Shopping for discounted real estate

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.

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.

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.

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.

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.

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

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

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/

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.

Cheap real estate

Condos for sale now in these down markets at prices lower than new Toyotas. If I had boatloads of money and lived in the community, I'd be looking at some property to buy and rent. Increase the revenue streams and build a better retirement for yourself and your family.

Tired of bake sales and fundraisers at your school?

Aren't we all tired about hearing about cuts to school budgets, teachers losing jobs and reductions to school activities? Who wants to have another five or 10 bake sales and fundraisers next year? Hands?

Here's one option I just stumbled upon that seems like a win-win for school districts. I'm sure it would require local and superintendent approval, but something to think about.

According to the Associated Press, about a half dozen states already allow school bus advertising, including Colorado, Arizona, Florida, Minnesota, Tennessee and Texas. And it's an idea being considered in Ohio, New Jersey and Utah.

LINK: http://news.yahoo.com/s/ap/20100319/ap_on_bi_ge/us_school_bus_ads

Networking for a job

Those in the market for a job are finding slim pickings out there right now, unless you happen to be in North Dakota, where the current unemployment rate is only 4 percent. The national average is about 10 percent this month.

Finding a job is becoming more difficult, but the Internet is making it somewhat easier (and hopefully faster). Someone created LaidOffCamp, an ad-hoc gathering of unemployed and nontraditionally employed people (including freelancers, entrepreneurs and startups) who want to share ideas and learn from each other.

LINK: http://laidoffcamp.pbworks.com/

Steps to take if you're laid off

From one of my heroes: Clark Howard. He and David Bach belong in some special Hall of Fame, in my opinion.

http://www.cnn.com/2009/LIVING/personal/03/12/clark.howard.unemployment/index.html

Source: CNN

Easy tips to avoid identity theft

Identity theft has become so rampant that nearly every family has been victimized. The FTC estimates that as many as 9 million Americans have their identities stolen each year. In fact, you or someone you know may have experienced some form of identity theft.

Yours truly was hit when someone created credit card accounts to the tune of about $20,000 and was even paying on one or two of them. And someone else even tried to list a stolen Honda CRV in my name on eBay, where I have a flawless history of about 10 years.

If you ever find yourself the victim of identity theft or wish to prevent it, visit this site:
http://www.ftc.gov/bcp/edu/microsites/idtheft/

Source: Federal Trade Commission

Coupons galore

Who doesn't use coupons these days? I use them for entertainment (movies, rentals), eating out, take-out and retail.
The Entertainment Book is nationwide and has reduced its prices. You'll find them filled with local coupons. Much better selection than ValPak and these coupons are typically good for one year.
I just punched in my zip code, 23236, and found the book reduced by 50 percent- down to $17.50. Use one or two coupons and it will pay for itself. It's loaded with pizza coupons too folks.
I'd pay another one, but we already have two.

What your credit card company won't tell you

Some consumers may feel relatively safe or content with new legislation aimed at credit card companies; however, credit cards are taking aim at those who regularly pay late. Prior to the new legislation, a number of banks did raise their past due fees.

Many will still charge a fee for a payment that is one day late. Many will still move your balance to a default rate, often 25 percent or more, if your payment is one day late.

Best option here:
If you carry a balance, schedule your payments at the credit card company's website or through your Billpay. If you go the latter, give you payment at least five days to reach its destination. Yes, it can take that long. I know because I've seen hundreds and thousands of payments take that long.

You may also want to schedule an electronic auto draft from your checking account. This is a great thing for car payments and mortgages. It simplifies life and the recipient bank will often cut you some kind of deal for participating. Watch your 30-year mortgage become a 25- or 26-year mortgage by making payments every two weeks. This might be something to consider, if you're in the market for a refinance.

ALSO, if you find yourself falling behind, if you've become unemployed, call your creditors. Let them know. You might encounter a human or maybe even a human bank. I've taken those calls and the banks can often work something out. Food for thought.

Things your financial aid office won't tell you

The upper classmen at most universities know the tricks and games behind financial aid. They know the forms must be completed early. The earlier, the better, they're told.

One of the running games at my major university was student loan money, often substantial amounts, was "delayed," when the tuition was due. This could happen even when applications had been completed months before.

Tuition couldn't be paid when the GSL money had not arrived and if your class wasn't paid for you lost your seat and/or could not attend the university. I know more than a few students in Iowa who were forced out of school that way. Fortunately, we could depend on the university to loan us emergency funds. This came with another financial aid application, demonstrated proof that you had pending financial aid, and a nice little administrative fee.

My loans were typically $1500-2000 a semester. I paid my way through school with hard work- often three or four jobs at once. Anyhow, the processing fee I paid was in the ballpark of $300. Now, multiply that by 20,000 students. Don't know how it happened, but the government's Guaranteed Student Loan program was guaranteed to get there, but frequently guaranteed to be late- even though the actual money often came from the same state.

Just one example. See the link below to avoid other pitfalls.
Link: http://www.smartmoney.com/spending/rip-offs/10-things-college-financial-aid-offices-wont-tell-you-15281/

Source: Smartmoney.com

A bunch of bologna

You receive an email from someone who appears to be a recruiter. A portion of the email indicates:


***The following is important information regarding your employment application.

We conduct thorough background checks on qualified applicants as part of our employment screening process. We only conduct background checks when we feel a position is available for an applicant.
Our Verification Check includes the following information:

Work Experience Verification
Educational Verification
Criminal Record Verifications
Consumer Report Verifications

Each employer has a unique and specific criterion that is used to determine the qualifications of certain positions that are available within their organization.

Erroneous information in your consumer report can prevent you from obtaining a job offer for which you are otherwise qualified. Companies in industries that provide employees with access to sensitive information rely heavily on the contents of these consumer reports.

We offer our applicants the opportunity to pre-verify the information that we obtain in our decision making processes.

To pre-verify your consumer report today:

As a convenience to our applicants and prospective employees, we have partnered with a company that enables you to receive your complimentary consumer report. Please visit http://www.empscreeninc.com/prescreen.htm to request your report. The link takes you to a spot where you can get a free credit report, but you also enroll in credit report monitoring at $14.95 a month. Ridiculous.

Any American can get a free credit bureau report or all the reports at once at http://www.annualcreditreport.com. This is the only legitimate website created for the purchase of the federal mandate giving each American one free report a year from each of the bureaus. This is a valid website and won't cost you a thing. FICO scores are available, but there is a small charge.

The take-away here: Be careful when responding to "recruiter" emails; some are bogus. And ALWAYS read the fine print BEFORE you get something on the internet. If it sounds too good to be true, it probably is. If you still question it, just conduct a Google search and see if any complaints pop up.

A quick way to save $250 a month

This is fairly simple, without any huge sacrifices. Think about some of these steps and either pocket the change, pay off a bill, or stow it in a money market acct, your 401K, etc.

http://shine.yahoo.com/channel/life/how-to-save-250-in-30-days-725690/