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2011 Shows Short Sale Promise

admin — Sat, 10 Sep 2011 04:02:24 +0000

Article by What is Short Sale

Blog HomeThe Age Old Real Estate QuestionJanuary 25th, 2011

McGeough Lamacchia cannot stress enough how much of a buyers market it is out there and those considering owning a home in 2011 couldnt be making a better choice. However, all the steals and deals out there in the housing market still dont excuse the age old question all buyers must ask themselves: How much home can I actually afford?

Home buyers need to be honest with themselves (and now more than ever in this economy) to be happy in their home choice and to ensure a long and happy relationship with the Realtor. Paying a mortgage that takes away from their savings, from fun activities and from a budget for food might not be wisest choice. Below are a list of key factors for potential (and current!) homeowners to consider when buying home (or for current homeowners thinking of refinancing a mortgage)

1. Credit ScoreUnfortunately in this economy, credit score is everything despite the fact that the vast majority of individuals suffered hard hits to their credit and/or was revoked credit when many banks went into foreclosure.Building up or maintaining a good to excellent credit score is vital in getting loan.

2. EmploymentBuying a home and entering into a mortgage or a short sale does require some proof of employment or stable income so lenders can see proof that a monthly payment will be able to be made.

3. Location, Location, LocationLiving a city definitely costs more per square foot than living in a suburban or rural area. Consider the location versus the budget and determine what location best fits the budget.

4.Interest RatesUnfortunately interest rates are usually based on credit scores meaning if the credit score is low, the interest rates will be high. However, potential buyers shouldnt fear high interest rates as interest rates are the lowest they have been in the past 30 years. (Home ownership could be in the very near future!)

The best advice for potential homeowners is to research and to really calculate their budget and be honest with themselves. McGeough Lammacchia continues to encourage future homeowners to strongly consider short sales as affordable option to making that home owning dream a reality!

Tags: Affordable homes, buying a home, buying a short sale, housing market, new homes, owning a home, selling a home, short sale, Short sale realtor, short sales realtorPosted in 1 | No Comments »Real Estate Markets: The New Top 5? Markets To WatchJanuary 20th, 2011

2011 has definitely started off on a positive note in regards to the housing market. Rules are changing, laws are reversing, housing markets are looking better and better and now comes the release from Housing Predictor of which housing markets are expected to experience growth in home sales for 2011.

For many homeowners, concerns of whether their current home (or the homes around them) will appreciate or depreciate in value is the biggest concern. For sellers, its how much will they gain (or lose) and for home buyers its show me the deal.

To aid in some of these concerns and questions, real estate market predictions were just released by Housing Predictor which annually compiles the best (and the worst) housing markets by area that are expected to experience inflation (or deflation) within the coming year. 2011, however, is a year that all housing markets across the country are expected to inflate as younger buyers are taking advantage of the incredible home prices from short sales and the older buyers are taking advantage of vacation homes that are selling at record low prices.

The Top 5 new real estate housing markets to watch in 2011 (as predicted by Housing Predictor) are:

1. Portland, Maine2. Kansas City, Kansas3. Tri-Cities, Washington4. Omaha, Nebraska5. Fargo, North Dakota

These markets arent the new hot places to buy but they are expected to experience above average inflation.The factors contributing to these results are not only the location but also the previous trends within these markets. Home sales in these areas are expected to increase dramatically in 2011.

For owners, sellers and potential homeowners within the Northeast area can also rest easy as 2011 is already showing signs of inflation.

Tags: 2011 housing predictions, Foreclosure, housing market, inflation, Information For Home Buyers, information for sellers, real estate, short sale, top 5 housing marketsPosted in 1 | No Comments »New Ruling Could Invalidate Existing ForeclosuresJanuary 10th, 2011

Massachusetts homeowners currently in the process of foreclosure or on the verge of entering into foreclosure could feel relief as the Massachusetts Supreme Judicial Court voted to uphold a ruling involving the process of foreclosures.

This court ruling could invalidate thousands of foreclosures allowing homeowners currently in the process of foreclosure a chance to keep their hometemporarily that is. The reason for these possible invalidations is a direct result of the housing boom and the mortgage processes utilized by lenders in 2009. During this housing boom, mortgages were sold to investors in the form of bonds, resulting in a messy trail of paper that made it unclear as to who actually owned the home.

As the housing market declined, lenders then processed transactions on these now existing foreclosures without actually providing proof that a mortgage was held by the homeowner in question, as existing practices did not require all paperwork to be in place. This process could not only invalidate existing and current foreclosures but actually show proof that homeowners in question might not even be homeowners at all.

This court ruling will no longer allow the above practices to be taken. All foreclosure practices utilized by lenders will now continue to go under in depth moderation.

Homeowners who are in the process of foreclosure might be able to rest a little easier in the comforts of their home, at least for one more night.

Tags: Add new tag, buying a new home, buying a short sale, Foreclosure, foreclosures, home buying tips, home buying tips for buyers, homeowners, informatio for selling a home, Massachusetts homeowners, short sale, short salesPosted in 1 | No Comments »2011 Shows Short Sale PromiseJanuary 3rd, 2011

A new year, a new house?

