Still searching for the right listing? If you are unable to find your ‘perfect’ home, don’t hesitate to contact us! Let us know if you require any assistance or information on any of the listings sent via our site. Our goal is to make your purchasing decision as smooth and stress free as possible.
Are you undecided on the right home for you? Before purchasing a home, you need to determine whether the home you have decided on is the right home for you. We are here to assist you with this decision, however there are a few items to consider beforehand:
How Long are you Planning on Living in the Home? In order to cover your selling costs and recover the cost of your home, you should plan on staying in your new home for an average of 3 to 4 years. Depending on economic factors, this time can either be lengthened or shortened.
How Long will the Home Meet Your Needs? Make sure that your home will meet your space requirements both now and in the future, depending on how long you plan to live there. Can the den be converted to a bedroom? Will the spare room be appropriate for a dining room? Renovating your home may accommodate your expanding or shrinking family.
Is the House the Right Price? Determine whether the home is a good fit for your financial situation. Many financial institutions will pre-qualify you for a mortgage even before you begin your home search. This will help to determine what price range you can afford. In addition, try the Mortgage Calculator available on our website to help you determine the right price.
What is the Physical Condition of the House?Always keep in mind that your house will require repairs. If these costs are of concern, make sure to choose a home that will reflect your renovation budget. As well, home inspections are very important in order to help reduce such unexpected costs.
Are you thinking about that perfect house and wondering what it will take to make it your own? When you decide that it is time to start the negotiation process there are a few key rules to keep in mind:
- Be assertive and aggressive. Question what you are told. If you do not agree with what is being said, speak up. This is an important decision and involves a great financial responsibility on your part. Make sure you are getting what you need.- Be patient and give the appearance that you would be willing to walk away. Be prepared for this process to take some time. Do not show your desperation, no matter how much you love the property.- Become a good and prepared listener. Make sure you know the property before entering the negotiations. Listening to what is being said is much more effective if you have prepared yourself prior to entering the negotiations.
The negotiations can be a time consuming and sometimes frustrating process. Remember to take the time to think rationally. Time is on your side and chances are the seller is just as eager to sell as you are to buy.
Please do not hesitate to contact us or visit our websites!!
http://robsellscharlottesville.com/
http://www.theaverygroup.com/
Friday, September 28, 2007
Important Buyer Information
Still searching for the right listing? If you are unable to find your ‘perfect’ home, don’t hesitate to contact us! Let us know if you require any assistance or information on any of the listings sent via our site. Our goal is to make your purchasing decision as smooth and stress free as possible.
Are you undecided on the right home for you? Before purchasing a home, you need to determine whether the home you have decided on is the right home for you. We are here to assist you with this decision, however there are a few items to consider beforehand:
How Long are you Planning on Living in the Home? In order to cover your selling costs and recover the cost of your home, you should plan on staying in your new home for an average of 3 to 4 years. Depending on economic factors, this time can either be lengthened or shortened.
How Long will the Home Meet Your Needs? Make sure that your home will meet your space requirements both now and in the future, depending on how long you plan to live there. Can the den be converted to a bedroom? Will the spare room be appropriate for a dining room? Renovating your home may accommodate your expanding or shrinking family.
Is the House the Right Price? Determine whether the home is a good fit for your financial situation. Many financial institutions will pre-qualify you for a mortgage even before you begin your home search. This will help to determine what price range you can afford. In addition, try the Mortgage Calculator available on our website to help you determine the right price.
What is the Physical Condition of the House?Always keep in mind that your house will require repairs. If these costs are of concern, make sure to choose a home that will reflect your renovation budget. As well, home inspections are very important in order to help reduce such unexpected costs.
Are you thinking about that perfect house and wondering what it will take to make it your own? When you decide that it is time to start the negotiation process there are a few key rules to keep in mind:
- Be assertive and aggressive. Question what you are told. If you do not agree with what is being said, speak up. This is an important decision and involves a great financial responsibility on your part. Make sure you are getting what you need.- Be patient and give the appearance that you would be willing to walk away. Be prepared for this process to take some time. Do not show your desperation, no matter how much you love the property.- Become a good and prepared listener. Make sure you know the property before entering the negotiations. Listening to what is being said is much more effective if you have prepared yourself prior to entering the negotiations.
The negotiations can be a time consuming and sometimes frustrating process. Remember to take the time to think rationally. Time is on your side and chances are the seller is just as eager to sell as you are to buy.
Please do not hesitate to contact us or visit our websites!!
http://robsellscharlottesville.com/
http://www.theaverygroup.com/
Are you undecided on the right home for you? Before purchasing a home, you need to determine whether the home you have decided on is the right home for you. We are here to assist you with this decision, however there are a few items to consider beforehand:
How Long are you Planning on Living in the Home? In order to cover your selling costs and recover the cost of your home, you should plan on staying in your new home for an average of 3 to 4 years. Depending on economic factors, this time can either be lengthened or shortened.
How Long will the Home Meet Your Needs? Make sure that your home will meet your space requirements both now and in the future, depending on how long you plan to live there. Can the den be converted to a bedroom? Will the spare room be appropriate for a dining room? Renovating your home may accommodate your expanding or shrinking family.
Is the House the Right Price? Determine whether the home is a good fit for your financial situation. Many financial institutions will pre-qualify you for a mortgage even before you begin your home search. This will help to determine what price range you can afford. In addition, try the Mortgage Calculator available on our website to help you determine the right price.
What is the Physical Condition of the House?Always keep in mind that your house will require repairs. If these costs are of concern, make sure to choose a home that will reflect your renovation budget. As well, home inspections are very important in order to help reduce such unexpected costs.
Are you thinking about that perfect house and wondering what it will take to make it your own? When you decide that it is time to start the negotiation process there are a few key rules to keep in mind:
- Be assertive and aggressive. Question what you are told. If you do not agree with what is being said, speak up. This is an important decision and involves a great financial responsibility on your part. Make sure you are getting what you need.- Be patient and give the appearance that you would be willing to walk away. Be prepared for this process to take some time. Do not show your desperation, no matter how much you love the property.- Become a good and prepared listener. Make sure you know the property before entering the negotiations. Listening to what is being said is much more effective if you have prepared yourself prior to entering the negotiations.
The negotiations can be a time consuming and sometimes frustrating process. Remember to take the time to think rationally. Time is on your side and chances are the seller is just as eager to sell as you are to buy.
Please do not hesitate to contact us or visit our websites!!
http://robsellscharlottesville.com/
http://www.theaverygroup.com/
Wednesday, September 26, 2007
Avoid The Most Common Buyer Errors
Shopping for a new home is an emotional experience. It’s also time consuming and comes with a myriad of details. Some buyers, however, caught up in the excitement of buying a new home tend to overlook some items. Their home purchase turns into an expensive process. These errors generally fall into three areas:
- Paying too much
- Losing a dream home to another buyer
- Buying the wrong home
When you have a systematic plan before you shop, you’ll be sure to avoid these costly errors. Here are some tips on making the most of your home purchase:
Bidding without sufficient information
What price do you offer a seller? Is the seller’s asking price too high? Is it a deal? Without research on the market and comparable homes, you could lose thousands of dollars. Before you make that offer, be sure you have researched the market. A professional realtor, can offer an unbiased opinion on the value of a home, based on market conditions, condition of the home and neighborhood. Without knowledge of the market, your offer could be too much. Or worse, you could miss out on a great buying opportunity.
Buying a mis-matched home
What do you need and want in a home? Sounds simple. Yet, clearly identifying your needs and bringing an objective view to home shopping, leaves you in a better position. Sometimes, home buyers buy a home that is too large or too small. Perhaps they didn’t consider the drive to work, the distance to school, or the many repair jobs waiting for completion. Plan ahead. Use your needs list as a guideline for every home you view.
Unclear title
Before you sign any document, be sure the property you are considering is free of all encumbrances. As part of their services, a realtor can supply you with a copy of the title to ensure there are no liens, debts, undisclosed owners, leases or easements.
Outdated survey
Before the purchase is completed, an updated survey is essential. This report will indicate boundaries and structural changes (additions to the house, a new swimming pool, neighbor’s new fence which is extending a boundary line, etc.).
Unexpected repairs
For $300 - $500 a professional inspector will conduct a thorough inspection of the home. This way, you’ll have an idea of the cost of future repairs. Make the final contract subject to a favourable report.
Shopping without pre-approval
It only takes a few days to get financing pre-approval. When you are shopping for a home, this gives you more power. A seller is more likely to consider an offer from a serious buyer.
Remember additional cost
Besides the funds for the purchase of a home, you’ll need funds for items such as loan fees, insurance, legal fees, surveys, inspections, etc.
Rushing the closing
Before you sign, ensure that all documentation clearly reflects your understanding and conditions of the transaction. Has anything been forgotten? Don’t rush. You could lose money, financing or even the sale.
http://www.robsellscharlottesville.com/
Avoid The Most Common Buyer Errors
Shopping for a new home is an emotional experience. It’s also time consuming and comes with a myriad of details. Some buyers, however, caught up in the excitement of buying a new home tend to overlook some items. Their home purchase turns into an expensive process. These errors generally fall into three areas:
- Paying too much
- Losing a dream home to another buyer
- Buying the wrong home
When you have a systematic plan before you shop, you’ll be sure to avoid these costly errors. Here are some tips on making the most of your home purchase:
Bidding without sufficient information
What price do you offer a seller? Is the seller’s asking price too high? Is it a deal? Without research on the market and comparable homes, you could lose thousands of dollars. Before you make that offer, be sure you have researched the market. A professional realtor, can offer an unbiased opinion on the value of a home, based on market conditions, condition of the home and neighborhood. Without knowledge of the market, your offer could be too much. Or worse, you could miss out on a great buying opportunity.
Buying a mis-matched home
What do you need and want in a home? Sounds simple. Yet, clearly identifying your needs and bringing an objective view to home shopping, leaves you in a better position. Sometimes, home buyers buy a home that is too large or too small. Perhaps they didn’t consider the drive to work, the distance to school, or the many repair jobs waiting for completion. Plan ahead. Use your needs list as a guideline for every home you view.
Unclear title
Before you sign any document, be sure the property you are considering is free of all encumbrances. As part of their services, a realtor can supply you with a copy of the title to ensure there are no liens, debts, undisclosed owners, leases or easements.
Outdated survey
Before the purchase is completed, an updated survey is essential. This report will indicate boundaries and structural changes (additions to the house, a new swimming pool, neighbor’s new fence which is extending a boundary line, etc.).
Unexpected repairs
For $300 - $500 a professional inspector will conduct a thorough inspection of the home. This way, you’ll have an idea of the cost of future repairs. Make the final contract subject to a favourable report.
Shopping without pre-approval
It only takes a few days to get financing pre-approval. When you are shopping for a home, this gives you more power. A seller is more likely to consider an offer from a serious buyer.
Remember additional cost
Besides the funds for the purchase of a home, you’ll need funds for items such as loan fees, insurance, legal fees, surveys, inspections, etc.
Rushing the closing
Before you sign, ensure that all documentation clearly reflects your understanding and conditions of the transaction. Has anything been forgotten? Don’t rush. You could lose money, financing or even the sale.
http://www.robsellscharlottesville.com/
Thursday, September 20, 2007
Transferring property interest to kids gets tricky
Q: My mother-in law bought a home six years ago. The seller agreed to finance the home if she put down $1,000 on the property and paid $450 per month for 30 years. It works out to about an 8 percent interest rate.
The seller holds the deed of trust. My mother-in-law wants to transfer her interest in the property to me and my wife. We would continue to make her payments to the seller.
Here's our problem: The seller refuses to transfer the property to me and my wife. Can my mother-in-law transfer the property to us as a gift or just because she wants us to have it without the due on sale clause kicking into play? We don't plan to buy this home, but she would like to give it to us.
A: What does your mother-in-law's deed of trust say about transferring control of the property or otherwise selling it to someone? Is she prohibited from doing that during the 30 years in which she is paying off her loan? If so, she was foolish to sign such a document without having some exceptions written into the document.
And about that loan. The seller is probably worried that his 8 percent earnings on his money is about to go down the tubes. It's tough to get an 8 percent return on your investment these days, and if you paid off the loan in full, the seller would only be able to get maybe 5 or 6 percent on his cash. That's quite a step down from 8 percent.
