Thursday, July 28, 2011
Tuesday, May 17, 2011
How to Deal with Debt Collector Calls & Determine if Legitimate
Often times we feel a bit threatened by debt collection calls especially when we aren't familiar with the debt collector's claims. Beware that there are many scams that are often used to "phish" information from unsuspecting consumers. Also, keep in mind that debt collectors should have provided at least one mailed notice of late or delinquent payment. Be assured that the debt collection caller will ask questions. However put on the brakes so to speak and DO NOT GIVE THEM INFORMATION! Instead ask questions of the caller requiring them to give the details of the claim. Fair Credit Laws require that the information be given in proof of claims for debt repayment. If the caller is not willing to do so then something is wrong. Also, A real collector should provide the basics: name, company name, address and phone number. The verification can take many forms. It could be a copy of your contract with the original creditor, a copy of the charge-off statement or an invoice from the original creditor. Or it could simply be information about the debt, like the original creditor's name, the account number, charge-off amount and current balance. The collector should also be able to furnish at least the last four digits of your Social Security number. A scammer will usually refuse or say that they have already sent that information to you. Further, a real debt collector has 5 days from the initial call to send you confirmation of the debt. That letter should be more than just a demand to pay but should include the details of the claim. Also, remember that even if the collection is legit it doesn't mean it is necessarily your debt. Many creditors have accidentally contacted similarly named individuals or miscontrued account information of such individuals. A good practice once you have gotten the creditors information such as company name, address, phone, etc. is to call your local state's attorney general's office or consumer affairs and inquire as to whether or not the collector is licensed or allowed to work in your state. Also, ask if there are any complaints or records of improper collection practices of the debt collector. If the collector claims to be with an attorney's office take time out to check with the state bar association or check with the Office of Court Administration. Still you should not provide your information to the collector as they have the responsibility of providing you with information on the validity of thier claim. If in any event you find the collector may be a scammer immediately report them to the State Attorney General's Office or the Federal Trade Commission. You as a consumer should be checking your credit report at least once annually which can be done free once yearly by going to www.annualcreditreport.com or calling (877)322-8228. Chances are that if it is not listed on your credit report it is a scam or an error. Further, each state has statute of limitations for collections which can vary from 3 to 6 years hence make sure that if the collection is valid that it is not beyond the statute of limitations for your state. It is a proven fact also that some lenders on occassion have entered a debt on a third partie's credit in an attempt to recover lost funds hence it is a good idea to check your credit inquiry history to see if they actually appear there as having reviewed you for credit lending. Doing this often can clarify false claims. If indeed the Statute of limitations has expired the collector is barred form forced payment options such as liens, judgements, or wage garnishments. If the debt is legitimate and has exceeded 7yrs. after the date of you going into default, the debt has to come off of your report and can no longer be used in computing your credit score. If any such records exists your right as a consumer is to file a dispute with ALL THREE CREDIT BUREAUS requesting the inaccurate information be removed. Often times second & third party collections agencies will buy debts, keep in mind the debt if past 7yrs. of the original account default date still applies no matter if a new collection agency chose to acquire the debt from the original lender. Very importantly remember that some creditors attempt to use "reaffirmation" to start the whole 7yr. process working again. Hence, it is important not to inadvertantly acknowledge a debt either verbally when on the phone with the collector (as most calls are recorded) nor in writing, or by sending a payment on a debt that is past the statute of limitations. If you are unsure of the statute of limitation time period call your local Attorney General's Office or your state's consumer affairs office. Another right you the consumer should be aware of is that once you have received a debt collectors call you have up to 30 days to demand a written document of proof of such debt claim. Make sure that you send the demand letter with a return stamp required so that you may show proof of your rights having been met. Once again when sending such letters DO NOT PROVIDE YOUR INFORMATION!!!!! It would behove you to consider using a return address such as a post office box or office address instead of your home address. This ensures you not giving a potential scammer your contact information. As always I hope this information has been of value to you and ALWAYS use your credit wisely to prevent poor credit scores that may prevent future investment oppotunities.
Friday, April 15, 2011
Tax Time Is Here!! Here Are a Few Deductions & Tax Credits Often Overlooked!!
A tax credit actually reduces your taxes, dollar for dollar, but a tax deduction just decreases your taxable income. It's easy to understand how someone could miss a tax deduction with the hundreds of conditions to be mulled through when trying to figure what you are entitled to.
For Starters one often missed item is, if you were among the approximately 10 percent of Americans who were jobless last year, you may have a tax deduction coming. Job hunting expenses can be deducted, provided your total miscellaneous itemized deductions are greater than 2 percent of your adjusted gross income. Such expenses could include the cost of printing resumes, food and cab fares. But the catch is that you must be looking for a job in the same field as when you last worked. If you move at least 50 miles, your moving costs can be deducted if associated with job placement. Expenses such as highway tolls and parking are included, and you may even claim 16 ½ cents per mile deduction.
The American Opportunity Tax credit allows for $2,500 of college tuition to be claimed as a credit. It covers all four years of school and the full credit may be claimed by single people who earn $80,000 or less, or by married couples who earn $160,000 or less.
If you make a contribution to a retirement account -- such as an IRA or a 401(k) -- you could be eligible for up to $1,000 in credit if you're single, and up to $2,000 for married couples. To qualify, single filers must make less than $27,750 and married couples, under $55,500. If you're going to claim this credit, you must be over 18, not a full-time student and cannot be claimed as a dependent by anyone else. The actual credit is based on your filing status, how much you contribute to your retirement account and how much you make. The more you contribute, the less you earn and the higher your credit will be. To claim this credit, you must complete Form 8880 – also known as the Credit for Qualified Retirement Savings Contributions. You can get the form, and instructions for calculating how large your credit will be from the IRS website.
Charitable donations also are often overlooked. Although you can deduct the value of items you donate to charity, you cannot deduct the value of any time or labor you may have given to a charity's project. You can also deduct 14 cents a mile for any driving you may have done for charitable work.
If you compile your own taxes annually it is a good idea to go to the IRS website which offers quite a bit of information on personal deductions and tax credit options you may qualify for. If with all the changes that have occured in the past few years you are unsure of any proceedures it is advisable to utilize a tax preparer that is a professional in this field to ensure you get your maximum return. Hopefully this Information has been helpful to my patrons and prompts you to look into your possibilities when filing your taxes.
