| Recently my friends at Liberty Mortgage Company | | | | your name and it wouldn't have the negative |
| sent me an email alert regarding the latest scams in | | | | information that may have been reported under your |
| the credit repair market. The mortgage company | | | | old SS number. The truth is, the Social Security |
| receives applications every day that have some credit | | | | Administration almost never agrees to assign a new |
| issues that could block the path to home ownership. | | | | SS number to an individual who already has a file and |
| Many of the people they talk with think that their credit | | | | number. What these "credit repair" scammers are |
| issues are being repaired. Unfortunately, these | | | | doing is filing with the IRS for an EIN (Employer |
| applicants often have fallen for one of the many credit | | | | Identification Number) under your name. It's also a |
| repair scams that set their traps for well meaning | | | | nine-digit number that looks like a social security |
| home buyers with a few credit problems. | | | | number, but is actually a number assigned to a |
| Mortgage loan qualification requirements are stricter | | | | business. This number is used by the IRS to identify |
| today than in the past - FHA / VA and Conventional | | | | companies for tax payment purposes. |
| Home Loan sources are requiring ever higher FICO | | | | If you fall for this one, the consequences are far |
| scores -- so the average applicant may need to | | | | reaching. By using an EIN as your SS number, you |
| improve their credit report before they can qualify for | | | | change how your income is reported to the IRS. You'll |
| a home loan. With the demand for housing beginning to | | | | find it's a big problem when you retire and the Social |
| grow, it makes a very ripe market for scammers. | | | | Security Administration has no record of your work |
| Most popular credit repair scams promise to wipe your | | | | history. Not only will your social security checks be in |
| credit report clean of all negative information. They | | | | jeopardy, you may find yourself accused of conspiring |
| usually charge an up front fee, sometimes as much as | | | | to commit fraud with possible jail time in your future. |
| $1,500 for their service. Often all the scammers will do | | | | Remember, there is no magic formula to repairing your |
| is dispute all the negative information on your credit | | | | credit score, and no big secrets that only a credit |
| report. This is something you can do on your own for | | | | repair company has access to. Credit score repair is |
| free. | | | | actually a fairly simple process of writing letters and |
| Another "We will fix it" scam for a fee is to tell you | | | | then following up, and it can be done by anyone. The |
| that they will get you a new social security number. | | | | scammers are out there, and they want your money |
| The idea is with a new number most credit agencies | | | | -- so be informed and don't be a victim. |
| would have to start a new file under that number with | | | | |