If you realize that the seller is doing what he can to protect his investment, his reasoning becomes understandable – but maybe not correct. Again, it all goes back to the terms of the deed of trust.
If an attorney helped your mother in the purchase of the home (I'm hoping that's the case), then go back to the attorney to help you through this issue. If the attorney contacts the seller to initiate the transfer of control and the seller knows you will be refinancing, the seller may quickly realize that he is going to lose out on the stream of income on the loan and may decide to allow you to take title to the property. However, if the seller is looking to get his or her money out of the home, you will have to refinance to get title of the home into your names.
The real question I have is why aren't you and your wife buying this property from your mother-in-law? Even if she gives you the property over time (she can give each of you up to $12,000 in assets tax free each calendar year), it would be nice to take her name off of the mortgage. Also, if she gives you the property, you will get the property at the value your mother bought it for and when you sell it, you may have a tax to pay on the difference between the sales price and the price she paid for the home.
While you and your wife would be able to exclude paying federal income taxes on $500,000 of the gain, the home must be your primary residence for two out of the last five years. If she were to give you the home and the home isn't your primary residence and you sell it, you may end up paying quite a bit in federal income taxes.
Since you're the one who wrote in for advice, I suggest you check around to see if you can qualify for financing from a regular mortgage lender at something approaching the current interest rate for a 30-year fixed rate mortgage. At press time, that was about 6.5 percent. If you can qualify, you'll be able to officially buy the property from your mother-in-law and pay off the seller. You'll also pay less than if you keep the current loan.
And then you'll be on your own financially, which is a good place to be.
Q: When my son got married, I let him use my credit card to set up his household. He and his wife managed to max the card out with a debt of about $20,000.
Somehow, they had changed the billing address to their home address so I wouldn't know how much debt they ran up. I cancelled the card as soon as I discovered this.
Still, they were making regular payments on the card until he and his wife separated. He is now going through a divorce and custody fight with his wife and the money he was using to pay the card is now going to the lawyer and child support.
I cannot afford the payments and have been borrowing from my own credit cards and life insurance policies to try and keep everything current, but I am falling behind. I do not know what to do.
I have called the credit card company to try and work something out but they refuse to hear anything and only repeat I am responsible for the payments. They have increased my interest to the maximum amount of about 29.99 percent, due to the late payments. Now, any amount I send to them is going to pay the interest only.
I live in a mobile home. I tried to refinance to take out some cash, but I owe too much on the mortgage and the extra money they offered me wouldn't even put a dent in the amount owed. Do you have any suggestions?
A: You've made several significant mistakes. Unfortunately, you're now paying for them.
Your first mistake was to assume that you knew the boy you raised. I'm sure you thought that he and his wife would make good on any debts incurred. But your curiosity should have been raised when you stopped receiving the credit card bills.
Your second mistake was to allow anyone else to use your credit card without your permission. No one will ever help you protect your credit and good name. That, for better or worse, falls on you alone.
A third mistake was to cancel a card that had a remaining balance. That helped tank your credit score, which is why the interest rate on the debt has been raised to nearly 30 percent.
I don't know how much you earn, but if you have nominal income, and your debt is bigger than your annual income, your best option may be to file for bankruptcy.
Please contact the National Foundation for Consumer Credit (www.nfcc.org) to find a reputable credit counselor near you. You should be able to get free or extremely low-cost budgeting assistance and you'll be able to find out if it is even possible for you to pay off your debts without filing for bankruptcy.
Good luck.
Rob Alley
Roy Wheeler Realty Co.
The Avery Group
http://www.robsellscharlottesville.com
The seller holds the deed of trust. My mother-in-law wants to transfer her interest in the property to me and my wife. We would continue to make her payments to the seller.
Here's our problem: The seller refuses to transfer the property to me and my wife. Can my mother-in-law transfer the property to us as a gift or just because she wants us to have it without the due on sale clause kicking into play? We don't plan to buy this home, but she would like to give it to us.
A: What does your mother-in-law's deed of trust say about transferring control of the property or otherwise selling it to someone? Is she prohibited from doing that during the 30 years in which she is paying off her loan? If so, she was foolish to sign such a document without having some exceptions written into the document.
And about that loan. The seller is probably worried that his 8 percent earnings on his money is about to go down the tubes. It's tough to get an 8 percent return on your investment these days, and if you paid off the loan in full, the seller would only be able to get maybe 5 or 6 percent on his cash. That's quite a step down from 8 percent.
If you realize that the seller is doing what he can to protect his investment, his reasoning becomes understandable – but maybe not correct. Again, it all goes back to the terms of the deed of trust.
If an attorney helped your mother in the purchase of the home (I'm hoping that's the case), then go back to the attorney to help you through this issue. If the attorney contacts the seller to initiate the transfer of control and the seller knows you will be refinancing, the seller may quickly realize that he is going to lose out on the stream of income on the loan and may decide to allow you to take title to the property. However, if the seller is looking to get his or her money out of the home, you will have to refinance to get title of the home into your names.
The real question I have is why aren't you and your wife buying this property from your mother-in-law? Even if she gives you the property over time (she can give each of you up to $12,000 in assets tax free each calendar year), it would be nice to take her name off of the mortgage. Also, if she gives you the property, you will get the property at the value your mother bought it for and when you sell it, you may have a tax to pay on the difference between the sales price and the price she paid for the home.
While you and your wife would be able to exclude paying federal income taxes on $500,000 of the gain, the home must be your primary residence for two out of the last five years. If she were to give you the home and the home isn't your primary residence and you sell it, you may end up paying quite a bit in federal income taxes.
Since you're the one who wrote in for advice, I suggest you check around to see if you can qualify for financing from a regular mortgage lender at something approaching the current interest rate for a 30-year fixed rate mortgage. At press time, that was about 6.5 percent. If you can qualify, you'll be able to officially buy the property from your mother-in-law and pay off the seller. You'll also pay less than if you keep the current loan.
And then you'll be on your own financially, which is a good place to be.
Q: When my son got married, I let him use my credit card to set up his household. He and his wife managed to max the card out with a debt of about $20,000.
Somehow, they had changed the billing address to their home address so I wouldn't know how much debt they ran up. I cancelled the card as soon as I discovered this.
Still, they were making regular payments on the card until he and his wife separated. He is now going through a divorce and custody fight with his wife and the money he was using to pay the card is now going to the lawyer and child support.
I cannot afford the payments and have been borrowing from my own credit cards and life insurance policies to try and keep everything current, but I am falling behind. I do not know what to do.
I have called the credit card company to try and work something out but they refuse to hear anything and only repeat I am responsible for the payments. They have increased my interest to the maximum amount of about 29.99 percent, due to the late payments. Now, any amount I send to them is going to pay the interest only.
I live in a mobile home. I tried to refinance to take out some cash, but I owe too much on the mortgage and the extra money they offered me wouldn't even put a dent in the amount owed. Do you have any suggestions?
A: You've made several significant mistakes. Unfortunately, you're now paying for them.
Your first mistake was to assume that you knew the boy you raised. I'm sure you thought that he and his wife would make good on any debts incurred. But your curiosity should have been raised when you stopped receiving the credit card bills.
Your second mistake was to allow anyone else to use your credit card without your permission. No one will ever help you protect your credit and good name. That, for better or worse, falls on you alone.
A third mistake was to cancel a card that had a remaining balance. That helped tank your credit score, which is why the interest rate on the debt has been raised to nearly 30 percent.
I don't know how much you earn, but if you have nominal income, and your debt is bigger than your annual income, your best option may be to file for bankruptcy.
Please contact the National Foundation for Consumer Credit (www.nfcc.org) to find a reputable credit counselor near you. You should be able to get free or extremely low-cost budgeting assistance and you'll be able to find out if it is even possible for you to pay off your debts without filing for bankruptcy.
Good luck.
Rob Alley
Roy Wheeler Realty Co.
The Avery Group
http://www.robsellscharlottesville.com
Transferring property interest to kids gets tricky
Q: My mother-in law bought a home six years ago. The seller agreed to finance the home if she put down $1,000 on the property and paid $450 per month for 30 years. It works out to about an 8 percent interest rate.
The seller holds the deed of trust. My mother-in-law wants to transfer her interest in the property to me and my wife. We would continue to make her payments to the seller.
Here's our problem: The seller refuses to transfer the property to me and my wife. Can my mother-in-law transfer the property to us as a gift or just because she wants us to have it without the due on sale clause kicking into play? We don't plan to buy this home, but she would like to give it to us.
A: What does your mother-in-law's deed of trust say about transferring control of the property or otherwise selling it to someone? Is she prohibited from doing that during the 30 years in which she is paying off her loan? If so, she was foolish to sign such a document without having some exceptions written into the document.
And about that loan. The seller is probably worried that his 8 percent earnings on his money is about to go down the tubes. It's tough to get an 8 percent return on your investment these days, and if you paid off the loan in full, the seller would only be able to get maybe 5 or 6 percent on his cash. That's quite a step down from 8 percent.
If you realize that the seller is doing what he can to protect his investment, his reasoning becomes understandable – but maybe not correct. Again, it all goes back to the terms of the deed of trust.
If an attorney helped your mother in the purchase of the home (I'm hoping that's the case), then go back to the attorney to help you through this issue. If the attorney contacts the seller to initiate the transfer of control and the seller knows you will be refinancing, the seller may quickly realize that he is going to lose out on the stream of income on the loan and may decide to allow you to take title to the property. However, if the seller is looking to get his or her money out of the home, you will have to refinance to get title of the home into your names.
The real question I have is why aren't you and your wife buying this property from your mother-in-law? Even if she gives you the property over time (she can give each of you up to $12,000 in assets tax free each calendar year), it would be nice to take her name off of the mortgage. Also, if she gives you the property, you will get the property at the value your mother bought it for and when you sell it, you may have a tax to pay on the difference between the sales price and the price she paid for the home.
While you and your wife would be able to exclude paying federal income taxes on $500,000 of the gain, the home must be your primary residence for two out of the last five years. If she were to give you the home and the home isn't your primary residence and you sell it, you may end up paying quite a bit in federal income taxes.
Since you're the one who wrote in for advice, I suggest you check around to see if you can qualify for financing from a regular mortgage lender at something approaching the current interest rate for a 30-year fixed rate mortgage. At press time, that was about 6.5 percent. If you can qualify, you'll be able to officially buy the property from your mother-in-law and pay off the seller. You'll also pay less than if you keep the current loan.
And then you'll be on your own financially, which is a good place to be.
Q: When my son got married, I let him use my credit card to set up his household. He and his wife managed to max the card out with a debt of about $20,000.
Somehow, they had changed the billing address to their home address so I wouldn't know how much debt they ran up. I cancelled the card as soon as I discovered this.
Still, they were making regular payments on the card until he and his wife separated. He is now going through a divorce and custody fight with his wife and the money he was using to pay the card is now going to the lawyer and child support.
I cannot afford the payments and have been borrowing from my own credit cards and life insurance policies to try and keep everything current, but I am falling behind. I do not know what to do.
I have called the credit card company to try and work something out but they refuse to hear anything and only repeat I am responsible for the payments. They have increased my interest to the maximum amount of about 29.99 percent, due to the late payments. Now, any amount I send to them is going to pay the interest only.
I live in a mobile home. I tried to refinance to take out some cash, but I owe too much on the mortgage and the extra money they offered me wouldn't even put a dent in the amount owed. Do you have any suggestions?
A: You've made several significant mistakes. Unfortunately, you're now paying for them.
Your first mistake was to assume that you knew the boy you raised. I'm sure you thought that he and his wife would make good on any debts incurred. But your curiosity should have been raised when you stopped receiving the credit card bills.
Your second mistake was to allow anyone else to use your credit card without your permission. No one will ever help you protect your credit and good name. That, for better or worse, falls on you alone.
A third mistake was to cancel a card that had a remaining balance. That helped tank your credit score, which is why the interest rate on the debt has been raised to nearly 30 percent.
I don't know how much you earn, but if you have nominal income, and your debt is bigger than your annual income, your best option may be to file for bankruptcy.
