Posted by mypurple on June 11, 1999 at 19:40:08:
I got the course awhile ago… the chapter on credit repair is not really a “real estate technique”; he merely explains how somebody with no credit or bad credit can put say $500 or $1000 in a 6 month or 12 month bank CD, and use that CD as collateral when he goes back to the same bank and ask for a SECURED loan of $500 (or $1000). He then just sits on the money, basically, for the sole purpose of making timely payments on the loan. After the loan term is over, this bank has a solid good credit record of this guy. Maybe his next move would be to ask for an UNSECURED loan of $1000, and now because the guy has a good credit history, he probably won’t be turned down. Then after prompt payment of that loan, he snowballs the process until he’s in mortgage territory. So this process of credit repair is exclusive to real estate, its basically what any consumer credit repair agency will tell you to do…and the process can take months and even years before the person can get the financing he needs for real estate…but it is possible.