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By: Carl Vogel Published: February 26, 2010 A barter co-op helps neighbors share their skills and talents with each other. Want to exchange music lessons for help managing a garage sale, or any other number of tasks? A bartering co-op can help you find the right match in your neighborhood. In communities around the country, homeowners have rediscovered the benefits of barter trade. By organizing a structured barter system, neighbors can go beyond an infrequent “I’ll cut your lawn and you’ll make me lunch” agreement. A barter co-op allows local residents to exchange with multiple partners, access a wide range of local services and goods, and help their neighbors.
Barter co-ops can be focused on one service (a babysitting club, for example) or include any service that participants want to offer. They can be limited to one neighborhood, be citywide, or even cross state lines. Barter systems can be run using a supply of simple paper money, or a sophisticated electronic spreadsheet.
In suburban Minneapolis/St. Paul, Donna Cullen has had her basement cleaned and her bushes trimmed, and she’s been driven a few times to the airport through the local Hour Dollars barter program. For her part, she offers simple services like dog walking, gift-wrapping, and leaf-raking.
“The most popular categories are things like haircuts and massage, and people ask for a driver for when they need to do errands. But we have lawyers willing to do wills, too,” says Cullen, an Hour Dollars board member. “Everyone has value and something to offer.” How it worksSince a barter co-op allows members to trade with multiple partners, your program must have a system to keep track of things. Many groups use a currency based on hours. If it takes me an hour to shovel your snow, you pay me one “neighborhood dollar,” which I may use next week with another member who is offering to tutor high school math.
Some co-ops say that every hour of work is worth the same, regardless of the tasks; others let participants negotiate—weeding a garden for an hour might be worth one neighborhood dollar, while a plumber might ask for three for the hour it would take to fix a leak.
It’s easier to keep track of everyone’s neighborhood dollars electronically than to print and issue barter co-op money. Just have both members email the cost and the transaction, and have a designated member keep track. A small group can get by with a spreadsheet on a coordinator’s computer with email messages sent to members about their balance. For a system that can be accessed online by anyone in the co-op, a free database program can be modified by a tech savvy member.
An added benefit of the electronic system is that if a member wants a service that costs more neighborhood dollars than he has right now, he can run a deficit for a while, rather than having to wait until he’s earned enough. Keep an eye on borrowers, though, and be willing to help them earn more neighborhood dollars.
A password-accessible website for members to check their hours is also a good spot for posting what each participant offers. A typical barter co-op member might use and return a half-dozen to 20 or so hours a year. Sending out a regular newsletter—email or printed—lets everyone know what services are available, builds a sense of community, and keeps the co-op visible.
If you’d like to see exactly what’s involved in starting a barter co-op, Timebanks USA offers a $65 start-up kit that includes six months’ access to its barter co-op management software program, a manual, and online peer coaching. Smooth sailingIt’s a good idea to pull together a core team to operate the program and set the ground rules. Here are some other key ideas for that team to consider:
Create clear parameters. A member might barter for just a few hours of service, but it’s still an economic transaction. Treat everyone equally. Be sure the rules are fair and the system is transparent to avoid misunderstandings.
Issue hours to new members. Currency works best when there is liquidity. Give each new member a set number of hours when they join (two or three), and consider giving a member an hour when they bring a dish to share for a quarterly meeting or write the co-op newsletter. When people have a few hours in their account, they’re more likely to use them and keep the system moving.
Keep members comfortable. Providing or receiving services from someone you’ve never met can be daunting. “Help everyone remember: Every transaction is voluntary, and the terms are negotiable,” says Jon Hain, the board president of Madison Hours, a barter group in Madison, Wis. “You never want anyone to feel that having credits is a burden.”
Explain the tax implications. The IRS considers bartering with unofficial money a taxable transaction. For a group of neighbors who are trading babysitting and car washes, you probably don’t have to worry about this. However, if some of your members are businesses, they should consider any payment in “dollar hours” in the books as cash.
A community barter co-op takes some work to establish. Although it might take up to 150 hours to get one going, once it’s running, it doesn’t require that much time to maintain its progress. And, it can be more than a way to find someone to clean your gutters—it can be a great way to get to know your neighbors as well.
Carl Vogel, a Chicago-based freelance writer and former editor of The Neighborhood Works magazine, has written about public policy and community organizing and development for more than 15 years. He would trade some babysitting with someone willing to paint his garage. To search for area homes click http://listings.bestneworleanshomes.info
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By: Donna Fuscaldo Published: January 15, 2010 With foreclosure rescue scams widespread as more homeowners fall behind on mortgage payments, be smart if you seek help. A record high 2.8 mllion properties were hit with foreclosure notices in 2009, putting even more Americans at risk of facing foreclosure rescue scams. Homeowners who fall behind on mortgage payments need to tread carefully when seeking assistance, since foreclosure rescue scams come in many guises. A day spent researchng legitimate options, from a mortgage modification or principal forebearance to a short sale or deed-in-lieu, could keep you from becoming a scam victim. Foreclosure rescue scams run rampantHomeowners facing foreclosure are prime targets for scam artists. The U.S. Federal Trade Commission identified 71 companies running suspicious foreclosure rescue ads, and the Better Business Bureau counts foreclosure rescue rip-offs among its top 10 scams. Understanding how these scams work can help you avoid becoming a victim.
