Sunday, August 28, 2011
Is There Such a Thing as FREE Money From The Government?
Are government grants real? Is there such a things as free money from the government?
Like many persistent rumors, the one about government grants contains a grain of truth. The government does hand out grant money, just not to folks like you and me. The government might give a grant to a university, for example, to explore the efficacy of an experimental drug. But money to help prop up your small business? Nope.
How do I know? Well, other than the fact that it’s completely illogical to expect taxpayer money to be given to for-profit businesses, Uncle Sam also says so in black and white.
Here’s a cut-and-paste from this page of U.S. Small Business Administration…
Grants
The federal government does NOT provide grants for starting and expanding a business.
Government grants are funded by your tax dollars and therefore require very stringent compliance and reporting measures to ensure the money is well spent. As you can imagine, grants are not given away indiscriminately.
Grants from the federal government are only available to non-commercial organizations, such as non-profits and educational institutions in areas such as, medicine, education, scientific research and technology development. The federal government also provides grants to state and local governments to assist them with economic development.
In short, there’s virtually no such thing as free money in the form of a government grant for a for-profit business or ordinary citizens. Anyone promising one in exchange for a fee is a liar and a thief.
If you’re trying to get financial help for your business, check out the SBA’s site at http://www.sba.gov/. You won’t get free money, but you will get free information on finding funding, including government-guaranteed loans.
Saturday, August 13, 2011
Are You Married? Watch Out for STDs
A new threat to married couples has been revealed by some recent studies, a threat the financial literacy movement is calling Sexually Transmitted Debt.
The point is this: You can suffer adverse consequences due to your spouse’s financial infidelity.
Your spouse could be amassing credit card debts, student loans, even a second mortgage that you may not be aware of. According to a December survey by the National Endowment for Financial Education, three in 10 admit that they lie to their spouses about their finances, and more than half say they hide cash from their spouses.
That’s not all. The survey also found that:
Undisclosed financial vices can have egregious effects on a relationship. In NEFE’s survey, 68% said a relationship had been negatively affected by financial behavior.
Tip #1: Establish joint goals.
It’s all about communication. Together, list your short-term and longer-term needs and wants. Check your progress regularly and make sure your goals remain relevant.
Tip #2: Compromise.
Tip #3: Set limits.
Tip #4: Make a date.
Tip #5: Resist the temptation to fib.
Tip #6: Be positive.
Wishing you luck! Remember during a mariage you own half of your spouse'd debt. So beware and watch out!
The point is this: You can suffer adverse consequences due to your spouse’s financial infidelity.
Your spouse could be amassing credit card debts, student loans, even a second mortgage that you may not be aware of. According to a December survey by the National Endowment for Financial Education, three in 10 admit that they lie to their spouses about their finances, and more than half say they hide cash from their spouses.
That’s not all. The survey also found that:
- 30% have hidden a bill,
- 15% keep a secret bank account, and
- 11% lie about how much they earn.
Undisclosed financial vices can have egregious effects on a relationship. In NEFE’s survey, 68% said a relationship had been negatively affected by financial behavior.
- 42% experienced erosion of trust,
- 20% stopped commingling their finances, and
- 16% ended up divorced.
Tip #1: Establish joint goals.
It’s all about communication. Together, list your short-term and longer-term needs and wants. Check your progress regularly and make sure your goals remain relevant.
Tip #2: Compromise.
We all need to realize the importance of what Mick Jagger sang: You can’t always get what you want. It’s often difficult for newlyweds to realize that they can’t continue handling their money the way they did before the wedding. A willingness to be compassionate about the other’s viewpoint is essential. So, that might mean you don’t get that new car this year, but it could mean you save for a vacation together.
Tip #3: Set limits.
How much money do you spend before you discuss the purchase in advance with your spouse? Nearly three-fourths of those surveyed believe that spending more than $100 without telling your spouse is unacceptable, according to CESI Debt Solutions. So when you’re considering a purchase, make sure your spouse supports the idea beforehand.
Tip #4: Make a date.
Set a specific time and place to discuss finances with your spouse. It’s okay if you feel uncomfortable or shy. The conversation certainly isn’t romantic, but addressing these issues could be the best way to strengthen your relationship.
Tip #5: Resist the temptation to fib.
Be honest. Remember, in some states, spouses are legally responsible for the other’s debt, whether it was incurred before or during the marriage. If you have a good credit history, you don’t want your assets to be seized because of your partner’s financial mistakes.
Tip #6: Be positive.
It’s easy to blame your spouse if money is a problem. Instead of casting blame, stay focused and positive so you can move toward your joint goals.
I would like to add the following tips:
Tip #7: Get a Prenuptial Agreement
Tip #8: Watch out for your spouse's mail
Tip #8: Watch out for your spouse's mail
Wishing you luck! Remember during a mariage you own half of your spouse'd debt. So beware and watch out!
Friday, July 29, 2011
Joke of the week
Women of Afghanistan
Barbara Walters, of 20/20,
did a story on gender roles in Kabul , Afghanistan
several years before the Afghan conflict.
She noted that women customarily walked five paces behind their husbands.
She recently returned to Kabul
that women still walk behind their husbands.
With the overthrow of the oppressive Taliban regime,
Barbara Walters noted that women now walked in front of their husbands.
Walters approached one of the Afghani women and asked,
“It appears that customs have changed and women have
asserted themselves here, how did this come about?”
The woman looked Walters
straight in the eyes,
and without hesitation said,
“Land Mines.”
Friday, July 22, 2011
Buyers Rejected for Loans Can Now Find Out Why
A provision in the Dodd-Frank financial reform law, which took effect this week, requires lenders to provide consumers with a free credit score, which will help provide new insights into why they may have been rejected for a loan or did not qualify for the best, lowest rate.
While borrowers can access their credit scores from the credit bureaus, the credit score that a lender uses isn’t always the same one that the credit bureau provides you. According to a report by the Consumer Financial Protection Bureau, some credit bureaus sell consumers “educational” scores that aren’t the same ones used by lenders, or these bureaus may base the score on a different model than the one lenders use.
Now, borrowers for the first time will get a more accurate view of what credit score lenders are using to base their mortgage on.
Under the new Dodd-Frank financial reform law, lenders will be required to provide potential borrowers with a free credit score whenever they reject an application for a loan. Lenders must provide borrowers with an “adverse action” notice, which will include their credit scores as well as an explanation of why they were rejected for a loan.
Lenders will also be required to provide a free credit score and an explanation whenever they approve a loan but at a higher rate than what is given to their best customers.
While borrowers can access their credit scores from the credit bureaus, the credit score that a lender uses isn’t always the same one that the credit bureau provides you. According to a report by the Consumer Financial Protection Bureau, some credit bureaus sell consumers “educational” scores that aren’t the same ones used by lenders, or these bureaus may base the score on a different model than the one lenders use.
Now, borrowers for the first time will get a more accurate view of what credit score lenders are using to base their mortgage on.
Under the new Dodd-Frank financial reform law, lenders will be required to provide potential borrowers with a free credit score whenever they reject an application for a loan. Lenders must provide borrowers with an “adverse action” notice, which will include their credit scores as well as an explanation of why they were rejected for a loan.
Lenders will also be required to provide a free credit score and an explanation whenever they approve a loan but at a higher rate than what is given to their best customers.
Wednesday, July 20, 2011
Governor Signed SB 458 Into Law For Homeowners in California
Gov. signs SB 458 into law
For release:
July 15, 2011
CALIFORNIA ASSOCIATION OF REALTORS® applauds Gov. Brown on signing SB 458 into law
LOS ANGELES (July 15) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) applauds Gov. Jerry Brown on signing SB 458 (Corbett) into law. SB 458 extends the protections of SB 931 (2010), to ensure that any lender that agrees to a short sale must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans.
Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short sale payment as full payment for the outstanding balance of the loan, but unfortunately, the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens.
“The signing of this bill is a victory for California homeowners who have been forced to short sell their home only to find that the lender will pursue them after the short sale closes, and demand an additional payment to subsidize the difference,” said C.A.R. President Beth L. Peerce. “SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to accept a short sale payment on a property, all lienholders – those in first position and in junior positions – will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property.”
SB 458 contains an urgency clause making it effective upon signing.
Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (http://www.car.org/) is one of the largest state trade organizations in the United States, with nearly 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
For release:
July 15, 2011
CALIFORNIA ASSOCIATION OF REALTORS® applauds Gov. Brown on signing SB 458 into law
LOS ANGELES (July 15) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) applauds Gov. Jerry Brown on signing SB 458 (Corbett) into law. SB 458 extends the protections of SB 931 (2010), to ensure that any lender that agrees to a short sale must accept the agreed upon short sale payment as payment in full of the outstanding balance of all loans.