For Starters one often missed item is, if you were among the approximately 10 percent of Americans who were jobless last year, you may have a tax deduction coming. Job hunting expenses can be deducted, provided your total miscellaneous itemized deductions are greater than 2 percent of your adjusted gross income. Such expenses could include the cost of printing resumes, food and cab fares. But the catch is that you must be looking for a job in the same field as when you last worked. If you move at least 50 miles, your moving costs can be deducted if associated with job placement. Expenses such as highway tolls and parking are included, and you may even claim 16 ½ cents per mile deduction.
The American Opportunity Tax credit allows for $2,500 of college tuition to be claimed as a credit. It covers all four years of school and the full credit may be claimed by single people who earn $80,000 or less, or by married couples who earn $160,000 or less.
If you make a contribution to a retirement account -- such as an IRA or a 401(k) -- you could be eligible for up to $1,000 in credit if you're single, and up to $2,000 for married couples. To qualify, single filers must make less than $27,750 and married couples, under $55,500. If you're going to claim this credit, you must be over 18, not a full-time student and cannot be claimed as a dependent by anyone else. The actual credit is based on your filing status, how much you contribute to your retirement account and how much you make. The more you contribute, the less you earn and the higher your credit will be. To claim this credit, you must complete Form 8880 – also known as the Credit for Qualified Retirement Savings Contributions. You can get the form, and instructions for calculating how large your credit will be from the IRS website.
Charitable donations also are often overlooked. Although you can deduct the value of items you donate to charity, you cannot deduct the value of any time or labor you may have given to a charity's project. You can also deduct 14 cents a mile for any driving you may have done for charitable work.
If you compile your own taxes annually it is a good idea to go to the IRS website which offers quite a bit of information on personal deductions and tax credit options you may qualify for. If with all the changes that have occured in the past few years you are unsure of any proceedures it is advisable to utilize a tax preparer that is a professional in this field to ensure you get your maximum return. Hopefully this Information has been helpful to my patrons and prompts you to look into your possibilities when filing your taxes.
Foreclosed? Credit Settlement? You may be Liable for some Taxation!!
It is IRS policy to tax forgiven debt you are personally responsible for as if it is income. Say, for example, your credit card company settled a $10,000 debt for 50 cents on the dollar. You'd have a debt forgiveness of $5,000, which the IRS would count just like your wages.
The same policy held true for most mortgage debt until 2007, when Congress passed the Mortgage Forgiveness Debt Relief Act. That ended the liability for many homeowners -- but not all.
In general, if you lose your home to foreclosure or short sale, where you sell your home for less than you owe, the IRS won't add insult to injury by counting the difference as income, at least until 2012, when the act expires.
There are four major exceptions to the rule:
1. You did a cash-out refinance and splurged.
Many homeowners took cash out when they refinanced their homes and used the extra dough to pay for new cars, boats, vacations or other spending.
Say you did that and then got into trouble, losing the house through a foreclosure or short sale. Even if your lender waived the remaining debt, the IRS will treat as income the portion of the forgiven debt that you took out as cash and spent.
Only the funds used to actually improve your home won't be taxed (plus the costs of refinancing the loan). Even if you spent the money on paying off your student loans or credit cards.
The IRS' reasoning is that only the money spent on home improvement actually added to your home's value. And that, presumably, diminished the difference between what you owed on your mortgage and the value of your home when it was foreclosed.
Beware: Some lenders made refinancing offers contingent on homeowners paying off credit card debt. If you took one of those deals, the refinance money will be reported to the IRS and you will owe taxes on it.
2. You have a home-equity line of credit.
The same rules that apply to refinancings also apply to home-equity loans: The IRS will only forgive the tax liability if the loan money was spent on home improvements. Be prepared to show receipts to prove it.
3. You lost your vacation home or investment property.
The market tanked and you lost your vacation home. Unfortunately, if you didn't use it as your primary residence for at least two of the previous five years, you're going to pay the tax.During the housing boom, buying homes for investment purposes soared, accounting for 28% of all sales during 2005, according to the National Association of Realtors. (Vacation homes made up 12%.) And many of these purchases were made with little down payment.The median price for investment properties fell nearly in half to $94,000 by 2010, according to NAR. For vacation homes, the median price paid dropped 26% to $150,000.
4. You owned a multi-million-dollar home.
Houses: What a million dollars buys, only the first $2 million in forgiven debt will be voided under the relief act; all the overage is taxable as income.
Other ways out - If the taxpayer was insolvent at the time of the foreclosure, the forgiven debt can be excluded for tax purposes. It can also be discharged in a bankruptcy and approved by court order.
Thursday, April 7, 2011
Who Says A Guy Can't Cook - Awesome Slow Cooker Pot Roast
If you think the gals can beat us always at cooking a great meal guess again!! Impress your special person with a day off from the kitchen with this easy fix meal!
Ingredients
2 (10.75 ounce) cans condensed cream of mushroom soup
1 (1 ounce) package dry onion soup mix
1 1/4 cups water for the pot roast
5 1/2 pounds pot roast
1 can of potatoes (two if you like Taters)
1 can of carrots (heck make it two if you like 'em too)
2 cups of uncooked rice
4 cups of water for rice
Directions
1.In a slow cooker, mix cream of mushroom soup, dry onion soup mix and water. Place pot roast in slow cooker and coat with soup mixture.
2.Cook on Low setting for 8 to 9 hours.
3.When you get back in from your 8 hrs of working walk into a great smelling meal. Switch the crock pot over to warm & dump the taters & carrots in and let it marinate a little while, maybe 20 minutes at most.
4. While thats doing its thing, grab your trusty Rice cooker and dump in the rice & add the 4 cups of water w/a couple pinches of salt & a pat of butter. Press the start button and when it goes off the pot roast can be switched over can be shut off.
There you have it!! A guys meat, potatoes, & gravy dinner without all the fuss!! Go ahead show 'em what you got!! Oh almost forgot put them empty cans in the bottom of that garbage can covered up real good....who needs to know you didn't do that gravy from scratch? It'll be our little secret!! Sometimes a man's gotta do what a man's gotta do!!