The variations are seemingly endless, but one popular foreclosure scam involves a representative of a so-called foreclosure rescue company promising to negotiate a deal with your lender. The rep, vowing to take care of everything, will instruct you not to contact your lender, lawyer, or credit counselor during the supposed negotiations. The more brazen ones will even tell you to pay your mortgage directly to them.
Once you pay an upfront fee or hand over a few months’ worth of mortgage payments, the scam artist will disappear. You’ll be left with an emptier wallet and a mortgage that’s in even deeper trouble because no deal was cut and no payments were made on your behalf. According to John Riggins, chief executive of the Fort Worth, Texas, office of the Better Business Bureau, upfront fees can range from $500 to $5,000. Rip-offs come in many formsA bankruptcy foreclosure scam can involve a promise to fend off foreclosure in exchange for an upfront fee. Instead of getting you legitimate relief, the fraudster will pocket the fee and secretly file a bankruptcy case in your name. The scam may seem to work initially, because a bankruptcy filing will stop foreclosure proceedings temporarily, but they’ll resume. Compounding your problems, a bankruptcy can mar your credit report for 10 years.
Another common scam, called the bait-and-switch, results in a scam artist taking ownership of your home. You sign documents supposedly for a new loan that will make your mortgage current. What’s really happening is you’re signing over the deed of your house. In this scenario you would still owe on your mortgage but no longer own the home.
In a rent-to-own scheme, you’re told to surrender a home’s deed as part of a deal that lets you stay put as a renter. The scam artist, perhaps claiming to be able to refinance at a better rate with you off the title, promises to sell the house back to you in the future. However, terms of the deal may make it all but impossible for you to repurchase the home, or the scammer may get you evicted by raising the rent beyond your means. Either way, you end up losing the home while remaining on the hook for the unpaid mortgage. Look out for red flagsBeing aware of the warnings signs can protect you from foreclosure rescue scams. Red flags include: - Demands for high upfront fees.
- Guarantees to stop a foreclosure.
- Instructions to make mortgage payments to someone other than your lender.
- Pressure to sign over a deed.
Legitimate foreclosure counselors won’t put on a full-court press, nor will they guarantee that you won’t lose your home to foreclosure. What they will do is review your financial situation and offer up options. Foreclosure counselors approved by the U.S. Department of Housing and Urban Development won’t charge you a fee either. Legitimate ways to get foreclosure helpThere are a number of legitimate ways to contend with foreclosure. If you’ve missed mortgage payments, start by getting in touch with your lender. Ask to speak with someone in the Loss Mitigation Department and explain your situation.
Your lender may be able to arrange a repayment plan, called a special forbearance, based on your current economic circumstances. The lender could even give you a temporary reduction in your monthly payment or suspend payments for a period of time.
With a principal forbearance, the lender will reduce the amount of your mortgage, thus reducing your monthly payments. However, the amount of the principal reduction doesn’t disappear. Rather, it’s tacked on to the end of the loan, effectively creating a balloon payment.
A federally facilitated mortgage modification could also help. The Making Home Affordable modification program pays lenders to re-work loan terms and lower monthly payments. Be prepared to gather lots of paperwork and undergo a trial modification.
If all else fails, you may need to give up your home. If so, look into the federal Home Affordable Foreclosure Alternatives program. HAFA offers lenders financial incentives to opt for a short sale or deed-in-lieu rather than a foreclosure. In a short sale, a lender agrees for a home to be sold for less than the outstanding mortgage, and then considers the debt paid off. In a deed-in-lieu, a homeowner turns over the home to the lender, and the mortgage is closed.
Donna Fuscaldo has written about personal finance for Dow Jones, the Wall Street Journal, and Fox Business News for more than a decade. Like many homeowners, her mortgage is precariously close to being underwater. To search for area homes click http://listings.bestneworleanshomes.info
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By: Jerry DeMuth Published: February 5, 2010 If you’re facing foreclosure, don’t panic: There are steps you can take right now to save your home or at least lessen the blow of its loss. A record high 2.8 million properties were hit with foreclosure notices in 2009. That’s the bad news. The good news: About two-thirds of notices don’t result in actual foreclosures, says Doug Robinson of NeighborWorks, a nonprofit group that offers foreclosure counseling.