Under previous law (SB 931 of 2010), a first mortgage holder could accept an agreed-upon short sale payment as full payment for the outstanding balance of the loan, but unfortunately, the rule did not apply to junior lien holders. SB 458 extends the protections of SB 931 to junior liens.
“The signing of this bill is a victory for California homeowners who have been forced to short sell their home only to find that the lender will pursue them after the short sale closes, and demand an additional payment to subsidize the difference,” said C.A.R. President Beth L. Peerce. “SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to accept a short sale payment on a property, all lienholders – those in first position and in junior positions – will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property.”
SB 458 contains an urgency clause making it effective upon signing.
Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (http://www.car.org/) is one of the largest state trade organizations in the United States, with nearly 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
Friday, July 15, 2011
How To Detect Short Sale Frauds
Lenders are losing out on thousands of dollars, sometimes within just mere hours, due to short sale fraud, which is skyrocketing and plaguing the housing market.
In one of the most common short sale scams, an investor submits a low offer on a home that is underwater, in which the borrower owes more on the mortgage than the home is currently worth. Scam artists, working with the investor, present the lowball offer to the lender, asking for a short sale to be completed. Appraisals or broker price opinions may be manipulated to help persuade lenders to do the short sale (one common method: Misstating the home’s location so that the home is compared to lower cost homes).
In one of the most common short sale scams, an investor submits a low offer on a home that is underwater, in which the borrower owes more on the mortgage than the home is currently worth. Scam artists, working with the investor, present the lowball offer to the lender, asking for a short sale to be completed. Appraisals or broker price opinions may be manipulated to help persuade lenders to do the short sale (one common method: Misstating the home’s location so that the home is compared to lower cost homes).
Friday, July 8, 2011
President Obama Announces More Financial Aid for the Unemployed
Home owners who have lost their jobs will get more mortgage relief. The Obama administration has announced that two programs for unemployed home owners will extend the forbearance period on mortgages to 12 months.
For unemployed home owners with a Federal Housing Administration loan, the forbearance period will be extended from four months to 12 months. The Obama administration also said it will remove hurdles to make it easier for unemployed borrowers to qualify for FHA’s Special Forbearance Program.
“The current unemployment forbearance programs have mandatory periods that are inadequate for the majority of unemployed borrowers,” U.S. Housing and Urban Development Secretary Shaun Donovan said in a statement. “Today, 60 percent of the unemployed have been out of work for more than three months and 45 percent have been out of work for more than six. Providing the option for a year of forbearance will give struggling home owners a substantially greater chance of finding employment before they lose their home.”
The administration also announced that it will extend the minimum forbearance period in the Making Home Affordable Program from three months to 12 months for eligible unemployed home owners, when possible under regulator and investor guidelines. Forbearance will also be available to borrowers who are seriously delinquent.
All FHA-approved mortgage servicers are required to participate in FHA’s Loss Mitigation Program, which includes the Special Forbearance program.
For unemployed home owners with a Federal Housing Administration loan, the forbearance period will be extended from four months to 12 months. The Obama administration also said it will remove hurdles to make it easier for unemployed borrowers to qualify for FHA’s Special Forbearance Program.
“The current unemployment forbearance programs have mandatory periods that are inadequate for the majority of unemployed borrowers,” U.S. Housing and Urban Development Secretary Shaun Donovan said in a statement. “Today, 60 percent of the unemployed have been out of work for more than three months and 45 percent have been out of work for more than six. Providing the option for a year of forbearance will give struggling home owners a substantially greater chance of finding employment before they lose their home.”
The administration also announced that it will extend the minimum forbearance period in the Making Home Affordable Program from three months to 12 months for eligible unemployed home owners, when possible under regulator and investor guidelines. Forbearance will also be available to borrowers who are seriously delinquent.
All FHA-approved mortgage servicers are required to participate in FHA’s Loss Mitigation Program, which includes the Special Forbearance program.
Wednesday, July 6, 2011
Beware Loan Modification Scams
More home owners in Los Angeles who are desperate to avoid foreclosure are finding themselves victims to loan-modification scams that are all over.
In the latest to headlines, attorneys in California, where these scams are particularly rampant, filed the state’s first class-action lawsuit against an alleged loan modification scam, part of http://www.rewiremyloan.com/. In the lawsuit, prosecutors charge that the company collected nearly $5,000 each from at least 90 victims, promising to do loan modifications and offering a 100 percent money-back guarantee. The victims say the company never did the loan modification or refunded their payments.
The majority of the victims in the lawsuit are Spanish-speaking, and while the advertising and discussions they had with the company were in Spanish, they say the contracts they signed were in English. The home owners say they were also told to not contact their bank directly or their contracts would be voided. (Read: How to Spot Foreclosure-Prevention Scams)
Scam Prevention Network
The Lawyers' Committee for Civil Rights, government housing agencies, and other nonprofits have created the Loan Modification Scam Prevention Network to compile complaints about such fraud. From February 2010 to June 1, the network gathered nearly 15,000 complaints involving $37 million in lost money. California accounted for the majority of the losses, with 3,105 complaints filed and $11 million in losses from these scams.
For home owners who believe they were a victim of a loan-modification scam, the Loan Modification Scam Prevention Network encourages them to visit www.preventloanscams.org to file a complaint. I have always understood that people need to be surrounded by a team of financial expert, that can guide them so they can potentially reduce dramatically the risk of financial setback, but if for any reason financial setback occur due to unforseen circumstances, they can at least get reliable advice for experts.
Andre Plessis, REALTOR & Financial Educator.
Call - 1-877 APPLYFREE NOW!!!
In the latest to headlines, attorneys in California, where these scams are particularly rampant, filed the state’s first class-action lawsuit against an alleged loan modification scam, part of http://www.rewiremyloan.com/. In the lawsuit, prosecutors charge that the company collected nearly $5,000 each from at least 90 victims, promising to do loan modifications and offering a 100 percent money-back guarantee. The victims say the company never did the loan modification or refunded their payments.
The majority of the victims in the lawsuit are Spanish-speaking, and while the advertising and discussions they had with the company were in Spanish, they say the contracts they signed were in English. The home owners say they were also told to not contact their bank directly or their contracts would be voided. (Read: How to Spot Foreclosure-Prevention Scams)
Scam Prevention Network
The Lawyers' Committee for Civil Rights, government housing agencies, and other nonprofits have created the Loan Modification Scam Prevention Network to compile complaints about such fraud. From February 2010 to June 1, the network gathered nearly 15,000 complaints involving $37 million in lost money. California accounted for the majority of the losses, with 3,105 complaints filed and $11 million in losses from these scams.
For home owners who believe they were a victim of a loan-modification scam, the Loan Modification Scam Prevention Network encourages them to visit www.preventloanscams.org to file a complaint. I have always understood that people need to be surrounded by a team of financial expert, that can guide them so they can potentially reduce dramatically the risk of financial setback, but if for any reason financial setback occur due to unforseen circumstances, they can at least get reliable advice for experts.
Andre Plessis, REALTOR & Financial Educator.
Call - 1-877 APPLYFREE NOW!!!
Friday, June 10, 2011
How Much Will It Cost To Raise A Child In 2011?
The cost of raising a child continues to climb and parents starting a family this year should be prepared to shell out hundreds of thousands of dollars before their kid even turns 18.
According to the U.S. Department of Agriculture, children who were born in 2010 will cost a middle-income family nearly $227,000. The kicker , that number does not include college tuition.
According to the study, the highest price hikes were in child care, education, health care and transportation.
In 1960, when the first report was issued, it cost slightly more than $25,000 to raise a child to the age of 18.
According to the U.S. Department of Agriculture, children who were born in 2010 will cost a middle-income family nearly $227,000. The kicker , that number does not include college tuition.
According to the study, the highest price hikes were in child care, education, health care and transportation.
In 1960, when the first report was issued, it cost slightly more than $25,000 to raise a child to the age of 18.
Falling Home Prices Dwindling Home Equity
On average, home owners now hold about 38 percent equity in their homes, down from 61% a decade ago, the Federal Reserve says in citing data from the first quarter of this year.
Despite outstanding balances on loans getting smaller, home owners are losing equity due to drastically falling home prices, which have inched down in many markets since prices peaked in 2006, the Fed reports.
Home equity is an important indicator to the overall health of the economy because the more home equity people have, the more wealthy they tend to feel. Plus, home equity also tends to serve as collateral for other loans.
Despite outstanding balances on loans getting smaller, home owners are losing equity due to drastically falling home prices, which have inched down in many markets since prices peaked in 2006, the Fed reports.
