There is a law that says you are entitled to a free copy of your credit report each year.
You can get the report at http://www.annualcreditreport.com/. It is easy to do.
If you want credit reports more than just once a year, there are a large number of businesses that will provide that service for a fee. Just search for "free credit report" on line.
The main point is that you can (and should) get a copy of your credit report at least once a year. The law gives you rights to correct any errors you find (or at least submit your side of the story).
Richard
Tuesday, July 31, 2007
Tuesday, July 17, 2007
Troubled Borrower's Solution
With more and more people having trouble meeting mortgage payments, there is a solution that will avoid such homeowners getting a foreclosure on their credit record.
It is called a Short Sale and available from most lenders as a preferred alternative to a foreclosure. It is less damaging to the homeowner's credit rating and saves money for the lender. These days most banks are willing to discuss this alternative.
Here are some rules to follow if you decide to take this route:
1) You must be able to show the bank why you are behind on payments and can't catch up.
2) A Realtor must find a buyer for the property and then negotiate with the lender for an acceptable price (this can often be determined before listing the property although any offer will probably be subject to final lender approval). Real estate commissions may be limited.
3) The homeowner should not expect to get any money (equity) from the sale. Although, several years ago, I handled a short sale and the owners ended up with a $1,000 bonus - from Wells Fargo Bank (other banks may differ).
4) A short sale is still a negative credit score entry but less serious than a foreclosure.
5) The homeowner may be required to pay income tax on any forgiven amount.
6) The homeowner should not sign over the property to any group prior to closing. A short sale closes just like any other real estate transaction.
If you or someone you know is faced with this situation you can contact me for further details.
Thanks.
Richard
Richard Haworth
Coldwell Banker Residential Brokerage
602-370-1450
It is called a Short Sale and available from most lenders as a preferred alternative to a foreclosure. It is less damaging to the homeowner's credit rating and saves money for the lender. These days most banks are willing to discuss this alternative.
Here are some rules to follow if you decide to take this route:
1) You must be able to show the bank why you are behind on payments and can't catch up.
2) A Realtor must find a buyer for the property and then negotiate with the lender for an acceptable price (this can often be determined before listing the property although any offer will probably be subject to final lender approval). Real estate commissions may be limited.
3) The homeowner should not expect to get any money (equity) from the sale. Although, several years ago, I handled a short sale and the owners ended up with a $1,000 bonus - from Wells Fargo Bank (other banks may differ).
4) A short sale is still a negative credit score entry but less serious than a foreclosure.
5) The homeowner may be required to pay income tax on any forgiven amount.
6) The homeowner should not sign over the property to any group prior to closing. A short sale closes just like any other real estate transaction.
If you or someone you know is faced with this situation you can contact me for further details.
Thanks.
Richard
Richard Haworth
Coldwell Banker Residential Brokerage
602-370-1450
Thursday, July 05, 2007
Tax savings for energy saving improvements
Homeowners - Save Energy & Cash
The Energy Policy Act of 2005 lets homeowners claim up to $500 on their federal income taxes for qualified energy-saving improvements placed in service through December 31, 2008. Here are some tips to help clients cut costs while cashing in on tax credits:
Central air conditioning units that qualify for the credit must meet the highest tier standards set by the Consortium for Energy Efficiency (CEE; http://www.cee1.org/). Note that this is higher than the Energy Star (energystar.gov) standard.
Upgrades such as insulation, replacement windows and sealing ducts -- which retain cool air -- can earn the credit if using qualifying products. (Visit naima.org, www1.eere.energy.gov, efficientwindows.org and energystar.gov for more information.)
Fans for cooling (and heating) systems that consume no more than 2% of the system's energy use qualify. The Gas Appliance Manufacturers Association marks such units with an italicized "e" in its Consumers' Directory of Certified Efficiency Ratings (http://www.gamapower.org/).
Appliance manufacturers must certify that their equipment meets the necessary specifications. Clients should obtain a copy of this certification upon purchase and keep it on file in case the Internal Revenue Service has questions.
Also, the $500 credit applies to each improvement made over the two-year period, so if clients take a $350 credit the first year, they can still take a $150 credit in the second year. (The cap remains $500, however.)
To learn more, visit the Tax Incentives Assistance Project at http://www.energytaxincentives.org/.