For many potential home buyers this could be one resolution to quickly check off as completed as 2011 starts with great news for home buyers, potential home buyers and investors involving foreclosures and short sales

Banks contributed heavily to the foreclosure and short sale set backs in 2010. Halting extensions, refusing loans on short sales and freezing transactions on homes in foreclosure were just a few short sale and foreclosure related issues that really worked against potential home buyers and investors.

2011, however, appears to be the year where all of the above and more will soon change in regard to these distressed properties. During 2010, banks that refused loans or halted transactions are now currently holding an inventory of distressed homes . With the welcoming in of 2011, these banks now realize they need to quickly liquidate these inventories by turning them back over to investors. Banks are also approving short sales (on average) within 30 days in effort to move these inventories. Not only will approval times continue to be accelerated but prices will continue to drop. Potential home buyers can expect to see prices on these homes at wholesale investor prices or below.

Interest rates on the other hand are expected to rise in 2011. 2010 was the year where interest rates were at their lowest in effort to entice new buyers, however, with the slight upturn of the housing mar in the last quarter of 2010, interest rates are expected to rise slightly. Potential home owners who are considering buying should take this into consideration, however, shouldnt feel pressured as home prices are still dropping.

Real estate advisers and investors welcome 2011 with confidence and excitement and see the rise in interest rates as a positive testament to the housing market. As the housing market improves within the coming years, prices will dramatically rise. Potential home buyers should seize 2011 and take advantage of what truly is a buyers market.

Does Debt Consolidation Ruin Credit Scores?

admin — Wed, 09 Jun 2010 22:42:47 +0000

Debt consolidation will not ruin your credit score. As a matter of fact, it will likely even help your credit. Okay, there is a situation where it could ruin your credit score. Just like any other debt you have ever had, if you don’t make payments on your consolidation loan, it can hurt your credit. Getting this type of loan in and of itself, however, will not ruin your credit.

When you take out a loan to consolidate your debts, the creditors included in the loan will be paid in full. This will actually help your credit because these accounts will show as paid accounts. Any creditor that shows as a paid off account, regardless of whether it was previously 30, 60, or 90 days or more late, will have a positive effect on your score.

While your credit may not have been perfect prior to any consolidation loan, the way you manage your payments after getting the loan will have a direct effect on your credit score. Accounts reported as 30 days late will bring down your score a little, but it is really the accounts that have been reported as 60 days or more that will have a greater impact. The longer the delinquency period, the worse a credit score will be. Any account that shows as more than 120 days late will likely result in a charge-off, which will have the worst effect on your credit.

Your previous late payments on any loans paid off by your consolidation loan will not automatically disappear. The late payments will still appear on your credit report and have a negative effect on your credit. However, the longer you pay your consolidation loan in a timely fashion without any late payments, the better your credit will become. This combined with the fact that your previous loans will now be shown as paid accounts will have a positive effect on your credit score.

As you can see, a debt consolidation loan will not ruin your credit score. What will ruin your credit score is late payments. Any time you miss a payment to a creditor, whether it is a loan that was used to consolidate your debts or any other creditor you have, it will negatively impact your credit. Conversely, any creditors that are paid on time, or paid in full prior to their maturity date, will have a positive impact on your credit score.

Using credit scores to set car insurance premium rates

admin — Sun, 23 May 2010 16:58:09 +0000

When you look around your neighborhoods, it’s hard to find any good news. Friends and neighbors may have lost their jobs or be on short-time. There are foreclosed properties on every street. Shops and businesses have been closing down with increasing frequency. These are the signs of a real recession where unemployment and poverty stalk the land. The cause of all this pain is not hard to find. We have all been living beyond our means. When the banks and credit card companies offered us more money to borrow, we just took it. Why bother to save when the value of our homes only goes up? Let’s plan for our retirement by borrowing cheap money and buying stocks and other more risky investments. No-one ever loses if they follow the advice of the credit rating agencies. Well, we know better now. What goes up can also come down. What is given a triple A rating can be junk tomorrow.

In the midst of all this chaos, the credit card operators have been cutting back on the borrowing limits. This has forced pain on us for two reasons. Firstly, finding the money to pay down our debts more quickly means redesigning the family budget. Sacrifices have to be made. Secondly, the way the credit score is calculated depends in part on the extent to which we use the credit cards we have. If the limits are reduced, we look like bad risks because the amount borrowed is closer to the limit. We have less money available to borrow and cut down on card usage so we can repay faster. Put the two together and the score falls. This is a direct criticism of the methods used to calculate the scores. It produces a fundamentally unfair result during a recession.

This would not be a problem if the credit score was only used by banks and credit card operators. But it’s also used by companies to help decide whether to employ you, by landlords deciding whether to rent to you and by insurance companies deciding whether you are a responsible person. National figures show more than half all insurance companies use credit scores as a key factor in deciding your premium rate. This is extraordinary. There is only one possible effect of being in debt when it comes to the way in which you drive. If you cannot afford to repair your vehicle, you drive defensively to reduce the risk of an accident.