Please contact the National Foundation for Consumer Credit (www.nfcc.org) to find a reputable credit counselor near you. You should be able to get free or extremely low-cost budgeting assistance and you'll be able to find out if it is even possible for you to pay off your debts without filing for bankruptcy.
Good luck.
Rob Alley
Roy Wheeler Realty Co.
The Avery Group
http://www.robsellscharlottesville.com
The seller holds the deed of trust. My mother-in-law wants to transfer her interest in the property to me and my wife. We would continue to make her payments to the seller.
Here's our problem: The seller refuses to transfer the property to me and my wife. Can my mother-in-law transfer the property to us as a gift or just because she wants us to have it without the due on sale clause kicking into play? We don't plan to buy this home, but she would like to give it to us.
A: What does your mother-in-law's deed of trust say about transferring control of the property or otherwise selling it to someone? Is she prohibited from doing that during the 30 years in which she is paying off her loan? If so, she was foolish to sign such a document without having some exceptions written into the document.
And about that loan. The seller is probably worried that his 8 percent earnings on his money is about to go down the tubes. It's tough to get an 8 percent return on your investment these days, and if you paid off the loan in full, the seller would only be able to get maybe 5 or 6 percent on his cash. That's quite a step down from 8 percent.
If you realize that the seller is doing what he can to protect his investment, his reasoning becomes understandable – but maybe not correct. Again, it all goes back to the terms of the deed of trust.
If an attorney helped your mother in the purchase of the home (I'm hoping that's the case), then go back to the attorney to help you through this issue. If the attorney contacts the seller to initiate the transfer of control and the seller knows you will be refinancing, the seller may quickly realize that he is going to lose out on the stream of income on the loan and may decide to allow you to take title to the property. However, if the seller is looking to get his or her money out of the home, you will have to refinance to get title of the home into your names.
The real question I have is why aren't you and your wife buying this property from your mother-in-law? Even if she gives you the property over time (she can give each of you up to $12,000 in assets tax free each calendar year), it would be nice to take her name off of the mortgage. Also, if she gives you the property, you will get the property at the value your mother bought it for and when you sell it, you may have a tax to pay on the difference between the sales price and the price she paid for the home.
While you and your wife would be able to exclude paying federal income taxes on $500,000 of the gain, the home must be your primary residence for two out of the last five years. If she were to give you the home and the home isn't your primary residence and you sell it, you may end up paying quite a bit in federal income taxes.
Since you're the one who wrote in for advice, I suggest you check around to see if you can qualify for financing from a regular mortgage lender at something approaching the current interest rate for a 30-year fixed rate mortgage. At press time, that was about 6.5 percent. If you can qualify, you'll be able to officially buy the property from your mother-in-law and pay off the seller. You'll also pay less than if you keep the current loan.
And then you'll be on your own financially, which is a good place to be.
Q: When my son got married, I let him use my credit card to set up his household. He and his wife managed to max the card out with a debt of about $20,000.
Somehow, they had changed the billing address to their home address so I wouldn't know how much debt they ran up. I cancelled the card as soon as I discovered this.
Still, they were making regular payments on the card until he and his wife separated. He is now going through a divorce and custody fight with his wife and the money he was using to pay the card is now going to the lawyer and child support.
I cannot afford the payments and have been borrowing from my own credit cards and life insurance policies to try and keep everything current, but I am falling behind. I do not know what to do.
I have called the credit card company to try and work something out but they refuse to hear anything and only repeat I am responsible for the payments. They have increased my interest to the maximum amount of about 29.99 percent, due to the late payments. Now, any amount I send to them is going to pay the interest only.
I live in a mobile home. I tried to refinance to take out some cash, but I owe too much on the mortgage and the extra money they offered me wouldn't even put a dent in the amount owed. Do you have any suggestions?
A: You've made several significant mistakes. Unfortunately, you're now paying for them.
Your first mistake was to assume that you knew the boy you raised. I'm sure you thought that he and his wife would make good on any debts incurred. But your curiosity should have been raised when you stopped receiving the credit card bills.
Your second mistake was to allow anyone else to use your credit card without your permission. No one will ever help you protect your credit and good name. That, for better or worse, falls on you alone.
A third mistake was to cancel a card that had a remaining balance. That helped tank your credit score, which is why the interest rate on the debt has been raised to nearly 30 percent.
I don't know how much you earn, but if you have nominal income, and your debt is bigger than your annual income, your best option may be to file for bankruptcy.
Please contact the National Foundation for Consumer Credit (www.nfcc.org) to find a reputable credit counselor near you. You should be able to get free or extremely low-cost budgeting assistance and you'll be able to find out if it is even possible for you to pay off your debts without filing for bankruptcy.
Good luck.
Rob Alley
Roy Wheeler Realty Co.
The Avery Group
http://www.robsellscharlottesville.com
Wednesday, September 19, 2007
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Foreclosure Prevention Summit Coming September 25th
The Virginia Association of Housing Counselors is holding a Foreclosure Prevention Summit on Tuesday, September 25th at the Charlottesville DoubleTree, 10 am to 4 pm. Anyone involved in housing in any way is encouraged to participate. Attendees will learn about community resources for borrowers facing foreclosure and will be able to explore concerns with mortgage servicers who are familiar with the issue, including foreclosure rescue scams. There will also be an open discussion of the status of default and foreclosure in Virginia and what can be done to combat the problem.
If you are interested in attending the summit, please call Paula Sherman at 804-354-0641 by September 18th. Cost is $10 for VAHC members, $25 for non-members.
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
If you are interested in attending the summit, please call Paula Sherman at 804-354-0641 by September 18th. Cost is $10 for VAHC members, $25 for non-members.
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
Foreclosure Prevention Summit Coming September 25th
The Virginia Association of Housing Counselors is holding a Foreclosure Prevention Summit on Tuesday, September 25th at the Charlottesville DoubleTree, 10 am to 4 pm. Anyone involved in housing in any way is encouraged to participate. Attendees will learn about community resources for borrowers facing foreclosure and will be able to explore concerns with mortgage servicers who are familiar with the issue, including foreclosure rescue scams. There will also be an open discussion of the status of default and foreclosure in Virginia and what can be done to combat the problem.
If you are interested in attending the summit, please call Paula Sherman at 804-354-0641 by September 18th. Cost is $10 for VAHC members, $25 for non-members.
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
If you are interested in attending the summit, please call Paula Sherman at 804-354-0641 by September 18th. Cost is $10 for VAHC members, $25 for non-members.
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
Thursday, September 13, 2007
The 9 Steps to Home Ownership
Step - 1 Make the Decision to Buy
It seems obvious, but it's good to note that the first step to buying a house is making the decision to buy. Consider the reasons you want a new house and write them down. Determine how long you want to live in the new house - does buying still make good financial sense? Can you afford a house that will meet your list of requirements? A good rule of thumb is your mortgage payment should not exceed 1/3 of your net monthly income.
Step 2 - Seek Professional Guidance
I'd like to schedule a time to meet with you to hear the reasons you want to buy a house and your plans for the future. We'll talk about neighborhoods, schools, economic factors liable to affect the market today and tomorrow, as well as how you would like your house and neighborhood to grow with you.
At this time, I will also help you get pre-qualified for a mortgage loan. Pre-qualification is a written statement from a loan officer indicating his or her opinion that you will be approved for a mortgage loan up to a certain amount. The fact that you are pre-qualified will help us when we are negotiating the deal.
Step 3 - Begin the Hunt
After our initial meeting, I'll search all my resources for houses on the market that fit your criteria. I'll preview these houses to eliminate the duds. Then, I'll schedule appointments to tour the houses at times convenient to you.
As we tour houses, I'll point out positive features and negative features. I'll ask you to tell me what you like and what you don't like. You'll probably amend your "wish list" as we tour houses, some things will become more important and others less important. With this new information, I'll refine our search criteria to narrow in on the house of your dreams.
Step 4 - Know the Market
My knowledge of the local market is an essential factor in the house search. I'll let you know when the market in a particular neighborhood is "hot" and requires immediate action or when the market is "cool" and allows for thoughtful consideration.
As we tour houses, I'll let you know when the asking price has negotiating room and when the house is "priced to sell". My unique market knowledge will keep you a step ahead of the "house hunting competition".
In a "seller's market". It is not unusual to see multiple offers on a property, full-price offers and even above-price offers. On the flip side, during a "buyer's market" there are more houses for sale than buyers. This gives us more negotiating room as houses are taking longer to sell.
Step 5 - Find Your Dream House
I'm confident we'll find your dream house. When we do, I'll put together the purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.).
The offer is normally presented with "earnest money". This is a cash deposit made to a home seller to secure an offer to buy the property. The amount is applied to closing costs. If the seller accepts the offer, generally closing is held 30 to 60 days from the offer date (generally dependent on the turn around time of your mortgage financing).
Step 6 - Negotiate the Deal
It is not uncommon to receive a counter offer when the initial purchase offer is submitted. Don't let this discourage you. We will discuss the counter offer and decide whether or not to accept the counter offer, submit our own counter offer, or reject the counter offer and move on.
Market conditions will play a role in how aggressively we negotiate the deal. We will also work within your limits. Emotions can lead to buyer's remorse. It is better to set limits prior to negotiating an offer and stick to these limits.
Step 7 - Get a Loan
During the closing period, you will be working with your mortgage lender to close the loan. Since you pre-qualified for the loan before starting your home search, you will be that much closer to the end. I'll gather the necessary property information your lender will need to close the loan.
Step 8 - Close the Deal
You will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer's past experience and may not include all the closing costs. I will be glad to review the "Good Faith Estimate," answering questions and highlighting missing costs and estimates I believe to be low.
Step 9 - Move In
Congratulations! It's time to move into your new house and make it your home. Enjoy this exciting time. I'll give you a checklist to help you remember the numerous details that will make your moving day a pleasure.
Rob Alley
Roy Wheeler Realty Co.
The Avery Group
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
It seems obvious, but it's good to note that the first step to buying a house is making the decision to buy. Consider the reasons you want a new house and write them down. Determine how long you want to live in the new house - does buying still make good financial sense? Can you afford a house that will meet your list of requirements? A good rule of thumb is your mortgage payment should not exceed 1/3 of your net monthly income.
Step 2 - Seek Professional Guidance
I'd like to schedule a time to meet with you to hear the reasons you want to buy a house and your plans for the future. We'll talk about neighborhoods, schools, economic factors liable to affect the market today and tomorrow, as well as how you would like your house and neighborhood to grow with you.
At this time, I will also help you get pre-qualified for a mortgage loan. Pre-qualification is a written statement from a loan officer indicating his or her opinion that you will be approved for a mortgage loan up to a certain amount. The fact that you are pre-qualified will help us when we are negotiating the deal.
Step 3 - Begin the Hunt
After our initial meeting, I'll search all my resources for houses on the market that fit your criteria. I'll preview these houses to eliminate the duds. Then, I'll schedule appointments to tour the houses at times convenient to you.
As we tour houses, I'll point out positive features and negative features. I'll ask you to tell me what you like and what you don't like. You'll probably amend your "wish list" as we tour houses, some things will become more important and others less important. With this new information, I'll refine our search criteria to narrow in on the house of your dreams.
Step 4 - Know the Market
My knowledge of the local market is an essential factor in the house search. I'll let you know when the market in a particular neighborhood is "hot" and requires immediate action or when the market is "cool" and allows for thoughtful consideration.
As we tour houses, I'll let you know when the asking price has negotiating room and when the house is "priced to sell". My unique market knowledge will keep you a step ahead of the "house hunting competition".
In a "seller's market". It is not unusual to see multiple offers on a property, full-price offers and even above-price offers. On the flip side, during a "buyer's market" there are more houses for sale than buyers. This gives us more negotiating room as houses are taking longer to sell.
Step 5 - Find Your Dream House
I'm confident we'll find your dream house. When we do, I'll put together the purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.).
The offer is normally presented with "earnest money". This is a cash deposit made to a home seller to secure an offer to buy the property. The amount is applied to closing costs. If the seller accepts the offer, generally closing is held 30 to 60 days from the offer date (generally dependent on the turn around time of your mortgage financing).
