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Published on: January 5, 2016

Pay as You Earn Expanded to ALL Direct Student Loan Borrowers

With the Education Department’s new regulation last month on its Revised Pay As You Earn Plan, or REPAYE, all Direct Loan borrowers can access an income-based repayment plan that caps payments at 10 percent of their income, according to Undersecretary Ted Mitchell.

“This is a quilt – that had one piece missing – made up of the various income driven repayment plans,” Mitchell said. “We’ve now stitched that last piece of the quilt in and the quilt now covers all Direct Loan borrowers.”

Five million additional borrowers, including those who weren’t previously eligible because their debts were older, can now enroll starting in December.

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Published on: December 24, 2015

Dissecting Credit Reports

By Christie D. Arkovich, P.A.

Did you ever wonder why certain items appear on your credit report? The answer lies in a federal statute, 15 U.S.C. 1681c. A consumer reporting agency may not make a report that includes the following items. I’ve bolded some of the more pertinent items that affect our Tampa Bay area Florida clients. Not all creditors report, but when they do, they are supposed to provide an accurate report. Remember whenever settling debt, there are ways to get the debt removed from your credit.

First if they report, we can ask in the negotiations for a trade line deletion. Then all the late pays and the fact the debt was settled for less than what is owed will not be reported any longer. Second, if the debt buyer we are trying to settle with does not report, then we can obtain proof of payment/settlement and our client can then dispute the item. The credit bureaus will return to the original reporting creditor for validation and they will not be able to validate that the debt remains unpaid. Both options will clear the debt from our client’s credit which can help them qualify for a home or a better interest rate on a car for instance.

“(1) Cases under title 11 or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.

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Published on: December 16, 2015

Short Sale Tax Relief Almost Here for 2015 and a Bonus for 2016!!

By Christie D. Arkovich, P.A.

The year-end spending bill agreed to by House and Senate leaders last night includes a provision that restores tax forgiveness for principal reduction or short sales on mortgages. The provision is retroactive to the beginning of 2015 and runs through 2016. Assuming it is signed by President Obama our clients are in the clear once again for this year and for all of 2016! YAY!

Published on: October 28, 2015

Federal Student Loan Collectors May Soon Be Able to Robocall With Impunity Due to New Budget Deal

By Christie D. Arkovich, P.A.

The Washington Post reported yesterday that the latest congressional budget deal includes a provision to let companies collecting federal student loans (or other debts guaranteed by the government) call cellphones using auto-dialers.

The purpose of the bill is to increase communications in an attempt to keep more student loan borrowers current in their debt. However, the unintended consequences are likely to be increased harassment about payments not made, robo calls to relatives, references and co-borrowers and reassigned cell phone numbers. Calls which would no longer be under the protection of the Telephone Consumer Protection Act (“TCPA”).

The proposed amendment is to Section 227(b) of the Communications Act of 1934(47 U.S.C. 227(b), Restrictions on the Use of Telephone Equipment):

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Published on: September 15, 2015

Rebuilding Your Credit to Quality for a Mortgage? – We can help!

By Christie D. Arkovich, P.A.

Do you want to buy a house now but your finances aren’t quite there yet? Underwriting requirements are some of the strictest we’ve ever seen even for those with good credit. Don’t give up! We have put together information on a variety of private lenders who will finance a home with scores as little as 600 or 620 and in as little as one day after foreclosure, short sale, deed in lieu and even bankruptcy!

Many of our clients who are past their financial problems of the past few years (short sale, deed in lieu, foreclosure, bankruptcy, debt settlement etc.) are now wanting to get into a house, particularly while prices are rising and interest rates are expected to start going up in late 2015 and almost certainly 2016. Also tenant demand is very strong and it’s hard to find the right place to rent. Rents are often higher than a new mortgage payment would be for an affordable house bought at today’s prices.

We have many ways we can help such as:

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