Monday, July 02, 2007
Mortgage Payment Help
Dear Friends,
If you or someone you know is having trouble making their mortgage payment, help may be on the way.
This longish post is an article I received from Inman Real Estate News and gives the details of where to turn for help.
If you or someone you know is having payment trouble . . . read on.
Richard
Richard Haworth
Coldwell Banker Residential Brokerage
Three-year TV, radio, print Internet campaign kicks off in July
Friday, June 29, 2007By Matt Carter Inman News
Borrowers facing difficulty making their mortgage payments will be urged to call their lenders in a TV, radio, print and Internet public awareness campaign produced by NeighborWorks America and the Ad Council.
The public service announcements -- which cost about $1 million to produce -- urge homeowners in financial trouble to call a hotline maintained by the Homeownership Preservation Foundation, 888-995-HOPE.
The announcements were paid for by lenders who stand to lose $30,000 on every mortgage they are forced to foreclose on. With some estimates predicting that more than 1 million homes will enter the foreclosure process this year, the cost to lenders could approach $30 billion, NeighborWorks estimates.
According to research by government-sponsored mortgage repurchaser Freddie Mac, half of families who end up in foreclosure never call their lenders for help.
For lenders, funding the production of the announcements -- and counselors who advise troubled borrowers -- "is a public service, as well a business decision," Doug Robinson, a spokesman for NeighborWorks, told Inman News.
The Homeownership Preservation Foundation says the hotline is currently getting more than 500 callers a day. The public service announcements are intended to boost calls to the hotline and put more families in touch with their lenders and financial counselors.
Current statewide campaigns by NeighborWorks' Center for Foreclosure Solutions are credited with boosting calls to the 888-995-HOPE hotline from about 700 per month in July 2006 to nearly 15,000 this month.
The spots will run on stations around the country beginning in July. How many people see them depends on how many media outlets agree to run the free public service announcements.
NeighborWorks has partnerships with 236 nonprofits around the country, Robinson said, whose members will make pitches to TV and radio broadcasters, as well as print and Internet media outlets.
"You don't just post them on the satellite and hope it gets pulled down for TV and radio," Robinson said. "You make personal pitches to the stations manager and ad manager."
The television spots -- also available as QuickTime videos for viewing over the Internet -- are shot in stark black and white. In one, a family is gathered around the dinner table, laughing and talking. When the phone starts ringing, the laughter stops. Nobody moves to answer it.
"Every year, 1 million families face losing their homes to foreclosure," the narrator intones. "If you're ignoring your mortgage issues, things will only get worse. Call 888-995-HOPE. Because nothing is worse than doing nothing."
Robinson said the public service announcements are part of a three-year public awareness campaign. New ads may be produced as needed if more money becomes available from NeighborWorks' partners.
"We're continuing to look for new supporters," Robinson said. "If you talk to the Mortgage Bankers Association or the Center for Responsible Lending, anyone will tell you the foreclosure problem has not peaked."
The list of partners in NeighborWorks' Center for Foreclosure Solutions reads like a who's who of mortgage lending. It includes Countrywide Home Loans, Washington Mutual, Bank of America, Option One Mortgage Corp., Chase, Citi, EMC Mortgage Corp., GMAC ResCap, HSBC North America, Ocwen Loan Servicing LLC, National City Mortgage, American Financial Services and SunTrust Mortgage.
Government-sponsored mortgage giants Fannie Mae and Freddie Mac are also partners, as well as the law firm Barrett Burke Wilson Castle Daffin & Frappier LLP, and industry groups like the Mortgage Bankers Association and the Housing Policy Council.
In addition to conducting public outreach campaigns, the NeighborWorks Center for Foreclosure Solutions helps counseling centers around the nation build their staffs. The Center has launched foreclosure prevention initiatives in Ohio, Georgia, Delaware, Baltimore, and St. Louis, and plans dozens of similar local and state initiatives that will "leverage the influence" of the Ad Council campaign, the group said in a press release.
NeighborWorks America provides financial support, technical assistance and training to nearly 4,500 communities nationwide through a network of 236 nonprofit organizations. The group claims its members have generated more than $12 billion in reinvestment in the last five years, helping more than 845,000 families purchase or improve their homes, or obtain rental or mutual housing.
