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Home Loans - Identity Theft Protection Could Hurt Home Sales
Identity theft has been a hot topic in the news during the last few years. Just a month or so ago, forty million credit card numbers were compromised due to a computer attack on a credit card processor. Consumers are rightly concerned, as it can take years to unravel the problems created when someone's identity is stolen. New legislation in Texas and California, also proposed elsewhere, is designed to protect consumers by letting them put a "freeze" on their credit reports. Those in the real estate industry are worried, however, that doing so may make it difficult for some people to buy homes.
The concept of freezing credit reports is a simple one. Every time someone applies for credit, the lender contacts on of the three main credit bureaus and requests a copy of his or her credit report, which contains the applicant's FICO score. The score, a number ranging from 300 to 850, indicates how worthy the applicant is to qualify for the loan or credit. The new laws allow consumers to "freeze" their credit reports, effectively blocking any attempts by anyone to view his or her credit score. If the score can't be viewed, then credit can't be issued, thus protecting the consumer from fraudulent activity.
The process is a simple one, and can be initiated or canceled with a simple transaction on the Internet. The problem, according to those in the real estate industry, is that this simple security precaution may make it difficult for a consumer who has blocked their credit to buy a home. In many markets, homes put up for sale sell in a few hours or days, and the process of unfreezing a credit report can take longer than that. If a home seller or lender cannot assess a potential buyer's credit rating, then the home sale may be lost to another buyer. True, it is a simple process to unfreeze a credit report, but some consumers may forget that they froze their reports in the first place, or they may forget or misplace their username or password for the Website that allows them to unfreeze their report.
On the surface, the new laws to protect consumers seem to be a good idea, and those in the real estate industry who are concerned may find that their worries are unjustified. This is a case where all parties would benefit from taking the time to see if the laws are effective, and whether or not they actually hurt the real estate industry. In the meantime, anyone considering purchasing a home should be made aware of the ramifications of freezing their credit, as doing so may make it more difficult to purchase the house of his or her dreams.
ęCopyright 2005 by Retro Marketing.
Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation and credit counseling information and HomeEquityHelp.net, a site devoted to information on mortgages and home equity loans.
Escalation Clauses - A Home Buyers Secret Weapon
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Among your many responsibilities as a landlord, the law provides for a warranty of implied habitability. This means that the dwelling must be considered habitable and any known problems must be fixed before you allow a tenant to take occupancy.
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Purchase Your First Home with Confidence
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Saving for a Home
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Unravelling The Real Estate Buying Process in Canada
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Feel At Home Faster After You Move
Moving to a new community can be a great adventure, if you go with the right attitude and a sound strategy for settling-in. Incorporate these tips into an action plan, and you'll stay focused, organized and proactive-just what's needed to put roots down fast.
3 of the 5 Ways Real Estate Can Take Advantage of Blogs and RSS
Earlier this month, Realtor Magazine announced that they would be featuring an article about Tampa Bay Realtor John Mudd and the success he has been having in attracting prospects and media attention with his blog on real estate. Since then, many others in the Real Estate market have been curious about how to implement similar strategies to capture leads in their areas.
Guide To Finding Maui Waterfront Property
Have you ever dreamed of living in a spectacular tropical paradise where you spend your days sitting on a beach watching the waves roll in? Where the air is clean, the climate always warm and your neighbors are always welcoming you with warm smiles and sincere hellos? The place you've always dreamed of is probably Maui. Whether you're looking for a waterfront vacation property, a new place to live and work or are considering options for retirement, purchasing a Maui waterfront property could be the answer to your tropical paradise dreams.
Property Investing Secrets 9
Property Investing: Here Are Two Important Tactics You Must Do When Buying Real Estate Off The InternetYou can purchase property off the internet. The off line fundamentals of property investing apply on line.
Buying To Let Top Ten Tips
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So, you're thinking of purchasing a rental property at the beach. Historically, real estate investments have proven to be a wise investment strategy.
The Many Benefits Of Lease Purchasing
Lease Purchasing affords wonderful benefits and opportunities to sellers, buyers, investors and those who would like to operate a home-based business. Lease Purchasing allows you to control property without ownership which has benefits for all.
Content Ideas for Ads and Brochures When Selling Your Home
Even in this hot real estate market, selling your home requires a bit of marketing effort. Ads and brochures are important and powerful tools.
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