Step 6 - Negotiate the Deal
It is not uncommon to receive a counter offer when the initial purchase offer is submitted. Don't let this discourage you. We will discuss the counter offer and decide whether or not to accept the counter offer, submit our own counter offer, or reject the counter offer and move on.
Market conditions will play a role in how aggressively we negotiate the deal. We will also work within your limits. Emotions can lead to buyer's remorse. It is better to set limits prior to negotiating an offer and stick to these limits.
Step 7 - Get a Loan
During the closing period, you will be working with your mortgage lender to close the loan. Since you pre-qualified for the loan before starting your home search, you will be that much closer to the end. I'll gather the necessary property information your lender will need to close the loan.
Step 8 - Close the Deal
You will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer's past experience and may not include all the closing costs. I will be glad to review the "Good Faith Estimate," answering questions and highlighting missing costs and estimates I believe to be low.
Step 9 - Move In
Congratulations! It's time to move into your new house and make it your home. Enjoy this exciting time. I'll give you a checklist to help you remember the numerous details that will make your moving day a pleasure.
Rob Alley
Roy Wheeler Realty Co.
The Avery Group
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
The 9 Steps to Home Ownership
Step - 1 Make the Decision to Buy
It seems obvious, but it's good to note that the first step to buying a house is making the decision to buy. Consider the reasons you want a new house and write them down. Determine how long you want to live in the new house - does buying still make good financial sense? Can you afford a house that will meet your list of requirements? A good rule of thumb is your mortgage payment should not exceed 1/3 of your net monthly income.
Step 2 - Seek Professional Guidance
I'd like to schedule a time to meet with you to hear the reasons you want to buy a house and your plans for the future. We'll talk about neighborhoods, schools, economic factors liable to affect the market today and tomorrow, as well as how you would like your house and neighborhood to grow with you.
At this time, I will also help you get pre-qualified for a mortgage loan. Pre-qualification is a written statement from a loan officer indicating his or her opinion that you will be approved for a mortgage loan up to a certain amount. The fact that you are pre-qualified will help us when we are negotiating the deal.
Step 3 - Begin the Hunt
After our initial meeting, I'll search all my resources for houses on the market that fit your criteria. I'll preview these houses to eliminate the duds. Then, I'll schedule appointments to tour the houses at times convenient to you.
As we tour houses, I'll point out positive features and negative features. I'll ask you to tell me what you like and what you don't like. You'll probably amend your "wish list" as we tour houses, some things will become more important and others less important. With this new information, I'll refine our search criteria to narrow in on the house of your dreams.
Step 4 - Know the Market
My knowledge of the local market is an essential factor in the house search. I'll let you know when the market in a particular neighborhood is "hot" and requires immediate action or when the market is "cool" and allows for thoughtful consideration.
As we tour houses, I'll let you know when the asking price has negotiating room and when the house is "priced to sell". My unique market knowledge will keep you a step ahead of the "house hunting competition".
In a "seller's market". It is not unusual to see multiple offers on a property, full-price offers and even above-price offers. On the flip side, during a "buyer's market" there are more houses for sale than buyers. This gives us more negotiating room as houses are taking longer to sell.
Step 5 - Find Your Dream House
I'm confident we'll find your dream house. When we do, I'll put together the purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.).
The offer is normally presented with "earnest money". This is a cash deposit made to a home seller to secure an offer to buy the property. The amount is applied to closing costs. If the seller accepts the offer, generally closing is held 30 to 60 days from the offer date (generally dependent on the turn around time of your mortgage financing).
Step 6 - Negotiate the Deal
It is not uncommon to receive a counter offer when the initial purchase offer is submitted. Don't let this discourage you. We will discuss the counter offer and decide whether or not to accept the counter offer, submit our own counter offer, or reject the counter offer and move on.
Market conditions will play a role in how aggressively we negotiate the deal. We will also work within your limits. Emotions can lead to buyer's remorse. It is better to set limits prior to negotiating an offer and stick to these limits.
Step 7 - Get a Loan
During the closing period, you will be working with your mortgage lender to close the loan. Since you pre-qualified for the loan before starting your home search, you will be that much closer to the end. I'll gather the necessary property information your lender will need to close the loan.
Step 8 - Close the Deal
You will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer's past experience and may not include all the closing costs. I will be glad to review the "Good Faith Estimate," answering questions and highlighting missing costs and estimates I believe to be low.
Step 9 - Move In
Congratulations! It's time to move into your new house and make it your home. Enjoy this exciting time. I'll give you a checklist to help you remember the numerous details that will make your moving day a pleasure.
Rob Alley
Roy Wheeler Realty Co.
The Avery Group
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
It seems obvious, but it's good to note that the first step to buying a house is making the decision to buy. Consider the reasons you want a new house and write them down. Determine how long you want to live in the new house - does buying still make good financial sense? Can you afford a house that will meet your list of requirements? A good rule of thumb is your mortgage payment should not exceed 1/3 of your net monthly income.
Step 2 - Seek Professional Guidance
I'd like to schedule a time to meet with you to hear the reasons you want to buy a house and your plans for the future. We'll talk about neighborhoods, schools, economic factors liable to affect the market today and tomorrow, as well as how you would like your house and neighborhood to grow with you.
At this time, I will also help you get pre-qualified for a mortgage loan. Pre-qualification is a written statement from a loan officer indicating his or her opinion that you will be approved for a mortgage loan up to a certain amount. The fact that you are pre-qualified will help us when we are negotiating the deal.
Step 3 - Begin the Hunt
After our initial meeting, I'll search all my resources for houses on the market that fit your criteria. I'll preview these houses to eliminate the duds. Then, I'll schedule appointments to tour the houses at times convenient to you.
As we tour houses, I'll point out positive features and negative features. I'll ask you to tell me what you like and what you don't like. You'll probably amend your "wish list" as we tour houses, some things will become more important and others less important. With this new information, I'll refine our search criteria to narrow in on the house of your dreams.
Step 4 - Know the Market
My knowledge of the local market is an essential factor in the house search. I'll let you know when the market in a particular neighborhood is "hot" and requires immediate action or when the market is "cool" and allows for thoughtful consideration.
As we tour houses, I'll let you know when the asking price has negotiating room and when the house is "priced to sell". My unique market knowledge will keep you a step ahead of the "house hunting competition".
In a "seller's market". It is not unusual to see multiple offers on a property, full-price offers and even above-price offers. On the flip side, during a "buyer's market" there are more houses for sale than buyers. This gives us more negotiating room as houses are taking longer to sell.
Step 5 - Find Your Dream House
I'm confident we'll find your dream house. When we do, I'll put together the purchase offer tailored for your needs including appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.).
The offer is normally presented with "earnest money". This is a cash deposit made to a home seller to secure an offer to buy the property. The amount is applied to closing costs. If the seller accepts the offer, generally closing is held 30 to 60 days from the offer date (generally dependent on the turn around time of your mortgage financing).
Step 6 - Negotiate the Deal
It is not uncommon to receive a counter offer when the initial purchase offer is submitted. Don't let this discourage you. We will discuss the counter offer and decide whether or not to accept the counter offer, submit our own counter offer, or reject the counter offer and move on.
Market conditions will play a role in how aggressively we negotiate the deal. We will also work within your limits. Emotions can lead to buyer's remorse. It is better to set limits prior to negotiating an offer and stick to these limits.
Step 7 - Get a Loan
During the closing period, you will be working with your mortgage lender to close the loan. Since you pre-qualified for the loan before starting your home search, you will be that much closer to the end. I'll gather the necessary property information your lender will need to close the loan.
Step 8 - Close the Deal
You will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer's past experience and may not include all the closing costs. I will be glad to review the "Good Faith Estimate," answering questions and highlighting missing costs and estimates I believe to be low.
Step 9 - Move In
Congratulations! It's time to move into your new house and make it your home. Enjoy this exciting time. I'll give you a checklist to help you remember the numerous details that will make your moving day a pleasure.
Rob Alley
Roy Wheeler Realty Co.
The Avery Group
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
Scoring your Credit - How's your FICO?
In today's increasingly automated society, it should come as no surprise that when you apply for a mortgage, your ability to pay can be reduced to a single number. All the years you've been paying your mortgage, car payments, and credit card bills can be analyzed, sliced, diced, spindled and mutilated into a single indicator of whether you're likely to meet your future obligations.
All three of the major credit reporting agencies (Equifax, Experian and TransUnion) use a slightly different system to arrive at a score. The best known is called the FICO score, based on a model developed by Fair Isaac and Company (hence the name) and used by Experian. Equifax's model is called BEACON, while TransUnion uses EMPIRICA. While each of the models considers a range of data available in your credit report, the primary factors are:
Credit History - How long have you had credit?
Payment History - Do you pay your bills on time?
Credit Card Balances - How much do you owe on how many accounts?
Credit Inquiries - How many times have you had your credit checked?
Each of these, and other items, are assigned a value and a weight. The results are added up and distilled into a single number. FICO scores range from 300 to 850, with higher being better. Typical home buyers likely find their scores falling between 600 and 850.
FICO scores are used for more than just determining whether or not you qualify for a mortgage. Higher scores indicate you are a better credit risk, and thus may qualify for a better mortgage rate.
What can you do about your FICO score? Unfortunately, not much. Since the score is based on a lifetime of credit history, it is difficult to make a significant change in the number with quick fixes. The most important thing is to know your FICO score and to ensure that your credit history is correct. Conveniently, Fair Isaac has created a web site (www.myFICO.com) that let's you do just that. For a reasonable fee, you can quickly get your FICO score from all three reporting agencies, along with your credit report. Also available is some helpful information and tools that help you analyze what actions might have the greatest impact on your FICO score. Each of the credit services offers similar services on their web sites: www.equifax.com, www.experian.com, and www.transunion.com.
Armed with this information, you will be a more informed consumer and better positioned to obtain the most favorable mortgage available to you.
Rob Alley
Roy Wheeler Realty Co.
The Avery Group
http://www.robsellscharlottesville.com
http://www.theaverygroup.com
http://www.forestlakesliving.com
All three of the major credit reporting agencies (Equifax, Experian and TransUnion) use a slightly different system to arrive at a score. The best known is called the FICO score, based on a model developed by Fair Isaac and Company (hence the name) and used by Experian. Equifax's model is called BEACON, while TransUnion uses EMPIRICA. While each of the models considers a range of data available in your credit report, the primary factors are:
Credit History - How long have you had credit?
Payment History - Do you pay your bills on time?
Credit Card Balances - How much do you owe on how many accounts?
Credit Inquiries - How many times have you had your credit checked?
Each of these, and other items, are assigned a value and a weight. The results are added up and distilled into a single number. FICO scores range from 300 to 850, with higher being better. Typical home buyers likely find their scores falling between 600 and 850.
FICO scores are used for more than just determining whether or not you qualify for a mortgage. Higher scores indicate you are a better credit risk, and thus may qualify for a better mortgage rate.
What can you do about your FICO score? Unfortunately, not much. Since the score is based on a lifetime of credit history, it is difficult to make a significant change in the number with quick fixes. The most important thing is to know your FICO score and to ensure that your credit history is correct. Conveniently, Fair Isaac has created a web site (www.myFICO.com) that let's you do just that. For a reasonable fee, you can quickly get your FICO score from all three reporting agencies, along with your credit report. Also available is some helpful information and tools that help you analyze what actions might have the greatest impact on your FICO score. Each of the credit services offers similar services on their web sites: www.equifax.com, www.experian.com, and www.transunion.com.
Armed with this information, you will be a more informed consumer and better positioned to obtain the most favorable mortgage available to you.
Rob Alley
Roy Wheeler Realty Co.
The Avery Group
http://www.robsellscharlottesville.com
http://www.theaverygroup.com
http://www.forestlakesliving.com
Scoring your Credit - How's your FICO?
In today's increasingly automated society, it should come as no surprise that when you apply for a mortgage, your ability to pay can be reduced to a single number. All the years you've been paying your mortgage, car payments, and credit card bills can be analyzed, sliced, diced, spindled and mutilated into a single indicator of whether you're likely to meet your future obligations.
All three of the major credit reporting agencies (Equifax, Experian and TransUnion) use a slightly different system to arrive at a score. The best known is called the FICO score, based on a model developed by Fair Isaac and Company (hence the name) and used by Experian. Equifax's model is called BEACON, while TransUnion uses EMPIRICA. While each of the models considers a range of data available in your credit report, the primary factors are:
Credit History - How long have you had credit?