Home equity is an important indicator to the overall health of the economy because the more home equity people have, the more wealthy they tend to feel. Plus, home equity also tends to serve as collateral for other loans.
Monday, June 6, 2011
How To Find Crimes in an Area?
If you want to move to an area, it may be a good idea to see how crime rate is inthat particular area. There are 4 websites you can visit and will give you the latest update on how to spot crimes in an area you live in or you want to move in.
Visit:
http://www.crimereports.com/
http://www.everyblock.com/
http://www.spotcrime.com/
http://www.trulia.com/voices/q_Crime+Rate+By+Zip+Code/
http://www.trulia.com/crime/#
Visit:
http://www.crimereports.com/
http://www.everyblock.com/
http://www.spotcrime.com/
http://www.trulia.com/voices/q_Crime+Rate+By+Zip+Code/
http://www.trulia.com/crime/#
Saturday, June 4, 2011
Monday, May 30, 2011
How To Find The Best & Most Reliable Charities
Charity Navigator, America's premier independent charity evaluator, works to advance a more efficient and responsive philanthropic marketplace by evaluating the financial health of over 5,500 of America's largest charities.
Are You Being Owed Money By The State of California?
Are you being owed money by the state of California? You may be one of millions of Californians owed money by the State!The State of California is currently in possession of more than $5.7 billion in Unclaimed Property belonging to approximately 11.6 million individuals and organizations.
The State acquires unclaimed property through California's Unclaimed Property Law, which requires "holders" such as corporations, business associations, financial institutions, and insurance companies to annually report and deliver property to the Controller's Office after there has been no customer contact for three years. Often the owner forgets that the account exists, or moves and does not leave a forwarding address or the forwarding order expires. In some cases, the owner dies and the heirs have no knowledge of the property.
The most common types of Unclaimed Property are:
The State acquires unclaimed property through California's Unclaimed Property Law, which requires "holders" such as corporations, business associations, financial institutions, and insurance companies to annually report and deliver property to the Controller's Office after there has been no customer contact for three years. Often the owner forgets that the account exists, or moves and does not leave a forwarding address or the forwarding order expires. In some cases, the owner dies and the heirs have no knowledge of the property.
The most common types of Unclaimed Property are:
- Bank accounts and safe deposit box contents
- Stocks, mutual funds, bonds, and dividends
- Uncashed cashier's checks or money orders
- Certificates of deposit
- Matured or terminated insurance policies
- Estates
- Mineral interests and royalty payments, trust funds, and escrow accounts.
The Unclaimed Property law was enacted to prevent holders of Unclaimed Property from using your money and taking it into their business income. This law gives the State an opportunity to return your money and provides California citizens with a single source, the State Controller's Office, to check for Unclaimed Property that may be reported by holders from around the nation. To find out if any of this money belongs to you, visit http://scoweb.sco.ca.gov/UCP/.
How a Health Care Advocate Can Help You
A medical issue can come up without warning, and even savvy patients can find themselves overwhelmed when trying to navigate care and insurance. Private health-care advocates can help you and fight the outrageous bills, typically for a fee.
They help resolve medical-billing problems, fight insurance-coverage denials, aid in complex medical decision-making, and find the right specialist or hospital for a particular condition.
Many health-care advocates charge individuals a flat fee, an hourly rate or take a percentage of whatever money is recovered. But some perform the work for free or on a sliding scale or reserve a portion of their workload for such cases.
Advocates typically charge $50 to $200 an hour, says Joanna Smith, president of the National Association of Healthcare Advocacy Consultants, a professional group in Berkeley, Calif. Consumers looking to hire one can search online directories run by the NAHAC and a company called AdvoConnection.
Advocates are often nurses, social workers or people who've navigated their own challenges with the medical system. No license is needed to practice, but there are several credentialing programs. And the NAHAC has designed a code of ethics. So be sure to ask about those when interviewing an advocate.
Elisabeth Russell, founder of Patient Navigator (PatientNavigator.com) in Vienna, Va., says people looking to hire a health-care advocate should expect a written estimate of costs and services and feel comfortable with the advocate's style, experience and expertise before signing on. Patient Navigator charges an hourly fee, typically $125.
The bulk of cases at Philadelphia-based HealthCare Advocates (HealthCareAdvocates.com) are insurance disputes, decisions about medical treatment and billing snafus. A lot of people are too busy to handle all the paperwork that comes in and they don't know what to do with it. Most cases cost consumers $300 to $400 and last a few weeks or months, depending on the problem.
The Patient Advocate Foundation of Hampton, Va., (patientadvocate.org) offers free help to patients whether or not they have health insurance.
They help resolve medical-billing problems, fight insurance-coverage denials, aid in complex medical decision-making, and find the right specialist or hospital for a particular condition.
Many health-care advocates charge individuals a flat fee, an hourly rate or take a percentage of whatever money is recovered. But some perform the work for free or on a sliding scale or reserve a portion of their workload for such cases.
Advocates typically charge $50 to $200 an hour, says Joanna Smith, president of the National Association of Healthcare Advocacy Consultants, a professional group in Berkeley, Calif. Consumers looking to hire one can search online directories run by the NAHAC and a company called AdvoConnection.
Advocates are often nurses, social workers or people who've navigated their own challenges with the medical system. No license is needed to practice, but there are several credentialing programs. And the NAHAC has designed a code of ethics. So be sure to ask about those when interviewing an advocate.
Elisabeth Russell, founder of Patient Navigator (PatientNavigator.com) in Vienna, Va., says people looking to hire a health-care advocate should expect a written estimate of costs and services and feel comfortable with the advocate's style, experience and expertise before signing on. Patient Navigator charges an hourly fee, typically $125.
The bulk of cases at Philadelphia-based HealthCare Advocates (HealthCareAdvocates.com) are insurance disputes, decisions about medical treatment and billing snafus. A lot of people are too busy to handle all the paperwork that comes in and they don't know what to do with it. Most cases cost consumers $300 to $400 and last a few weeks or months, depending on the problem.
The Patient Advocate Foundation of Hampton, Va., (patientadvocate.org) offers free help to patients whether or not they have health insurance.
Best Coupon Sites
An explosion of coupon sites is actually making it harder for bargain-hunters. But here's where to find the best deals.
http://www.coupons.com/http://www.couponcabin.com/
http://www.couponnetwork.com/
http://dealnews.com/
http://www.dropdowndeals.com/
http://www.retailmenot.com/
Wednesday, May 25, 2011
Banks Stand To Face Over $17 billion in Lawsuits Over Foreclosure Errors
If five of the nation’s largest banks can’t reach a settlement with state and federal regulators over illegal foreclosure practices, they stand to face at least $17 billion in civil lawsuits, The Wall Street Journal reports.
The banks’ liability could be even more. Banks also owe billions of dollar in possible claims to federal agencies, such as the Justice department and Department of Housing and Urban Development.
In over two months of settlement talks, banks and state attorneys general and federal officials have been unable to reach a settlement stemming from allegations of abuses in mortgage services.
So far, banks have proposed a $5 billion settlement, which would go to compensate borrowers who faced errors in the foreclosure process as well as provide transition assistance for home owners who were wrongly evicted from their homes. However, federal and state officials have said that’s not enough; some have asked banks for more than $20 billion.
The banks’ liability could be even more. Banks also owe billions of dollar in possible claims to federal agencies, such as the Justice department and Department of Housing and Urban Development.
In over two months of settlement talks, banks and state attorneys general and federal officials have been unable to reach a settlement stemming from allegations of abuses in mortgage services.
So far, banks have proposed a $5 billion settlement, which would go to compensate borrowers who faced errors in the foreclosure process as well as provide transition assistance for home owners who were wrongly evicted from their homes. However, federal and state officials have said that’s not enough; some have asked banks for more than $20 billion.
Sunday, May 15, 2011
Monday, May 9, 2011
Saturday, May 7, 2011
You Will Spend Hundreds of Thousands of Dollars in Health Care Costs During Retirement
If you think Medicare will take care of all your medical expenses in retirement, you’re wrong.
Men who retired last year at age 65 will spend $65,000 to $109,000 on health insurance premiums and out-of-pocket health care expenses, according to a study released by the Employee Benefits Research Institute in December , and that is assuming all they want is a 50% chance of having enough money. If you’re that retiree and you want to be 90% certain that you’ll have enough cash, you’ll need $124,000 to $211,000.
The statistics are even worse for women due to their longer longevity. If you’re woman and you retired at age 65 in 2010, you’ll need $88,000 to $146,000 for a 50% chance of having enough money, and $143,000 to $242,000 for a 90% chance.
