FHA Credit Guide LInes - Credit Counseling and Mortgage Credit Part V

DEROGATORY CREDIT CAN’T STOP YOU! COLLECTIONS, CHARGE OFFS, JUDGEMENTS, TAX LIENS AND LATE PAYMENTS CANNOT STOP YOU FROM BUYING NOW

10 PART SERIES

CREDIT COUNSELING AND STATUE OF LIMITATION

PART V

Eric Lawrence Frazier, MBA President|CEO|Broker CaLDRE 01143484 | NMLS 461807 800-401-8994 ext. 703 The Power Is Now Inc. CAldRE 1980407 | NMLS 1435243

INTRODUCTION ERIC LAWRENCE FRAZIER, MBA President | CEO | Broker CALDRE 01143484 | NMLS 461807 THE POWER IS NOW INC. CALDRE 1980407 | NMLS 1435243 MEDIA COMPANY ESTABLISHED 2009 Radio | TV | Magazine | Events | Mortgage Services | Real Estate Services ADDRESS: 3739 6th Street Riverside, CA 800-401-8994 ext. 703 eric.frazier@thepowerisnow.com 4

PRESENTATION DISCLAIMER The Power Is Now Mortgage Services is a Mortgage Brokerage licensed by the State of California Bureau of Real Estate (license #1980407) and the National Mortgage License System and Registry (license #1435243), and is a division of The Power Is Now Inc. (license # 01980407).

The Power Is Now Inc. is not affiliated with any state or federal agency. The Power Is Now Real Estate Services is also licensed by the State of California Bureau of Real Estate (licensed #01980407), and is a division of The Power Is Now Inc. The Power Is Now Inc., is an Equal Housing Lender.

Our corporate office is located at 3739 6th Street Riverside, CA 92501. Our Telephone and Fax number is 800-4018994. Eric Lawrence Frazier MBA, is a California licensed Loan Originator (NMLS license # 461807), and a licensed Real Estate Broker (CA Bureau of Real Estate license #01143484).

Restrictions may apply to all loan programs. The Information and/or data is subject to change without notice. All loans are subject to credit approval. The information is not a commitment to lend or extend credit. Not all loans or products are available in all states. The Power Is Now Mortgage Services and Real Estate Services are A Division of The Power Is Now Inc., and are only licensed to conduct business in the State of California.

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YOUR RESOURCE FOR REAL ESTATE WE ARE PROUD SPONSORS OF THE OC REALTIST CHAPTER OF NAREB

THE POWER LUNCH

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MISSION The mission of the Power of Now Inc., is to inspire, educate, and empower real estate professionals, and consumers to build wealth through real estate with information, services and support that will give them the power to act now for their future.

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VISSION The mission of the Power of Now Inc., is to inspire, educate, and empower real estate professionals, and consumers to build wealth through real estate with information, services and support that will give them the power to act now for their future.

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OUR COMPANY MANTRA

WE ARE AT OUR BEST AND WE MAXIMIZE OUR SUCCESS WHEN WE ACT NOW. OUR POWER IS NOW! 18

OUR COMPANY SLOGAN

WE MAKE HOMEOWNERSHIP DREAMS A REALITY

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INTRODUCTION As a Mortgage Brokerage, The Power Is Now Mortgage Services has access to many lenders that offer programs for first time homebuyers, move up buyers, investors, churches, non-profits and foreign nationals. We are a full service mortgage brokerage.

www.applytobuynow.com www.neverleaseagain.com

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DEROGATORY CREDIT CAN’T STOP YOU! COLLECTIONS, CHARGE OFFS, JUDGEMENTS, TAX LIENS AND LATE PAYMENTS CANNOT STOP YOU FROM BUYING NOW

10 PART SERIES

10 PART CREDIT SERIES

Collection Accounts

Judgements Tax Liens

Bankruptcy 7 and 13

Foreclosure and Short Sales

Credit Counseling Mortgage Credit

Debt and obligations

Divorce and Separation

Student Loan Debt.

Strategies to improved your credit scores.

Strategies to Save Money to Prevent Credit Issues

CREDIT COUNSELING AND STATUE OF LIMITATION

PART V

AGENDA

Credit Counseling Statute of limitations

CREDIT COUNSELING

DEBT STATISTICS In December 2018, U.S. consumer debt rose 5 percent to $3.01 trillion. That surpassed last month's record of $3.994 trillion. Of this, $2.966 trillion was non-revolving debt, and it rose 6 percent. Most nonrevolving debt is education and auto loans. In December 2018, school debt totaled $1.569 trillion and auto loans were $1.155 trillion.

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DEBT STATISTICS Credit card debt totaled $1.045 trillion, increasing 2 percent. It exceeds the record of $1.02 trillion set in 2008. But credit card debt is only 26 percent of total debt. It was 38 percent of total debt in 2008. The Federal Reserve reports on consumer debt each month. Here are historical statistics by month since 1943.

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DEBT STATISTICS Statistics

You get a free credit counseling session They work with the Creditor to come up with a plan.

Reduce your interest rates and lower your payments Prevent late fees and over the limit fees Pay off your debt in most cases within 5 years Consolidate your unsecured debt into one easy monthly payment

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DEBT MANAGEMENT PLAN PROGRAM 5 year plan possibly more in rare cases

Low fees: $5.00 per account, Up to $39.00 dollars to set up an account.