Payment History - Do you pay your bills on time?
Credit Card Balances - How much do you owe on how many accounts?
Credit Inquiries - How many times have you had your credit checked?
Each of these, and other items, are assigned a value and a weight. The results are added up and distilled into a single number. FICO scores range from 300 to 850, with higher being better. Typical home buyers likely find their scores falling between 600 and 850.
FICO scores are used for more than just determining whether or not you qualify for a mortgage. Higher scores indicate you are a better credit risk, and thus may qualify for a better mortgage rate.
What can you do about your FICO score? Unfortunately, not much. Since the score is based on a lifetime of credit history, it is difficult to make a significant change in the number with quick fixes. The most important thing is to know your FICO score and to ensure that your credit history is correct. Conveniently, Fair Isaac has created a web site (www.myFICO.com) that let's you do just that. For a reasonable fee, you can quickly get your FICO score from all three reporting agencies, along with your credit report. Also available is some helpful information and tools that help you analyze what actions might have the greatest impact on your FICO score. Each of the credit services offers similar services on their web sites: www.equifax.com, www.experian.com, and www.transunion.com.
Armed with this information, you will be a more informed consumer and better positioned to obtain the most favorable mortgage available to you.
Rob Alley
Roy Wheeler Realty Co.
The Avery Group
http://www.robsellscharlottesville.com
http://www.theaverygroup.com
http://www.forestlakesliving.com
All three of the major credit reporting agencies (Equifax, Experian and TransUnion) use a slightly different system to arrive at a score. The best known is called the FICO score, based on a model developed by Fair Isaac and Company (hence the name) and used by Experian. Equifax's model is called BEACON, while TransUnion uses EMPIRICA. While each of the models considers a range of data available in your credit report, the primary factors are:
Credit History - How long have you had credit?
Payment History - Do you pay your bills on time?
Credit Card Balances - How much do you owe on how many accounts?
Credit Inquiries - How many times have you had your credit checked?
Each of these, and other items, are assigned a value and a weight. The results are added up and distilled into a single number. FICO scores range from 300 to 850, with higher being better. Typical home buyers likely find their scores falling between 600 and 850.
FICO scores are used for more than just determining whether or not you qualify for a mortgage. Higher scores indicate you are a better credit risk, and thus may qualify for a better mortgage rate.
What can you do about your FICO score? Unfortunately, not much. Since the score is based on a lifetime of credit history, it is difficult to make a significant change in the number with quick fixes. The most important thing is to know your FICO score and to ensure that your credit history is correct. Conveniently, Fair Isaac has created a web site (www.myFICO.com) that let's you do just that. For a reasonable fee, you can quickly get your FICO score from all three reporting agencies, along with your credit report. Also available is some helpful information and tools that help you analyze what actions might have the greatest impact on your FICO score. Each of the credit services offers similar services on their web sites: www.equifax.com, www.experian.com, and www.transunion.com.
Armed with this information, you will be a more informed consumer and better positioned to obtain the most favorable mortgage available to you.
Rob Alley
Roy Wheeler Realty Co.
The Avery Group
http://www.robsellscharlottesville.com
http://www.theaverygroup.com
http://www.forestlakesliving.com
Wednesday, September 12, 2007
August Sales Slowest in 10 Years in Charlottesville
August Sales Slowest in 10 Years
This probably will not shock most of you, but sales in August took a significant dip. The 304 sales reported to the MLS in August were the fewest since 1998. Until August, the local market was soft, but doing well by historic measures. We had been tracking along with the 2004 numbers which were the third highest in local history. For the year, we are 620 sales behind last year (down 19.2%). As bad as that sounds, we are still on course to have the 4th highest sales year ever.
The main concern in the market seems to be the negative press about the mortgage crisis. While our area is not part of the crisis, we are feeling the effects of this national problem. CAAR is working hard to help get the “it’s a great time to buy” message out in the media. Recent coverage on NBC 29 (Link) was pretty good, and we will be putting more stories in the CAAR Real Estate Weekly about the favorable buying conditions. Unfortunately, the Daily Progress picked up a wire story out of Richmond that was not so nice.
Speaking of NBC 29, check out their new HomePlace section of the web site. CAAR Real Estate Weekly has recently entered into a partnership with NBC 29 to link our two powerful websites together and share content.
Rob Alley, Realtor
Roy Wheeler Realty Co.
The Avery Group
http://robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.theaverygroup.com/
This probably will not shock most of you, but sales in August took a significant dip. The 304 sales reported to the MLS in August were the fewest since 1998. Until August, the local market was soft, but doing well by historic measures. We had been tracking along with the 2004 numbers which were the third highest in local history. For the year, we are 620 sales behind last year (down 19.2%). As bad as that sounds, we are still on course to have the 4th highest sales year ever.
The main concern in the market seems to be the negative press about the mortgage crisis. While our area is not part of the crisis, we are feeling the effects of this national problem. CAAR is working hard to help get the “it’s a great time to buy” message out in the media. Recent coverage on NBC 29 (Link) was pretty good, and we will be putting more stories in the CAAR Real Estate Weekly about the favorable buying conditions. Unfortunately, the Daily Progress picked up a wire story out of Richmond that was not so nice.
Speaking of NBC 29, check out their new HomePlace section of the web site. CAAR Real Estate Weekly has recently entered into a partnership with NBC 29 to link our two powerful websites together and share content.
Rob Alley, Realtor
Roy Wheeler Realty Co.
The Avery Group
http://robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.theaverygroup.com/
August Sales Slowest in 10 Years in Charlottesville
August Sales Slowest in 10 Years
This probably will not shock most of you, but sales in August took a significant dip. The 304 sales reported to the MLS in August were the fewest since 1998. Until August, the local market was soft, but doing well by historic measures. We had been tracking along with the 2004 numbers which were the third highest in local history. For the year, we are 620 sales behind last year (down 19.2%). As bad as that sounds, we are still on course to have the 4th highest sales year ever.
The main concern in the market seems to be the negative press about the mortgage crisis. While our area is not part of the crisis, we are feeling the effects of this national problem. CAAR is working hard to help get the “it’s a great time to buy” message out in the media. Recent coverage on NBC 29 (Link) was pretty good, and we will be putting more stories in the CAAR Real Estate Weekly about the favorable buying conditions. Unfortunately, the Daily Progress picked up a wire story out of Richmond that was not so nice.
Speaking of NBC 29, check out their new HomePlace section of the web site. CAAR Real Estate Weekly has recently entered into a partnership with NBC 29 to link our two powerful websites together and share content.
Rob Alley, Realtor
Roy Wheeler Realty Co.
The Avery Group
http://robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.theaverygroup.com/
This probably will not shock most of you, but sales in August took a significant dip. The 304 sales reported to the MLS in August were the fewest since 1998. Until August, the local market was soft, but doing well by historic measures. We had been tracking along with the 2004 numbers which were the third highest in local history. For the year, we are 620 sales behind last year (down 19.2%). As bad as that sounds, we are still on course to have the 4th highest sales year ever.
The main concern in the market seems to be the negative press about the mortgage crisis. While our area is not part of the crisis, we are feeling the effects of this national problem. CAAR is working hard to help get the “it’s a great time to buy” message out in the media. Recent coverage on NBC 29 (Link) was pretty good, and we will be putting more stories in the CAAR Real Estate Weekly about the favorable buying conditions. Unfortunately, the Daily Progress picked up a wire story out of Richmond that was not so nice.
Speaking of NBC 29, check out their new HomePlace section of the web site. CAAR Real Estate Weekly has recently entered into a partnership with NBC 29 to link our two powerful websites together and share content.
Rob Alley, Realtor
Roy Wheeler Realty Co.
The Avery Group
http://robsellscharlottesville.com/
http://www.forestlakesliving.com/
http://www.theaverygroup.com/
Renting apartment could lead to identity theft
How can I ensure landlord safeguards my information?
Thursday, September 06, 2007
By Rob Alley
Avery Group
Q: I'm applying for an apartment, and the application asks for all sorts of personal information -- my Social Security number, bank account information and employment history. The landlord will also have my credit report. All of this information could easily be used to steal my identity. What recourse do I have to this risky situation? --Cindy A.
A: Careful landlords everywhere ask for this information, and there's no law against it. From their point of view, they're taking a big risk in handing over a very valuable item (their property) to a stranger. They want to make sure that you're solvent, honest, and likely to get along with them and the neighbors.
But your fear is well-grounded -- if your data gets into the wrong hands, you could have a problem. Though you can't insist that the landlord evaluate your application without your personal information, you may take some comfort in knowing that landlords must safeguard this data once they receive it, according to the "Disposal Rule" of the Fair and Accurate Credit Transactions Act of 2003 (known as the FACT Act). Landlords must keep the information in a locked cabinet, dispose of the information when they no longer need it, establish a system for purging their files, and use an effective method (such as a shredder) to destroy the documents. Computer files should be destroyed with a utility that will "wipe" the data completely, by deleting the text and the directory.
Still worried? It's true enough that all the safeguarding in the world won't prevent the landlord himself from appropriating your identity. But resist the temptation to find a landlord who screens less thoroughly -- this person is likely to take less care in other aspects of his business, too, and may prove to be a neglectful and unprofessional landlord. Instead, do your best to determine whether this owner runs a tight ship. Talk to current tenants about what it's like to do business with this owner, and above all, look around -- if other applicants' credit reports are strewn about his desk in a dusty mess, look elsewhere.
Q: The lease my new landlord gave me requires me to buy renters' insurance. I don't have a lot of stuff, and I don't want to pay to insure it. Besides, how is it the landlord's business, whether I'm insured or not? --Paul G.
A: Many tenants mistakenly believe that their landlord's property and liability insurance will cover them, too. Not so. You'll need renters' insurance if your belongings are damaged or stolen (even when off-site, to some extent), and you'll really want it if your carelessness on the rental property causes injury to someone, as might happen if your guest slips on a wet spot on your kitchen floor. Renters' insurance is a good idea for almost anyone, for the liability protection alone. It's also inexpensive (no more than about $20 per month).
Landlords are increasingly insisting that tenants obtain renters' insurance, though in some states, it's not legal to do so. Landlords have a lot to gain when you carry insurance. Here's how:
Renters' insurance protects the rent money. You may not think you have a lot of expensive belongings, but you'd be surprised at how quickly the replacement costs will mount up for even basic items. If they're stolen in a burglary or damaged in a fire and you have to replace them, your ability to pay the rent may suffer. Landlords don't want you in that position.
Renters' insurance protects the landlord's own policy. Sometimes it's not clear whose carelessness caused an injury. For example, was it your fault that your guest slipped on that wet floor, or your landlord's fault in not promptly fixing the leak that you reported earlier? Maybe you're both responsible -- he should have repaired it, and in the meantime, you should have at least warned people about the danger. In situations like this, the lawyer for the injured person will typically sue both landlord and tenant -- and let the evidence fall where it may. If a judge or jury decides you're both at fault, the injured person might be able to collect everything from whatever side has the money. If you have no insurance and no assets to draw on, the landlord's insurance carrier may end up paying all of it. The landlord would rather have two insurance companies share the hit than see his company pay everything, because the more claims on his policy, the more likely his premiums will go up.
Q: When I signed my lease, the landlord promised to paint the living room, and we added that note to the lease (and we initialed it). It's been three months, and all I get is the runaround. How can I make this guy honor his word? --Joannie G.
A: You were very wise to "get it in writing." But as you've discovered, that didn't automatically guarantee the follow-through. Here's what you can do to encourage your landlord to step up.
First, write a letter asking the landlord to take action, and enclose a copy of the lease page that includes the promise. If that gets no results, send another letter, advising the landlord that you will take the matter to small claims court if needed. In court, you'll argue that the landlord's promise was part of your lease contract, and that he has broken it. A judge will probably not order your landlord to paint, but she might give you money damages, which will be the value of the painted rental minus the value of the unpainted rental, times the number of months you've had to wait.