If you’re married, add it up: You and your spouse combined will need as much as $388,000 in retirement just for medical expenses. That includes co-payments, insurance premiums and other nonreimbursed medical expenses. It doesn’t include the cost of long-term care.
Why so much? The reason, EBRI determined, is that Medicare covers just 64% of health care costs. Private insurance and other government programs cover 22%, and the rest, 14% is paid directly by you. If yu don't save now, you'll have to find a solution to pay for it.
The best way to get prepare is to BUILD WEALTH NOW!
Monday, May 2, 2011
Walking Away From Your House, Not Always a Good Idea!
An estimated 11 million home owners owe more on their mortgage than their property is currently worth. That’s made more home owners consider walking away from their mortgage and their home, even those who can still comfortably afford to make their payments (known as “strategic default”).
Walking away from a mortgage usually results in either a short sale or foreclosure. So what are the consequences of walking away? There may be far more consequences than what most home owners ever considered if you do not know everything yu should know.
The consequences include everything from badly affected credit to potential tax consequences and deficiency risks. Home owners' credit scores will be badly hit regardless of whether they attempt a short sale or have their property foreclosed on.
There also could be the potential for deficiency judgment, when walking away from a home, which largely varies from state to state. In some states, lenders may sue you for the difference between what you owe and what your short-sale or foreclosure proceeds are.
A deficiency judgment is an unsecured money judgment against a borrower whose mortgage foreclosure sale did not produce sufficient funds to pay the underlying promissory note, or loan, in full. The availability of a deficiency judgment depends on whether the lender has a recourse or nonrecourse loan, which is largely a matter of state law. In some jurisdictions, first mortgages are non-recourse loans, but second and subsequent ones are recourse loans.
Being sued for a deficiency judgment after foreclosure seems to be one of the greatest worries of homeowners in danger of losing their homes. Not only are they behind by thousands of dollars on their mortgage payment and facing a public auction of their house, the ordeal may continue even longer. If they are sued for a deficiency judgment for the amount that the bank does not recover from the sale, then they may have to pay tens of thousands of dollars years into the future for their one financial hardship that led to foreclosure.
Walking away from a mortgage usually results in either a short sale or foreclosure. So what are the consequences of walking away? There may be far more consequences than what most home owners ever considered if you do not know everything yu should know.
The consequences include everything from badly affected credit to potential tax consequences and deficiency risks. Home owners' credit scores will be badly hit regardless of whether they attempt a short sale or have their property foreclosed on.
There also could be the potential for deficiency judgment, when walking away from a home, which largely varies from state to state. In some states, lenders may sue you for the difference between what you owe and what your short-sale or foreclosure proceeds are.
A deficiency judgment is an unsecured money judgment against a borrower whose mortgage foreclosure sale did not produce sufficient funds to pay the underlying promissory note, or loan, in full. The availability of a deficiency judgment depends on whether the lender has a recourse or nonrecourse loan, which is largely a matter of state law. In some jurisdictions, first mortgages are non-recourse loans, but second and subsequent ones are recourse loans.
Being sued for a deficiency judgment after foreclosure seems to be one of the greatest worries of homeowners in danger of losing their homes. Not only are they behind by thousands of dollars on their mortgage payment and facing a public auction of their house, the ordeal may continue even longer. If they are sued for a deficiency judgment for the amount that the bank does not recover from the sale, then they may have to pay tens of thousands of dollars years into the future for their one financial hardship that led to foreclosure.
Monday, April 25, 2011
Missed Mortgage Payments Hurt Credit Scores
Missed mortgage payments, short sales, and foreclosures will undoubtedly bring down your credit score.
Lenders use credit scores to see how credit worthy a person is. Credit scores range from 300 to 850. A mortgage makes up a big part of a person’s credit score and often is the most important part of a person’s credit profile.
And just missing a single mortgage payment by 30 days can affect a credit score. For borrowers, that can be nearly as destructive as a foreclosure to a credit score.
On the other hand, loan modifications, which is when lenders approve new loan terms, have a very, minimal” impact to credit scores, possibly dropping the borrower’s score by 10 or 15 points. So your first option should be to contact your lender/servicer and ask for a loan modification so your payment can be lower, more affordable.
A good credit score is important not just for financing home purchases, but employers increasingly check credit as well as landlords when seeking rentals. Also, poor credit scores can also mean higher costs on car loans and credit cards.
How a Credit Score Is Affected
FICO evaluated 3 various scenarios of mortgage holders, a borrower with a great credit score (780), a borrower with good credit (720), and a poor credit borrower (680) , in a study it conducted last month.
Here’s the impact FICO found:
▪ 30 days late on a mortgage payment: The 780 credit score borrower has her credit score fall to 670-690. The 720 credit score borrower has his fall to 630-650. The 680 credit score borrower falls to 600-620.
▪ Short sale, deed in lieu of foreclosure, or settlement, assuming the balance has been wiped out: The 780 credit score borrower falls to 655-675; the 720 credit score falls to 605-625; and the 680 credit score drops to 610-630.
▪ Foreclosure, or short sale with a deficiency balance owed: The 780 credit score drops to 620-640; the 720 credit score falls to 570-590; and the 680 credit score decreases to 575-595.
Lenders use credit scores to see how credit worthy a person is. Credit scores range from 300 to 850. A mortgage makes up a big part of a person’s credit score and often is the most important part of a person’s credit profile.
And just missing a single mortgage payment by 30 days can affect a credit score. For borrowers, that can be nearly as destructive as a foreclosure to a credit score.
On the other hand, loan modifications, which is when lenders approve new loan terms, have a very, minimal” impact to credit scores, possibly dropping the borrower’s score by 10 or 15 points. So your first option should be to contact your lender/servicer and ask for a loan modification so your payment can be lower, more affordable.
A good credit score is important not just for financing home purchases, but employers increasingly check credit as well as landlords when seeking rentals. Also, poor credit scores can also mean higher costs on car loans and credit cards.
How a Credit Score Is Affected
FICO evaluated 3 various scenarios of mortgage holders, a borrower with a great credit score (780), a borrower with good credit (720), and a poor credit borrower (680) , in a study it conducted last month.
Here’s the impact FICO found:
▪ 30 days late on a mortgage payment: The 780 credit score borrower has her credit score fall to 670-690. The 720 credit score borrower has his fall to 630-650. The 680 credit score borrower falls to 600-620.
▪ Short sale, deed in lieu of foreclosure, or settlement, assuming the balance has been wiped out: The 780 credit score borrower falls to 655-675; the 720 credit score falls to 605-625; and the 680 credit score drops to 610-630.
▪ Foreclosure, or short sale with a deficiency balance owed: The 780 credit score drops to 620-640; the 720 credit score falls to 570-590; and the 680 credit score decreases to 575-595.
Sunday, April 24, 2011
Don't Just Walk Away From Mortgage
Some Americans who owe more than what their house is currently worth are opting to walk away from their mortgage. But a new survey finds Americans don’t agree with home owners who make that choice.
60% of Americans say it is “never OK” for home owners to stop making payments on their mortgage, according to a new survey of 1,000 American adults by FindLaw.com, a legal information Web site. However, 34 percent say it’s OK for home owners to walk away from their mortgage if they are no longer able to make their monthly payments.
Only 3% of those surveyed said home owners should be able to walk away from their mortgage anytime they want.
Many home owners are currently facing very difficult and complicated situations involving their home mortgage, in some cases even including the threat of foreclosure. But before making any major decisions, home owners should consult with financial and legal professionals, including accountants, real estate attorneys, financial advisers, short sale/distressed property experts and real estate advisors. Any major change to a mortgage situation could lead to serious and unanticipated consequences involving taxes owed, contract law, credit scores, ability to borrow in the future, potential for lawsuits, and much more.
60% of Americans say it is “never OK” for home owners to stop making payments on their mortgage, according to a new survey of 1,000 American adults by FindLaw.com, a legal information Web site. However, 34 percent say it’s OK for home owners to walk away from their mortgage if they are no longer able to make their monthly payments.
Only 3% of those surveyed said home owners should be able to walk away from their mortgage anytime they want.
Many home owners are currently facing very difficult and complicated situations involving their home mortgage, in some cases even including the threat of foreclosure. But before making any major decisions, home owners should consult with financial and legal professionals, including accountants, real estate attorneys, financial advisers, short sale/distressed property experts and real estate advisors. Any major change to a mortgage situation could lead to serious and unanticipated consequences involving taxes owed, contract law, credit scores, ability to borrow in the future, potential for lawsuits, and much more.
Landlord Investment Tips
Have you ever thought about investing in rental property? Apartment buildings, condominiums, rental housing... all of these properties can be lucrative investments. Or they can be disastrous money pits!!!