What's Going to Happen if the Government Shuts Down on Mortgage Transactions????
Well we are facing changes again in the mortgage industry!! Suprise Suprise!! Presently the government is looking at actions that may bring things to a screeching halt for a period of time in regards to some of its past practices on what we have become accustomed to with the backing options they have offered to insure the American Dream of Home Ownership in reference to some of its programs. What could be some of the possibilities on these changes?? Here are a few for starters:
Tax transcript: If the IRS is on furlough, we will not be able to obtain tax transcripts.
Flood insurance: Borrowers may have difficulty obtaining flood insurance through FEMA during this period.
FHA: We understand that HUD may not support FHA Connection during their hiatus, and therefore case numbers may not be able to be ordered or perform other functions in FHA Connection while they are on furlough.
Rural Housing: It is uncertain on the impact to GUS since that system was created since the last shutdown in 1995. However, we should anticipate the system will not be available. In addition we will not be able to get conditional commitments during the shutdown.
VA: We should anticipate that the system by which VA appraisals are ordered will not be available.
If you are looking at buying with use of any of these programs it is highly recommended that you move quickly as the future is uncertain on the final decisions on many of these programs being interrupted. Keep your eyes opened for Articles in your local news papers & RSS news sites as there should be a lot of buzz on the details real soon! In the mean time move fast while you can!!
Tax transcript: If the IRS is on furlough, we will not be able to obtain tax transcripts.
Flood insurance: Borrowers may have difficulty obtaining flood insurance through FEMA during this period.
FHA: We understand that HUD may not support FHA Connection during their hiatus, and therefore case numbers may not be able to be ordered or perform other functions in FHA Connection while they are on furlough.
Rural Housing: It is uncertain on the impact to GUS since that system was created since the last shutdown in 1995. However, we should anticipate the system will not be available. In addition we will not be able to get conditional commitments during the shutdown.
VA: We should anticipate that the system by which VA appraisals are ordered will not be available.
If you are looking at buying with use of any of these programs it is highly recommended that you move quickly as the future is uncertain on the final decisions on many of these programs being interrupted. Keep your eyes opened for Articles in your local news papers & RSS news sites as there should be a lot of buzz on the details real soon! In the mean time move fast while you can!!
Great updated home Move In Ready!!
Nicely Updated Home-MOVE IN READY! Kitchen & Dining has new ceramic tile & Granite Coutertops-Updated Appliances. Custom Lght Fixtures & Ceiling Fans! All Bedrooms have recent paint & new carpet. Both Master & Guest Bath have New Marble Flooring w/cultured marble countertops and shower/tub surrounds & fresh paint. Spacious closets in guest rooms & walk-in in Mstr.Large Family room w/wood burning fireplace. Custom front door w/ceramic tile foyer. Roof is under 4yrs! Manacured lawn w/freshly mulched flowerbeds & plants & mature trees! Transferrable Termite Contract! Storage Building in addition to spacious storage room under carport. Fully fenced in Back Yard w/6ft. wood privacy fence. Seller will provide 1yr. Home Warranty. Great Family home Ideal for 1st time home-buyer!! Conveniently located near shopping centers, hospital, Library, Interstate, Restaurants, nurseries, & schools. This one won't last long so call today for your private showing at 225-293-6100. Want to see upwards of 36 pictures and a virtual tour of this property please copy & paste the web address provided below that will take you directly to the listing with mortgage calculator, pricing, and more!!
www.14326royaloakave.ejournee.com
www.14326royaloakave.ejournee.com
Monday, April 4, 2011
Strawberry Festival Ponchatoula
Great family fun and lots of crafts and music and great foods made from strawberries and more! April 8th through 10th!
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Thursday, March 17, 2011
Reverse Mortgages...Good or Not?
With current economy conditions there has been a noticeable increase in the numbers in regards to this type of mortgage. Reports show that only 11% usage on these type loans in 2009 but in 2010 there was a huge increase to nearly 69%!!! What these type mortgage arrangements do is allow a person of whom is at least 62 years old cash in some of their equity for a lump sum or the option for regular payouts to themselves while staying in the house. Usually the basic policy is much like traditional mortgage lending in that the homeowners must properly maintain the property, keep up the taxes on property, keep active insurance policies in tact by paying premiums and the loan doesn't have to be repaid until the last borrower on the mortgage dies or lives some where else for 12 months or more. However there are quite a few things to be aware of when considering a Reverse mortgage option. For one up front processing fees much like the closing cost on traditional loans can be quite expensive. Ballooning finance charges also can drain the homes equity if this term is a part of your reversed mortgage program. Foreclosure could be at risk also when the property tax and insurance can't be afforded due to the change in the value of the asset of your homes equity. Keep in mind the less equity you have the higher the annual value of the home for tax accessment as well as the greater the amount of insurance coverage will be reguired to be held on the property. Also remember that reverse mortgages and their terms are based on your age, the property's value, and the interest rate on the existing loan if there is one still in place. In most cases the older you are the higher the value and usually the lower the interest rate is the more you can borrow. Be aware tha reverse mortgages can come with fixed interest rates or adjustable depending on what you qualify for. Also, the option to take funds only when needed are available making interest be assessed only at those times. Most importantly speak with a professional financial advisor that is unbiased to make sure you are fully aware of where all of your funds are going including your equity as well as the maximum payout options you may have before jeopardizing your property. Further consider the fact of the end results and the effects it will have on your estate if you are in your golden years and married as the the surviving mate may experience some repercussions financially as well. Bottom line??? Although in some cases the reverse mortgage option may be the best of only a few limited choices in a time of need, it should be probably used only as a last option where possible. If you feel you need more details contact your preferred lender to obtain trends on reversed mortgage lending.
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Saturday, March 12, 2011
Monday, March 7, 2011
Home Buying Assistance Programs.....