By the way, it's a good thing you've got a lease, rather than a month-to-month rental agreement. When you're month to month, the landlord can terminate with proper notice, typically 30 days -- which your landlord might be tempted to do when you start talking about court. Although many states protect tenants from retaliatory terminations, even those states may not protect you in this situation. That's because most anti-retaliatory protections cover tenants who exercise a specific tenant right (such as withholding the rent); complain to a health or building inspector; or organize a tenants' union. A month-to-month tenant in your situation might be unpleasantly surprised to find that "insisting on my contractual rights" doesn't get the same protection.
http://www.robsellscharlottesville.com
Thursday, September 06, 2007
By Rob Alley
Avery Group
Q: I'm applying for an apartment, and the application asks for all sorts of personal information -- my Social Security number, bank account information and employment history. The landlord will also have my credit report. All of this information could easily be used to steal my identity. What recourse do I have to this risky situation? --Cindy A.
A: Careful landlords everywhere ask for this information, and there's no law against it. From their point of view, they're taking a big risk in handing over a very valuable item (their property) to a stranger. They want to make sure that you're solvent, honest, and likely to get along with them and the neighbors.
But your fear is well-grounded -- if your data gets into the wrong hands, you could have a problem. Though you can't insist that the landlord evaluate your application without your personal information, you may take some comfort in knowing that landlords must safeguard this data once they receive it, according to the "Disposal Rule" of the Fair and Accurate Credit Transactions Act of 2003 (known as the FACT Act). Landlords must keep the information in a locked cabinet, dispose of the information when they no longer need it, establish a system for purging their files, and use an effective method (such as a shredder) to destroy the documents. Computer files should be destroyed with a utility that will "wipe" the data completely, by deleting the text and the directory.
Still worried? It's true enough that all the safeguarding in the world won't prevent the landlord himself from appropriating your identity. But resist the temptation to find a landlord who screens less thoroughly -- this person is likely to take less care in other aspects of his business, too, and may prove to be a neglectful and unprofessional landlord. Instead, do your best to determine whether this owner runs a tight ship. Talk to current tenants about what it's like to do business with this owner, and above all, look around -- if other applicants' credit reports are strewn about his desk in a dusty mess, look elsewhere.
Q: The lease my new landlord gave me requires me to buy renters' insurance. I don't have a lot of stuff, and I don't want to pay to insure it. Besides, how is it the landlord's business, whether I'm insured or not? --Paul G.
A: Many tenants mistakenly believe that their landlord's property and liability insurance will cover them, too. Not so. You'll need renters' insurance if your belongings are damaged or stolen (even when off-site, to some extent), and you'll really want it if your carelessness on the rental property causes injury to someone, as might happen if your guest slips on a wet spot on your kitchen floor. Renters' insurance is a good idea for almost anyone, for the liability protection alone. It's also inexpensive (no more than about $20 per month).
Landlords are increasingly insisting that tenants obtain renters' insurance, though in some states, it's not legal to do so. Landlords have a lot to gain when you carry insurance. Here's how:
Renters' insurance protects the rent money. You may not think you have a lot of expensive belongings, but you'd be surprised at how quickly the replacement costs will mount up for even basic items. If they're stolen in a burglary or damaged in a fire and you have to replace them, your ability to pay the rent may suffer. Landlords don't want you in that position.
Renters' insurance protects the landlord's own policy. Sometimes it's not clear whose carelessness caused an injury. For example, was it your fault that your guest slipped on that wet floor, or your landlord's fault in not promptly fixing the leak that you reported earlier? Maybe you're both responsible -- he should have repaired it, and in the meantime, you should have at least warned people about the danger. In situations like this, the lawyer for the injured person will typically sue both landlord and tenant -- and let the evidence fall where it may. If a judge or jury decides you're both at fault, the injured person might be able to collect everything from whatever side has the money. If you have no insurance and no assets to draw on, the landlord's insurance carrier may end up paying all of it. The landlord would rather have two insurance companies share the hit than see his company pay everything, because the more claims on his policy, the more likely his premiums will go up.
Q: When I signed my lease, the landlord promised to paint the living room, and we added that note to the lease (and we initialed it). It's been three months, and all I get is the runaround. How can I make this guy honor his word? --Joannie G.
A: You were very wise to "get it in writing." But as you've discovered, that didn't automatically guarantee the follow-through. Here's what you can do to encourage your landlord to step up.
First, write a letter asking the landlord to take action, and enclose a copy of the lease page that includes the promise. If that gets no results, send another letter, advising the landlord that you will take the matter to small claims court if needed. In court, you'll argue that the landlord's promise was part of your lease contract, and that he has broken it. A judge will probably not order your landlord to paint, but she might give you money damages, which will be the value of the painted rental minus the value of the unpainted rental, times the number of months you've had to wait.
By the way, it's a good thing you've got a lease, rather than a month-to-month rental agreement. When you're month to month, the landlord can terminate with proper notice, typically 30 days -- which your landlord might be tempted to do when you start talking about court. Although many states protect tenants from retaliatory terminations, even those states may not protect you in this situation. That's because most anti-retaliatory protections cover tenants who exercise a specific tenant right (such as withholding the rent); complain to a health or building inspector; or organize a tenants' union. A month-to-month tenant in your situation might be unpleasantly surprised to find that "insisting on my contractual rights" doesn't get the same protection.
http://www.robsellscharlottesville.com
Renting apartment could lead to identity theft
How can I ensure landlord safeguards my information?
Thursday, September 06, 2007
By Rob Alley
Avery Group
Q: I'm applying for an apartment, and the application asks for all sorts of personal information -- my Social Security number, bank account information and employment history. The landlord will also have my credit report. All of this information could easily be used to steal my identity. What recourse do I have to this risky situation? --Cindy A.
A: Careful landlords everywhere ask for this information, and there's no law against it. From their point of view, they're taking a big risk in handing over a very valuable item (their property) to a stranger. They want to make sure that you're solvent, honest, and likely to get along with them and the neighbors.
But your fear is well-grounded -- if your data gets into the wrong hands, you could have a problem. Though you can't insist that the landlord evaluate your application without your personal information, you may take some comfort in knowing that landlords must safeguard this data once they receive it, according to the "Disposal Rule" of the Fair and Accurate Credit Transactions Act of 2003 (known as the FACT Act). Landlords must keep the information in a locked cabinet, dispose of the information when they no longer need it, establish a system for purging their files, and use an effective method (such as a shredder) to destroy the documents. Computer files should be destroyed with a utility that will "wipe" the data completely, by deleting the text and the directory.
Still worried? It's true enough that all the safeguarding in the world won't prevent the landlord himself from appropriating your identity. But resist the temptation to find a landlord who screens less thoroughly -- this person is likely to take less care in other aspects of his business, too, and may prove to be a neglectful and unprofessional landlord. Instead, do your best to determine whether this owner runs a tight ship. Talk to current tenants about what it's like to do business with this owner, and above all, look around -- if other applicants' credit reports are strewn about his desk in a dusty mess, look elsewhere.
Q: The lease my new landlord gave me requires me to buy renters' insurance. I don't have a lot of stuff, and I don't want to pay to insure it. Besides, how is it the landlord's business, whether I'm insured or not? --Paul G.
A: Many tenants mistakenly believe that their landlord's property and liability insurance will cover them, too. Not so. You'll need renters' insurance if your belongings are damaged or stolen (even when off-site, to some extent), and you'll really want it if your carelessness on the rental property causes injury to someone, as might happen if your guest slips on a wet spot on your kitchen floor. Renters' insurance is a good idea for almost anyone, for the liability protection alone. It's also inexpensive (no more than about $20 per month).
Landlords are increasingly insisting that tenants obtain renters' insurance, though in some states, it's not legal to do so. Landlords have a lot to gain when you carry insurance. Here's how:
Renters' insurance protects the rent money. You may not think you have a lot of expensive belongings, but you'd be surprised at how quickly the replacement costs will mount up for even basic items. If they're stolen in a burglary or damaged in a fire and you have to replace them, your ability to pay the rent may suffer. Landlords don't want you in that position.
Renters' insurance protects the landlord's own policy. Sometimes it's not clear whose carelessness caused an injury. For example, was it your fault that your guest slipped on that wet floor, or your landlord's fault in not promptly fixing the leak that you reported earlier? Maybe you're both responsible -- he should have repaired it, and in the meantime, you should have at least warned people about the danger. In situations like this, the lawyer for the injured person will typically sue both landlord and tenant -- and let the evidence fall where it may. If a judge or jury decides you're both at fault, the injured person might be able to collect everything from whatever side has the money. If you have no insurance and no assets to draw on, the landlord's insurance carrier may end up paying all of it. The landlord would rather have two insurance companies share the hit than see his company pay everything, because the more claims on his policy, the more likely his premiums will go up.
Q: When I signed my lease, the landlord promised to paint the living room, and we added that note to the lease (and we initialed it). It's been three months, and all I get is the runaround. How can I make this guy honor his word? --Joannie G.
A: You were very wise to "get it in writing." But as you've discovered, that didn't automatically guarantee the follow-through. Here's what you can do to encourage your landlord to step up.
First, write a letter asking the landlord to take action, and enclose a copy of the lease page that includes the promise. If that gets no results, send another letter, advising the landlord that you will take the matter to small claims court if needed. In court, you'll argue that the landlord's promise was part of your lease contract, and that he has broken it. A judge will probably not order your landlord to paint, but she might give you money damages, which will be the value of the painted rental minus the value of the unpainted rental, times the number of months you've had to wait.
By the way, it's a good thing you've got a lease, rather than a month-to-month rental agreement. When you're month to month, the landlord can terminate with proper notice, typically 30 days -- which your landlord might be tempted to do when you start talking about court. Although many states protect tenants from retaliatory terminations, even those states may not protect you in this situation. That's because most anti-retaliatory protections cover tenants who exercise a specific tenant right (such as withholding the rent); complain to a health or building inspector; or organize a tenants' union. A month-to-month tenant in your situation might be unpleasantly surprised to find that "insisting on my contractual rights" doesn't get the same protection.
http://www.robsellscharlottesville.com
Thursday, September 06, 2007
By Rob Alley
Avery Group
Q: I'm applying for an apartment, and the application asks for all sorts of personal information -- my Social Security number, bank account information and employment history. The landlord will also have my credit report. All of this information could easily be used to steal my identity. What recourse do I have to this risky situation? --Cindy A.
A: Careful landlords everywhere ask for this information, and there's no law against it. From their point of view, they're taking a big risk in handing over a very valuable item (their property) to a stranger. They want to make sure that you're solvent, honest, and likely to get along with them and the neighbors.
But your fear is well-grounded -- if your data gets into the wrong hands, you could have a problem. Though you can't insist that the landlord evaluate your application without your personal information, you may take some comfort in knowing that landlords must safeguard this data once they receive it, according to the "Disposal Rule" of the Fair and Accurate Credit Transactions Act of 2003 (known as the FACT Act). Landlords must keep the information in a locked cabinet, dispose of the information when they no longer need it, establish a system for purging their files, and use an effective method (such as a shredder) to destroy the documents. Computer files should be destroyed with a utility that will "wipe" the data completely, by deleting the text and the directory.
Still worried? It's true enough that all the safeguarding in the world won't prevent the landlord himself from appropriating your identity. But resist the temptation to find a landlord who screens less thoroughly -- this person is likely to take less care in other aspects of his business, too, and may prove to be a neglectful and unprofessional landlord. Instead, do your best to determine whether this owner runs a tight ship. Talk to current tenants about what it's like to do business with this owner, and above all, look around -- if other applicants' credit reports are strewn about his desk in a dusty mess, look elsewhere.
Q: The lease my new landlord gave me requires me to buy renters' insurance. I don't have a lot of stuff, and I don't want to pay to insure it. Besides, how is it the landlord's business, whether I'm insured or not? --Paul G.
A: Many tenants mistakenly believe that their landlord's property and liability insurance will cover them, too. Not so. You'll need renters' insurance if your belongings are damaged or stolen (even when off-site, to some extent), and you'll really want it if your carelessness on the rental property causes injury to someone, as might happen if your guest slips on a wet spot on your kitchen floor. Renters' insurance is a good idea for almost anyone, for the liability protection alone. It's also inexpensive (no more than about $20 per month).