TIPS!
1.Have a property management firm screen your tenants
2.Require that your tenants have renter's insurance
3.Make sure your property is protected for vandalism due to the tenant not taking care of the rental
4.Make sure you have insurance that covers you for fair rental loss
5.Make sure you have adequate limits of liability
TIPS!
1.Have a property management firm screen your tenants
2.Require that your tenants have renter's insurance
3.Make sure your property is protected for vandalism due to the tenant not taking care of the rental
4.Make sure you have insurance that covers you for fair rental loss
5.Make sure you have adequate limits of liability
Report Unveils Tactics of Loan Scammers
One in nine home owners are more than 90 days behind on their mortgage payments, which has prompted loan modification scams that promise to rescue home owners from foreclosure doom to skyrocket.
Four fair housing organizations released findings this week uncovering some of the most popular loan modification scam tactics after a yearlong investigation of about 80 companies.
According to the report, some of the common scam tactics used were:
Four fair housing organizations released findings this week uncovering some of the most popular loan modification scam tactics after a yearlong investigation of about 80 companies.
According to the report, some of the common scam tactics used were:
- 55% required an upfront fee to begin work or required a low initial fee to conduct minimal work — such as reviewing loan documents — on behalf of defaulting home owners.
- 43% guaranteed or promised they would be able to secure a loan modification even prior to learning about the home owner's financial limitations.
- 24% advised or encouraged home owners to stop making their mortgage payments or to stop contacting their lenders.
- 16% guaranteed a loan with a lower interest rate, between 2 and 6 percent.
- 12% discouraged home owners from getting free help from government-approved housing counseling agencies.
Don't trust anyone, BUT YOURSELF. Banks have been doing loan modifications for decades, and there has never been a need for loan modification companies. Just pick up the phone and your banks will be eager to listen to your circumstances, and guide you through the process to see if you can qualify. If successful you will see your monethly payment reduced. The bank will be better off to have you keep on making the mortgage payment as opposed to going through the headache and costly foreclosure process.
The only people who won't qualify are those who:
- Are not honest and thruthfiul
- Don't have a legitimate financial hardship
- Are too messy with their finances, not just the mortgage, but also have liens on their house, owe taxes to the IRS, and are obviously not serious about their finances.
- Loss of Job
- Mandatory Job Relocation
- Reduced Employment Income
- Reduced Self-Employment Income
- Military Service
- Business Failure
- Damage to Property
- Severe Illness/Incapacity
- Medical Bills
- Divorce or Separation
- Death of a Spouse
- Death of Family Members
- Inheritance Tax
- Payment Increase/Mortgage Adjustment
- Insurance or Tax Increase
- Too Much Debt
- Incarceration
If you want to use one of these causes to help make the case for either loan modification or a short sale, you need to be able to show to the lender's satisfaction both the cause and the degree of the hardship. Be serious and you will get what you want.
6 Do-It-Yourself Updates That Can Increase Home’s Value By More Than $10,000
Here are six do-it-yourself projects–all under $1,000–that made HomeGain’s list, as well as the estimated increase to the home’s price at resale for each project.
1. Cleaning and decluttering: Remove any personal items, unclutter countertops, organize closets and shelves, and make the home sparkling clean.
Cost: $290
Estimated return: $1,990
2. Light and bright: Clean all windows inside and out, replace old curtains, update lighting fixtures, and remove anything that blocks light from the windows.
Cost: $375 cost
Estimated return: $1,550
3. Staging: Rearrange furniture, bring in new accessories and furnishings to enhance rooms, including artwork and playing soft music in the background.
Cost: $550 cost
Estimated return: $2,194
4. Landscaping: Punch up the home’s curb appeal in the front and backyards by adding bark mulch, bushes and flowers, and ensuring current plants and grass are well-cared for and manicured.
Cost: $540
Estimated return: $1,932
5. Repair electrical or plumbing: Repair any leaks under the bathroom or kitchen sinks, remove any mildew stains, and ensure all plumbing is in good working condition. Update the home’s electrical with new wiring for modern appliances, fix any lights or outlets that don’t work, and replace old plug points with new safety fixtures.
Cost: $535
Estimated return: $1,505
6. Replace or shampoo dirty carpets: Steam-clean carpets, replace any worn carpets, and repair any floor creaks.
Cost: $647
Estimated return: $1,739
1. Cleaning and decluttering: Remove any personal items, unclutter countertops, organize closets and shelves, and make the home sparkling clean.
Cost: $290
Estimated return: $1,990
2. Light and bright: Clean all windows inside and out, replace old curtains, update lighting fixtures, and remove anything that blocks light from the windows.
Cost: $375 cost
Estimated return: $1,550
3. Staging: Rearrange furniture, bring in new accessories and furnishings to enhance rooms, including artwork and playing soft music in the background.
Cost: $550 cost
Estimated return: $2,194
4. Landscaping: Punch up the home’s curb appeal in the front and backyards by adding bark mulch, bushes and flowers, and ensuring current plants and grass are well-cared for and manicured.
Cost: $540
Estimated return: $1,932
5. Repair electrical or plumbing: Repair any leaks under the bathroom or kitchen sinks, remove any mildew stains, and ensure all plumbing is in good working condition. Update the home’s electrical with new wiring for modern appliances, fix any lights or outlets that don’t work, and replace old plug points with new safety fixtures.
Cost: $535
Estimated return: $1,505
6. Replace or shampoo dirty carpets: Steam-clean carpets, replace any worn carpets, and repair any floor creaks.
Cost: $647
Estimated return: $1,739
Loan Modification Inmportant Announcement
Under new rules that took effect Jan. 31, the FTC now bars for-profit companies that provide loan modification services from collecting advance fees.
Do You Have To Short Sale Your Home During a Divorce? Canceled Debt's Tax Impact
Bad news for investors, cash-out refinancers
I am in the process of preparing my income taxes, and heard that I may have to pay a tax on the moneys that my lender canceled when I sold my house via a short sale after I divorced my spouse. Is this truet?
It depends. Usually under the tax laws, if your debt is canceled or forgiven, that is taxable income to you.
However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million, if that debt was on your principal residence.
If the debt was on a second home or an investment property, then you are out of luck; the amount that was forgiven (or canceled) is taxable income to you.
What would you be taxed on? If you owe $500,000 on a home and it is sold for $400,000, then you would owe tax on $100,000. BIG TAX BILL!!!
If your canceled debt was on a refinanced loan, the law is tricky. If you used the refinance proceeds to substantially improve your house, then there is no tax to pay. But if you used those proceeds for other purposes (pay off credit cards, get a loan to buy a car, vacation etc.), regardless of how significant the investment may have been, the cancellation creates a taxable event for you.
The IRS has an excellent, free, publication on this topic, called "Canceled Debts, Foreclosures, Repossessions and Abandonments." It is Publication 4681, and will soon be published at the following link on the IRS website -- http://www.irs.gov/pub/irs-pdf/p4681.pdf -- or by calling (800) 829-3676, or (800) TAX-FORM.
I am in the process of preparing my income taxes, and heard that I may have to pay a tax on the moneys that my lender canceled when I sold my house via a short sale after I divorced my spouse. Is this truet?
It depends. Usually under the tax laws, if your debt is canceled or forgiven, that is taxable income to you.
However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million, if that debt was on your principal residence.
If the debt was on a second home or an investment property, then you are out of luck; the amount that was forgiven (or canceled) is taxable income to you.
What would you be taxed on? If you owe $500,000 on a home and it is sold for $400,000, then you would owe tax on $100,000. BIG TAX BILL!!!
If your canceled debt was on a refinanced loan, the law is tricky. If you used the refinance proceeds to substantially improve your house, then there is no tax to pay. But if you used those proceeds for other purposes (pay off credit cards, get a loan to buy a car, vacation etc.), regardless of how significant the investment may have been, the cancellation creates a taxable event for you.
The IRS has an excellent, free, publication on this topic, called "Canceled Debts, Foreclosures, Repossessions and Abandonments." It is Publication 4681, and will soon be published at the following link on the IRS website -- http://www.irs.gov/pub/irs-pdf/p4681.pdf -- or by calling (800) 829-3676, or (800) TAX-FORM.
Andre Luc Plessis
REALTOR®, RCS-DTM REALTOR® & Financial Educator
Keller Williams® Realty
The Wealth Creation Team
Empowering People to Buy & Sell Real Estate Correctly!
CA DRE License # 01856185
Tel: (818) 341-2972
Cell: (310) 266-9463
Wednesday, April 13, 2011
How To Avoid Refinancing After a Divorce
DIVORCED homeowners dealing with the task of removing a former spouse’s name from the mortgage after buying out his or her equity stake in the marital house may think that refinancing is the only choice.