With the economy as it has been in the Real Estate Saga we have been facing for the past months, many of my questions from potential homebuyers have revolved around "Free Money" and "Home Buying Assistance". Several have asked how can they get some of the "Free Money" or "Grant Money" they have heard of either from the claims of co-workers or peers. Truth be told currently there are a few programs available to consumers hoping to buy a home but sadly one of the largest misconceptions that I am running into when speaking with folks wanting to buy a home is the idea that these programs can get them into a house easily. In reality folks this isn't how it works theoretically speaking. In most every "program" offered intended to give assistance, there is still one factor that cannot be sidestepped. Namely, you must first be able to qualify for a home loan from a mortgage lender. Hence, no matter what your friend, buddy, or associate tells or better stated neglects to tell you with thier stories of "Finally" buying thier first home using some sort of "assistance program", remember more so now than in the past you must start at ground zero to get the same essential items in order as in the past. You still have to have reasonably good credit, although several lenders are looking at the possibility of lowering some aspects of thier requirements in some areas to help with our economy to promote home purchases this year they are not waiving credit being within reason. Also, remember debt ratios are still required to be at levels that afford your ability to pay the new mortgage loan once buying the property. I guess what I am trying to clear up for several of my patrons is that the key word in the programs is "Assistance" programs not "Give You a Loan Program" or "Pay For Your House in Full" programs. Any one that leads you to believe that you can get a loan by way of the various assitance programs available be it "Rural Development", "First Time Buyers", "Grant Funds" and so forth be wary that they are leaving out some of the pertinent details related to first getting a loan approval with a legitimate licensed and backed lender. If you are totally "green" so to speak, on property investing it is always a good idea to contact a service professional in the Real Estate Industry for assistance with the steps involved in getting prepared to buy. Further you can go to your local government's HUD website to read about the various programs and funding options that can be used along with a mortgage for home purchases. Hopefully this gives a little insight on the "Free Money" rumors that are often exaggerated on by folks that may mean no harm but share only a limited amount of details on the process they may have heard of various "Assistance Programs" have to offer. More importantly keep in mind that all these "assistance programs" do have stipulations and guidelines that you must meet in order to utilize them hence your prefered lender is most likely best to assist you with determining what programs may be paired with thier lending products they can extend to you the consumer. By all means folks remember, just because you have a co-worker that makes the same salary you make sitting at the desk next to you is never a good measure of what you should be able to qualify for in that no two people are the same when it comes to thier spending habits even if they make the same amount of money monthly from thier place of employment. So, listen to others experiences, gain knowledge on what they can share that applies to your circumstances but ultimately seek professional help and pointers before you spend your money only to find the program really isn't giving "FREE MONEY".
1.1 Million Dollars of Taxpayers Money...Is some of it yours??
Back in 2007 an unprecedented amount US citizens failed to file thier taxes and in doing so have provided the IRS with 1.1 million dollars of interest free money to utilize. Interestingly many still have not gone back and filed that year's tax filing. It is estimated that on average of these outstanding individuals an amount of refund is around $640 and in many cases more and with the economy as it is, most certainly a significant amount to take the time to file the return if for nothing more than assistance with the cost of living incresases over the past few years. What is interesting about the year 2007 income tax returns is that it is now at the point of the IRS statute meaning that if you didn't file and you were owed a refund it will revert to the IRS as a donation. Although this may be a plus for the government in that it will be funds utilized for assisting with the federal deficits it isn't much of a help to your household individually. Hence if you are one of these individuals you have until April 18th 2011 to file the past 2007 year's tax filing. Curiously most people who didn't file fear that if they file at this point there will penalties for late income tax filing. Truth be told the IRS does not impose penalty fees if there aren't taxes owed but instead only if taxes that were due were unpaid. Keep in mind that this means although a penalty may not be accessed against the years you did not owe and did not file, penalties WILL apply to years that you didn't file and owed. Further to clearify things if you DO have federally owed items such as delinquent student loans, outstanding child support payments, or any other payments that are IRS accessed funds, they can and most likely will be consumed by these debts first before you receive any of the money due to you in overpaid taxes. Hence, if you are unsure of where you stand due to several years of not filing your taxes for what ever reason, it may be a good idea to get with a tax preparation specialist to help you file and once and for all get your IRS taxation records reviewed so that you can decide the best route to go in getting your social security number cleared up for better credentials in the future. Keep in mind the IRS does make payment arrangements for such individuals that owe and the sum exceeds what they can pay in one payment. Although many folks feel that unpaid items Federally or State owed to the government does not affect thier credit this is untrue in most cases. Long story short take the time out to get your taxes in order so that in the future when it matters most....such as to make major investments such as owning a home, you are in the clear to proceed without any recourse. If you are like the average American you probably are unsure of where to even begin to locate copies of the essential documents to go back and file for tax years you may have neglected to do. No problem with just a little effort in most cases you can utilize this link Order Tax Transcript to request a transcript from the IRS of your past years tax information as submitted to them by various establishments required to report your tax activities by law. Also, if you don't have access to a computer of your own, you may order a transcript by calling 1-800-908-9946. Still a little leary? You still have the option to contact your employers, bank institutions, and creditors you dealt with during the year(s) in question to request such documents as they too are required to keep records. Just keep in mind each of them may take a short period to locate and forward the information to you since most establishments archive records every few years. Hopefully this information is of help to you my readers and you can use it or pass it along to others. As always feel free to pass comments or refer my blogspace to others to follow for periodic information of value in the Real Estate industry.
Thursday, February 17, 2011
Baton Rouge Community Developments on the way!
With the economy and the many areas of decreasing property values in certain areas of the city the local authorities have been working to find ways to rejuvenate and encourage renewal of the community. Government St. is an example of some of the low cost improvements with plans slated to add sidewalks, landscaping, and other amenities to encourage more business development to increase the possibility of financial growth to some of these areas. The Metropolitan development is looking at a 30 year span of improvements by building on several unique and district neighborhoods. Included in these plans are multimodal transportation systems that branch out into street car lines, bike paths, and a potential light-rail link to New Orleans. Much of the developments address transit issues to connect areas of the city and spur economic development. Much of the funds for the "FutureBR" developments come from a $2 million federal community development block grant fund allocated to the city parish after Hurricane Gustav. In addition to these plans Baton Rouge officials are diligently working on redeveloping the downtown district and historical buildings therein. With all these plans it is hoped that the State's Capital City will gradually move into the direction of economic stability to encourage more business growth bettering the options for future commercial investments by potential companies seeking to branch out and bring more of thier business to Louisiana. With these issues being addressed the Real Esate industry also should see some improvements over time. For more details on the current plans for developments for our city take a moment to go to http://www.downtownbatonrouge.org/ and http://brgov.com/ which frequently post announcements of plans and improvements approved and slated for our city.