You make one payment to the Credit Counseling Agency and they disperse it to the creditor on your behalf. One payment per month.

DEBT MANAGEMENT PLAN REQUIREMENTS You must be able to budget the plan payment based on your current income and expenses. Not Everyone qualifies for the program

They set up the Debt Management plan that make sense for you They send the proposal to the creditors Creditors will verify that Credit Counselors have done there job correctly

DEBT MANAGEMENT PLAN REQUIREMENTS They approve the plan and you start making payments to them

If the accounts are collections they will stay in collections

Some revolving and installment accounts not charged off or in collections can be reset after 3 or more payments made as agreed

CREDIT COUNSELING Participating in a consumer credit counseling program does not disqualify a Borrower from obtaining an FHA-insured Mortgage

CREDIT COUNSELING REQUIREMENTS One year of the pay-out period has elapsed under the plan The Borrower’s payment performance has been satisfactory and all required payments have been made on time the Borrower has received written permission from the counseling agency to enter into the mortgage transaction

So what is the challenge?

None really it just depends.

STATUTE OF LIMITATION

WHEN DOES THE STATUTE OF LIMITATIONS START RUNNING? The statute of limitations clock starts ticking when a cause of action “accrues.” This usually means when you “breach,” or break, the contract by not doing something you agreed to do, such as missing a payment.

STATUTE OF LIMITATIONS A statute of limitations is a law that tells you how long someone has to sue you. In California, most credit card companies and their debt collectors have only four years to do so. Once that period elapses, the credit card company or collector loses its right to file a lawsuit against you. However, there are certain things that you or the creditor might do that could reset or extend the statute of limitations. In order to avoid giving the credit card company more time to sue you, it’s important to understand how the statute of limitations works in California.

WHEN DOES THE STATUTE OF LIMITATIONS START RUNNING? The statute of limitations clock starts ticking when a cause of action “accrues.” This usually means when you “breach,” or break, the contract by not doing something you agreed to do, such as missing a payment.

WHEN DOES THE STATUTE OF LIMITATIONS START RUNNING? In California, the statute of limitations may start running on any one of these three events:

the due date of your missed payment (this is the most likely starting date)

the date of your last purchase

the date of your last payment

WHEN DOES THE STATUTE OF LIMITATIONS START RUNNING? In most cases, the statute of limitations calculation starts when your first missed payment becomes due. In some cases, however (the details of which are beyond the scope of this article), the statute begins running on either the date of your last purchase or when you made your last payment. Since these dates often occur close together, in most cases, it doesn’t make a difference. If, however, using one of these dates causes the statute of limitations to expire before your credit card company filed its lawsuit, it may be worthwhile to contact legal counsel to see if that start date applies to your situation.

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WHEN DOES THE STATUTE OF LIMITATIONS START RUNNING? Your credit card company gives you additional time to pay. If your credit card company gives you additional time to make your payment, this might extend the statute of limitations by delaying its start. For example, if you miss a payment on January 1, your creditor may extend your payment due date to April 1. Even if you never make that April 1 payment, the creditor could later argue that the additional time it gave you to pay extended the start date of the statute of limitations to April 1.

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WHEN DOES THE STATUTE OF LIMITATIONS START RUNNING? Your credit card company gives you additional time to pay. If your credit card company gives you additional time to make your payment, this might extend the statute of limitations by delaying its start. For example, if you miss a payment on January 1, your creditor may extend your payment due date to April 1. Even if you never make that April 1 payment, the creditor could later argue that the additional time it gave you to pay extended the start date of the statute of limitations to April 1.

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WHEN DOES THE STATUTE OF LIMITATIONS START RUNNING? Reviving the Statute of Limitations

You make a payment after not paying for a period of time

• With credit card contracts, it is normal to make periodic payments. Because of this, you have to be careful that you don’t reset the statute of limitations period without meaning to.

• Once you stop paying, the statute of limitations begins running. If, however, you make a payment down-the-road, the statute of limitations resets to zero.

WHEN DOES THE STATUTE OF LIMITATIONS START RUNNING? You make a new promise to pay in writing • After the statute of limitations expires, the credit card company may ask you to sign an agreement promising that you will pay the debt. You do not have to do so (and rarely would you want to). But if you do sign such an agreement it creates a new contract that obligates you to repay the debt. The statute of limitations on the old agreement is no longer relevant. If you default on a payment under the new contract, the statute of limitations begins running from that date.

WHEN DOES THE STATUTE OF LIMITATIONS START RUNNING? You waive the statute of limitations in writing

• Before the statute of limitations runs out, the creditor may ask you to sign a document extending it for an additional period. If you sign such a document, the creditor gets additional time to sue you. There are limits, however, on the length of the extension, which is usually four years.

CREDIT COUNSELING AND STATUE OF LIMITATION

PART V

DEROGATORY CREDIT CAN’T STOP YOU! COLLECTIONS, CHARGE OFFS, JUDGEMENTS, TAX LIENS AND LATE PAYMENTS CANNOT STOP YOU FROM BUYING NOW

10 PART SERIES