There is another, little-known option that can avoid refinancing and the high cost associated with refinancing a home, which generally runs 3 to 5% of the outstanding loan amount. You simply ask your lender to remove the former spouse’s name, leaving the mortgage in your name only.
The only problem is that not all lenders or mortgage servicers offer this option, known as "Release of Liability" OR Qualifying Name Delete Assumption.” A "Name Delete Assumption" is done when one party or the other on a mortgage loan wants to be removed, but the remaining party really does not want to refinance, perhaps because of fees, rate or in your case property value. If the remaining party can be proven to qualify on their own, the other party can be "deleted" from obligation, but the loan stays exactly as is and the costs are minimal.
This process will leave the existing loan in place, but would relieve the non-occupying spouse from their obligation on the loan.
The lenders and servicers that do will most likely run a separate credit check on you, requiring, for example, that you meet minimum credit scores (typically from Fannie Mae, the giant government buyer of loans), and ensuring that you are current with the monthly mortgage payments. They may also require that any investors in the loan, after it is sold off, agree to the deal.
And if you are “under water,” and owe more on the mortgage than the home is currently worth, this process is not an option.
In regards to being "under water" OR when you are going through a divorce you may also wants to ask the lender or servicer to do a loan modification. Banks have been modifying loans for decades when there is a hardship in a family. Hardhsips may be any of the following:
•Reduced / lost income
•Medical or disability
•Unexpected expenses
•Divorce
•Business failure
•Caring for a family member
•Credit card debt
•Escalating ARM
•Loss of rental income
•Etc.
A loan modification will allow the spouse that keeps the home to get the loan terms modified. That could be a reduction of the interest rate, the loan term to be extended (15 to 30-year) that will help the spouse get a lower monthly mortgage payment.
That is also a great tip because if both spouses are on the loan, that will give the spouse that leaves the house some peace of mind as the other spouse will be able to meet the monthly financial obligation more easily and maybe will help avoid default on mortgage payment, credit card accounts that both spouse have in common.
In regards to Name Delete Assumption keep in mind that lenders seldom have a reason to take a co-borrower’s name off the note. But, if a homeowner can prove that he or she can afford the payments and meet the required credit criteria, typically those of the investor in the loan , then release of liability may work. The lender will require the borrower to prove that the borrower is able to support the monthly payments without the co-borrower spouse,” typically through monthly bank statements, annual tax returns and investment statements.
Having the name removed from the loan obligation protects the credit of both parties. If the former spouse failed to pay other debts, a lien could be placed on the home, and if you were delinquent on the mortgage payments, both spouse’s credit could be hurt.
Most divorce settlements stipulate one of two outcomes for marital property. Either (1) the house must be sold, or (2) the person wanting to keep the property must buy out the other’s share, usually within months of the date of the settlement, and get the other party’s name off the mortgage, either through refinancing or a Name Delete Assumption typically within a year.
Under the option (2), the former spouse signs a quit-claim deed at the divorce settlement, relinquishing his or her claim to the property. But while that action takes the former spouse off the house’s title and leaves it in one name only, it does nothing to remove his or her name from the actual mortgage note. It is very important to get your name off the mortgage if you are going to be off the title.
Lenders or servicers typically charge $300 to $1,000 to execute a Release of Lliability or Name Delete Assumption and require the property owner to pay an additional, nonrefundable application fee, typically $250 to $500. The process can take from 30 to 90 days.
Still, a lender or servicer generally has no obligation to release one of the borrowers. But homeowners may have one point of leverage. Qualified borrowers not granted the release or delete assumption can tell their servicer or lender that unless a release of liability can be executed, the borrower will refinance the mortgage at another lender. In such cases,the servicer/lender might agree to do it.
In any case in case you are going through a divorce, I highly suggest that the spouse staying in the home should seek a loan modification and the spouse leaving the home should seek a Name Delete Assumption. Those two solutions will help divorcing spouse avoid tremendous financial stress cause by a divorce.
There is another, little-known option that can avoid refinancing and the high cost associated with refinancing a home, which generally runs 3 to 5% of the outstanding loan amount. You simply ask your lender to remove the former spouse’s name, leaving the mortgage in your name only.
The only problem is that not all lenders or mortgage servicers offer this option, known as "Release of Liability" OR Qualifying Name Delete Assumption.” A "Name Delete Assumption" is done when one party or the other on a mortgage loan wants to be removed, but the remaining party really does not want to refinance, perhaps because of fees, rate or in your case property value. If the remaining party can be proven to qualify on their own, the other party can be "deleted" from obligation, but the loan stays exactly as is and the costs are minimal.
This process will leave the existing loan in place, but would relieve the non-occupying spouse from their obligation on the loan.
The lenders and servicers that do will most likely run a separate credit check on you, requiring, for example, that you meet minimum credit scores (typically from Fannie Mae, the giant government buyer of loans), and ensuring that you are current with the monthly mortgage payments. They may also require that any investors in the loan, after it is sold off, agree to the deal.
And if you are “under water,” and owe more on the mortgage than the home is currently worth, this process is not an option.
In regards to being "under water" OR when you are going through a divorce you may also wants to ask the lender or servicer to do a loan modification. Banks have been modifying loans for decades when there is a hardship in a family. Hardhsips may be any of the following:
•Reduced / lost income
•Medical or disability
•Unexpected expenses
•Divorce
•Business failure
•Caring for a family member
•Credit card debt
•Escalating ARM
•Loss of rental income
•Etc.
A loan modification will allow the spouse that keeps the home to get the loan terms modified. That could be a reduction of the interest rate, the loan term to be extended (15 to 30-year) that will help the spouse get a lower monthly mortgage payment.
That is also a great tip because if both spouses are on the loan, that will give the spouse that leaves the house some peace of mind as the other spouse will be able to meet the monthly financial obligation more easily and maybe will help avoid default on mortgage payment, credit card accounts that both spouse have in common.
In regards to Name Delete Assumption keep in mind that lenders seldom have a reason to take a co-borrower’s name off the note. But, if a homeowner can prove that he or she can afford the payments and meet the required credit criteria, typically those of the investor in the loan , then release of liability may work. The lender will require the borrower to prove that the borrower is able to support the monthly payments without the co-borrower spouse,” typically through monthly bank statements, annual tax returns and investment statements.
Having the name removed from the loan obligation protects the credit of both parties. If the former spouse failed to pay other debts, a lien could be placed on the home, and if you were delinquent on the mortgage payments, both spouse’s credit could be hurt.
Most divorce settlements stipulate one of two outcomes for marital property. Either (1) the house must be sold, or (2) the person wanting to keep the property must buy out the other’s share, usually within months of the date of the settlement, and get the other party’s name off the mortgage, either through refinancing or a Name Delete Assumption typically within a year.
Under the option (2), the former spouse signs a quit-claim deed at the divorce settlement, relinquishing his or her claim to the property. But while that action takes the former spouse off the house’s title and leaves it in one name only, it does nothing to remove his or her name from the actual mortgage note. It is very important to get your name off the mortgage if you are going to be off the title.
Lenders or servicers typically charge $300 to $1,000 to execute a Release of Lliability or Name Delete Assumption and require the property owner to pay an additional, nonrefundable application fee, typically $250 to $500. The process can take from 30 to 90 days.
Still, a lender or servicer generally has no obligation to release one of the borrowers. But homeowners may have one point of leverage. Qualified borrowers not granted the release or delete assumption can tell their servicer or lender that unless a release of liability can be executed, the borrower will refinance the mortgage at another lender. In such cases,the servicer/lender might agree to do it.
In any case in case you are going through a divorce, I highly suggest that the spouse staying in the home should seek a loan modification and the spouse leaving the home should seek a Name Delete Assumption. Those two solutions will help divorcing spouse avoid tremendous financial stress cause by a divorce.
Andre Luc Plessis
REALTOR®, RCS-DTM REALTOR® & Financial Educator
Keller Williams® Realty
The Wealth Creation Team
Empowering People to Buy & Sell Real Estate Correctly!
CA DRE License # 01856185
Tel: (818) 341-2972
Cell: (310) 266-9463
www.RealEstate-LosAngeles.net - Use our Latest Map Search to Find Real Estate Deals
www.WealthCreationTeam.net - Build Wealth with Real Estate
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Monday, April 11, 2011
10 Ways to Improve Your Credit Score Instantly
10 Corrections Can Save You Money When You Apply for Credit
Look for Credit Report Errors
So here's what you do. Go to the government-mandated website http://www.annualcreditreport.com/ to get your three free credit reports from the major bureaus. If there are inaccurate, unflattering entries on your report, simply fill out the form provided to dispute them. Pay particular attention to the following kinds of errors, which can drag your score down most of all:
Old Bankruptcies
Bankruptcies remain on your report for 10 tough years. If a bankruptcy entry is still there after that, complain.