Friday, February 4, 2011
Be Frugal With Your Funds....Negotiate Prices for Savings!!
Often times we as consumers forget that we by way of spending our hard earned money have some say in what we pay to service providers and product distributers. Three such items that we often overlook are Credit card companies, Medical service providers, and Mortgage lending institutions.
In the case of a credit card service, you the consumer can and should be agressive about what interest rate you are comfortable paying. Credit card companies are competing fiercely again for new customers. Credit Card Issuers send out over a billion credit card offers on any given quarter of nearly every year and even more so now that the economy has made such and impact on consumer spending. Why not Use the competition to your advantage?! How?? First and foremost, don't jump at the first offer! Negotiate for the best rate before accepting any credit card. Take time out to call the 800 number associated with a new card offer and if you already have a card but want to get your rates lowered, call the number on the back of your card and talk to the customer service rep. If the rep says they can't or won't adjust the rate, ask to speak with a manager. Point out your longevity if you have already been with the creditor for a period of time and highlight your payment history if it has been reputable. The same goes for offers you receive as you wouldn't have received them if the creditor hadn't examined the basic information available on public record that made them feel you are potentially a qualifying consumer. If you are considering a new card offer, indicate that you have gotten several credit card offers and suggest they give you the best rate they have available to offer to help you decide which offer you will ultimiately end up selecting. NEVER pay for credit limit increases!! Remember creditors make thier money in the form of interest charges on both a monthly revolving term and an annual term hence the larger your credit limit the more they make. Hence, be patient and let them voluntarily extend you larger credit limits over time as a valued customer. Suprisingly what most consumers don't realize is that if you have good payment habits in most cases creditors will lower the interest rate to keep their current customer as well as earn new customers.
In the area of Medical billing, the consumer can also negotiate rates with success thanks to the consumer services provided by The Health Care Bluebook which can be utilized by going to thier public website http://www.healthcarebluebook.com/ So, take time out to check into average charges for proceedures your physician may prescribe for your health care needs and be up to speed on the aveage costs. You should talk to the billing administrator in regard to any billing adjustments. Once you have gotten in touch with this person explain that the cost is a significantly difficult burden on your budget and ask if there are any discounts avialable for paying up front in cash or any optional discounts they have available through thier facility or third party phamaseuticals. It is not uncommon to save a significant amount at medical care facilities simply by speaking with the billing administrator. To get an idea of what health care providers can do the next time you get a statement from your medical insurance provider for services rendered and paid by them, notice what they pay for a particular service and then call the medical facility anonymously and ask a billing clerk what the cost to you as an uninsured patient would be. Keep in mind medical insurance companies get disounted rates based on agreed upon terms of requiring thier customers to use certain facilities in their pre-arranged contracts so you can't get discounts of this magnitude but you can negotiate significantly lowered charges simply by asking / negotiating the fees charged.
Lastly, in regards to mortgage lenders, with the economy as it is currently, it should be imperative to any consumer to check into the current interest rate averages before accepting just any rate offered by a lender. In other words make it clear to the lender that you are shopping for the best rate before you select a mortgage lender. This is particularly of value to consumer's that have credit scores in the upper 600's or higher scores. The easiest way to do this is by getting quotes in writing from several lenders and then taking the lowest and asking your preferred lender can they beat the quote. Also it is important to know what type of lender you are talking to. There are traditional financial mortgage lenders such as various banks credit unions that have mortgage lending services and then there are mortgage brokers that (for a fee) market a potential buyer to a large number of lending institutions to get them the best interest rates and terms based on thier credit worthyness. Typically these mortgage brokers charge a fee in the form of a percentage / commission amount. In many cases a broker can be a good choice in that they will pull your credit only once and then apply for quotes in your behalf with sometimes dozens of lenders with only one standard loan application and in doing so cause only one inquiry to appear on your credit report. However, when applying individually at independent lenders each time you apply for a quote you will find that there will be an iquiry that appears for each one you get quotes from which in some cases (if your scores are already marginal) could be detrimental to your credit scores since too many inquiries can lower your scores. Also, keep in mind that even if you can't get better interest rates due to your credit scores, mortgage lenders have lots of fees of which most of them can and should be examined. If you deem them exhorbant you should ask them to lower them by negotiating for lower fees. Your preferred Realtor can usually give assistance in this area since they on a daily basis see these fees in closing transactions and have a good knowledge of what the averages are. Keep in mind these fees outside of the interest rate aren't regulated by anyone but the lender themselves based on thier costs to operate thier business. Meaning, often times the fees are used to pass along some of their costs of operation to you the consumer. An example of such fees would be something as simple as corrier fees which often are reflected in amounts as high as a few hundred dollars in some cases.
Hopefully this insight will help some of my clients and patrons in thier endeavors as consumers. Your feed back is welcomed as well as questions and comments.
In the case of a credit card service, you the consumer can and should be agressive about what interest rate you are comfortable paying. Credit card companies are competing fiercely again for new customers. Credit Card Issuers send out over a billion credit card offers on any given quarter of nearly every year and even more so now that the economy has made such and impact on consumer spending. Why not Use the competition to your advantage?! How?? First and foremost, don't jump at the first offer! Negotiate for the best rate before accepting any credit card. Take time out to call the 800 number associated with a new card offer and if you already have a card but want to get your rates lowered, call the number on the back of your card and talk to the customer service rep. If the rep says they can't or won't adjust the rate, ask to speak with a manager. Point out your longevity if you have already been with the creditor for a period of time and highlight your payment history if it has been reputable. The same goes for offers you receive as you wouldn't have received them if the creditor hadn't examined the basic information available on public record that made them feel you are potentially a qualifying consumer. If you are considering a new card offer, indicate that you have gotten several credit card offers and suggest they give you the best rate they have available to offer to help you decide which offer you will ultimiately end up selecting. NEVER pay for credit limit increases!! Remember creditors make thier money in the form of interest charges on both a monthly revolving term and an annual term hence the larger your credit limit the more they make. Hence, be patient and let them voluntarily extend you larger credit limits over time as a valued customer. Suprisingly what most consumers don't realize is that if you have good payment habits in most cases creditors will lower the interest rate to keep their current customer as well as earn new customers.