Many homeowners find alternatives to foreclosure by negotiating with lenders, often with the help of foreclosure counselors. If you’re facing foreclosure, call your lender right now to determine your options, which can include loan modification, forbearance, or a short sale. Foreclosure process takes timeThe entire foreclosure process can take anywhere from two to 12 months, depending on how fast your lender acts and where you live. Some states allow a nonjudicial process that’s speedier, while others require time-consuming judicial proceedings.
Once you miss at least one mortgage payment, the steps leading up to an actual foreclosure sale can include demand letters, notices of default, a recorded notice of foreclosure, publication of the debt, and the scheduling of a foreclosure auction. Even when an auction is scheduled, however, it may never occur, or it may occur but a qualified buyer doesn’t materialize.
Bottom line: Foreclosure can be a long slog, which gives you enough time to come up with an alternative. Meantime, if your goal is to salvage your home, think about keeping up with payments for homeowners insurance and property taxes. Otherwise, you could compound your problems by getting hit with an uncovered casualty loss or liability suit, or tax liens. Read the fine printStart by reviewing all correspondence you’ve received from your lender. The letters—and phone calls—probably began once you were 30 days past due. Also review your mortgage documents, which should outline what steps your lender can take. For instance, is there a “power of sale” clause that authorizes the sale of your home to pay off a mortgage after you miss payments?
Determine the specific foreclosure laws for your state. What’s the timeline? Do you have “right of redemption,” essentially a grace period in which you can reverse a foreclosure? Are deficiency judgments that hold you responsible for the difference between what your home sells for and your loan’s outstanding balance allowed? Get answers. Pick up the phoneDon’t give up because you missed a mortgage payment or two and received a notice of default. Foreclosure isn’t a foregone conclusion, but it’s heading in that direction if you don’t call your lender. Dial the number on your mortgage statement, and ask for the Loss Mitigation Department. You might stay on hold for a while, but don’t hang up. Once you do get someone on the line, take notes and record names.
The next call should be to a foreclosure avoidance counselor approved by the U.S. Department of Housing and Urban Development. One of these counselors can, free of charge, explain your state’s foreclosure laws, discuss alternatives to foreclosure, help you organize financial documents, and even represent you in negotiations with your lender. Be wary of unsolicited offers of help, since foreclosure rescue scams are common.
Be sure to let your lender know that you’re working with a counselor. Not only does it demonstrate your resolve, but according to NeighborWorks, homeowners who receive foreclosure counseling are 1.6 times more likely to avoid losing their homes than those who don’t. Homeowners who receive loan modifications with the help of a counselor also reduce monthly mortgage payments by $454 more than homeowners who receive a modification without the aid of a counselor. Lender alternatives to foreclosureHope Now, an alliance of mortgage companies and housing counselors, can aid homeowners facing foreclosure. A self-assessment tool will give you an idea whether you might be eligible for help from your lender, and there are direct links to HUD-approved counseling agencies and lenders’ foreclosure-prevention programs.
There are alternatives to foreclosure that your lender might accept. The most attractive option that’ll allow you to keep your home is a loan modification that reduces your monthly payment. A modification can entail lowering the interest rate, changing a loan from an adjustable rate to a fixed rate, extending the term of a loan, or eliminating past-due balances. Another option, forbearance, can temporarily suspend payments, though the amount will likely be tacked on to the end of the loan.
If you’re unable to make even reduced payments, and assuming a conventional sale isn’t possible, then it may be best to turn your home over to your lender before a foreclosure is completed. A completed foreclosure can decimate a credit score, which will make it hard not only to purchase another home someday, but also to rent a home in the immediate future.
Your lender can approve a short sale, in which the proceeds are less than what’s still owed on your mortgage. A deed-in-lieu of foreclosure, which amounts to handing over your keys to your lender, is another possibility. The earlier you begin talks with your lender, the more likelihood of success. Explore government programsThe federal government’s Making Home Affordable program offers two options: loan modification and refinancing. A self-assessment will indicate which option might be right for you, but you need to apply for the program through your lender. A Making Home Affordable loan modification requires a three-month trial period before it can become permanent.
Fannie Mae and Freddie Mac have their own foreclosure-prevention programs as well. Check to determine if either Fannie or Freddie owns your mortgage. Present this information to your lender and your counselor. Fannie and Freddie also have rental programs under which former owners can remain in recently foreclosed homes on a month-to-month basis.
The federal Home Affordable Foreclosure Alternatives program, which takes full effect in April 2010, offers lenders financial incentives to approve short sales and deeds-in-lieu of foreclosure. It also provides $1,500 in relocation assistance to borrowers. Again, talk to your lender and counselor.
