Wednesday, May 25, 2011
Draft bill would hike FHA loan down payments from 3.5% to 5%
Republicans on the House Financial Services Committee have drafted legislation that would raise the minimum down payment for FHA mortgages to 5 percent, cut FHA loan limits in most markets, and move the Agriculture Department's rural housing program to FHA's parent agency, HUD
Sunday, May 22, 2011
Is Your Home Properly Insured?
If you have a homeowners insurance policy, yes, you have "tornado insurance."
Homeowners insurance policies cover your home and its contents for wind damage, including damage caused by tornadoes, according to the Insurance Information Institute (III).
You've just got to be sure your coverage limits are enough to fully cover the cost of rebuilding and replacing your stuff. Keep in mind that it costs more and more each year to rebuild a home, so watch out as you could be UNDER INSURED.
April 27, 2011 was the deadliest day for tornadoes since a 1925 tornado outbreak killed more than 700 people in seven states.
Recent tornadoes killed more than 300 people, largely in Alabama but also in five other southern states, leaving thousands homeless and without power.
III says homeowners policies also cover the cost of additional living expenses (ALE), the cost of living elsewhere when you can't inhabit your home due to damage from an insured disaster. ALE covers hotel bills, restaurant meals and other living expenses incurred while your home is being repaired or rebuilt.
To get your home fully rebuilt after total destruction you need "guaranteed replacement cost coverage."
Avoid home value-based coverage (the value of your home on the open market), unless you can afford to pay the difference after a disaster. Replacement cost coverage will fully rebuild your home and replace its contents at current market costs. The coverage can be tough to get in some high hazard risk areas, but if you live in areas with a high risk for tornadoes, hurricanes and other natural disasters, you need all the protection you can get.
Home-based business equipment and supplies, home improvements and upgrades adding extra square footage, antiques, collections, hobby materials and other valuables should be adequately insured and may require special coverage.
Homeowners insurance policies cover your home and its contents for wind damage, including damage caused by tornadoes, according to the Insurance Information Institute (III).
You've just got to be sure your coverage limits are enough to fully cover the cost of rebuilding and replacing your stuff. Keep in mind that it costs more and more each year to rebuild a home, so watch out as you could be UNDER INSURED.
April 27, 2011 was the deadliest day for tornadoes since a 1925 tornado outbreak killed more than 700 people in seven states.
Recent tornadoes killed more than 300 people, largely in Alabama but also in five other southern states, leaving thousands homeless and without power.
III says homeowners policies also cover the cost of additional living expenses (ALE), the cost of living elsewhere when you can't inhabit your home due to damage from an insured disaster. ALE covers hotel bills, restaurant meals and other living expenses incurred while your home is being repaired or rebuilt.
To get your home fully rebuilt after total destruction you need "guaranteed replacement cost coverage."
Avoid home value-based coverage (the value of your home on the open market), unless you can afford to pay the difference after a disaster. Replacement cost coverage will fully rebuild your home and replace its contents at current market costs. The coverage can be tough to get in some high hazard risk areas, but if you live in areas with a high risk for tornadoes, hurricanes and other natural disasters, you need all the protection you can get.
Home-based business equipment and supplies, home improvements and upgrades adding extra square footage, antiques, collections, hobby materials and other valuables should be adequately insured and may require special coverage.
Friday, May 20, 2011
How To Avoid Foreclosure. Little Know Secret
Some Sellers Offer Financing to Get Deals Closed Buyers who have a foreclosure or bankruptcy in their credit won’t be a likely candidate to secure financing from a bank anytime soon for a home purchase. As a result, some sellers are stepping in to offer seller financing to get their home sold.
Seller financing, once popular in the 1980s when mortgage interest rates spiked to 18%, is making a comeback. Last year, 52,991 U.S. homes were purchased with various forms of seller financing, a 56% jump from 2008, according to the REALTORS® Property Resource LLC. In 2010, such deals made up 1.5 percent of all transactions.
One popular form of seller financing is known as a land contract, which is when a buyer takes possession of the home but the seller holds the title until the debt is completely paid off. The loan’s terms, such as down payments and interest rates, are negotiable. These arrangements usually consist of a balloon payment in five to 10 years, which is when buyers will have to repay the seller or lose the home, along with any money they already put into it.
Seller financing, once popular in the 1980s when mortgage interest rates spiked to 18%, is making a comeback. Last year, 52,991 U.S. homes were purchased with various forms of seller financing, a 56% jump from 2008, according to the REALTORS® Property Resource LLC. In 2010, such deals made up 1.5 percent of all transactions.
One popular form of seller financing is known as a land contract, which is when a buyer takes possession of the home but the seller holds the title until the debt is completely paid off. The loan’s terms, such as down payments and interest rates, are negotiable. These arrangements usually consist of a balloon payment in five to 10 years, which is when buyers will have to repay the seller or lose the home, along with any money they already put into it.