In the area of Medical billing, the consumer can also negotiate rates with success thanks to the consumer services provided by The Health Care Bluebook which can be utilized by going to thier public website http://www.healthcarebluebook.com/ So, take time out to check into average charges for proceedures your physician may prescribe for your health care needs and be up to speed on the aveage costs. You should talk to the billing administrator in regard to any billing adjustments. Once you have gotten in touch with this person explain that the cost is a significantly difficult burden on your budget and ask if there are any discounts avialable for paying up front in cash or any optional discounts they have available through thier facility or third party phamaseuticals. It is not uncommon to save a significant amount at medical care facilities simply by speaking with the billing administrator. To get an idea of what health care providers can do the next time you get a statement from your medical insurance provider for services rendered and paid by them, notice what they pay for a particular service and then call the medical facility anonymously and ask a billing clerk what the cost to you as an uninsured patient would be. Keep in mind medical insurance companies get disounted rates based on agreed upon terms of requiring thier customers to use certain facilities in their pre-arranged contracts so you can't get discounts of this magnitude but you can negotiate significantly lowered charges simply by asking / negotiating the fees charged.
Lastly, in regards to mortgage lenders, with the economy as it is currently, it should be imperative to any consumer to check into the current interest rate averages before accepting just any rate offered by a lender. In other words make it clear to the lender that you are shopping for the best rate before you select a mortgage lender. This is particularly of value to consumer's that have credit scores in the upper 600's or higher scores. The easiest way to do this is by getting quotes in writing from several lenders and then taking the lowest and asking your preferred lender can they beat the quote. Also it is important to know what type of lender you are talking to. There are traditional financial mortgage lenders such as various banks credit unions that have mortgage lending services and then there are mortgage brokers that (for a fee) market a potential buyer to a large number of lending institutions to get them the best interest rates and terms based on thier credit worthyness. Typically these mortgage brokers charge a fee in the form of a percentage / commission amount. In many cases a broker can be a good choice in that they will pull your credit only once and then apply for quotes in your behalf with sometimes dozens of lenders with only one standard loan application and in doing so cause only one inquiry to appear on your credit report. However, when applying individually at independent lenders each time you apply for a quote you will find that there will be an iquiry that appears for each one you get quotes from which in some cases (if your scores are already marginal) could be detrimental to your credit scores since too many inquiries can lower your scores. Also, keep in mind that even if you can't get better interest rates due to your credit scores, mortgage lenders have lots of fees of which most of them can and should be examined. If you deem them exhorbant you should ask them to lower them by negotiating for lower fees. Your preferred Realtor can usually give assistance in this area since they on a daily basis see these fees in closing transactions and have a good knowledge of what the averages are. Keep in mind these fees outside of the interest rate aren't regulated by anyone but the lender themselves based on thier costs to operate thier business. Meaning, often times the fees are used to pass along some of their costs of operation to you the consumer. An example of such fees would be something as simple as corrier fees which often are reflected in amounts as high as a few hundred dollars in some cases.
Hopefully this insight will help some of my clients and patrons in thier endeavors as consumers. Your feed back is welcomed as well as questions and comments.
Bank of America Making Efforts To Assist with Foreclosure Issues
In the U.S. we have seen an increase of home owners distressed with thier mortgages for several years now due to the difficulties with our economy. Friday past, Bank of America Corp appointed a new foreclosure and loan modifications czar, and created a new unit to oversee problem home loans in a bid to sort out its on-going foreclosure issue. Bank of America is the first large U.S. bank to do so. Hopefully others will follow suit to endeavor to improve on the retention of the many americans that are faced with challenges on thier home mortgages. If you fall in this category take time out to contact your mortgage lender and ask if they have any provisions or even the option to refinance your home at a longer term to lower your note or see if you may qualify for better interest rates without having to refinance but instead by way of modifications that may be offered by your lender that you may or may not be aware of. As always make sure you read all terms when doing so as all modifications aren't always the best option.
Monday, January 31, 2011
Saturday, January 29, 2011
Slight Increase in Sales at the Years End......
There was a slight increase of new single dwelling home sales as the year came to an end in 2010 as reported by the Federal Reserve and Commerce Department. The month of November came in around 280,000 in sales and for the month of December sales increased to 329,000 in sales which is a 17.5% increase. Small but however significantly noticeable. Home prices suffered a decline in the month of November and the trend continued through the end of the year. While home prices had begun to see an increase in the second half of 2009 and first half of 2010, the change in the direction of prices declining raise a bit of a worry for the seller's market in the months to come. Buyer's however have an added bargaining option due to the decline in pricing trends. New housing contruction fell to its lowest in December of 2010 but the commerce department has reported that there has been an increase in permits for new construction that exceeds the past 8 months and have been steady through the month of December into January which means we could see an increase in new housing availability for the start of the new year in the US Real Estate industry. With the many ups and downs in the Real Estate industry presently some indications suggest that lenders are looking at possibly making changes to the minimum score requirements to improve chances for consumers that are below credit scores of 640 on average. So, now is the time for buyers to begin working at ironing out what ever credit issues they may have as the new year appears to offer more of a buyer's market than that of a seller's market. Seller's however, do need to concentrate on the best home presentation possible keeping in mind that any improvements to thier home should be measured carefully by the median sale prices in thier area to stay within the price ranges that are successfully being sold. Good luck both to seller's and buyer's this year!! Find your favorite Realtor and meet with your preferred lender to begin your planning.
Sunday, January 23, 2011
Buyer's Inspection Seller's Rejection?? Louisiana Disclosure Laws.....
In Louisiana, when a residential sale occurs, the law requires the seller to disclose any defects of their property and where ever posible disclosure of maintenance practices that may be of value to the potential owner to be knowledgable of the property so they may successfully carry on where the seller leaves off in the care of the house they are considering for purchase. Often times a seller feels that this law is the death of the possibility of the sale of their home. Truth be told the law was inacted to protect consumers which includes both the seller & the buyer.
