Bad credit is not a life sentence, but just how do you go about repairing your credit score? Well, sit back as I discussed how to rebuild and repair your credit with James Lee from the Phenix group. Now…
Hey y’all. Abby Husbands here. I’m a realtor in Austin, Texas, & today I’m going to be talking with James Lee from The Phenix Group. They are an amazing credit repair company based out of Fort Worth, Texas. Tell us a little bit about the Phenix Group and what services do you offer for your clients?
We are an aggressive alternative to the simple dispute process. So the thing that really differentiates us from the majority of companies in the industry is that we have attorneys and so what we can do with these attorneys is leverage a whole bunch of different consumer laws, both federal and state consumer laws that get violated all the time, every single day, really in the collection practices. And then also the reporting practices of collection agencies and defaulted creditors. Oh yeah. We leveraged the laws to get those types of accounts removed, which then causes the scores.
Okay. So how are you guys different from other credit repair companies? Because I’ll just say being in real estate and sending my clients too. Some companies in the past it’s like they do pretty much nothing for them so that a few months later they’re still in the same boat or worse than they were when we first started. So how are you guys different?
A lot of those companies that one of the companies only engage at the bureau level, which is that simple dispute process. Number One, thirst, premade templates that we can all go online and print out, fill out, shoot off to the bureaus and just cross our fingers that something happens, you know, and so if you hire a company to do just a simple dispute process, you’re pretty much hiring somebody to do something for you that you can do for free on your own. And so yes we engage at the bureau level but where we separate ourselves in the actual process again is what the attorneys but with the attorneys we engage at the collection agency level and then also been defaulted creditor level. So this is actually getting to the root of the account. This is where you really get the aggressive deletions and also because of this we can have our out in six months or less all roots back to engaging at that collector and defaulted creditor level.
Okay. So say someone has a medical bill that they’ve defaulted on and it’s gone to a credit agency, you guys can help them pay it off and get that removed from their credit. How does that work?
Yeah, it’s not so much having them pay it off, it’s taking the attorneys and it’s been engaging at that collection level and then leveraging the different consumer law step given violated all the time. And so as we find these different consumer laws that are getting violated in the collection practices and then again also the reporting practices that allows for these accounts to get permanently deleted. And so that’s, that’s where we get the deletion.
So say I have a client that comes in and they have like a 550 credit score and I send them to you guys. Walk us through just a short process of how you guys go about helping them rebuild or repair their credit.
Yeah. Yeah. So the first conversation that I’ll have, we’ll have somebody is really just to kind of get a feel for the entire situation. Right? And kind of introduce a little bit of our program and our process, get a feel for the type of situation that they’re in. You know, are we coming up against a of least we need to be out of a rental property or an apartment complex within a certain timeframe?
what are we trying to go after? Are we trying to go fha? Are we trying to go conventional or we’re trying to go va because that also helps me understand minimum qualification markers on my end. This conversation is really just to get a feel for what we’re coming up against. After we have that conversation, I will then go and do a thorough analysis on their credit report, preferably one that the lender has pulled. That way we know exactly what, what needs to take place in order to get qualified for the loan. And so let’s just say hypothetically we’re going FHA. I, well with a lot of lenders, the mid score minimum is a five baby, right? But I also know that if we can get it to like a six slash 26 slash 40 range, so much, so much less hoops to jump through. It makes this whole home buying process just that much easier, you know?
And so I’m taking that into consideration. And then I start to look at the types of accounts that are reflecting on the credit report. I start to see how the reporting, what types of accounts that they are, I start to get a good feel for the type of stuff success that we would have on these accounts. And then if we have this type of success, is that going to get abby where she needs to be to qualify for this loan and beyond, you know. And so after I do the analysis, I’ll call the client back again and we’ll have consultation and the consultation will go really one of two ways. The first way you could go is, hey, abby, you know, you’re not a good candidate for the program. Just because I don’t feel good about the success that we would have, you know, here’s why. Here’s what I would suggest moving forward. I’ll have some type of suggestion, some type of advice that will hopefully keep you on the path of, you know, clean up your credit and then eventually purchasing a home if that’s the goal. But again, we won’t offer a program just because we don’t feel good about the success. Awesome.
Is there a fee associated with this?
Yes. Everything is completely freed up until we actually didn’t work. So the consultation is completely free to credit report analysis is completely free. Where the cost of service comes into play is if somebody is a good candidate for the program, meaning again, that we are confident in the success that we would have on their particular case. Um, and so in that case, the cost of service boils down to what’s the work that has to be done? How many collection accounts are we going after? How many charge off accounts, how much negative debt are we engaging? When I say negative debt, I’m not talking about a car note or maybe credit card balances, anything like that. When I say negative debt, I’m just talking about accounts that are in collection status or charged off. So all of that is taken into consideration when it comes to cost.
Okay, perfect. Perfect. About how long does it take? I know that it’s like how much is a red car, but about about like what’s, what do you see for your clients? About how long does it take, how long does it take?
The maximum amount of time that they’ll be in the program is six months. Perfect. That’s just that is due to the aggressiveness and the efficiency of our attorneys being able to leverage these laws, having that bark of the attorney. Some people we can get out of the program and two months, three months, four months if the case by case scenario, but again, six months or less and they’ll be ready to buy.
Awesome. How quickly or how often do you update your clients as their progress? Because I’ve heard in the past before I started working with you guys that they virtually here nothing,
right? Yeah. I hear that all the time when I first started talking with new loan officers are realtors. That’s one of the first questions that they ask is, you know, I refer to x, Y, Z and then I never hear back. I never know what’s going on with my referral or anything like that. Yeah, and so that’s something that we’ve really focused on as a company and, and just kind of reinventing within the industry and so again, I’m going to probably say this a million more times, but because of the aggressiveness of the attorneys, uh, we get results every 45 days, every 45 days I’m having a followup call with the client and we’re going over what’s been deleted, what’s left to go after, how the scores have fluctuated, all that good stuff. And so after I have that follow up call with the client, I’ll then turn around and have the same follow up call or email or whatever is preferred with the realtor and the loan officer that’s involved in this whole home buying process just so everybody can keep their pipeline update and we can go get this houses possible.
Right? And I can vouch for that because you’re amazing at keeping me in the loop, keeping my lender in the loop so that we know exactly where we are in the whole process and you guys do have an amazing plan that you put in place for your clients and so it’s awesome. Well thanks so much, James, and just for everybody out there, I’m going to leave James’ information in the comments section below, so if you have any questions for him you can reach out to him directly. Um, and then we’re going to do a little series together probably about once a month we’ll be doing a little Q&A of things that you can expect about repairing and rebuilding your credit. If you have any questions, you can leave them in the comments section below or you can contact me directly through my website, https://austin-texashomesforsale.com.
This is a transcript of our YouTube interview courtesy of Rev.com