Landlords are increasingly insisting that tenants obtain renters' insurance, though in some states, it's not legal to do so. Landlords have a lot to gain when you carry insurance. Here's how:
Renters' insurance protects the rent money. You may not think you have a lot of expensive belongings, but you'd be surprised at how quickly the replacement costs will mount up for even basic items. If they're stolen in a burglary or damaged in a fire and you have to replace them, your ability to pay the rent may suffer. Landlords don't want you in that position.
Renters' insurance protects the landlord's own policy. Sometimes it's not clear whose carelessness caused an injury. For example, was it your fault that your guest slipped on that wet floor, or your landlord's fault in not promptly fixing the leak that you reported earlier? Maybe you're both responsible -- he should have repaired it, and in the meantime, you should have at least warned people about the danger. In situations like this, the lawyer for the injured person will typically sue both landlord and tenant -- and let the evidence fall where it may. If a judge or jury decides you're both at fault, the injured person might be able to collect everything from whatever side has the money. If you have no insurance and no assets to draw on, the landlord's insurance carrier may end up paying all of it. The landlord would rather have two insurance companies share the hit than see his company pay everything, because the more claims on his policy, the more likely his premiums will go up.
Q: When I signed my lease, the landlord promised to paint the living room, and we added that note to the lease (and we initialed it). It's been three months, and all I get is the runaround. How can I make this guy honor his word? --Joannie G.
A: You were very wise to "get it in writing." But as you've discovered, that didn't automatically guarantee the follow-through. Here's what you can do to encourage your landlord to step up.
First, write a letter asking the landlord to take action, and enclose a copy of the lease page that includes the promise. If that gets no results, send another letter, advising the landlord that you will take the matter to small claims court if needed. In court, you'll argue that the landlord's promise was part of your lease contract, and that he has broken it. A judge will probably not order your landlord to paint, but she might give you money damages, which will be the value of the painted rental minus the value of the unpainted rental, times the number of months you've had to wait.
By the way, it's a good thing you've got a lease, rather than a month-to-month rental agreement. When you're month to month, the landlord can terminate with proper notice, typically 30 days -- which your landlord might be tempted to do when you start talking about court. Although many states protect tenants from retaliatory terminations, even those states may not protect you in this situation. That's because most anti-retaliatory protections cover tenants who exercise a specific tenant right (such as withholding the rent); complain to a health or building inspector; or organize a tenants' union. A month-to-month tenant in your situation might be unpleasantly surprised to find that "insisting on my contractual rights" doesn't get the same protection.
http://www.robsellscharlottesville.com
Monday Night Football Party!!!!
Monday Night Football Party!!!
Monday Night Football Party Every Monday Night at Rivals Sports Bar and Grill on Rio Road. Kick-off is at 8:30 PM!! Click the Link for more Information!!
BlogCatalog
http://www.robsellscharlottesville.com
Monday Night Football Party Every Monday Night at Rivals Sports Bar and Grill on Rio Road. Kick-off is at 8:30 PM!! Click the Link for more Information!!
BlogCatalog
http://www.robsellscharlottesville.com
Monday Night Football Party!!!!
Monday Night Football Party!!!
Monday Night Football Party Every Monday Night at Rivals Sports Bar and Grill on Rio Road. Kick-off is at 8:30 PM!! Click the Link for more Information!!
BlogCatalog
http://www.robsellscharlottesville.com
Monday Night Football Party Every Monday Night at Rivals Sports Bar and Grill on Rio Road. Kick-off is at 8:30 PM!! Click the Link for more Information!!
BlogCatalog
http://www.robsellscharlottesville.com
The Short Sale - A Viable Alternative to Foreclosure
The Short Sale
A Viable Alternative to Foreclosure
Economic experts have said that the real estate market is not a major factor in the Federal Reserve's true goal of keeping inflation in check – and its recent activity seems to bear this out. By strategically infusing billions of dollars into the banking system and unexpectedly cutting its discount window rate for 30 days, the Fed has clearly attempted to "bail out" the financial and credit markets. The real estate market, however, continues to suffer nearly double the number of foreclosures as it did this time a year ago – one in every 693 US households. In some states, the statistics are even worse, with foreclosures claiming one in every 199 households!
Because of this, YOU Magazine will ignore the media hype surrounding the Fed's financial policies and focus our attention this month on an interesting process known as a short sale. As a realistic "last" alternative to foreclosure, and a great opportunity for potential homebuyers and real estate investors, the short sale will continue to become more and more prevalent as millions of ARMs reset (see YOU Magazine's August issue) over the next 2 to 18 months and trigger newer and bigger waves of foreclosures.
If you or someone you know has an ARM that is scheduled to adjust in 2007 or 2008, please schedule an appointment with a mortgage specialist right away. Don't let a foreclosure or default situation sneak up on you. Remember, even if the Federal Reserve does lower its Fed Funds Rate later this month (which does seem likely), the majority of these ARMs borrowers will not be positively affected or "saved" by this move. For many borrowers, a short sale or a foreclosure will be the only available option.
What is a Short Sale?
A short sale, defined as an "agreement" to allow a home to be sold for less than the amount that is owed, can be a helpful compromise for everyone involved. For debt-ridden homeowners or those who owe more than the house is currently worth, a short sale could save them some of the enormous pain, embarrassment, and major credit challenges associated with bankruptcy and/or foreclosure. For lenders, it helps avoid some of the hassle and expense of seizing and auctioning off delinquent real estate. Lastly, for potential homebuyers and real estate investors, a short sale offers a great opportunity to purchase property at a significant discount in today's tight-fisted credit environment.
And, while short sales are not by any means common or easy, inventory levels of unsold homes are now exceeding a 36-month supply in some parts of the country. Add to that the increasing number of foreclosures, and lenders are much more eager to negotiate with borrowers who are having trouble paying their mortgages.
Short Sale Requirements
It's important to note that short sales occur at the sole discretion of the existing lender or servicing company. This is not like negotiating the price of a home under normal circumstances. Would-be buyers need to accept and understand this concept completely prior to entering into any purchase agreement on a short sale transaction. While a buyer and seller may come to some sort of agreement on their own, the lender in a short sale will ultimately have final approval of this legally-binding arrangement.
Remember, lenders are not looking to bail out borrowers who simply overextended themselves during the recent real estate boom. In most cases, a lender will only consider a short sale if a borrower has clearly suffered a serious financial hardship that directly caused him or her to default on the mortgage. This means the loss of a job, a serious illness, or the death of a loved one – something devastating and "unforeseen" that can justify such a state of financial disrepair. If you're a "flipper" with 2 or 3 homes that you weren't able to unload before the market turned, or if you have other assets or income that could easily cover your mortgage debt, it's not likely that a lender will accept a short sale proposal.
A written declaration and supporting documentation demonstrating financial hardship and an inability to make payments will definitely be required by the lender in order to even consider a short sale. This may include pay stubs, tax returns, and liquid asset statements – including those for retirement accounts – among other documentation. In addition, the borrower must be at least 91-days delinquent before a lender will even discuss a short sale.
In some cases, the lender's hands may be tied, depending on how the borrower's loan was sold into the open market through mortgage-backed securities. If the mortgage in question was not sold by the lender, but rather retained in its own portfolio, the lender may have more flexibility. However, don't expect a lot of help from the lender without first providing a sales contract from a qualified buyer and all the information required by the lender's loss mitigation department. This is where an experienced real estate professional becomes invaluable to your cause. A good real estate agent has not only successfully negotiated short sales in the past, he or she will also have access to qualified investors who are well-versed in the substantial risk and reward involved in this extremely complex and often drawn out process.
Important Additional Considerations:
The lender will likely issue a 1099 to the seller for the difference between what is owed and the final amount the lender collects after the costs of the sale, including real estate commissions and possibly other charges. This means that the "deficiency" (the difference between the short sale price and the original loan amount) can be considered as taxable income to the borrower. Some lenders may even attempt to get the existing homeowner to sign a note for the remaining amount due.
If there are currently multiple liens against the property, all lien holders will have to be involved in the negotiation process, not just the first lien holder. Therefore, communication and patience are essential components of any short sale.
There is no guarantee of success. With several parties involved, it's difficult to please all sides all of the time. Short sales require expert advisors who know precisely what is to happen at every stage.
A number of scams resembling short sales currently exist and, because of the obvious intensity of emotion involved with this process, borrowers can quickly become vulnerable to new scams.
In other words, be proactive. If you have an ARM that is scheduled to reset in the near future, or if you're facing foreclosure because of unexpected life events, don't wait until a short sale is your last viable option – and don't count on the Fed to "bail out" the real estate market any time soon.
Contact the professional who provides you with your subscription to YOU Magazine and get the latest information you need. A short sale may represent your best opportunity to avoid foreclosure or to get a great deal on your next home or investment property.
http://www.charlottesvilleshortsale.com/
434-975-9000
A Viable Alternative to Foreclosure
Economic experts have said that the real estate market is not a major factor in the Federal Reserve's true goal of keeping inflation in check – and its recent activity seems to bear this out. By strategically infusing billions of dollars into the banking system and unexpectedly cutting its discount window rate for 30 days, the Fed has clearly attempted to "bail out" the financial and credit markets. The real estate market, however, continues to suffer nearly double the number of foreclosures as it did this time a year ago – one in every 693 US households. In some states, the statistics are even worse, with foreclosures claiming one in every 199 households!
Because of this, YOU Magazine will ignore the media hype surrounding the Fed's financial policies and focus our attention this month on an interesting process known as a short sale. As a realistic "last" alternative to foreclosure, and a great opportunity for potential homebuyers and real estate investors, the short sale will continue to become more and more prevalent as millions of ARMs reset (see YOU Magazine's August issue) over the next 2 to 18 months and trigger newer and bigger waves of foreclosures.
If you or someone you know has an ARM that is scheduled to adjust in 2007 or 2008, please schedule an appointment with a mortgage specialist right away. Don't let a foreclosure or default situation sneak up on you. Remember, even if the Federal Reserve does lower its Fed Funds Rate later this month (which does seem likely), the majority of these ARMs borrowers will not be positively affected or "saved" by this move. For many borrowers, a short sale or a foreclosure will be the only available option.
What is a Short Sale?
A short sale, defined as an "agreement" to allow a home to be sold for less than the amount that is owed, can be a helpful compromise for everyone involved. For debt-ridden homeowners or those who owe more than the house is currently worth, a short sale could save them some of the enormous pain, embarrassment, and major credit challenges associated with bankruptcy and/or foreclosure. For lenders, it helps avoid some of the hassle and expense of seizing and auctioning off delinquent real estate. Lastly, for potential homebuyers and real estate investors, a short sale offers a great opportunity to purchase property at a significant discount in today's tight-fisted credit environment.
And, while short sales are not by any means common or easy, inventory levels of unsold homes are now exceeding a 36-month supply in some parts of the country. Add to that the increasing number of foreclosures, and lenders are much more eager to negotiate with borrowers who are having trouble paying their mortgages.
Short Sale Requirements
It's important to note that short sales occur at the sole discretion of the existing lender or servicing company. This is not like negotiating the price of a home under normal circumstances. Would-be buyers need to accept and understand this concept completely prior to entering into any purchase agreement on a short sale transaction. While a buyer and seller may come to some sort of agreement on their own, the lender in a short sale will ultimately have final approval of this legally-binding arrangement.
Remember, lenders are not looking to bail out borrowers who simply overextended themselves during the recent real estate boom. In most cases, a lender will only consider a short sale if a borrower has clearly suffered a serious financial hardship that directly caused him or her to default on the mortgage. This means the loss of a job, a serious illness, or the death of a loved one – something devastating and "unforeseen" that can justify such a state of financial disrepair. If you're a "flipper" with 2 or 3 homes that you weren't able to unload before the market turned, or if you have other assets or income that could easily cover your mortgage debt, it's not likely that a lender will accept a short sale proposal.
A written declaration and supporting documentation demonstrating financial hardship and an inability to make payments will definitely be required by the lender in order to even consider a short sale. This may include pay stubs, tax returns, and liquid asset statements – including those for retirement accounts – among other documentation. In addition, the borrower must be at least 91-days delinquent before a lender will even discuss a short sale.