Monday, May 16, 2011
The Pitfalls of Using Debit Cards. How To Protect Yourself
Debit Cards are not govern by the same laws than Credit Cards.
You should know, under the Electronic Transfer Act:
1.Your loss is limited to $50.00 if you notified your financial institution within two business days. Waiting longer than two business days to report and request a debit card chargeback can increase your liability to $500.00.
According to the Electronic Transfer Act, once the error has been reported, the financial institution will:
1.Investigate your claim and provide resolution usually within 45 days of your report.
2.If the investigation takes less than 10 days to finish and is determined to be a valid claim, a debit card chargeback will be processed. Your financial institution will notify you either way of the results of your claim. You have the right to see supporting documents used to determine the outcome of the investigative decision.
You should know the Electronic Transfer Act has limitations. Some of these limitations are outlined here:
1.The Act does not apply to many preauthorized transactions (i.e. monthly subscription plans)
2.Not all transfers are covered. Ask your financial institution for policies related to this as policies do vary from bank to bank.
3.You do not have the right to “Stop Payment.”
From sources I have read, credit card chargebacks may be easier than debit card chargebacks. I understand this is because liability policies are different with credit cards.
If there is fraudulent use on your debit card, and you notify the financial institution in time, you can still be out those disputed funds for up to 20 days. Therefore, you want to have some money in reserve to cover any outstanding debts that have not yet cleared your account. Once you start bouncing checks, you start negatively impacting your credit.
Know the Law
If you do not notify your financial institution within 60 days of your card being lost or stolen, there is NO LIMITATION on your liability of fraudulent use.
Keep in mind that a thief does not necessarily need to have your card in his/her possession in order to use it. Many companies take mail and phone orders on debit cards.
The Chargeback - Using Your Credit Card for Dispute Resolution
Many of us have been in a situation where we did not get a product or service we paid for or received something defective. For example, when companies declare bankruptcy or go out of business people are often unable to use pre-paid purchases, such as plane tickets and gift certificates. The increase in internet shopping has also created difficulties for many buyers, who cannot simply go to the store and complain if they have a problem with their orders. However, by using your credit card for purchases you have a remedy if you experience problems later.
Fair Credit Billing ActUnder the Fair Credit Billing Act you can dispute credit card charges for goods and services you never received and, under certain circumstances, for unsatisfactory goods or services that you did receive. This right is time-limited. The creditor must receive a letter from you within 60 days after the bill containing the charge is mailed to you. The creditor has two billing cycles or 90 days, whichever is less, to investigate your claim. You do not have to pay the disputed portion of the bill while the creditor is researching the claim, but you still must pay any undisputed part.
If the creditor agrees with your dispute they will remove the charge from your bill and reverse payment to the merchant you bought the product or service from, called a chargeback. If the creditor disagrees with your dispute they are required to send you a letter explaining why. At this point you must pay the disputed amount and any finance charges that have accrued, or you will be marked late on your credit report. To dispute the findings you must write to the creditor within ten days of receiving their letter.
Debit CardsThe Fair Credit Billing Act only applies to credit cards, not debit cards. However Visa and MasterCard offer the same chargeback service for debit cards transactions where you choose the “credit” option (as opposed to the “debit” option). Still, even though you can request a chargeback on some debit card transactions there is an important difference between debit cards and credit cards. With a credit card you do not have to make the payment while the company is researching the charge. With a debit card the money is taken out of your checking account right away, and you have to wait to get your money back.
Credit Card Advantage
In addition to stricter liability laws, credit cards offer more consumer protection on purchases made. Use credit cards for very large or fragile purchases and for objects that will be delivered to your home after the purchase. This gives you added insurance in case the purchase is damaged in route.
One final advantage of credit cards is that they are helpful for consumers seeking to establish or reestablish an attractive credit history. Responsible credit card usage can improve one's credit rating, which will improve your chances of obtaining favorable credit terms (low interest rates, low fees, etc.) for automobile loans, mortgages and personal loans.
You should know, under the Electronic Transfer Act:
1.Your loss is limited to $50.00 if you notified your financial institution within two business days. Waiting longer than two business days to report and request a debit card chargeback can increase your liability to $500.00.
According to the Electronic Transfer Act, once the error has been reported, the financial institution will:
1.Investigate your claim and provide resolution usually within 45 days of your report.
2.If the investigation takes less than 10 days to finish and is determined to be a valid claim, a debit card chargeback will be processed. Your financial institution will notify you either way of the results of your claim. You have the right to see supporting documents used to determine the outcome of the investigative decision.
You should know the Electronic Transfer Act has limitations. Some of these limitations are outlined here:
1.The Act does not apply to many preauthorized transactions (i.e. monthly subscription plans)
2.Not all transfers are covered. Ask your financial institution for policies related to this as policies do vary from bank to bank.