Majority of the sales of real estate are sold "AS IS" in the state of Louisiana. Once the seller has provided to the best of their knowledge any and all information on the condition of the house they are selling they have fullfilled the requirement of the law required in most sales transactions. Be it something as simple as a $10 item in a department store to a car, or in this case a house, it is only fair the buyer should be afforded the right to be presented with what the product is and the quality thereof to make an educated decision on the value of spending thier money on the item being offered for purchase. Likewise the buyer also has the option to examine the product for themselves or with a family member or friends to get input if they feel they need to. Further, it is always a good idea for the buyer to obtain the services of a "Home Inspection Service" that is licensed & certified in the state of Louisiana. These professionals are trained to evaluate the condition of the property and give the buyer insight on the general condition of the home. Although seller's may see this evaluation as a bit of a threat to the sale of their home it truly is a valuable service that can protect both the seller and the buyer. The buyer for example is usually given a period of time to inspect or evaluate the property usually over a period of 10 days after the accepted purchase agreement. It is at this time the buyer can decide if they wish to continue with the purchase of the offer they have made. On the other hand this period once expired gives the seller the protection of the purchase offer being sealed and secures a sale that is locked in. Simply stated once the allotted time for inspection has expired both parties generally agree to finalizing the terms of the purchase agreement between the two parties. It is not unusual, and is even encouraged that the seller prior to placing thier home on the market for sale have a "Home Inspection" done so that they can prepare the house for marketing by eliminating any items they may not have been aware of that could be issues, thus insuring a better chance of passing a buyer's inspection upon receiving an offer. So, whether you are buying or selling, talk to your Realtor about "Home Inspections" and direction on some of the local inspection services they may be familiar with to give you several suggestions to choose from!!
Majority of the sales of real estate are sold "AS IS" in the state of Louisiana. Once the seller has provided to the best of their knowledge any and all information on the condition of the house they are selling they have fullfilled the requirement of the law required in most sales transactions. Be it something as simple as a $10 item in a department store to a car, or in this case a house, it is only fair the buyer should be afforded the right to be presented with what the product is and the quality thereof to make an educated decision on the value of spending thier money on the item being offered for purchase. Likewise the buyer also has the option to examine the product for themselves or with a family member or friends to get input if they feel they need to. Further, it is always a good idea for the buyer to obtain the services of a "Home Inspection Service" that is licensed & certified in the state of Louisiana. These professionals are trained to evaluate the condition of the property and give the buyer insight on the general condition of the home. Although seller's may see this evaluation as a bit of a threat to the sale of their home it truly is a valuable service that can protect both the seller and the buyer. The buyer for example is usually given a period of time to inspect or evaluate the property usually over a period of 10 days after the accepted purchase agreement. It is at this time the buyer can decide if they wish to continue with the purchase of the offer they have made. On the other hand this period once expired gives the seller the protection of the purchase offer being sealed and secures a sale that is locked in. Simply stated once the allotted time for inspection has expired both parties generally agree to finalizing the terms of the purchase agreement between the two parties. It is not unusual, and is even encouraged that the seller prior to placing thier home on the market for sale have a "Home Inspection" done so that they can prepare the house for marketing by eliminating any items they may not have been aware of that could be issues, thus insuring a better chance of passing a buyer's inspection upon receiving an offer. So, whether you are buying or selling, talk to your Realtor about "Home Inspections" and direction on some of the local inspection services they may be familiar with to give you several suggestions to choose from!!
Friday, January 21, 2011
Mortgage Rates Show Very Little Changes this Week!
Mortgage rates showed little movement this week, with the benchmark conforming 30-year fixed mortgage rate nosing higher to 4.95 percent according to Bankrate.com's report for our nation. This small increase may be an indication of what future month's may bring, namely increases in interest rates for home purchases. Now however, is still a good time for buyers as there are great conditions from the buyer's market standpoint with seller's of residential properties continuosly reflecting lowered and reduced pricing in an attempt to get thier properties sold. Although there was a small increase of sales in the residential sector this year many home owners seeking to sell are experiencing slow sales in moving thier properties. Hence if you are looking to buy a home now may be a good time with frustrated seller's willing to negotiate on the selling price of most homes that have been sitting dormant on the market for several months in most cases.
Located at 4037 Ridgemont Dr. B.R. La. this house is an
example of a property that is priced well within the areas
median average pricing at $137,900 that has been completely
updated and has been on the market for several months!!
For more information on the property & the seller's
negotiation on selling price call 225-297-7689.
Sunday, January 16, 2011
Are There Any More Lenders that Offer "No Downpayment Loans?"
One of the most common questions I have been asked by folks trying to qualify for a loan is, "What about 100% financing?? Does that option exist for Home Buyers anymore?"
Truth is, our lending trends have changed drastically since the economic difficulties over the past few years with many of the lending institutions. In most cases, the only option readily available is old fashioned conventional lending where a lender determines the amount of money they will lend you based on your credit worthyness in an amount referred to as "LTV" or Loan to Value. Basically a lender may approve you, for example, 95% LTV, which means they will give you 95% of the funds needed towards the value of the home you wish to buy and you will pay the residual percentage of 5% as your out of pocket down payment. For example, if you want to buy a house that is selling for $100,000 the lender would pay $95,000 in the form of a mortgage note and you would have to come up with $5,000 towards the purchase as downpayment. Of course many people can't come up with both the down payment and thier closing cost thus the need for a 100% financed loan.
At present in Louisiana there is an option that may provide the possibility of 100% financing or nearly that by way of the USDA Rural Development progam. However there are a few catches! Below are a few of them explained:
Applicants for loans may have an income of up to 115% of the median income for the area. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories. Next, you have to select a lender that is an approved lender by the USDA Rural Development program. If you wish to use the program you may ask your Realtor (if you are working with one) to help you with information on the local lenders and they should be able to help you locate one from being inoved in the Real Estate industry on a daily basis. Another catch is you can only buy houses in certain areas to use the lending assistance program. Again, if you are working with a Realtor they should be able to help you with learning of areas that qualify. (or go to the USDA Website to search the parish or county yourself) Loans are for a term of 30 years. For an over view of all the requirements and general information on the "USDA Rural Development Program" you may click HERE to be taken to thier site.
5 Tips for Energy Efficiency At Home
Heat lost through windows
Check windows and doors.
and doors represents a significant chunk of most
heating bills. Some sources estimate that loss through
windows alone could account for up to 35 percent
of heating bills. If you are tired of watching your hard
earned money slip through the cracks, there are things
that you can do:Check around windows and doors with a candle or a light
piece of thread on a windy day to determine where drafts are.