Debts Disposed of in Bankruptcy
If you declared bankruptcy in the past, debts covered by that bankruptcy settlement should not appear on your report as past due or still payable because bankruptcy wipes the slate clean.
Outdated Lawsuits and Judgments
If you paid a legal judgment, it should not be in your records anymore. If you didn't pay, it's still supposed to disappear after seven years.
Inaccurate Tax Liens
Tax liens you have paid remain on your report for seven years. Unpaid ones last 15 years, longer than anything else. (Guess who makes the laws.) If there's a lien on there longer than those two parameters, dispute it.
Outdated Demerits
Late payments and charge-offs, where creditors write your bill off because they have given up on you, are not allowed to remain on your report after seven years.
Duplicate Debts
The same debt should not be listed more than once, particularly by more than one debt collector.
Your Spouse's Bad Debts
If your spouse failed to pay bills before your marriage or after your official divorce, as long as your divorce filing was handled properly, these should not be on your credit report.
Other People's Accounts
Other people's account information -- good or bad -- should never appear on your credit statement. A cynic might say to keep the stranger's entries if they are positive, but who's to know when that person will face a financial crisis that will ruin their credit, and yours.
Old Credit Applications
"Hard" inquiries where you apply for credit count against you. They shouldn't remain on your report for more than two years.
Credit For Which You Didn't Apply
If you spot hard inquiries that you didn't authorize, dispute them. "Soft" inquiries, where banks check your credit report in order to offer you a preapproved card, are harmless. Checking your own report is harmless.
Look for Credit Report Errors
So here's what you do. Go to the government-mandated website http://www.annualcreditreport.com/ to get your three free credit reports from the major bureaus. If there are inaccurate, unflattering entries on your report, simply fill out the form provided to dispute them. Pay particular attention to the following kinds of errors, which can drag your score down most of all:
Old Bankruptcies
Bankruptcies remain on your report for 10 tough years. If a bankruptcy entry is still there after that, complain.
Debts Disposed of in Bankruptcy
If you declared bankruptcy in the past, debts covered by that bankruptcy settlement should not appear on your report as past due or still payable because bankruptcy wipes the slate clean.
Outdated Lawsuits and Judgments
If you paid a legal judgment, it should not be in your records anymore. If you didn't pay, it's still supposed to disappear after seven years.
Inaccurate Tax Liens
Tax liens you have paid remain on your report for seven years. Unpaid ones last 15 years, longer than anything else. (Guess who makes the laws.) If there's a lien on there longer than those two parameters, dispute it.
Outdated Demerits
Late payments and charge-offs, where creditors write your bill off because they have given up on you, are not allowed to remain on your report after seven years.
Duplicate Debts
The same debt should not be listed more than once, particularly by more than one debt collector.
Your Spouse's Bad Debts
If your spouse failed to pay bills before your marriage or after your official divorce, as long as your divorce filing was handled properly, these should not be on your credit report.
Other People's Accounts
Other people's account information -- good or bad -- should never appear on your credit statement. A cynic might say to keep the stranger's entries if they are positive, but who's to know when that person will face a financial crisis that will ruin their credit, and yours.
Old Credit Applications
"Hard" inquiries where you apply for credit count against you. They shouldn't remain on your report for more than two years.
Credit For Which You Didn't Apply
If you spot hard inquiries that you didn't authorize, dispute them. "Soft" inquiries, where banks check your credit report in order to offer you a preapproved card, are harmless. Checking your own report is harmless.
Monday, March 7, 2011
How Can I Get The Most For My House?
I was recently asked, "How can I get the most money for my house?" Now, this is not a new question for an educated REALTOR® and frankly, the answer is not a new one either. "You need Curb Appeal, Home Staging, the Right Financing Strategy and PRICING IT RIGHT!" Not the "magic potion" you maybe hoping for, but that is the reality.
Some Home Sellers want to do less work and still over-price their homes. This formula does not work in today's market, and I truly hope they like living in that home, because if they don't get smart about today's market and what they need to do to sell their home, they're going to be living in it for a long time!
Some Home Sellers want to do less work and still over-price their homes. This formula does not work in today's market, and I truly hope they like living in that home, because if they don't get smart about today's market and what they need to do to sell their home, they're going to be living in it for a long time!
Here's the truth:
Buyers today start their home search online. You need to have amazing pictures which show your home in its best light. We're not talking Glamour Shots, but the pictures should be representative of your home. This means you need to get the exterior and interior in top shape before you put it on the market.
If you don't capture a buyer's attention the minute they pull up to your house, forget it. They're looking to be impressed. You have to do everything in your power to make that happen. Remember you are in competition with others who want to sell their home as well. If your home's curb appeal makes a great first impression, everyone, including potential homebuyers, will want to see what's inside.
One of the hottest trends to sell a home today is home staging, an interior decorating technique for making the most of your home's attributes and making it more attractive for a potential buyer. Home staging has been known to boost home sales prices, as well as quicken the amount of time the home stays on the market. With the real estate climate making selling your home difficult, home staging can be an effective tool to help sellers out.
In today’s market you need a financing strategy that will help both buyers and sellers. The unique strategy I wrap around each of the listings I agree to sell:
- Dramatically reduces the sale cycle for your home
- Allows your home to easily stand apart from other listed area homes
- Attracts more potential buyers by making it easier for them to qualify
- Lets You Walk Away With the Maximum Amount of Your Equity
- Eliminate or lower the Need For Price Reduction
The longer your house is on the market, the more money you are losing every month. Your property becomes stagnant and by the time you finally decide to lower your price, it's not being shown. This is not the time to "test" the market! Keep in mind as well that it cost you money every month (mortgage, tax, electricity, water, landscaping, trash etc.) to maintain your house.
You MUST be priced right! Reasonably priced listings are more likely to get reasonable offers from reasonable buyers.
Overpriced listings do not get as many showings. Fewer showings equal fewer offers. Buyers are more educated about real estate than ever. They know if you're overpriced your house, and are probably going to wait until you get real about the pricing. Why give them a reason to wait? PRICE IT RIGHT at the very beginning and you'll be moving out in no time!
Nothing screams desperation quite like, price reduction! Let's just avoid looking like the wallflower, and be the belle of the ball! Let's get that yard looking spiffy, clean up the porches, paint the trim, de-clutter the interior (don't forget the garage!), set the home up to show off its best features and PRICE IT RIGHT! You'll have buyers begging to your door.
Warm Regards,
Andre Luc Plessis
REALTOR®
RCS-DTM REALTOR®
Keller Williams® Realty
The Wealth Creation Team
CA DRE License # 01856185
Office: (818) 341-2972 - Cell: (310) 266-9463
P.S. Please disregard this letter if you have re-listed your property with an agent or broker.
P.S.S.S. I am the founder of the Wealth Creation Team. The Wealth Creation Team is a group of trusted Advisors, Pension Administrators, Estate Planning Attorneys, Tax Advisors, Mortgage Planners and REALTORS®. The Wealth Creation Team is a group of carefully selected talented professionals who work with individuals to help them protect their assets, create and manage their wealth! Our mission is to educate and empower people, so they eliminate debts, learn how to buy and sell real estate correctly, learn how to protect their assets and build long-term wealth.
“Eliminate Your Debts, Protect Your Assets, Build Wealth, & Retire Rich!”
“Some Create The Real Estate Malaise, WE SOLVE IT!”
Child Support/Alimony To Be Considered as an Income
Child support/alimony will be considered when based on a divorce decree, court ordered separation agreement, court decree, or another legal agreement providing the payment terms confirm that the income will continue for minimum 3 years.
Evidence must be provided to document that the funds have been received for, at minimum, past 3 months: i.e. bank statements showing the deposits and copies of the cancelled checks.
If a Borrower who is divorced does not have a court order or legal agreement that specifies the support payments, the support income cannot be used to qualify.
Monday, February 21, 2011
Wednesday, February 16, 2011
The Wealth Creation Team Successful Financing Strategy
We, at The Wealth Creation Team have a unique financing strategy that is the Advil for the pain in this real estate market today, that allow us to market properties different than other REALTORS® in the Los Angeles County.
Our unique financial strategy get double the potential buyers, so we can move the properties twice as fast, which allow our clients to maximize their NET EQUITY.
Monday, February 14, 2011
Myths About Divorce Decrees & Debts! What to Watch Out For!!!
Myth 1: A divorce decree protects my credit if my ex-spouse doesn't pay the debts they were assigned in the divorce.