If you or someone you know is having trouble making their mortgage payment, help may be on the way.
This longish post is an article I received from Inman Real Estate News and gives the details of where to turn for help.
If you or someone you know is having payment trouble . . . read on.
Richard
Richard Haworth
Coldwell Banker Residential Brokerage
Real Estate Articles from Inman News
Lenders pony up $1M to produce foreclosure-prevention PSAs
Lenders pony up $1M to produce foreclosure-prevention PSAs
Three-year TV, radio, print Internet campaign kicks off in July
Friday, June 29, 2007
Borrowers facing difficulty making their mortgage payments will be urged to call their lenders in a TV, radio, print and Internet public awareness campaign produced by NeighborWorks America and the Ad Council.
The public service announcements -- which cost about $1 million to produce -- urge homeowners in financial trouble to call a hotline maintained by the Homeownership Preservation Foundation, 888-995-HOPE.
The announcements were paid for by lenders who stand to lose $30,000 on every mortgage they are forced to foreclose on. With some estimates predicting that more than 1 million homes will enter the foreclosure process this year, the cost to lenders could approach $30 billion, NeighborWorks estimates.
According to research by government-sponsored mortgage repurchaser Freddie Mac, half of families who end up in foreclosure never call their lenders for help.
For lenders, funding the production of the announcements -- and counselors who advise troubled borrowers -- "is a public service, as well a business decision," Doug Robinson, a spokesman for NeighborWorks, told Inman News.
The Homeownership Preservation Foundation says the hotline is currently getting more than 500 callers a day. The public service announcements are intended to boost calls to the hotline and put more families in touch with their lenders and financial counselors.
Current statewide campaigns by NeighborWorks' Center for Foreclosure Solutions are credited with boosting calls to the 888-995-HOPE hotline from about 700 per month in July 2006 to nearly 15,000 this month.
The spots will run on stations around the country beginning in July. How many people see them depends on how many media outlets agree to run the free public service announcements.
NeighborWorks has partnerships with 236 nonprofits around the country, Robinson said, whose members will make pitches to TV and radio broadcasters, as well as print and Internet media outlets.
"You don't just post them on the satellite and hope it gets pulled down for TV and radio," Robinson said. "You make personal pitches to the stations manager and ad manager."
The television spots -- also available as QuickTime videos for viewing over the Internet -- are shot in stark black and white. In one, a family is gathered around the dinner table, laughing and talking. When the phone starts ringing, the laughter stops. Nobody moves to answer it.
"Every year, 1 million families face losing their homes to foreclosure," the narrator intones. "If you're ignoring your mortgage issues, things will only get worse. Call 888-995-HOPE. Because nothing is worse than doing nothing."
Robinson said the public service announcements are part of a three-year public awareness campaign. New ads may be produced as needed if more money becomes available from NeighborWorks' partners.
"We're continuing to look for new supporters," Robinson said. "If you talk to the Mortgage Bankers Association or the Center for Responsible Lending, anyone will tell you the foreclosure problem has not peaked."
The list of partners in NeighborWorks' Center for Foreclosure Solutions reads like a who's who of mortgage lending. It includes Countrywide Home Loans, Washington Mutual, Bank of America, Option One Mortgage Corp., Chase, Citi, EMC Mortgage Corp., GMAC ResCap, HSBC North America, Ocwen Loan Servicing LLC, National City Mortgage, American Financial Services and SunTrust Mortgage.
Government-sponsored mortgage giants Fannie Mae and Freddie Mac are also partners, as well as the law firm Barrett Burke Wilson Castle Daffin & Frappier LLP, and industry groups like the Mortgage Bankers Association and the Housing Policy Council.
In addition to conducting public outreach campaigns, the NeighborWorks Center for Foreclosure Solutions helps counseling centers around the nation build their staffs. The Center has launched foreclosure prevention initiatives in Ohio, Georgia, Delaware, Baltimore, and St. Louis, and plans dozens of similar local and state initiatives that will "leverage the influence" of the Ad Council campaign, the group said in a press release.
NeighborWorks America provides financial support, technical assistance and training to nearly 4,500 communities nationwide through a network of 236 nonprofit organizations. The group claims its members have generated more than $12 billion in reinvestment in the last five years, helping more than 845,000 families purchase or improve their homes, or obtain rental or mutual housing.
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