Jerry DeMuth has written about mortgages and other financial issues for more than two decades for trade publications, major newspapers, and consumer magazines. His writing has received four awards and has been included in eight non-fiction books. To search for area homes click http://listings.bestneworleanshomes.info
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You can apply for a home loan modification if you are in the process of foreclosure or merely at risk of losing your home. The federal home loan modification program will lower your monthly mortgage payments by lowering your interest rates up to 6 percent, giving you a longer term for paying off your mortgage and reducing your principal balance. Because applying for a home loan modification indicates that you are being proactive in trying to avoid foreclosure, your lender will typically waive late charges from missed payments. Eligibility for a Federal Home Loan ModificationYou will have to prove that you have a financial hardship, such as: - death of a spouse
- divorce or separation
- illness
- job relocation
- medical bills
- military service.
In order to qualify, participants must also fall into one or more of the following criteria: - the house for which you need a home loan modification is your primary residence
- you have difficulty paying your monthly mortgage payment
- your monthly mortgage payments are more than 31 percent of your gross income
- your mortgage is equal to or less than $729,750.
Do It Yourself Home Loan ModificationWhile you can hire someone to represent you in obtaining a home loan modification, you can get a more affordable modification loan on your own. In order to obtain a do it yourself home loan modification, follow these steps: - Contact your lender to explain your financial situation. Inquire about the procedure for a home loan modification and ask for the application forms.
- Write a letter of financial hardship, and submit it to your lender.
- Provide proof of your current financial situation by providing documents detailing your income, expenses, and debts.
- Schedule a home appraisal and inspection through your lender.
- Turn in the application and follow up with the lender until a decision is made on your home loan modification application.
Drawbacks of More Affordable Modification LoansA home loan modification is similar to refinancing, except that you will not be able to withdraw cash against your equity. If you have a lot of home equity built up, you might consider taking out a home equity loan before a home loan modification.
In addition to this drawback, your lender may require a home inspection before approving the home loan modification to make sure that the property is in good shape. If a house falls into disrepair and is eventually condemned, the lender loses money, which is why many lenders require an inspection.
Finally, you are only given one chance at home loan modification. Defaulting on your new mortgage payment in the future may result in foreclosure. Due to this risk, it's wise to exhaust all other financial resources before turning to a home loan modification.
To search for area homes click http://listings.bestneworleanshomes.info
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Mortgage Brokers & Home Loan Lenders
You have a number of choices in approaching your quest for a mortgage. You can choose mortgage lenders right from your neighborhood, or you can employ someone who'll do all the comparison shopping for you and get you the best loans possible. Working with Mortgage Brokers, Bankers, LendersYou may feel most comfortable working with your own bank or credit union — perhaps someone you've known for many years and trust more than mortgage lenders you've never met. This is your choice. You do, however, have other options.
A disadvantage of working with local mortgage lenders is they may not have the leeway to give you the most favorable terms nor to adjust for special circumstances. Big mortgage lenders can offer a smorgasbord of options.
Mortgage brokers are in the business of shopping around for loans that suit your circumstances. They can contact a number of lenders for mortgage loans that suit your finances, your down payment amount and your credit score. Shop AroundWhether you're trying to pre-qualify for a mortgage or shopping for the best home loans available, here are some suggestions: - Check the rates on home loans at your own bank or credit union. They may have good home loans for members.
- Look at your local paper's "Shopper's Guide for Home Loans." They may have a comparison on home loans and the best mortgage rates.
- Consider special groups. If you're a first-time buyer, a veteran, a teacher, or a police officer or if you qualify for low-income assistance, look for home loans with special rates and terms.
- Go online to compare rates offered by mortgage lenders and brokers who can offer discounts on home loans that they resell.
What Mortgage Lenders Want From You: Credit ScoresBesides your money, mortgage lenders want some assurances you can afford to pay for your new home over the long term. The process is simple. Mortgage lenders obtain a credit score by contacting credit reporting agencies.
The more reliable you are about paying bills on time, avoiding the overuse of credit cards and other good financial habits, the higher your credit score. Mortgage lenders have cutoff scores. Mortgage lenders usually give you a chance to explain any irregularities on your credit report.
Mortgage lenders also look for other indicators that you're a good risk. Mortgage brokers can report these facts to the lenders for you. Stable bank accounts with regular savings are a sign that you're stable.
Money in a savings account that is in addition to your down payment and closing costs is also good news for mortgage lenders. This indicates to them that if you lose your job or are unable to work for a few months, they will still be able to collect your mortgage payment. What Happens to Mortgage LoansMany mortgage lenders are not specifically in the business of lending money. Rather, they sell mortgages to consumers, bundle them up, and sell them to the bigger moneylenders, many of whom are backed by the federal government.
One example of this is Fannie Mae. Fannie Mae is a private investment company that is sponsored by the federal government. Fannie Mae is the single largest supplier of home buying funds in the US. The company purchases mortgages from lenders, gathers mortgages together in batches, and then sells them to third parties on the secondary mortgage market. To search for area homes click http://listings.bestneworleanshomes.info
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Whether you are involved in the first time home buying process, or you are an experienced home buyer, choosing a home can be overwhelming. Here are 10 factors to consider that will help you choose a home just right for you.