Fact: If you have a joint financial obligation with your ex-spouse, and your divorce decree states that your ex-spouse is responsible, and your ex-spouse is delinquent on paying, your credit as well as his is affected. As stated above, your legal responsibility for a debt does not go away because a divorce decree assigns responsibility for a debt to your ex-spouse. Along with a legal responsibility to pay comes the right of the creditor to report a debt delinquent on your credit report if it is not paid as agreed in the original contract. Period.
Especially tragic are situations where one ex-spouse files bankruptcy and includes many joint debts in the BK. The spouse not filing bankruptcy is left holding the bag for these joint debts, and many times is not notified of the ex-spouse's filing until months or years down the road when it is too late to correct the situation. So not only is the spouse who didn't file BK responsible for the unpaid debts (and can be legally sued for them), but the non-filing BK spouse's credit also is ruined - something that cannot be corrected - because the credit bureaus have the right to report them delinquent.
Myth 2: A divorce decree can relieve a spouse from financial obligations of joint debts.
Fact: Debts that were obtained in the name of both spouses before a divorce (meaning both the husband and wife signed a document or application saying that they were both responsible for the debt) remain the obligation of both parties after a divorce, no matter what a divorce decree says.
Why? Because both of you signed a legally binding contract with the creditor, and the divorce decree does not amend this contract. Amendment of any contract requires agreement by all parties (including the creditor). Proof of the amendment requires the signature of all parties. During a divorce, the creditors are not even consulted, let alone a part of the divorce courts, and therefore the original agreements/contracts stand. Consequently, if your ex-spouse does not pay a debt that he was assigned in a divorce decree, then you are responsible for it.
Fact: If you have a joint financial obligation with your ex-spouse, and your divorce decree states that your ex-spouse is responsible, and your ex-spouse is delinquent on paying, your credit as well as his is affected. As stated above, your legal responsibility for a debt does not go away because a divorce decree assigns responsibility for a debt to your ex-spouse. Along with a legal responsibility to pay comes the right of the creditor to report a debt delinquent on your credit report if it is not paid as agreed in the original contract. Period.
Especially tragic are situations where one ex-spouse files bankruptcy and includes many joint debts in the BK. The spouse not filing bankruptcy is left holding the bag for these joint debts, and many times is not notified of the ex-spouse's filing until months or years down the road when it is too late to correct the situation. So not only is the spouse who didn't file BK responsible for the unpaid debts (and can be legally sued for them), but the non-filing BK spouse's credit also is ruined - something that cannot be corrected - because the credit bureaus have the right to report them delinquent.
Myth 2: A divorce decree can relieve a spouse from financial obligations of joint debts.
Fact: Debts that were obtained in the name of both spouses before a divorce (meaning both the husband and wife signed a document or application saying that they were both responsible for the debt) remain the obligation of both parties after a divorce, no matter what a divorce decree says.
Why? Because both of you signed a legally binding contract with the creditor, and the divorce decree does not amend this contract. Amendment of any contract requires agreement by all parties (including the creditor). Proof of the amendment requires the signature of all parties. During a divorce, the creditors are not even consulted, let alone a part of the divorce courts, and therefore the original agreements/contracts stand. Consequently, if your ex-spouse does not pay a debt that he was assigned in a divorce decree, then you are responsible for it.
Myths About Divorce Decrees
Creditors aren't interested in how property and bills are divided during divorce. If you have debt in joint accounts with your spouse, you are both responsible for paying it back, no matter what the divorce decrees says.
Creditors are not legally bound to abide by your final decree of divorce. A judge's order does not override what you owe your creditors and most attorneys don't alert their clients to the potential for problems if one spouse does not follow the court order. If one can't pay, the other is responsible. A court cannot overturn contracts between individuals unless they are fraudulent or not lawful. A divorce does not fit either of these definitions, so the contract remains in tact until the contract ends (when the debt is paid off).
I can't tell you how many individuals have been unpleasantly surprised to find out years later that their credit was damaged because the ex spouse that was supposed to pay the bills did not. DON'T FORGET TO DIVORCE YOUR SPOUSE FINANCIALLY!
Creditors are not legally bound to abide by your final decree of divorce. A judge's order does not override what you owe your creditors and most attorneys don't alert their clients to the potential for problems if one spouse does not follow the court order. If one can't pay, the other is responsible. A court cannot overturn contracts between individuals unless they are fraudulent or not lawful. A divorce does not fit either of these definitions, so the contract remains in tact until the contract ends (when the debt is paid off).
I can't tell you how many individuals have been unpleasantly surprised to find out years later that their credit was damaged because the ex spouse that was supposed to pay the bills did not. DON'T FORGET TO DIVORCE YOUR SPOUSE FINANCIALLY!
Friday, February 11, 2011
Changing Your Will to Favor Your Children After Your Divorce
Do you have a will? You should have. It’s your way of making your wishes known and distributing your property and assets after your death and as such, it’s very important to have a will.
If you’re married or with a partner and own a house and have children, then you definitely should have a will. But when your circumstances change, you need to remember to change your will, otherwise you’ll find that, on your death, your former partner could receive everything you desired in your old will.
Things to Consider When Changing Your Will
You need to look at your assets, everything you own. After splitting with a partner, you want to provide for your children in the event of your death, so you need to see your solicitor and make changes to ensure they will inherit whatever you own and wish to pass on. Remember, too, that assets aren’t all material; they can include heirlooms, family photographs and memorabilia, too, things you want your children to have and by which they remember you.
If, say, you’ve bought a house, make sure it goes to your children (if you have more than one child, spread it equally between them. If they’re under 18, it will need to be held in trust for them until they come of maturity). The same is true for all your financial assets. Have them held in trust until your children are old enough. This has the effect of making sure your former partner can’t have them.
The chances are that under your old will, your former partner would have been the executor of your estate. Obviously, you’ll need to change that. If your children are over 18, you can appoint them as executors. It’s a relatively simple procedure, and if you’re not sure, an estate planning attorney will be able to advise you on the mechanics and wording.
If You Find a New Partner
Moving in with, or marrying, a new partner is another huge change in your circumstances, and one that will require a new will. However, much as you love this new person in your life (and possibly any children she already has, as well as any you may have together), don’t forget your own children. Be equitable in the way you leave your assets.
Wednesday, February 9, 2011
Ways to Increase Your Home Value
Ways to Increase Your Home Value
by Andre Plessis
While you cannot protect yourself against market corrections such as what we’ve seen over the past few years, you can take steps to help increase your home's value and make it more marketable, more desirable than any other properties on the market. Keep in mind that if you want to sell your home, you have to look better than the competition. You should also be priced well, and understand that when you market a product your offer should be so irresistible that it should be difficult for anyone to say no to your offer. It can be done, when you know how to properly market your product or service. THAT’S MARKETING!
The following tips are meant to inspire and motivate you to treat your home like the investment it was meant to be.
1. Make Repairs: Homes require regular maintenance and repairs are a necessary component of homeownership. Procrastination gets you. Stay on top of repairs as they are needed. Be sure to address all necessary repairs before you put your home on the market. For example, roofs, foundation are expensive to replace or repair. Many prospective buyers will pass up your otherwise wonderful home when faced with those issues. How do you expect someone to purchase your house if you do not take care of it? It says it all.
2. Curb Appeal: Curb appeal is about first impressions. A large percentage of home buyers decide whether or not to look inside a house or take it seriously based on its curb appeal—the view they see when they drive by or arrive for a showing. You can help make sure they want to come inside your house by spending some time working on the its exterior appearance.
3. Updated Kitchen: Everyone knows that the kitchen is the heart of a home. As such, making your kitchen beautiful needs to be a top priority. Believe it or not, this does not need to be an expensive or difficult proposition. Kitchens are a real selling point. Outdated cabinets, counters, and appliances will stick out like a sore thumb to buyers. Be sure, however, that you research your comparables before beginning a remodel. You don't want to price yourself out of the running. This means if while you love granite and travertine, other homes in your area are selling with laminate, you will probably not be able to ask for a drastically higher price that covers the price of the granite.
4. Updated Bath: Bathrooms also hold much of a home's value. You don't need to rip out walls or install new plumbing to give your bathroom design a fresh new look. New low-flush toilets cost as little as $100. And tubs and showers can be easily replaced or resurfaced. Be sure, above all else, that your bathrooms are clean for showings.
5. Energy Savers: Buyers are looking for homes that are energy efficient. Low-flush toilets, solar panels, water filtrations systems, and insulated windows are all inexpensive fixes for energy zappers.
Consider these 4 simple tips and decide for yourself what may help your home retain its value.
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