3.You do not have the right to “Stop Payment.”
From sources I have read, credit card chargebacks may be easier than debit card chargebacks. I understand this is because liability policies are different with credit cards.
If there is fraudulent use on your debit card, and you notify the financial institution in time, you can still be out those disputed funds for up to 20 days. Therefore, you want to have some money in reserve to cover any outstanding debts that have not yet cleared your account. Once you start bouncing checks, you start negatively impacting your credit.
Know the Law
If you do not notify your financial institution within 60 days of your card being lost or stolen, there is NO LIMITATION on your liability of fraudulent use.
Keep in mind that a thief does not necessarily need to have your card in his/her possession in order to use it. Many companies take mail and phone orders on debit cards.
The Chargeback - Using Your Credit Card for Dispute Resolution
Many of us have been in a situation where we did not get a product or service we paid for or received something defective. For example, when companies declare bankruptcy or go out of business people are often unable to use pre-paid purchases, such as plane tickets and gift certificates. The increase in internet shopping has also created difficulties for many buyers, who cannot simply go to the store and complain if they have a problem with their orders. However, by using your credit card for purchases you have a remedy if you experience problems later.
Fair Credit Billing ActUnder the Fair Credit Billing Act you can dispute credit card charges for goods and services you never received and, under certain circumstances, for unsatisfactory goods or services that you did receive. This right is time-limited. The creditor must receive a letter from you within 60 days after the bill containing the charge is mailed to you. The creditor has two billing cycles or 90 days, whichever is less, to investigate your claim. You do not have to pay the disputed portion of the bill while the creditor is researching the claim, but you still must pay any undisputed part.
If the creditor agrees with your dispute they will remove the charge from your bill and reverse payment to the merchant you bought the product or service from, called a chargeback. If the creditor disagrees with your dispute they are required to send you a letter explaining why. At this point you must pay the disputed amount and any finance charges that have accrued, or you will be marked late on your credit report. To dispute the findings you must write to the creditor within ten days of receiving their letter.
Debit CardsThe Fair Credit Billing Act only applies to credit cards, not debit cards. However Visa and MasterCard offer the same chargeback service for debit cards transactions where you choose the “credit” option (as opposed to the “debit” option). Still, even though you can request a chargeback on some debit card transactions there is an important difference between debit cards and credit cards. With a credit card you do not have to make the payment while the company is researching the charge. With a debit card the money is taken out of your checking account right away, and you have to wait to get your money back.
Credit Card Advantage
In addition to stricter liability laws, credit cards offer more consumer protection on purchases made. Use credit cards for very large or fragile purchases and for objects that will be delivered to your home after the purchase. This gives you added insurance in case the purchase is damaged in route.
One final advantage of credit cards is that they are helpful for consumers seeking to establish or reestablish an attractive credit history. Responsible credit card usage can improve one's credit rating, which will improve your chances of obtaining favorable credit terms (low interest rates, low fees, etc.) for automobile loans, mortgages and personal loans.
Sunday, May 15, 2011
Tuesday, May 10, 2011
Buyers Being Picky With Their Home Choices
In the current buyers' market, many people interested in purchasing a home are staying away from properties that require any kind of renovations, regardless of how minor they may be.
Some buyers will tolerate nothing and may very well consider walking away from a value-priced home just because it needs a bit of work. Conversely, homes in perfect condition have started bidding wars between multiple buyers.
Among the home renovation I highly recommended my clients to paint the walls, clean or change carpets, and eliminat clutter and all personal stuff. It is also very important to consider the exterior, THE CURB APPEAL.
"Curb appeal is very important, and the front door, the garden, the front gate is the first thing prospective buyers see. Often time some of my clients go check out the property from the outside to see what they think before I get them in, with my electronic key. If they do not like the outside, they will never bother asking me to see inside.
Sellers whose homes need some work may want to consider taking out a small home equity loan to pay for these renovations. Fixing any visible issues may make their home sell quicker, and get a higher offer.
Some buyers will tolerate nothing and may very well consider walking away from a value-priced home just because it needs a bit of work. Conversely, homes in perfect condition have started bidding wars between multiple buyers.
Among the home renovation I highly recommended my clients to paint the walls, clean or change carpets, and eliminat clutter and all personal stuff. It is also very important to consider the exterior, THE CURB APPEAL.
"Curb appeal is very important, and the front door, the garden, the front gate is the first thing prospective buyers see. Often time some of my clients go check out the property from the outside to see what they think before I get them in, with my electronic key. If they do not like the outside, they will never bother asking me to see inside.
Sellers whose homes need some work may want to consider taking out a small home equity loan to pay for these renovations. Fixing any visible issues may make their home sell quicker, and get a higher offer.
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