Looking for real estate in a buyer’s market is usually fairly easy, unless you’re cash poor and/or lacking sufficient credit to qualify for a mortgage.
Many now look to one man’s misfortune to land their starter home or their dream house. One’s person bad luck can definitely end up becoming another person’s luck.
Buying a foreclosed home no longer requires showing up at the property on the courthouse steps with a trunk load of cash.
Many banks now sell foreclosures through real estate agents. They can reach a greater number of potential buyers this way and sell the property faster.
Start looking by contacting a Realtor who specializes in foreclosures. Almost every real estate agency has staff who do this. You can also look at specialty sites such as realtytrac.com and foreclosurepoint.com.
Consider this if you buy at an auction. Many homes sold this way will require significant cash- at least a deposit, and you will not be able to inspect the property. You may later find mechanical or structural issues as well as tax liens.
This is why buying a foreclosure from the bank makes sense. A bank will typically clean out liens and permit you to inspect it.
In addition to the inspection, have a termite inspector check the property. These nasty critters can produce significant hidden damage.
Many foreclosures are often abandoned and sometimes vandalized by the last occupants. A contractor may be necessary to restore or repair the home. If necessary, get several bids from licensed contractors- at least three. Review their license status with your state, as well as their insurance policies. A contractor who refuses to share a copy of their insurance policy is one to be avoided. Once the final price and timeframe are agreed upon, do not pay any money up front until the job is complete.
Last, but not least, it’s best to go into this process knowing where your credit stands before you pre-qualify for a loan. No surprises on your credit report will make the process faster, but one or two errors reported by the agencies can tie you up for months.
All Americans are now entitled to one free report a year from each of the credit agencies. Go online to annualcreditreport.com for free reports. They can send you hard copies or you can print them from your computer. A FICO score is available there as well, but it will cost you a few dollars. A mortgage banker should be available to provide that free of charge.
If you come across any errors, contact the creditor directly and ask them to research and correct the errors. Some may require paper work or research, but the creditor should be able to make a correction and confirm the same. Credit bureaus can take up to 90 days to verify the corrected information and share it out, so you may ask the creditor for a note on official letterhead indicating the correction has been made. Take this in hand to your mortgage broker for a rapid rescore of your FICO score and better rates. If the error was reported on a bank note (mortgage, car loan, credit card), ask the bank to expedite your request and fax the correction note to your broker.
Jul 24, 2011
Minimizing identity theft
Identity theft strikes nearly 10 million Americans each year, according to a 2003 study by the Federal Trade Commission. The numbers have climbed even higher as credit card thieves have stooped to even lower depths to steal your personal information. They are sly SOBs and getting craftier all the time.
Yes, that may be a bit of paranoia talking, but this comes from an identity theft victim. Most of us go about living our lives without such worries, thank God, but if you happen to receive a call from your credit card company requesting confirmation of your recent activity, I'd recommend calling them back immediately.
Other potential signs that something may be going on:
- One of your creditors tells you that they received an application for credit with your name and social security number.
- You find your credit card or debit card suspended or restricted when you know you have plenty of available credit or money in the bank.
- Incoming calls or letters advise you have been approved or denied by a creditor to which you never applied. (I hear about a lot of these where I work.)
- You receive credit card, utility or phone bills in your name for which you never applied.
- You haven't seen your credit card statements in some time, and/or you notice that not all of your mail is delivered to you.
- Your credit card statement includes transactions that you don’t remember.
- A collection agency tells you they are calling for a defaulted account established with your identity, but you don't remember opening the account.
The first step I highly recommend here folks is remain calm. I know that may seem a bit impossible to expect. I was taken for more than $15,000 by someone using my identity. I still don't know how they got my information. I may never know, but I suspect they hacked into my computer. Get a very good firewall on your computer.
Immediately after you discover fraudulent activity, you want to contact that creditor and advise them of this. Next, contact any of the three credit bureau agencies and ask that agency to put a fraud alert up on your credit bureau report. I recommend TransUnion (www.transunion.com), 800-680-7289. Call any of the three requesting this action and the other two agencies will pick it up automatically. This is at no cost to you. You may want to contact law enforcement as well.