1. The Bottom LineFinance is the first consideration in choosing a home. A home that fits your budget will bring you much more enjoyment than one that cramps your standard of living, no matter how beautiful it is. To determine what you can afford, you’ll need to calculate: - available cash for down payment
- current debt
- monthly income
- other ongoing monthly expenses.
Your real estate agent or lender can give you helpful mortgage advice when choosing a home, so that you borrow what you can comfortably afford to pay each month. 2. Choosing Your Community Whether you prefer a quiet tree-lined street, or a bustling urban atmosphere, researching your neighborhood will help you choose a home in the community of your dreams. When you are considering a specific house: - Research local schools and crime statistics.
- Take a test drive during rush hour to determine your commuting time to work.
- Visit local stores to get a feel for the community.
3. Outdoor Space and LandscapingWhile beautiful acreage can add value and enjoyment to a home, buying a home on a large lot isn’t right for everyone: - If you are considering hiring a landscaper, calculate the annual costs and add this in with your mortgage, taxes and other expenses to be sure you can afford to live in the home you choose.
- If you enjoy landscaping and gardening, and have the time to maintain your yard, you will probably get great satisfaction from buying a home on a large lot.
- If you have physical challenges, limited free time, or simply don’t like yard work, you may be happier in the long run buying a home with a smaller lot.
4. Energy and UtilitiesExperts recommend checking the wiring and electrical system when you choose a home, to see if it is safe and meets modern energy requirements. You may also want to find out what kind cooking, cooling and home heating systems this house uses. Green homes are kind to the environment and should have good resale value. Check to see if the home you are interested in uses solar panels or other forms of green energy. 5. Resale ValueDepending on where you live, different features affect resale value. The most important single factor is location. Some desirable locations include: - clean, safe neighborhoods
- cul-de-sacs, or middle of quiet street placement
- good schools.
Five Important Interior ConsiderationsOur last five home purchase considerations involve a home’s interior features: - Closet Space and Storage: Your house should have enough indoor space for your clothes and possessions.
- Kitchen: The home you choose should have a kitchen that will accommodate family and guests.
- Number of Bathrooms: The home you choose should have facilities to accommodate your family's size.
- Number of Bedrooms: The home you buy should have an adequate number of bedrooms, especially if your family may grow.
- Windows: The home's windows should be insulated and provide cheerful, natural lighting.
To search for area homes click http://listings.bestneworleanshomes.info
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A short sale is a way that homeowners who are in default can avoid having their homes go into foreclosure. In a short sale, the lender allows the homeowner to sell the house for less than the current mortgage balance and often forgives the remaining balance on the loan. For homeowners in trouble, a short sale allows them to eliminate their mortgage debt without the stress and negative implications of foreclosure. Their credit will still take a hit for it, but not as badly as foreclosure would. For potential buyers, a short sale can result in a great price on a home.
The Short Sale ProcessThe first step in buying a short sale is to identify properties in preforeclosure in your area. You can find these homes in online databases, in courthouse listings or through your real estate agent. Try to limit your search to properties that have a high balance owed relative to the value of the house, as these are likely to be the best deals. (The lower the outstanding balance, the more benefit the owner will have from foreclosure, rather than a short sale.) Research the property, and inspect the home if possible. Find out the value of the home in question, as well as other homes in the neighborhood. Ask which lender currently holds the mortgage. Meanwhile, start shopping for a short sale mortgage for your home. Short sale homes close very quickly--sometimes in as few as 20 days--so you need to have your financing figured out ahead of time. If you go through the existing lender, the application process should go more quickly. Regardless of where you get your loan, however, you'll need to fill out a short-sale application with the existing lender. Once your financing is figured out, you'll need to put together a proposal. This packet should include: - costs and liabilities
- hardship letter (documentation of the seller's inability to bring the loan current)
- purchase and sale contract, signed by both buyer and seller
- settlement statement
- statement of the property's value.
Finally, you'll negotiate with the lender and work toward an agreement that's acceptable to all parties. Pros and Cons of Buying a Short Sale HomeThe biggest advantage to buying a short sale home is that if all goes well, you'll get a great deal on the property. However, short sale homes come with a lot of potential drawbacks: - Short-sale homes are sold "as is," and they're often in need of costly repairs.
- The buyer is responsible for the condition of the property from the moment the offer is accepted. So if problems arise during the inspection process, the buyer (and not the seller) is responsible.
- The process can be lengthy, and difficult lenders can cause headaches for both seller and buyer.
To search for area homes click http://listings.bestneworleanshomes.info
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Buying a home can sometimes feel like an overwhelming prospect, whether it is your first home, an income property or a retirement residence. The trick to avoid getting stressed out when you are buying a home is to break the process down into manageable steps. When you take things one step at a time, you may even find that the home buying process may be fun! What Can You Afford?The first step toward home ownership is finding your target price range, and deciding if you are ready to buy a house. Lenders and real estate agents can help you determine what you can afford by looking at current interest rates, as well as your: - credit rating
- debt
- down payment
- income.
