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Homeowners Need To Be Wary Of Credit Repair Companies

While there are so many homeowners in the Bay State who are struggling with making payments on their mortgage, it may be tempting for these homeowners to try to "erase" delinquencies, judgments, or foreclosures from their credit reports with the help of a "credit repair" company. However, the Boston Herald reports that credit repair companies that make promises to erase problems from credit reports are often scams that take advantage of homeowners.

Under the Credit Repair Organizations Act, companies or individuals who claim to be able to repair consumers' credit reports are not allowed to make "untrue statements" about what they can actually accomplish. They also can't collect money up front. While that may be the case, a Boston real estate attorney can tell you that it still doesn't stop scammers from trying to take advantage of homeowners. Often, these companies try to advertise to homeowners via the internet, direct mailings, and even mortgage loan officers.  

Homeowners are often targeted by these companies because a lower credit score means that homeowners may not be able to qualify for new or refinanced mortgages.

If you are a homeowner who has a lower credit score, just be aware that there is no easy way to build up that credit score. The best way to improve your credit score is to make timely payments and be responsible while using your credit accounts. If you have specific questions about refinancing your mortgage, it may help to talk to a Boston real estate lawyer. For more general information, please visit our Related Resources links.

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