Some states like California and Massachusetts have banned the use of credit score for this purpose, but they are a minority. They cite discrimination as a reason for the ban. The majority of the population without access to banking services and credit cards fall into minority racial groups. When they do not have a credit score, they are forced to pay a higher premium simply because of who they are, not how they drive. So, when you are looking for affordable cover, get the maximum possible number of car insurance quotes to find the best policies. If you live in a state which refuses the regulation of the car insurance market, contact your local government representatives and tell them how much pain you are suffering because of this unfair use of credit scores.

Going beyond cheap car insurance

admin — Sat, 10 Apr 2010 15:26:06 +0000

Doesn’t it feel sometimes that when it comes to auto insurance it’s like playing the game no one tells you how to play it right and where the rules are written without your consent? Well, to ease the situation, here are some auto insurance rules most insurance companies won’t tell you about.

1. If your credit rating is good you will have better rates.

Most of the insurance providers, whether big or small, use credit information to determine the rates you will be charged with. That’s because numerous studies have shown that there’s a direct link between a person’s credit rating and the probability that the very same person would file an insurance claim. Those who have poor credit scores tend to file claims more often than drivers with good credit reports. And we know how insurance companies don’t like insurance claims.

Tip: If your credit report is not that good, don’t haste with buying auto insurance. First, make sure you have settled all your debts and closed unused credit lines. After doing this wait for a month and your rates will be much lower than you would expect.

2. The model of your car affects your premiums.

Insurance companies don’t disclose the exact methods they use to calculate their rates, but your car make and model certainly plays an important part in the equation. All insurance providers have charts on all car models and their respective insurance cost based on theft rates, repair costs and overall safety.

Tip: Try purchasing a car with reasonable repair costs, good safety scores and low theft rates in your area in the first place. This will always give you the chance of having cheap car insurance.

3. Bad driving means higher rates.

Most insurance companies will raise your rates up to 40% of the initial premium you’ve paid if you have a single at fault accident. However, not all companies follow this rule.

Tip: There are insurance providers that have higher tolerance for first-time accident drivers. So when you purchase your cheap car insurance policy or ask the provider if they have such incentives and what are their rules.

4. If your friend borrows your car and ends up in an accident you will still have to pay higher premiums.

It doesn’t matter who was driving the car if it was with your own consent. It will be you who will file the claim and this will eventually lead to increase in your premiums.

Tip: In case you didn’t give consent on using your vehicle your friend will be liable for the accident. However, if he or she doesn’t have own insurance or the damage resulted exceeds the amount of coverage contained with his or her policy the other party may come to you in order to settle additional medical and repair costs.

5. Official cancellation is required when switching providers.

You are free to cancel your policy any time you feel the need to. All that is required is to inform your current provider in written form.

Tip: After you have searched for cheap car insurance and chosen another provider you can simply contact your insurance agent and inform him that you want to cancel your current policy from a certain day. In most cases the company will send you a filled out form where only your signature will be required.

How to save money safely

admin — Tue, 02 Feb 2010 20:23:30 +0000

There is no point in being anything other than completely honest. The US economy is in trouble and things are going to stay this way for some time. That means unemployment will remain a problem and credit will be hard to find. The majority of people have responded to this situation by switching from a high-spending lifestyle to something more modest to keep enough money to service all the debts. Otherwise, the bank may foreclose on the mortgage and credit scores will be lost. This creates dilemmas. What do you need and what can be cut back? Public transport is poor. Most people need a vehicle to get around. Almost all states make it an offense to drive a vehicle on a public highway without a valid insurance policy in place. The temptation is therefore to cut back on coverage but this can be financially dangerous.

The main types of policy are liability, comprehensive and collision. The minimum legal requirement is liability coverage. Auto loan and leasing contracts usually require comprehensive and collision coverage. Thus, if you own an older car outright, you could buy a liability policy for the minimum amount and save several hundred dollars. This is called self-insurance and is generally popular in the form of deductibles where you agree to pay the first slice of any claim out of your own pocket. Let’s work through an example to see how it works. Suppose you own a car worth $2,500 and it costs you $1,000 a year for all three policies. You decide to cancel the collision coverage and this saves you $300. Sadly, two months later, you are involved in an accident that totals your vehicle. You may have saved $300 but can you afford to replace your car? Worse, you kept you car because it was well-maintained and reliable. There is no guarantee that a secondhand replacement will be as good.

Similarly, you could reduce your liability coverage to the statutory minimum amount. But, if you cause an accident and the victim’s claim for injury and property damage exceeds the minimums, can you afford to pay the balance? If you have assets or savings, these could all be lost if there’s a judgment against you. The more you self-insure, the greater the risk to your financial safety. Of course, if you have no assets, it is unlikely anyone will chase you for payment. But if you own property or have a portfolio of investments for retirement, these are at risk. So you need to take a hard look at your situation and, more importantly, shop around. This site gives you the chance to get car insurance quotes from all the top insurers. You can run the search as many times as you need to get comparative quotes for different levels of cover. Never assume you can cut coverage safely. Never assume you cannot find affordable coverage when you get a good range of car insurance quotes.