Avoid Credit Scams

There's an old saying that goes 'desperate times call for desperate measures'. When it comes to repairing your credit desperate times still require a clear head. It may be tempting to give in to some of the scams that are out there but always remember...if it sounds too good to be true, you'd better believe it is!

Some scams to look out for are:

• Loans that require an advance fee. The company guarantees that no matter what your credit history, you will be approved for a loan. The catch? You have to pay a fee before they process the loan. The fee ranges anywhere from $100 to several hundred dollars. Reputable lenders do not approve credit without knowing what they are getting themselves into. They also don't charge fees in advance. These companies often use 900 numbers (which results in charges to your phone bill), direct mail, radio or local tv ads. They may also use a courier service to deliver in order to avoid prosecution by the U.S. Postal Service.
• Companies that offer to repair your credit. No one can remove information from your credit history, unless it is incorrect. Quite often, the companies charging outrageous fees to repair you credit are not doing anything you couldn't do yourself for free. If you do elect to use a credit repair company, you should not have to pay for services up front. You should be advised of your legal rights and how you can repair your credit on your own for free. Credit repair companies should never suggest that you create a new credit identity; this is illegal and you may be subject to prosecution.

Repairing one's credit is not difficult. It just takes a genuine desire to take the necessary steps to attain a good credit rating. Being a newer agent, most of my experience is with "credit challenged" clientele. Through working with people with less than stellar credit, I have learned a thing or two about getting back on the right track. I'd be more than happy to share my knowledge with anyone who needs some help.

Types of Agency

There are different types of agency, or representation in a real estate transaction. Designated representation means that the parties to the transaction (buyer and seller) are represented by the same brokerage, but each party has a different agent in that brokerage. For example, Ricky's Rockin' Realtors has a listing that Billy Buyer is interested in purchasing. Billy calls the brokerage...Ricky's Rockin' Realtors and asks to see the house. Andy Agent takes Billy to see the house and they sign an agreement to work together. Billy likes the house and decides to make an offer. The offer is submitted to Sammy Seller's agent...Lizzy Lister. Because Andy and Lizzy work for Ricky's Rockin' Realtors, and they each represent a party in the same transaction, they are considered Designated agents.

Dual representation means that both parties to the transaction are represented by the same agent. So if Billy Buyer contacted Lizzy Lister directly to see the home AND Billy Buyer and Sammy Seller agree that it's OK for Lizzy to represent both of them, Lizzy would be a dual agent. The difference between "regular" agency and dual agency is that Lizzy would act more as a facilitator. Lizzy could explain any part of the contract/transaction that Billy and Sammy didn't understand, but she could not divulge information about the transaction to either party (without consent), nor could she negotiate for either party.