Credit & Lending

A:

A mortgage is a legally binding contract, so it is not possible to remove a name from the loan documents until the mortgage has been paid in full. According to the San Francisco Gate Home Guides, the mortgage loan can be refinanced in the name of the person who wishes to keep ownership of the home, or the property can be sold to settle the debt.

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  • How Can You Raise Your Credit Score Fast?

    Q: How Can You Raise Your Credit Score Fast?

    A: According to Forbes, some ways to raise a credit score quickly include raising credit limits, keeping accounts open and paying bills on time. Increasing credit limits and keeping accounts open lower a consumer's balance-to-limit ratio, an important ratio when calculating credit scores, according to Experian. Paying bills on time is important because timely payments directly determine a third of the credit score.
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  • How Do You Check the Status of a Credit Card Application?

    Q: How Do You Check the Status of a Credit Card Application?

    A: In some cases, credit card applications completed online result in an instant credit approval. Other times, approval requires manual review by a bank employee. The procedure for determining a credit card application status varies from bank to bank.
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  • What Is Pre-Approval?

    Q: What Is Pre-Approval?

    A: Pre-approval means a lender is ready to make a customer a loan or extend some other type of credit based on information the customer provided or that the lender retrieved from a credit reporting agency. Pre-approval is not usually a guaranteed approval; instead, it is an initial creditworthiness evaluation.
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  • What Are Prox Terms?

    Q: What Are Prox Terms?

    A: Prox is short for the Latin term "proximo mense" and means in the next month. Prox terms is an invoicing agreement that requires the receiver of a good or service to reimburse a business within a month.
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  • How Do You Write a Letter for Explanation of a Bankruptcy?

    Q: How Do You Write a Letter for Explanation of a Bankruptcy?

    A: The purpose of a letter of explanation of a bankruptcy is to explain to a potential lender the extenuating circumstances for an unfavorable credit history. These can include loss of a job, medical problems, family member deaths and other circumstances that are unlikely to reoccur. A combination of these credible excuses sometimes help reduce the waiting period for obtaining a new mortgage after bankruptcy or foreclosure, according to Innman News.
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  • Is 644 a Good Credit Score?

    Q: Is 644 a Good Credit Score?

    A: According to Credit.org, a credit score of 644 is not considered a good credit score. A score that ranges from 620 to 680 is categorized as an acceptable credit score.
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  • What Is the Difference Between Credit and Debit?

    Q: What Is the Difference Between Credit and Debit?

    A: The difference between credit and debit, relating to a bank card, is that credit allows a purchase without immediate funds based on the customer's trusted and proven ability to pay, while debit is an actual debt recorded in an account, as defined by Dictionary. In bookkeeping and accounting, a credit is a payment to an account, and a debit is a debt on an account, according to Bookkeeping Basics.
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  • What Is a Renter Credit Check?

    Q: What Is a Renter Credit Check?

    A: A renter credit check is when a landlord checks a person's credit report and score to determine if he should rent a property to the potential tenant. A renter credit check is often the only way a landlord can sort reliable tenants from unreliable tenants.
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  • What Happens If My House Is Repossessed?

    Q: What Happens If My House Is Repossessed?

    A: If a house is repossessed by the mortgage company, it is usually sold through an auction or a real estate agent. Depending on both the mortgage company and the state, the former owner may have the opportunity to redeem the property. If the home sells for less value than the outstanding mortgage, the former owner may be sued by the lender for the difference or have the debt forgiven.
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  • Can I Give My House Back to the Bank?

    Q: Can I Give My House Back to the Bank?

    A: According to the Federal Trade Commission, a person facing foreclosure can give his house back to the bank with a deed in lieu of foreclosure. In exchange for signing over the deed to the home, the bank forgives the debt owed on the home.
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  • What Is a Promissory Note?

    Q: What Is a Promissory Note?

    A: A promissory note is a written financial record of the details surrounding a loan between two parties. It encompasses every aspect of the financial agreement and serves as documentation and proof of the transaction.
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  • How Should You Write a Commitment Letter?

    Q: How Should You Write a Commitment Letter?

    A: A commitment letter is written in a clear, concise and diplomatic tone. All essential information must be reviewed prior to writing. The letter outlines all previously agreed terms between the parties involved.
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  • What Is a Pending Charge?

    Q: What Is a Pending Charge?

    A: A pending charge on a bank account, credit card or debit card is one that has not fully been applied to the account yet, according to Wells Fargo. A pending charge may also be referred to as a pending transaction.
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  • How Long Does Eviction Stay on a Credit Report?

    Q: How Long Does Eviction Stay on a Credit Report?

    A: Financial Scams notes that an eviction can stay on a credit report for up to seven years. Typically the landlord does not send the information to the credit bureaus. When a landlord evicts a tenant through court action, the eviction appears on a credit report as a public record.
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  • How Many Times a Day Can a Debt Collector Call?

    Q: How Many Times a Day Can a Debt Collector Call?

    A: According to the Consumer Financial Protection Bureau (CFPB), federal law does not define a specific number of times a debt collector is permitted to call, but the amount must not be enough to qualify as harassment. This rule extends to family and friends of the debtor.
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  • Where Can You Find Lists of Free Student Scholarships?

    Q: Where Can You Find Lists of Free Student Scholarships?

    A: There are many online lists of free student scholarships, including ones maintained by the Consumer Fraud Reporting Bureau, the list of free minority scholarships at Black Excel and the lists hosted on Scholarship Experts. These sites maintain different lists of scholarships that are organized by their accessibility and by the ways in which they apply and do not apply to bodies of students, according to the websites themselves.
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  • What Is the Average Monthly Car Payment?

    Q: What Is the Average Monthly Car Payment?

    A: According to Experian Automotive, the average monthly car payment for a new car in late 2013 was $471. For consumers purchasing a used vehicle, the average monthly car payment for the same period was $352.
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  • What Is the Mortgage Underwriting Process?

    Q: What Is the Mortgage Underwriting Process?

    A: The mortgage underwriting process is the final, extensive review phase of a home loan application before a lender approves and funds a mortgage. The homeowner typically has little to no direct contact with underwriters as their reviews are performed behind the scenes.
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  • How Much Debt Does the Average American Have?

    Q: How Much Debt Does the Average American Have?

    A: On average, Americans have more than $15,000 in debt, and that is just credit cards according to Debt.org. That doesn't include mortgages or car loans, which significantly increase that number.
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  • Where Can I Get Help for Finding Free Grants at No Cost to Me?

    Q: Where Can I Get Help for Finding Free Grants at No Cost to Me?

    A: According to USA.gov, grants that come at no cost to the applicant can be applied for and potentially received from the federal government, from states and from local communities. The federal government typically provides funds to local agencies that then distribute the grants for particular purposes.
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  • How Long Does It Take for Bad Credit to Go Away?

    Q: How Long Does It Take for Bad Credit to Go Away?

    A: Negative accounts on a credit report are usually removed after 7 years; however, negative accounts pertaining to bankruptcies generally remain on the credit report for 10 years. The time starts when the account is first listed as past due, according to Equifax.
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