This is a debt limit satire video that I think you all should see and forward to others. Granted, they reduced the numbers so it's a bit more realistic to understand but, the ratios they use are the same. Wait till the very end......then you will really understand just how bad this whole debt thing is.
https://www.youtube.com/watch?v=Li0no7O9zmE&feature=player_embedded
Golden Rules on Achieving High Credit Scores
“We are glad you chose us as your lender. As you know, your credit score is _______.” For some people, filling in that blank might be nerve-racking. For others, it might be a source of pride and personal accomplishment. If you are working on your credit score, or simply want to know more about putting together a score that will make friends jealous and bankers swoon, read on.
Keep Your Available Limits Manageable
One of the top factors that affect a credit score is a person’s available credit. This is simple to understand with some numbers.
Even though the second person in our example has a smaller outstanding balance, their available percentage is lower and their credit score will be lower. The closer your available limit is to 100% the higher your score will be.
Pay On Time, Every Time
Without a doubt, the single biggest factor of a person’s credit score is whether or not they pay their obligations on time. Paying all debts, regardless of the size, on time will do more to improve a person’s credit score than other tactics.
Keep Paid Off Credit Lines Open
Review the earlier example about available credit for a moment. Suppose you have three credit cards but you only owe money on two of them. Most people would be tempted to close out the one card in order to reduce temptation of charging too much. However, closing down the account hurts in two ways. First, it reduces your available credit limit. Second, it wipes out the history you had with that account. Both of these items will lower your score.
Strive to Have a Good Mix of Debt
In order to reach the magical number of 700 or more it is necessary to have a mix of debt that you are paying timely. A modest automobile loan, one or two credit cards and a small unsecured loan are usually enough to provide someone with enough diversity to get a high score. Having only one type of debt, regardless of the type of debt or how it is paid, will keep your scores in the 600 to 680 range.
Above all else, it is important to understand that building a strong credit score takes time. It will not happen in a day, a week or even a month. You will need to focus on the tips outlined above for a few months, maybe a year, in order to reach the pinnacle of credit scores.
Original Post - Tips for Higher Credit Scores
Mortgage Forgiveness is Currently Set to expire at end of 2012
One primary feature attracting many underwater homeowners to a short sale is the fact that the taxes are lowered thanks to a Mortgage Forgiveness Debt Relief Act of 2007 provision. However, that credit is set to go away at the end of the year 2012. This means that homeowners who have put off selling need to get busy.
Basics of the Rule
When foreclosures were the primary topic of almost every news broadcast, Congress stepped in and offered this one time transaction. Homeowners could sell their home, for less than the existing mortgage, if the lender agreed to the deal. The outstanding balance would normally be taxable as earned income to the homeowner. However, the Mortgage Forgiveness Act wiped out the taxes on any unpaid balance up to a whopping two million dollars. This act applies to short sales that occurred between 2007 and 2012.
New Area of Expertise for Real Estate Agents
Many real estate agents have chosen to specialize in certain areas. Some people prefer to work with commercial property, while others may focus their energy on single family homes. The past few years has seen a rise in the number of agents that zero in on the short sales, and for good reason. Many banks are not open to the idea of a short sale coming straight from the homeowner. But with an experienced real estate agent, the situation changes. Banks realize that these agents are quite familiar with the local area and can accurately predict a home’s true value. Using an experienced agent can help homeowners negotiate a fair sales price and remove themselves from the burden of a mortgage that is no longer feasible.
Possible Change before End of the Year
It is possible that Congress could move to extend the Mortgage Forgiveness expiration. After all, the home purchase credit initiated a couple of years ago was extended twice to encourage more people to buy homes. However, it is too early to tell if this particular act will be extended so it is better for most people to err on the side of caution and begin negotiating a sales price with their real estate agent and their lender.
Getting Everything in Order for a Short Sale
If you are considering a short sale of your home then you will need to get a bit of information together. First, you must contact your lender and ask them for a 30 day payoff on your mortgage. If you have more than one mortgage, or Home Equity Line of Credit (HELOC), then you will need a payoff amount for each loan. Once you have these figures you can call your real estate agent and ask for their professional opinion about the value of your home. The agent will be able to access sales of homes similar to yours in the surrounding area and provide you with an accurate value. Then, you will have a strong argument to present to the lender. The lender may ask that you have an actual home sale contract in hand before accepting your offer. But at least you will be on the track to selling the home once you have spoken to a real estate agent.