You can also find online home affordability calculators to help you start the home buying process. At this stage of the game, check out your credit score and try to flaunt a positive rating as much as you can. Additionally, be sure you are able to stay in one location for at least a few years before deciding to purchase a home residence, as moving multiple times does affect your credit. Shop Around For FinancingTaking the time to contact several reputable financers will benefit you in the long run. You can compare costs, interest rates and payment terms. Don't forget to check out home buying programs in your state, or through the FHA (Fair Housing Administration.) If you can get a pre-approval letter for your financing, this will give you an advantage when the bidding process to buy a house begins. Looking at HomesThis is where the real fun of home buying begins. You can research neighborhoods and begin to look at homes. Here are a few tips to help you when buying a house: - Find a good, licensed real estate agent.
- Make a wish list of features you would like in your new home.
- Pick neighborhoods with good schools and low crime rates for best satisfaction and resale value.
- You can sometimes find excellent values on foreclosed homes as well as traditional re-sales.
Shopping for homes can be exhausting. To keep from melting down, don't look at too many houses in one day or skip meals during your search. It also helps to bring a notebook and write down important features of each home you see. Making an OfferMaking an offer begins the final phase of the house buying process. If you work with a real estate agent, he will help you determine an appropriate offer on the house you choose. Your lender will also probably now require an appraisal, to make sure the home is worth the amount that you are borrowing. A mortgage pre-approval letter will help the seller take you seriously. Increasing the percentage of cash down will also make your offer more attractive to the seller.
For your protection, you will probably want to make your offer contingent on a positive home inspection. A good home inspector can uncover all kinds of hidden problems in a home that may change your mind about the deal. To search for area homes click http://listings.bestneworleanshomes.info
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Getting a mortgage can seem like an overwhelming process to some. Along with credit checks and interest rates, there are broker fees, closing costs and monthly payments that all have to be worked out. If you have been thinking about getting a mortgage to buy your first home or to make a home improvement, it's easy to be intimidated by the process.
In this section, we will lay out all of the steps, costs and details associated with the mortgage process. Similarly, our articles will explain the different types of home mortgage programs available so that you can choose the mortgage that is right for you.Mortgage Calculators As you are choosing between different types of mortgage programs, you will want to calculate how various down payments and interest rates will affect your monthly mortgage payment. This is where using a mortgage calculator comes in handy. By typing in a few simply numbers, our mortgage calculator can help you work out an affordable mortgage package that is perfect for you. Not only will we show you how to use a mortgage calculator, but we have a mortgage calculator that you can use immediately. Read on to use our mortgage calculators.Home Buying Ratios and CreditBecause few of us can afford to buy a home outright, getting a mortgage based on our credit history is important. As lenders decide how much we can afford to borrow, they calculate our debt to income ratios, as well as our credit histories. If you have never taken out a mortgage, then these terms may seem foreign. Simply put, a debt-to-income ratio evaluates how much you make versus how much you owe to decide how much you can afford to pay on a home mortgage each month. Keep reading to learn more about how lenders use your debt-to-income ratio and credit history to grant loans. Your Mortgage PaymentsOne of the most important aspects to consider as you shop for mortgage programs is your monthly payment. While the term of the loan and the option for a low down payment may seem like an attractive offer, if either of these factors contributes to steep monthly mortgage payments, you could find yourself in default within the first few years of your mortgage loan. As a result, be sure to calculate out your monthly mortgage payment and take a realistic look at your monthly expenses. Be sure that you can afford all of your other necessary expenses (i.e. food, utilities, gas, etc.) AFTER making the proposed mortgage payment. Read on for more tips on calculating and evaluating monthly mortgage payments. Mortgage Down PaymentWhen it comes to negotiating the terms of your mortgage loan, your down payment will play a role in how much your future monthly mortgage payments will be. Logically, the more you put down for a down payment, the less your monthly payments will be. However, do you know to what degree your down payment affects your monthly payments? For example, even if you put down a sizeable down payment, if you have an adjustable interest rate, you may find yourself paying insanely high mortgage payments. As a result, be sure that you work out the range of what amount is the smartest to put down as a down payment. Keep reading to learn more about how to figure out and why you may want to adjust your mortgage down payment.
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House mold is a problem that's causing more and more concern for people everywhere. The source of a great deal of property damage, house mold can also cause considerable discomfort and illness (particularly allergic problems) if people are exposed to it on a regular basis.
House mold can be controlled—and problems, when detected, can be virtually eliminated. It's strictly a matter of dealing with dampness and moisture. Here's why: Mold spores are everywhere in nature. They are constantly floating in the air (they're too small for the naked eye to see). As dry floaters, they do no harm to people or property. The trouble begins when these mold spores land on surfaces that are wet, like:
- leaky pipes
- rooms or household areas that are unusually humid
- places where rainwater (or water from a leaky pipe) might seep in and collect; behind walls, for instance, in crawl spaces or in the attic.