This will reveal problem areas in need of immediate attention.
Remove and replace damaged caulk and weather-stripping.
Self-stick foam and rolled rubber weather-stripping are
easy to install, and can contribute greatly to your home’s
efficiency.
An inexpensive method of weatherizing windows involves attaching
thin, clear plastic film to the window trim inside of the
house using two-sided tape. The film is then stretched taut
using heat from a blow dryer to remove wrinkles and creases.
Decorate your windows with efficiency — closed shutters,
window shades, blinds, curtains and lined draperies. All contribute
to energy savings by helping to insulate windows.
For a long-range solution, consider installing efficient replacement
windows, or storm windows and doors.Conserve with ENERGY STAR.
STAR for every application in your home, you can save
up to 20 percent or about $400 per year on your energy
bills. Appliances account for about 20 percent of yourhousehold’s energy consumption, with the refrigerator
and clothes dryer being the biggest culprits. A typical
household does nearly 400 loads of laundry per year,
using about 40 gallons of water per full load with a conventional
washer. An ENERGY STAR qualified clothes
washer uses 18-25 gallons per load, saving you 7,000
gallons of water! An ENERGY STAR refrigerator uses
less energy than a 75-watt bulb, saving you between
$30-$70 a year.See the light.
most energy-efficient of all light bulbs. They use 67 percent
less energy than standard incandescent bulbs and
last longer: They cost more, but last up to sixteen times
longer than incandescent bulbs.Programmable thermostats
by lowering energy use during those times when you do
not need it. A programmable thermostat can tell your
home’s heating system to gear up for your arrival after
work, or to knock off a bit until an hour or so before you
get up in the morning.Turn down your water heater to 120° F
to 50 percent of a household’s hot water costs. Electric
heaters benefit most from this approach to saving energy.
Timers are also available which allow you to make the water
heater conform to your water usage schedule. They
prevent the water heater from trying to maintain hot water
during periods when it is never used.and save uphelp reduce energy costsCompact fluorescent bulbs (CFL) are the® By choosing ENERGY
Thursday, January 13, 2011
Confused About Mortgage Approvals and what lenders require?
So you've decided to start planning to buy your first home but you have no clue as to what a lender will be looking at to decide whether or not to lend you money to buy a home. This is most certainly a common question with an answer that isn't so simple. However, to give you an idea here is what most lenders examine when processing a pre-approval for credit worthiness:
Basically, Debt Ratios are the relationship between ones income and ones expenses. Ratios are generally expressed as two numbers like 29 over 41 or 29/41. This is an example of FHA acceptable ratios. The first number, the 29, represent the relationship between the borrowers income and his new housing expense of principal, interest, taxes, insurance and homeowner dues. A borrower who makes $3,000 per month and has a housing expense of $870 would have a 29% top end ratio. The other number of 41% represents the total monthly debt, including the housing expense and all other debt such as credit cards, loans, child support, etc. Thus in the example of the borrower that makes $3,000 per month and had a total expense of $1,230, would have a 41% bottom ratio.
So when you meet with a mortgage lender and they mention thier debt / ratio expectations you will have an idea of what they are speaking about. Let's take it a little further!! Why not calculate your debt / ratio yourself so that you personally can more accurately estimate when you have reached the expected range for your debt/ratio.
With most lenders thier guideline is that your total payment, including principal, interest, and escrow payments, should not be more than 28% of your gross (pre-tax) monthly salary. To calculate this for yourself, take your annual salary and multiply it by .28, then divide it by 12. This number is your maximum total mortgage payment per month. Banks also check how much of your gross income is required to pay all of your debts combined. This is called your back-end ratio and includes the mortgage as well as car payments, credit card payments, student loans, and child support and alimony payments. Their guideline for this ratio is that your total debt payments should not be more than 36% of your gross income. To calculate this for yourself, take your annual salary and multiply it by .36, then divide it by 12. This is the maximum allowable amount of your total monthly debt payments.
Go ahead try it out! Are you supprised at what your maximum mortgage note can be from the standpoint of your average lender's guidelines?? Now you have one of the key items examined by lenders understood so work at getting in the right "debt/ratio" range to be more appealing to potential lenders to extend credit to you!! Hopefully this information is helpful in your endeavors.
- Credit Scores
- Length of time on Job
- Debt Ratio
- Household income
Basically, Debt Ratios are the relationship between ones income and ones expenses. Ratios are generally expressed as two numbers like 29 over 41 or 29/41. This is an example of FHA acceptable ratios. The first number, the 29, represent the relationship between the borrowers income and his new housing expense of principal, interest, taxes, insurance and homeowner dues. A borrower who makes $3,000 per month and has a housing expense of $870 would have a 29% top end ratio. The other number of 41% represents the total monthly debt, including the housing expense and all other debt such as credit cards, loans, child support, etc. Thus in the example of the borrower that makes $3,000 per month and had a total expense of $1,230, would have a 41% bottom ratio.
So when you meet with a mortgage lender and they mention thier debt / ratio expectations you will have an idea of what they are speaking about. Let's take it a little further!! Why not calculate your debt / ratio yourself so that you personally can more accurately estimate when you have reached the expected range for your debt/ratio.
With most lenders thier guideline is that your total payment, including principal, interest, and escrow payments, should not be more than 28% of your gross (pre-tax) monthly salary. To calculate this for yourself, take your annual salary and multiply it by .28, then divide it by 12. This number is your maximum total mortgage payment per month. Banks also check how much of your gross income is required to pay all of your debts combined. This is called your back-end ratio and includes the mortgage as well as car payments, credit card payments, student loans, and child support and alimony payments. Their guideline for this ratio is that your total debt payments should not be more than 36% of your gross income. To calculate this for yourself, take your annual salary and multiply it by .36, then divide it by 12. This is the maximum allowable amount of your total monthly debt payments.
Go ahead try it out! Are you supprised at what your maximum mortgage note can be from the standpoint of your average lender's guidelines?? Now you have one of the key items examined by lenders understood so work at getting in the right "debt/ratio" range to be more appealing to potential lenders to extend credit to you!! Hopefully this information is helpful in your endeavors.
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