credit rating.

As many of us know, a negative credit rating can cost you countless thousands of dollars over the course of your life. Having an account go into default, collections or litigation can literally bury you in debt for the rest of your life. If you find that things have gotten out of hand, get some help. Call the credit card company. Call a credit counselor. Call a lawyer if you need one. But don't ignore the problem. Take control. It will not go away on its own.
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Brooklyn Credit Repair is a Professional Credit Repair Company located in Brooklyn, New York. We specialize in correcting inaccurate or unverifiable remarks on credit reports with experian, equifax and transunion. We serve all boroughs of NY including Bronx, Queens, Staten Island, Manhattan as well as Long Island's Suffolk and Nassau counties. Identity Theft, Late Payments, Collections, Chargeoffs, Foreclosure, Judgements , Bankruptcies, Liens, Inquiries, Credit Consulting, Credit Repair, and Debt Settlement.

Real Estate Loan Modification

What is a Loan Modification?

A loan modification is a financial procedure in which the loan’s terms are altered, by lowering the interest rate and lengthening the term of the loan, to allow the homeowner to avoid foreclosure.

The lender has to agree with these terms however, and our specialists are dedicated to working directly with your lender to acquire not only lower monthly payments for you, but allow you to keep your home, and save your credit.

Is Loan Modification right for me?
Yes, if you are one of the countless Americans struggling in today’s financial market with an adjustable rate mortgage and not enough equity in your home to refinance.

A Loan Modification is ideal in this situation, because unlike short-sales or forbearances, loan modifications allow you to both keep your home and quickly begin to make lower monthly payments. Additional, through the loan modification process there are no negative credit or tax consequences, unlike both short-sales and forbearances.

What happens in a Loan Modification Procedure?
We will renegotiate with your lender to come up with new terms for your loan, along with a monthly payment amount which you can actually afford!

What do you need from me to start my loan modification?

To get started on your loan modification our specialists will need just some basic financial data, such as your income, home much you owe on how many properties, and how much you can afford to pay per month. We will then contact your lender and demonstrate that you are unable to afford anything higher than this without risking foreclosure, thus allowing us to renegotiate the terms of you loan to get you a new affordable monthly payment amount.

Are the lenders and banks willing to go through the loan modification process?

Yes, absolutely! With the current turmoil in the real estate market lenders realize that they would lose a great deal of money by trying to sell your home on the open market.

The Loan modification actually benefits not only you the homeowner, by gaining lower monthly payments, but the lender as well, allowing them to not have to foreclose on your home and sell the property in a weak real estate market.

Will I have to meet with the Lender or do any Paperwork?
No, absolutely not. We will take care of everything involved in the loan modification process, from all of the paperwork to negotiating directly with the lender on your behalf. Once you retain our we will take care of everything, allowing you to keep your home, and you will never have to directly deal with your lender again.

What other options are available to homeowners who don’t qualify for Loan Modification?

BK7- The bankruptcy that allows you to discharge (much of, if not all) your unsecured debt. If you meet certain income guidelines, you will qualify to discharge your unsecured debt. You may protect equity in your home within limits. Each state has its own limits often based upon your family status. A CH 7 stops a pending foreclosure, but offers no court resolution.

BK13- The bankruptcy that the courts prefer. It provides for a repayment plan for all or a portion of unsecured debt, generally over 3-5 years. It resolves a foreclosure by providing a means of repayment of past due mortgage payments. A CH 13 also provides for a pay back plan on credit cards, and both your income and home equities are greatly considered. However, there are limits to how much you can owe in secured and unsecured debt.

Forbearance- A process in which the lender agrees not to foreclose on the property as long as the borrower agrees to a payment plan which will reduce the total amount owed. Under this process there will still be high monthly payments, however foreclosure will be stayed while you make your payments.

Short Sale- The lender allows the property to be sold for less that the total amount owed on the mortgage. The bank takes a loss through this process. However you will not be able to keep any proceeds from the sale of your home.

Hard Money Loan- A loan based on the equity of your property.

Short Payoffs- Discounting the loan and paying the lender off, while keeping the property. Great for junior liens.

Cash For Keys - Negotiating with the bank to give you cash to move, and avoid needless lenghty negotiation

Loan Modifications, however are ultimately the best option available to homeowners who can no longer afford to pay their high monthly mortgage payments. A loan modification consists of altering the terms of the loan, by lowering the interest amount and lengthening the term of the loan. In addition your credit report may be upgraded or saved.

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Brooklyn Credit Repair is a Professional Credit Repair Company located in Brooklyn, New York. We specialize in correcting inaccurate or unverifiable remarks on credit reports with experian, equifax and transunion. We serve all boroughs of NY including Bronx, Queens, Staten Island, Manhattan as well as Long Island's Suffolk and Nassau counties. Identity Theft, Late Payments, Collections, Chargeoffs, Foreclosure, Judgements , Bankruptcies, Liens, Inquiries, Credit Consulting, Credit Repair, and Debt Settlement.