Nov 04, 2012 Sean Albert
Assisting the dreamMany families hope to have their own homes some day, and as the job market shows less unemployment nationally, the resurgence in personal wealth has made the demand for private dwellings increase as well. Due to adverse economic conditions in the past, many consumers find themselves in a position where they need to rely heavily on alternative financing to help them get through everyday life. Others are recovering from this status but still find it difficult to gain access to traditional credit options. When these individuals try and obtain a mortgage, they may find themselves repeatedly denied by other companies. However, a report from CEB TowerGroup stated that more consumers are using alternative credit data to help substantiate their ability to repay a home loan. "Traditional credit data and analytics continue to be relevant, but are not sufficient to satisfy the consumer credit reformation of today," said Craig Focardi of CEB regarding the study. He went on to say that lenders of all kinds are coming to rely more on this method of credit checking, as the diversity and individuality of personal credit becomes more intricate. Employing smarter tactics
Despite others seeing signs of recovery, there are still those people who are struggling to avoid foreclosure. Fox Business wrote that those in such situations are using short sales where they cannot get a traditional loan or other form of financing on limited notice. Despite poor financial wellness at the moment, these consumers could have used their utilities bills and other positive payment histories to secure short term loans rather than further damage credit through a short sale and lose their homes.