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Check inside the handpicked articles, trivia, tips and offers just for you and your loved ones!

AMAZING

Dear Friend
Answer your credit questions. Page 2

Health

Healthy Living Tip. Page 3

Trivia

Turkey. Page 3

Elite Credt Care 018 156Th Ave NE Suite 100, Bldg. F. Bellevue, WA 98007>

2013

Credit News is a monthly newsletter from your friends at Elite Credit Care Dear Friend, We hope you enjoy this months newsletter. It is a great time to spend outdoors with your family! Respectfully, Attila Thiry

Credit News
The Newsletter Thats Both Informative and Fun!

Volume 1, Issue 26

Visit us on the web... www.EliteCreditCare.com | 877.604.4489

Contact Us Now To Get A Free Consultation! (Valued at $200) |1.877.604.4489 Answers to the trivia:

3: The outside!. 10: Enough drumsticks for Thanksgiving!. 2: Fowl weather!. 5: To prove he wasnt chicken!. 9: From a gobble-let!. 6: Because he had the drumsticks!. 7: To hatchet!. 4: Wing! Wing!. 1: He got the stuffing knocked out of him!. 8: By bird class mail!.

Fannie Mae to Fix Short Saleto-Foreclosure Problem in November

By Attila Thiry Several months ago many credit repair and mortgage professionals played an integral part in identifying a problem with how short sales were being interpreted from consumer credit reports. Short sales, of course, have become a more common method of a homeowner disposing of an underwater mortgage loan without defaulting on their loan. The problem with short sales is that the credit reporting industry was not ready for their popularity and Fannie Mae wasnt ready to properly interpret them. And in this case one plus one equaled disaster for consumers who thought their short sale was a ticket to better treatment the next time they applied for a mortgage loan. Fannie Maes software has been interpreting and therefore treating short sales from credit reports as if they were foreclosures. This is clearly a colossal problem because short sales and foreclosures arent remotely similar events. A short sale is an actual sale of the home to another person but for an amount insufficient to cover the outstanding loans secured by the home. A foreclosure is the legal process where by the mortgage lender takes back the house to help satisfy a defaulted mortgage loan. Because short sales are a relatively recent phenomenon there is no clear way to report them to the credit reporting agencies. None of you have ever seen the words short sale on a credit report because its not possible to add them. A short sale is supposed to be indicated on a credit report by using whats referred to as a Special Comment Code. There are two such Special Comment Codes that can be used when a short sale occurs. The first is the code CM, which indicates that the collateral has been released by the creditor but that there is still a balance due. This is used when the former homeowner is obligated to pay the deficiency balance left by the short sale. The second Special Comment Code is AU, which indicates that the account has been paid in full for less than the full balance, which means it has been settled. This code is used when the deficiency balance is forgiven. In either case, neither of these means foreclosure
Continued on back page

Fannie Mae to Fix Short Sale-to-Foreclosure Problem in November

continued from page 1 yet somehow Fannie Maes software read it as such. And while the impact of a foreclosure incident isnt any worse than the impact of a short sale (as reported as a settlement) on your credit scores, the impact is certainly much worse outside of the credit scoring environment. Apparently Fannie Mae kicks out potential borrowers with a notation of foreclosure on their credit reports for up to seven years. But, how can a foreclosure that doesnt actually exist cause a consumer to be denied for a Fannie Mae loan because of a foreclosure? It doesnt make any sense. The answer is thisthere is no foreclosure on the consumers credit reports. This is one of

the rare circumstances when the credit bureaus did nothing wrong. And, the company that furnished the mortgage information to the credit bureaus also did nothing wrong. This isnt an issue of incorrect credit reports or a rouge data furnisher. This is simply an issue with how Fannie Maes beer goggles are causing it to interpret a short sale. Having said all of that, apparently Fannie Mae is hard at work on a fix that will solve the problem and actually treat short sales like, well, short sales. The software fix will become live sometime on November 16th as reported by MarketWatch. Does that solve the problem sort ofbut not really. Interest rates on mortgage loans were at one point as low as 3.25 percent for a conventional 30 year fixed rate loan. Today the average rate for the same mortgage loan is almost 4.1 percent. And, in many parts of the country home prices have either fully recovered to pre-recession values

or are darn close to it. Point being, if you were unable to buy a home because of this Fannie Mae problem several months ago then you wont get a 3.1 percent mortgage and you wont find the same house for the same price. Im sure many class action attorneys are watching this very closely.

Also in this issue

This Month in History pg 2 Internet Tidbit: TheWirecutter.com pg 2 By The Numbers: Holiday Travel pg 3 Quotes to Live By pg 3 Quotes to Laugh By pg 3

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We hope you enjoy this months newsletter. Check out for the EXCLUSIVE content that we have put together just for YOU! Also visit us at: EliteCreditCare.com

This Month in History:

November 3, 1956 The Wizard of Oz was broadcast for the first time on television, showing to 45 million viewers. November 8, 1895 X-rays were discovered by Wilhelm Roentgen. November 10, 1951 Area codes were used for the first time in the United States, allowing direct-dialed, rather than operator-assisted, calls. November 27, 1940 Bruce Lee, actor and martial artist, was born in San Francisco, California.