Once the fraud alert is in place, anytime anyone attempts to open an account in your name and/or SSN, you will be alerted and that application will be put on hold until you approve it. This is a temporary measure that stays in place for 90 days; however, an extended alert can be put into place for seven years. This might be a wise action if you have seen anything unusual.
If you decide to go with the extended alert, the credit bureaus will require you to provide more information: proof of your identity, including your SSN, and a copy of an identity theft report from any law enforcement agency. I contacted law enforcement about the same time they contacted me. (This also involved a stolen car listed at eBay in my name. Don't ask, but rest assured, I'm no thief.)
In any case, you can get more information on the identity theft report at www.consumer.gov/idtheft. I hope you never have to experience this.
Now here's the important part. YOU CAN TAKE MEASURES TO AVOID THIS. These include:
- Never share your personal information with anyone outside of your family or household.
- Don't loan your credit card to anyone.
- Don't share your personal information (name, address, date of birth, SSN) or credit card number or banking info with any who calls you on the know unless you can confirm that person's identity. If it sounds fishy, it probably is.
- Last, but not least, stay on top of your own credit. This is easy and cheap. (IT'S FREE.) Read on.
Everyone in America is now entitled to one free credit report a year from each of the three agencies: TransUnion, Experian and Equifax. You can gather those free of charge at www.annualcreditreport.com. This is the only free, legitimate government-endorsed website created for the purpose of the annual credit bureau report mandate. What I strongly recommend is not to pull all three at once, although you're certainly welcome to do so. I'd suggest starting with one, maybe TransUnion, and then pulling another one 4 months later, followed by the next 4 months after that, and then repeating the process. Yes, it's time consuming, but well worth it.
Yes, that may be a bit of paranoia talking, but this comes from an identity theft victim. Most of us go about living our lives without such worries, thank God, but if you happen to receive a call from your credit card company requesting confirmation of your recent activity, I'd recommend calling them back immediately.
Other potential signs that something may be going on:
- One of your creditors tells you that they received an application for credit with your name and social security number.
- You find your credit card or debit card suspended or restricted when you know you have plenty of available credit or money in the bank.
- Incoming calls or letters advise you have been approved or denied by a creditor to which you never applied. (I hear about a lot of these where I work.)
- You receive credit card, utility or phone bills in your name for which you never applied.
- You haven't seen your credit card statements in some time, and/or you notice that not all of your mail is delivered to you.
- Your credit card statement includes transactions that you don’t remember.
- A collection agency tells you they are calling for a defaulted account established with your identity, but you don't remember opening the account.
The first step I highly recommend here folks is remain calm. I know that may seem a bit impossible to expect. I was taken for more than $15,000 by someone using my identity. I still don't know how they got my information. I may never know, but I suspect they hacked into my computer. Get a very good firewall on your computer.
Immediately after you discover fraudulent activity, you want to contact that creditor and advise them of this. Next, contact any of the three credit bureau agencies and ask that agency to put a fraud alert up on your credit bureau report. I recommend TransUnion (www.transunion.com), 800-680-7289. Call any of the three requesting this action and the other two agencies will pick it up automatically. This is at no cost to you. You may want to contact law enforcement as well.
Once the fraud alert is in place, anytime anyone attempts to open an account in your name and/or SSN, you will be alerted and that application will be put on hold until you approve it. This is a temporary measure that stays in place for 90 days; however, an extended alert can be put into place for seven years. This might be a wise action if you have seen anything unusual.
If you decide to go with the extended alert, the credit bureaus will require you to provide more information: proof of your identity, including your SSN, and a copy of an identity theft report from any law enforcement agency. I contacted law enforcement about the same time they contacted me. (This also involved a stolen car listed at eBay in my name. Don't ask, but rest assured, I'm no thief.)
In any case, you can get more information on the identity theft report at www.consumer.gov/idtheft. I hope you never have to experience this.
Now here's the important part. YOU CAN TAKE MEASURES TO AVOID THIS. These include:
- Never share your personal information with anyone outside of your family or household.
- Don't loan your credit card to anyone.
