As if competing against other homebuyers in this super hot Havasu real estate market was not hard enough. You might also find yourself in a battle with thieves…in particular, identity thieves. With 1.4 million Americans becoming the victim of identity theft last year (one case for every 15 people), you might not even know your identity was stolen until you apply for a loan. So before you fall in love with a Havasu home, complete some preliminary financial work first. And then protect yourself from becoming a possible target in the future.
Identity Theft and the Havasu Home Buyer
Have I Been Targeted?
First things first. Run your credit report for free at AnnualCreditReport.com. It only takes a few minutes to complete the questionnaire and receive your reports. Legally, you are entitled to one free copy of your credit report from each of the three reporting agencies (Equifax, TransUnion, and Experian) every 12 months. Since creditors may not report your information to each of the three agencies, your credit score varies from company to company. Therefore, you need to make sure each report is as correct as possible so that your score reflects the most accurate information.
Check each report for errors. In particular, concentrate on your payment history as well as your open lines of credit. If you find any (such as late payments, closed accounts, or other erroneous information), initiate a dispute. Annual Credit Repair allows you to do it through their site or you may contact the reporting agency directly. You will need to provide proof of the error when you dispute it.
What to Do If You Spot Fraudulent Activity
Now, if you find errors that indicate identity theft, you need to initiate these steps to protect yourself. First, freeze your credit accounts. While this may seem radical, it does prevent anyone from accessing your accounts. You may unfreeze your accounts when you decide that you want to make a purchase (such as a home loan). And then, when you complete your purchase, freeze your accounts again if you so desire. Next, file a report with the local police department. Just make sure you call the non-emergency number, not 9-1-1. Finally, print out all fraudulent activity on your credit report as well as any evidence you have that disputes these charges so that you can explain your situation to a lender. USA.Gov also provides helpful tips about spotting, reporting, and preventing identity theft.
The Aftermath
Fully rectifying identity theft may take several years. However, do not let that deter you from proceeding with your life. That includes buying a Havasu home. As the bureaus notate a dispute on your credit report, your score changes. Once you see your scores start to improve, you should feel free to continue your house-hunting efforts. Talk to a lender right away and discuss your current situation. They may be able to offer advice to help move your resolution along a little faster. At the very least, they will be aware of what is going on and know how to work with you. Many lenders use automatic underwriting to approve or deny a loan. Unfortunately, identity theft problems continue to show up on credit reports for many years…even when your score actually improves. Therefore, consider asking for manual underwriting until all traces of the theft are removed from your records. That way you can explain your situation to a lender directly, ie “plead your case” if you will. That increases your chances of approval.
Identity theft hurts. It also takes time to completely rectify. If you find yourself a victim of this, take a breath. Be patient. You will get through this. Good luck.
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