Dear Friend
Dear Friend Protecting Your Credit Scores From Your Holiday Spending Dont look now but the holiday shopping season officially starts in just a few weeks. The statistics are vague on the amount well spend during the 2013 holiday season but if the pattern holds true many of us will charge more in the last several weeks of the year than the prior 10 months. Picking the right credit card can not only help diffuse the cost of shopping but can also protect your credit scores. Option 1 A newly opened retail store credit card. This is a pretty bad idea in my mind. Retail store cards are notorious for having very high interest rates and very low credit limits. That means even modest purchases can cause a spike in your balance to limit ratio and lower your scores. And, if you fell for one of those save 10% on your purchases by opening a new card offers youll subsidize your discount by revolving a balance even one month because of the high rates. Finally, retail store credit inquiries are among the most damaging types. They are treated exactly like credit card inquiries and do not get the same treatment as auto, mortgage or student loan related inquiries. Option 2 An existing retail store credit card. Ok, by using your existing retail store card you avoid the potential damage of opening a new one. Congrats! But, you still have the same issue of low limits and high interest rates. Option 3 A newly opened general use credit card (Visa, MasterCard, Amex, Discover). You run into the same problem with the inquiry but you may avoid the issues with having a lower credit limit, but only if you get assigned a healthy line. And, because youve opened a new card you may lower your average age of trade to a point where that can lower your scores. Option 4 Use an existing general use credit card. I think this is the best idea and heres why. Youre not opening a new account so you completely avoid any problems caused by the new credit inquiry and the newness of the account on your credit report. And, theres a possibility that the limit is high enough that you wont have to worry about your scores being negatively impacted by the balance incurred by your shopping. And while credit card interest rates are rarely good, at the very least youll likely have a card thats much more competitive than a retail store card.

Trivia Quiz: Turkey

1. What happened when the turkey got into a fight? 2. What do you call it when it rains turkeys? 3. Which side of the turkey has the most feathers? 4. What sound does a turkeys phone make? 5. Why did the turkey cross the road twice? 6. Why did they let the turkey join the band? 7. Why did the turkey sit on the axe?

Is Missing a Loan Payment Worse Than Missing a Credit Card Payment? Im often asked if theres a difference in the score impact if you miss a payment on one type of credit obligation versus another. The most common scenario is whether or not a missed mortgage payment is worse for your scores than a missed credit card payment. This makes sense as an assumption because missing a mortgage payment is likely a much higher dollar amount than a missed credit card payment. Having said that, were focusing specifically on two thingsthe incident and the past due amount. From an incident perspective a missed payment is a missed payment is a missed payment. So, it doesnt matter where the late payment was made. And, if the account becomes so delinquent that it crosses the line between whats referred to as a minor derog and a major derog it also doesnt matter where those serious late payments were made. What is important and what can cause a variance in the impact to your credit scores is the amount past due on the account. When you miss a payment on a credit card youre only past due the minimum payment amount. When you miss a payment on a large loan, such as a mortgage, youre past due the entire payment. And, if youre late several months in a row (pre-default) you can easily find yourself having thousands of dollars of past due debt. There are measurements within credit scoring systems that consider the amount past due. And while its certainly bad to have any past due amount, its going to be worse for your scores if you have a larger amount rather than a smaller amount.

8. How do you send a turkey through the mail? 9. How does a turkey drink wine?

10. What do you get when you cross a turkey with an octopus?

Answers on back page

Internet Tidbit
If you are in the market for a tech or electronic product, stop by TheWirecutter.com. This free review site simply shows you the best of the best in each category of tech products listed. You dont have to wade through lists of products, giving you a chance to avoid information overload. Each review includes an in-depth article explaining the reviewers choice. The website prides itself on staying up-to-date with new releases of products too, making it a great starting point for all your tech shopping.

By The Numbers:
Holiday Travel

Health & Wellness

Healthy Living Tip

If you struggle with your weight, you may want to take a look at your sleep health.
By Attila Thiry

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- About 91 percent of all long-distance holiday travel is by personal vehicle. Only six percent of holiday travel is by air. - Over 93 million travelers venture at least 50 miles from their home each end-of-year travel period. - Travelers journey an average of 706 miles round-trip over the end-of-year travel period. - Thanksgiving Day is the most dangerous day of the year to travel, with an average of over 500 people killed in traffic accidents that day. - The Wednesday before Thanksgiving is the busiest travel day of the Thanksgiving weekend, with 45 percent of travelers on the road that day. Source: U.S. Department of Transportation, AAA

Studies have found a link between too little sleep and weight gain. Lack of sleep can cause an increase in hunger hormones, and daytime fatigue can lead to less exercise. To set your metabolism in better working order, be sure to get about 7.5 hours of sleep each night. While sleeping more does not cause weight loss, getting adequate sleep helps keep some of those extra pounds off.

Quotes to Live By:

- Dreams are renewable. No matter what our age or condition, there are still untapped possibilities within us and new beauty waiting to be born.

Quotes to Laugh By:

- Thanksgiving. Its like we didnt even try to come up with a tradition. The tradition is, we overeat. Hey, how about at Thanksgiving we just eat a lot? But we do that every day! Oh. What if we eat a lot with people that annoy the hell out of us?

Dale Turner

Jim Gaffigan

2 November 2013 | Elite Credit News

EliteCredit News

| November 2013 3