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

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

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/

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/

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

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

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!!

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http://www.robsellscharlottesville.com