Consider this fact: All kinds of mold appear in nature, and none of them grow without water or moisture. However, it's hard to detect the onset of mold growth, especially if it's happening in an out-of-the-way location (such as behind a wall). By the time you discover it (through moldy, mildew-like smells), house mold is already a problem. Mold removal is imperative. According to a 1999 study by the Mayo Clinic, house mold causes nearly all chronic sinus infections. |
House Mold and Health ProblemsWhen house mold is growing freely, it releases allergens (particles that cause allergic reactions), irritants and even, in some cases, toxins, into the air. The usual immune response to breathing in house mold might be excessive sneezing, runny nose, red eyes, rash and, in some cases, asthma. Black Mold: Danger in the WallsMost house molds are usually relatively harmless in nature. Save for the potential allergic-type reactions, they do little other harm to people. Black mold is something different, and much more serious.
Known to scientists as Strachybotrys atra or Strachybotrys chartarum, black mold is slimy and often shiny (because it's wet) in appearance. Greenish/black in color, black mold has been known to cause all kinds of lung disorders, including respiratory bleeding, bronchitis and asthma. It can be fatal as well, especially for babies.
Black mold is no joke. Be especially careful if you try to clean it up yourself. In fact, if you suspect black mold in your home, you're probably making a wise decision to call for expert mold removal. The Centers for Disease Control and Prevention (CDC) have issued these preventive measures against black mold: - Keep home humidity down.
- Make sure ventilation is adequate (especially in the kitchen and bathrooms).
- When choosing cleansers, use mold-killing products.
- Don't carpet bathrooms.
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Mold RemovalIf you discover mold growth in your home, tend to it immediately. The longer house mold is free to grow, the more damage it can cause. Don't just clean up the mold. Removal is not enough. You must also fix the water or humidity problem that caused the mold in the first place. In terms of mold removal, consider these important questions: Should you do it yourself? If the damage is confined to less than 10 square feet, you can probably handle the problem yourself. (Note: If the damage is due to black mold, you might feel more comfortable calling on a mold removal expert.)
Is your HVAC system involved? Before anything else, have your air ducts cleaned thoroughly. Do NOT run your heat or air conditioning before the problem is addressed. Doing so will increase the likelihood of spreading mold throughout your house.
- Was the water damage caused by sewage or other contaminated water? Call on an experienced professional to deal with the problem.
Mold Removal TipsIf you decide to tackle the project yourself, keep these tips in mind: - Fix the source of your water leak first.
- Never scrape or scratch at mold. Your actions could release spores into the air and present an inhalation risk.
- Prevent skin contact. Always wear rubber gloves and a facemask.
- If mold is on a hard surface scrub it with detergent and water. If you must use chlorine bleach or other "biocides," be sure to vent the area to the outside. Dry the area completely.
- If house mold is on an absorbent surface, such as carpeting or ceiling tiles, it will be difficult to clean thoroughly. These items might have to be discarded and replaced.
- Before painting or caulking a surface ensure mold removal is complete.
To search for area homes click http://listings.bestneworleanshomes.info/
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Selling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign.- Sell low and buy low. Because all property values are down, the loss on the property a home owner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.
- Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.
- Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
- Good help is available. Really talented real estate practitioners, contractors, and designers are available and eager for business.
To search for area homes click http://listings.bestneworleanshomes.info
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Working with credit is a balancing act. Excessive debt will lower your FICO score. Paradoxically, too little properly managed historical debt will also lead to a lower FICO scores; The credit reporting agency will have nothing on which to base their report. According to some analysts, the best FICO scores can be achieved if your debt is approximately 50 percent of your revolving credit limit.
So, some debt isn't a bad thing. For many of us, however, it's all too easy to get in over our heads financially. Here are some tips for repairing a bad credit rating, and maintaining a good one.
Bad Credit RepairGet the Reports: The first thing you need to do is access your credit report. You can order reports from Equifax, Trans Union and Experian, the three largest nationwide credit reporting agencies (CRAs). Order a report from each CRA. Why? Because one may contain an error that affects your credit score. Also, your creditors may not be reporting to all three agencies, so reports may differ.
Once you have your reports in hand, go through them carefully. Are there any mistakes? Are there cases of mistaken identity? Are there open accounts you thought you closed? Is ther evidence of identity theft (worst case scenario)?