Original Email - Mortgage Forgiveness Act expiring soon
If you can not pay your mortgage you might want to do something about it sooner rather than later. Here's why:
1. The Mortgage Debt Relief Act of 2007 is set to expire at the end of 2012
2. This act says that if you sell your primary residence as a short sale or it is foreclosed then no federal tax is owned on the debt foregiveness, the difference between what you owe and what the bank was paid back after the short sale or foreclosure.
3. In 2013, unless the act is extended there will be taxes owned on homes that are foreclosed or sold as short sales.
4. Do you really think the congress is going to pass anything like an extension of this tax relief during the election season?
So, if you can not pay your mortgage DO SOMETHING NOW. Don't be stuck with losing your home and then still owing taxes on it.
If you have any questions about short sales in San Mateo or Santa Clara Counties, please feel free to contact me.
Marcy Moyer
Keller Williams Realty
marcy@marcymoyer.com
650-619-9285
D.R.E. 01191194
Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Short Sales and Trust and Probate Sales
This call will also target owners and renters that are occupying homes at risk of foreclosure. More important, it cost almost nothing to educate hundreds if not thousands of people at on time. Our first call was a success and we are looking to partner with agents around the country to do more. Please listen to the audio of the first call, in which 50 people attended. This is better than any workshop I've held or seen when it comes to foreclosure. May 25th, 2011 Audio
"The only way to bring about stabilization to our neighborhoods is to get valuable information out to the people that need it most. Workshops are not working." said Broker and CEO, Jonathan G Burgess. Burgess has overseen the sale of over four hundred foreclosed homes and short-sales over the last 3 years throughout the company’s California offices. Neighborhood property values, cities, counties and utility providers suffer the most when the wrong decisions are made by the occupants of these homes. Code 3 Realty & Mortgage Inc. has made equipping individuals with the necessary information to make the right decision concerning their situations a top priority.
Many real estate companies are hosting workshops for distressed homeowners to get much-needed foreclosure prevention information, however attendance to those events is usually low. “I’m not surprised attendance is low because this is a sensitive topic and can be embarrassing for many” said Burgess. "The majority of home owners struggling to keep their homes would rather not attend an open forum to discuss foreclosure. Telephone conferences are a discrete alternative."
Owners and renters can get valuable, free information about programs and options to assist them by joining these conference calls. This information must get out if we are going to bring about stability to our economy and restore property values in neighborhoods.
The first conference will begin on Wednesday, May 25th, 2011 at 7:00pm -7:30 pm.
Join our Group ON REO PRO Today!!
We have seen what happened to many American families when year-after-year they had income of say only $40,000 and borrowed $20,000, so as to spend $60,000 each year. After just 5 years the families were each in debt well over $100,000. In one way or another, the banks bought their debt, allowing the families to continue their poor financial management habits; but it was not long before families could not maintain, the banks foreclosed, and the families lost their homes and filed for bankruptcy.
It will not be long before the United States of America will face something similar… a form of foreclosure and bankruptcy, as China forecloses on the debt America owes China. In other words, US citizens (you and me) are in debt to China (the bank), and China may someday have no choice but to take our “house” (the entire country.)
What will the USA be like when China takes possession of our country? Showing a high level of moral integrity, will American leaders do the right thing and simply “give up the keys” and turn over control of our “house”, the country? Or, will U.S. leaders choose instead to fight China in a war to avoid America’s responsibility, and ultimately destroy the “house” (our country)? Sounds like what many homeowners did before the bank took possession of their houses.
Can we avoid the loss of our country to China? Yes! We Can!
By cutting every local, State, and Federal budget by 50%, and fixing the annual budgets at that level for at least ten years; then simultaneously, beginning a 30-year fully-amortizing monthly payment to China so as to eliminate the debt. Also, at the same time, by raising the Federal personal income tax rate to 50% of gross income over $25.000 for each and every adult U.S. resident, retired or actively working. For non-living entities, the 50% tax rate would be applied to their net operating incomes. The Federal government would then provide population-based revenue-sharing to each State, offset by what the Feds provides directly to each local government. All State and local income taxes would then be eliminated. Finally, Federal revenue surpluses would, likewise, be allocated to the States.
What about tax write-offs? Other than non-living entity operational expenses, there would be none. In fact, what good is a tax write-off when you have no income? Under this plan, every government expenditure gets cut in half; but the Federal government, through the States and local governments, could create more jobs and a little fairer personal income distribution throughout the nation.
By the end of each 10 year period, a census and other economic studies would be performed by the Federal government and effective adjustments made to the plan accordingly.
Submitted by a member of the “Coffee & Tea Club”