In some cases, the lender's hands may be tied, depending on how the borrower's loan was sold into the open market through mortgage-backed securities. If the mortgage in question was not sold by the lender, but rather retained in its own portfolio, the lender may have more flexibility. However, don't expect a lot of help from the lender without first providing a sales contract from a qualified buyer and all the information required by the lender's loss mitigation department. This is where an experienced real estate professional becomes invaluable to your cause. A good real estate agent has not only successfully negotiated short sales in the past, he or she will also have access to qualified investors who are well-versed in the substantial risk and reward involved in this extremely complex and often drawn out process.
Important Additional Considerations:
The lender will likely issue a 1099 to the seller for the difference between what is owed and the final amount the lender collects after the costs of the sale, including real estate commissions and possibly other charges. This means that the "deficiency" (the difference between the short sale price and the original loan amount) can be considered as taxable income to the borrower. Some lenders may even attempt to get the existing homeowner to sign a note for the remaining amount due.
If there are currently multiple liens against the property, all lien holders will have to be involved in the negotiation process, not just the first lien holder. Therefore, communication and patience are essential components of any short sale.
There is no guarantee of success. With several parties involved, it's difficult to please all sides all of the time. Short sales require expert advisors who know precisely what is to happen at every stage.
A number of scams resembling short sales currently exist and, because of the obvious intensity of emotion involved with this process, borrowers can quickly become vulnerable to new scams.
In other words, be proactive. If you have an ARM that is scheduled to reset in the near future, or if you're facing foreclosure because of unexpected life events, don't wait until a short sale is your last viable option – and don't count on the Fed to "bail out" the real estate market any time soon.
Contact the professional who provides you with your subscription to YOU Magazine and get the latest information you need. A short sale may represent your best opportunity to avoid foreclosure or to get a great deal on your next home or investment property.
http://www.charlottesvilleshortsale.com/
434-975-9000
The Short Sale - A Viable Alternative to Foreclosure
The Short Sale
A Viable Alternative to Foreclosure
Economic experts have said that the real estate market is not a major factor in the Federal Reserve's true goal of keeping inflation in check – and its recent activity seems to bear this out. By strategically infusing billions of dollars into the banking system and unexpectedly cutting its discount window rate for 30 days, the Fed has clearly attempted to "bail out" the financial and credit markets. The real estate market, however, continues to suffer nearly double the number of foreclosures as it did this time a year ago – one in every 693 US households. In some states, the statistics are even worse, with foreclosures claiming one in every 199 households!
Because of this, YOU Magazine will ignore the media hype surrounding the Fed's financial policies and focus our attention this month on an interesting process known as a short sale. As a realistic "last" alternative to foreclosure, and a great opportunity for potential homebuyers and real estate investors, the short sale will continue to become more and more prevalent as millions of ARMs reset (see YOU Magazine's August issue) over the next 2 to 18 months and trigger newer and bigger waves of foreclosures.
If you or someone you know has an ARM that is scheduled to adjust in 2007 or 2008, please schedule an appointment with a mortgage specialist right away. Don't let a foreclosure or default situation sneak up on you. Remember, even if the Federal Reserve does lower its Fed Funds Rate later this month (which does seem likely), the majority of these ARMs borrowers will not be positively affected or "saved" by this move. For many borrowers, a short sale or a foreclosure will be the only available option.
What is a Short Sale?
A short sale, defined as an "agreement" to allow a home to be sold for less than the amount that is owed, can be a helpful compromise for everyone involved. For debt-ridden homeowners or those who owe more than the house is currently worth, a short sale could save them some of the enormous pain, embarrassment, and major credit challenges associated with bankruptcy and/or foreclosure. For lenders, it helps avoid some of the hassle and expense of seizing and auctioning off delinquent real estate. Lastly, for potential homebuyers and real estate investors, a short sale offers a great opportunity to purchase property at a significant discount in today's tight-fisted credit environment.
And, while short sales are not by any means common or easy, inventory levels of unsold homes are now exceeding a 36-month supply in some parts of the country. Add to that the increasing number of foreclosures, and lenders are much more eager to negotiate with borrowers who are having trouble paying their mortgages.
Short Sale Requirements
It's important to note that short sales occur at the sole discretion of the existing lender or servicing company. This is not like negotiating the price of a home under normal circumstances. Would-be buyers need to accept and understand this concept completely prior to entering into any purchase agreement on a short sale transaction. While a buyer and seller may come to some sort of agreement on their own, the lender in a short sale will ultimately have final approval of this legally-binding arrangement.
Remember, lenders are not looking to bail out borrowers who simply overextended themselves during the recent real estate boom. In most cases, a lender will only consider a short sale if a borrower has clearly suffered a serious financial hardship that directly caused him or her to default on the mortgage. This means the loss of a job, a serious illness, or the death of a loved one – something devastating and "unforeseen" that can justify such a state of financial disrepair. If you're a "flipper" with 2 or 3 homes that you weren't able to unload before the market turned, or if you have other assets or income that could easily cover your mortgage debt, it's not likely that a lender will accept a short sale proposal.
A written declaration and supporting documentation demonstrating financial hardship and an inability to make payments will definitely be required by the lender in order to even consider a short sale. This may include pay stubs, tax returns, and liquid asset statements – including those for retirement accounts – among other documentation. In addition, the borrower must be at least 91-days delinquent before a lender will even discuss a short sale.
In some cases, the lender's hands may be tied, depending on how the borrower's loan was sold into the open market through mortgage-backed securities. If the mortgage in question was not sold by the lender, but rather retained in its own portfolio, the lender may have more flexibility. However, don't expect a lot of help from the lender without first providing a sales contract from a qualified buyer and all the information required by the lender's loss mitigation department. This is where an experienced real estate professional becomes invaluable to your cause. A good real estate agent has not only successfully negotiated short sales in the past, he or she will also have access to qualified investors who are well-versed in the substantial risk and reward involved in this extremely complex and often drawn out process.
Important Additional Considerations:
The lender will likely issue a 1099 to the seller for the difference between what is owed and the final amount the lender collects after the costs of the sale, including real estate commissions and possibly other charges. This means that the "deficiency" (the difference between the short sale price and the original loan amount) can be considered as taxable income to the borrower. Some lenders may even attempt to get the existing homeowner to sign a note for the remaining amount due.
If there are currently multiple liens against the property, all lien holders will have to be involved in the negotiation process, not just the first lien holder. Therefore, communication and patience are essential components of any short sale.
There is no guarantee of success. With several parties involved, it's difficult to please all sides all of the time. Short sales require expert advisors who know precisely what is to happen at every stage.
A number of scams resembling short sales currently exist and, because of the obvious intensity of emotion involved with this process, borrowers can quickly become vulnerable to new scams.
In other words, be proactive. If you have an ARM that is scheduled to reset in the near future, or if you're facing foreclosure because of unexpected life events, don't wait until a short sale is your last viable option – and don't count on the Fed to "bail out" the real estate market any time soon.
Contact the professional who provides you with your subscription to YOU Magazine and get the latest information you need. A short sale may represent your best opportunity to avoid foreclosure or to get a great deal on your next home or investment property.
http://www.charlottesvilleshortsale.com/
434-975-9000
A Viable Alternative to Foreclosure
Economic experts have said that the real estate market is not a major factor in the Federal Reserve's true goal of keeping inflation in check – and its recent activity seems to bear this out. By strategically infusing billions of dollars into the banking system and unexpectedly cutting its discount window rate for 30 days, the Fed has clearly attempted to "bail out" the financial and credit markets. The real estate market, however, continues to suffer nearly double the number of foreclosures as it did this time a year ago – one in every 693 US households. In some states, the statistics are even worse, with foreclosures claiming one in every 199 households!
Because of this, YOU Magazine will ignore the media hype surrounding the Fed's financial policies and focus our attention this month on an interesting process known as a short sale. As a realistic "last" alternative to foreclosure, and a great opportunity for potential homebuyers and real estate investors, the short sale will continue to become more and more prevalent as millions of ARMs reset (see YOU Magazine's August issue) over the next 2 to 18 months and trigger newer and bigger waves of foreclosures.
If you or someone you know has an ARM that is scheduled to adjust in 2007 or 2008, please schedule an appointment with a mortgage specialist right away. Don't let a foreclosure or default situation sneak up on you. Remember, even if the Federal Reserve does lower its Fed Funds Rate later this month (which does seem likely), the majority of these ARMs borrowers will not be positively affected or "saved" by this move. For many borrowers, a short sale or a foreclosure will be the only available option.
What is a Short Sale?
A short sale, defined as an "agreement" to allow a home to be sold for less than the amount that is owed, can be a helpful compromise for everyone involved. For debt-ridden homeowners or those who owe more than the house is currently worth, a short sale could save them some of the enormous pain, embarrassment, and major credit challenges associated with bankruptcy and/or foreclosure. For lenders, it helps avoid some of the hassle and expense of seizing and auctioning off delinquent real estate. Lastly, for potential homebuyers and real estate investors, a short sale offers a great opportunity to purchase property at a significant discount in today's tight-fisted credit environment.
And, while short sales are not by any means common or easy, inventory levels of unsold homes are now exceeding a 36-month supply in some parts of the country. Add to that the increasing number of foreclosures, and lenders are much more eager to negotiate with borrowers who are having trouble paying their mortgages.
Short Sale Requirements
It's important to note that short sales occur at the sole discretion of the existing lender or servicing company. This is not like negotiating the price of a home under normal circumstances. Would-be buyers need to accept and understand this concept completely prior to entering into any purchase agreement on a short sale transaction. While a buyer and seller may come to some sort of agreement on their own, the lender in a short sale will ultimately have final approval of this legally-binding arrangement.
Remember, lenders are not looking to bail out borrowers who simply overextended themselves during the recent real estate boom. In most cases, a lender will only consider a short sale if a borrower has clearly suffered a serious financial hardship that directly caused him or her to default on the mortgage. This means the loss of a job, a serious illness, or the death of a loved one – something devastating and "unforeseen" that can justify such a state of financial disrepair. If you're a "flipper" with 2 or 3 homes that you weren't able to unload before the market turned, or if you have other assets or income that could easily cover your mortgage debt, it's not likely that a lender will accept a short sale proposal.
A written declaration and supporting documentation demonstrating financial hardship and an inability to make payments will definitely be required by the lender in order to even consider a short sale. This may include pay stubs, tax returns, and liquid asset statements – including those for retirement accounts – among other documentation. In addition, the borrower must be at least 91-days delinquent before a lender will even discuss a short sale.
In some cases, the lender's hands may be tied, depending on how the borrower's loan was sold into the open market through mortgage-backed securities. If the mortgage in question was not sold by the lender, but rather retained in its own portfolio, the lender may have more flexibility. However, don't expect a lot of help from the lender without first providing a sales contract from a qualified buyer and all the information required by the lender's loss mitigation department. This is where an experienced real estate professional becomes invaluable to your cause. A good real estate agent has not only successfully negotiated short sales in the past, he or she will also have access to qualified investors who are well-versed in the substantial risk and reward involved in this extremely complex and often drawn out process.
Important Additional Considerations:
The lender will likely issue a 1099 to the seller for the difference between what is owed and the final amount the lender collects after the costs of the sale, including real estate commissions and possibly other charges. This means that the "deficiency" (the difference between the short sale price and the original loan amount) can be considered as taxable income to the borrower. Some lenders may even attempt to get the existing homeowner to sign a note for the remaining amount due.
If there are currently multiple liens against the property, all lien holders will have to be involved in the negotiation process, not just the first lien holder. Therefore, communication and patience are essential components of any short sale.
There is no guarantee of success. With several parties involved, it's difficult to please all sides all of the time. Short sales require expert advisors who know precisely what is to happen at every stage.
A number of scams resembling short sales currently exist and, because of the obvious intensity of emotion involved with this process, borrowers can quickly become vulnerable to new scams.
In other words, be proactive. If you have an ARM that is scheduled to reset in the near future, or if you're facing foreclosure because of unexpected life events, don't wait until a short sale is your last viable option – and don't count on the Fed to "bail out" the real estate market any time soon.
Contact the professional who provides you with your subscription to YOU Magazine and get the latest information you need. A short sale may represent your best opportunity to avoid foreclosure or to get a great deal on your next home or investment property.
http://www.charlottesvilleshortsale.com/
434-975-9000
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