- Don't share your personal information (name, address, date of birth, SSN) or credit card number or banking info with any who calls you on the know unless you can confirm that person's identity. If it sounds fishy, it probably is.
- Last, but not least, stay on top of your own credit. This is easy and cheap. (IT'S FREE.) Read on.
Everyone in America is now entitled to one free credit report a year from each of the three agencies: TransUnion, Experian and Equifax. You can gather those free of charge at www.annualcreditreport.com. This is the only free, legitimate government-endorsed website created for the purpose of the annual credit bureau report mandate. What I strongly recommend is not to pull all three at once, although you're certainly welcome to do so. I'd suggest starting with one, maybe TransUnion, and then pulling another one 4 months later, followed by the next 4 months after that, and then repeating the process. Yes, it's time consuming, but well worth it.
Jul 21, 2011
Quick link: Couponing taken to the extreme
Extreme couponers step it up a notch for family savings. Interviews and profiles at CNN.com.
Coupons 501
With unemployment still high and the recession lingering, more people are looking for ways to save money. Enter the sport and game of extreme couponing.
You may have see TLC’s Extreme Couponing (LINK) on TV, which features families who dedicate themselves to hours of coupon clipping and shopping. Is it worth it? Ask them. They regularly make purchases that are completely reimbursed by coupons or greatly discounted.
The stigma that once accompanied coupon use no longer exists. Nobody behind you in the grocery store checkout is rolling their eyes anymore. Frugal, and even super frugal, are the new in and cool.
Unsure where to start? Start by buying the largest metro Sunday paper. Some people even buy several at the newspaper box or convenience store. Check out these sites for more tips and coupons.
http://www.coupons.com
http://www.redplum.com
http://www.smartsource.com
To save time:
Visit Couponmom.com to match stores and coupons, or allyou.com to find your shopping list items on sale near you.
You may have see TLC’s Extreme Couponing (LINK) on TV, which features families who dedicate themselves to hours of coupon clipping and shopping. Is it worth it? Ask them. They regularly make purchases that are completely reimbursed by coupons or greatly discounted.
The stigma that once accompanied coupon use no longer exists. Nobody behind you in the grocery store checkout is rolling their eyes anymore. Frugal, and even super frugal, are the new in and cool.
Unsure where to start? Start by buying the largest metro Sunday paper. Some people even buy several at the newspaper box or convenience store. Check out these sites for more tips and coupons.
http://www.coupons.com
http://www.redplum.com
http://www.smartsource.com
To save time:
Visit Couponmom.com to match stores and coupons, or allyou.com to find your shopping list items on sale near you.
Oct 20, 2010
Mortgage or refinance tips
Mortgage and refinance rates are about the best they've been in years. If you're in the market, shop around with several banks and mortage companies. Get your "good faith" estimates to start and look out for hidden fees. These are prone to pop up at actual closings. I have walked away from the table once or twice and threatened to in another instance for things like $300 administrative fee (straight profit).
Document prep, copying and admin fees can be bogus. Ask your bank or mortgage rep is they can waive these fees. Loan origination fees typically more than cover these added costs.
Watch out for fees for credit reports. Some lenders may try to charge you more than $50 to obtain your credit report. Before you begin signing any papers, let your bank rep know you're not willing to pay more than costs for your credit report.
My last advice: Get pre-qualified for your loan amount BEFORE you begin home shopping. Know your limits and be realistic. It also pays to get copies of your own credit reports (you & your spouse) BEFORE you apply for a mortgage. You'll avoid last minute surprises that way (90 days late for a credit card you never had, etc.). The credit bureaus make mistakes all the time. I've conducted hundreds, if not thousands, of credit bureau disputes for clients. Easy to remedy, but don't wait until the last minute.
Document prep, copying and admin fees can be bogus. Ask your bank or mortgage rep is they can waive these fees. Loan origination fees typically more than cover these added costs.
Watch out for fees for credit reports. Some lenders may try to charge you more than $50 to obtain your credit report. Before you begin signing any papers, let your bank rep know you're not willing to pay more than costs for your credit report.