Report any mistakes in writing to the CRA, following the instructions provided with your report. Call the creditors: If there is legitimate, negative information reported by creditors, they are the only ones that can remove the entry. Try contacting them, and ask to have the adverse data removed. Explain that you are trying to qualify for a mortgage, and this information is making it difficult. If you failed to pay a bill, try to negotiate a partial payoff in exchange for removal of any negative information. Take notes on your conversations and always send a follow-up letter to the creditors. Avoid temptation: Every month, we're inundated by offers to solve our financial woes. They appear in the mailbox, on television and even in our e-mail. Some of them seem like quick fixes, especially those with low introductory interest rates. Avoid the temptation; jumping to new accounts and suddenly closing old ones will worsen your rating. Give it time: Mistakes and poor financial decisions won't hound you forever. Negative information cannot be included on a CRA report after seven years. Bankruptcies will be present on your record for ten years. Good Credit MaintenanceMaintaining a good credit rating requires you to take an active role in your finances. Your FICO score is affected most strongly by how well you handle the following:
Status of your current accounts: Keeping current with all your obligations is a must for a strong FICO score. Mortgage payments count for more than revolving debt or installment loans.
Your historical credit record: A strong, consistent record of paying your bills on time, and making all payments of installment plans allows you to maintain good credit.
Other Positive Factors: Other Negative Factors: - having too many open accounts
- keeping high balances on credit cards
- making multiple applications for credit over a short period of time
- moving frequently.
To search for area homes click http://listings.bestneworleanshomes.info/
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Although many of us know that our credit scores are important, fewer people think about their score until it comes time to take out a loan, apply for a credit card or engage in some other type of financial activity. In some cases, employers may even perform credit checks before hiring you.
As a result, it is important to know what factors affect your credit score. You should also be aware of what you can do to improve your credit rating in order to be in the best position possible for getting a mortgage loan.
Your credit score is one of the first things lenders look at when you apply for a mortgage. Lenders are considering whether or not to loan you a large sum of money.
Therefore, they must evaluate the likelihood that you will default on your payments. If a lender considers you a high risk borrower, they will compensate for this higher risk with a higher interest rate, a factor that will cost you more in the future.
In this section, we will go over the factors that contribute to your credit rating, how you can fix bad credit scores and the overall impact of your credit rating.Impact of Credit Scores Whether you want to buy a new car, rent an apartment or merely get a new cell phone, your credit will most likely be checked. While those with bad credit may still be able to buy a cell phone, they are far more limited if they need a new car or have to find a place to rent. As you are looking to make substantial purchases that require you to make regular payments, the company you are dealing with will not only want to make sure that you will be able to make your payments. The company will also need to determine whether or not you will be able to make these payments on time. This is where your credit score comes into play. In the most basic terms, your credit score gives various institutions a representation of the success you've had at paying your bills. Read on to learn more about the importance of your credit score. Bad Credit RepairUnfortunately, many people end up ruining their credit for various reasons. Some may open too many credit cards and become unable to repay their lenders. Others have high mortgage payments that they can’t afford, forcing them into foreclosures and ruining their credit. If you find yourself with a bad credit score, don’t worry. You are not destined to have bad credit forever, as long as you know the right steps to take. One of the first things you should do is to map out all of your debts, including the balance and monthly payment for each creditor. From here, you can prioritize these debts and begin paying off each balance. Keep reading for tips and techniques for improving your credit so you can get yourself out of debt. Credit Reporting AgenciesThe three credit reporting agencies in the United States are Equifax, Experian and TransUnion. These three bureaus are responsible for evaluating your credit rating, as well as playing a key role in helping you to prevent identity theft. Read on to learn more about the important role of credit reporting agencies.
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Mortgage applications shot up 21 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association. On an unadjusted basis, applications rose 23.5 percent.The unadjusted purchase index increased 17.5 percent compared with the previous week, but was down 11.2 percent from the same week a year ago.“Mortgage application volume rebounded last week, returning the purchase and refinance indexes to levels from mid-December,” said Michael Fratantoni, MBA’s Vice President of Research and Economics."Rates continue to hover around 5 percent, quite low by historical standards, but are well above the record lows seen in 2009, and hence are not generating substantial refi volume," Fratantoni said. "We expect that rates will rise over the next few months as the Federal Reserve winds down its MBS purchase program, and this will likely lead to a decline in refinance volume."Here are the average contract interest rate changes:- 30-year fixed-rate mortgages decreased to 5.01 percent from 5.02 percent.
- 15-year fixed-rate mortgages decreased to 4.33 percent from 4.34 percent.
- 1-year ARMs decreased to 6.70 percent from 6.84 percent.
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Beginning Feb. 1, the Federal Housing Administration will provide mortgage insurance for some purchases in which the seller bought the property and held it for fewer than 90 days.The agency is changing what is known as the “anti-flipping rule” to speed up sales of renovated homes in communities with too many bank-owned and foreclosed homes, says FHA Commissioner David H. Stevens.Waiving the 90-day rule will encourage private investors to buy vacant properties, fix them up, and quickly sell them to buyers who will be eligible to buy them using FHA financing.To search for area homes click http://listings.bestneworleanshomes.info
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