My last advice: Get pre-qualified for your loan amount BEFORE you begin home shopping. Know your limits and be realistic. It also pays to get copies of your own credit reports (you & your spouse) BEFORE you apply for a mortgage. You'll avoid last minute surprises that way (90 days late for a credit card you never had, etc.). The credit bureaus make mistakes all the time. I've conducted hundreds, if not thousands, of credit bureau disputes for clients. Easy to remedy, but don't wait until the last minute.
Aug 9, 2010
Frugal tips
Isn't everyone looking for a way to save a buck whenever and wherever possible? Youngandfrugal (profile ID) on Twitter seems to be full of tips you can use in your everyday shopping.
Create a profile for yourself or sign on at Twitter and search for Youngandfrugal.
Create a profile for yourself or sign on at Twitter and search for Youngandfrugal.
Aug 8, 2010
Many could see credit scores for free
Beginning next year, new rules unveiled by the Federal Trade Commission and the Federal Reserve will require lenders to provide free credit scores to borrowers. These rules take effect Jan. 1, 2011.
See related postings for tips on shopping for a mortgage.
http://www.creditcards.com/credit-card-news/free-credit-score-risk-rule-1282.php?aid=46bf5df1
See related postings for tips on shopping for a mortgage.
http://www.creditcards.com/credit-card-news/free-credit-score-risk-rule-1282.php?aid=46bf5df1
Cheaper college textbooks
Why pay full price at the bookstore on campus, not to mention waiting in line for three hours? With the sagging economy, can we or anyone really afford $1000 for college textbooks this year?
Check out this link for a story in the NY Times about alternatives to bookstore prices.
http://bucks.blogs.nytimes.com/2010/08/03/how-to-find-cheaper-college-textbooks/?src=me&ref=business
Check out this link for a story in the NY Times about alternatives to bookstore prices.
http://bucks.blogs.nytimes.com/2010/08/03/how-to-find-cheaper-college-textbooks/?src=me&ref=business
Aug 4, 2010
Saving money for the freshman onboarding
On top of college tuition, room and board, parents will find all sorts of ways to easy plop down hundreds or thousands for things on the college freshman's wish list. Do they really need it all?
Do you really need four dorm fridges if four guys are rooming together? Work through the school to ask who the roommates will be and contact them to determine what everyone is bringing.
Other tips at this article:
http://shopping.yahoo.com/articles/yshoppingarticles/408/12-things-college-students-dont-need/
Do you really need four dorm fridges if four guys are rooming together? Work through the school to ask who the roommates will be and contact them to determine what everyone is bringing.
Other tips at this article:
http://shopping.yahoo.com/articles/yshoppingarticles/408/12-things-college-students-dont-need/
Aug 3, 2010
Retire a millionaire
Can you retire a millionaire? Never say never. According to this article and other financial experts, it is possible. (See David Bach's Automatic Millionaire. Great book about financial planning for retirement.)
It simply boils down to setting aside a little and starting early. It doesn't take a rocket scientist to realize you can be rich at retirement, or at least well off. It was Albert Einstein who said, "The most powerful force in the universe is compound interest." It's true.
Start saving early in your career, at least $10 or $20 from each paycheck into a 401K or IRA at work. Most employers will match your contribution to a degree. Take it up a notch each year. If you start out contributing 1 percent of your check, you won't miss the automatic pre-tax withdrawal.
Many people even opt to make a maximum withdrawal of 15 percent into their retirement funds. Why not? Contribute as much as you can afford. These contribution levels can usually be adjusted with some notice, so if you run into some sort of financial difficulty, you can lower the amount.
It simply boils down to setting aside a little and starting early. It doesn't take a rocket scientist to realize you can be rich at retirement, or at least well off. It was Albert Einstein who said, "The most powerful force in the universe is compound interest." It's true.
Start saving early in your career, at least $10 or $20 from each paycheck into a 401K or IRA at work. Most employers will match your contribution to a degree. Take it up a notch each year. If you start out contributing 1 percent of your check, you won't miss the automatic pre-tax withdrawal.
Many people even opt to make a maximum withdrawal of 15 percent into their retirement funds. Why not? Contribute as much as you can afford. These contribution levels can usually be adjusted with some notice, so if you run into some sort of financial difficulty, you can lower the amount.
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