The near-record low mortgage rates seen during the past few weeks may not be around much longer.
Signs of improving economic conditions could lead Federal Reserve Chair Ben Bernanke to raise key interest rates, driving up mortgage rates, says Stephen Stanley, chief economist at Pierpont Securities LLC.
The evidence includes more consumers are paying their bills on time. Past-due accounts at American Express declined 34 percent compared to a year ago, and Target Corp. reported its lowest delinquency rate in two years during the second quarter.
In another sign of economic improvement, fewer banks reported tightening lending standards this month, one reason consumer borrowing rose for the second time in three months.
“If lending standards start to stabilize, that’ll be another reason to remove the emergency measures, including the zero rate,” says Jay Bryson, a senior global economist at Wells Fargo Securities LLC in Charlotte, N.C., who formerly worked at the Fed in Washington.
Friday, May 28, 2010
Are banks really necessary these days?
Do you pay your bills online? Do you get cash back on your debit card at the grocery store? Do you go to the ATM? Is your paycheck direct deposited? My guess is that you said yes to several if not all of those questions.There is even a new bank called Ally that is a virtual bank with no locations. They have lower interest rates and less fees. USAA bank even allows you to make deposits using your iPhone.
So ask yourself, how often to you actually go into a bank? Is there really a need for more "brick and mortar" banks?
Within 2 miles of the corner of Mockingbird and Abrams there are no less than five Chase Bank branches. There are four between Abrams and Central (although the one at Mockingbird & Central is closing). There is also at least one Bank of America, Comerica, Wells Fargo, BBVA Compass, Professional Bank, Liberty Federal Savings, Texas Capital, Park Cities Bank and Wachovia in that same radius. Before bank meltdowns, FDIC closings and consolidations there were even more.
Until the banks start lending again this financial mess is not going to improve much. So if we rarely go into a bank, doesn't it seem that the money used to buy that expensive land and build these new financial institutions would be better spent on improving the balance sheet and lending?
Memorial Day Dallas
Memorial Day is a time of remembrance and appreciation for those who gave their lives to better protect our country, a tradition held in America since the 1880s. Originally known as Decoration Day —because family and friends would decorate the graves of those in military service with carnations, poppies or flags — this tradition stems from paying respect to Union Civil War Soldiers. Only after World War I was Memorial Day expanded to pay homage to all fallen soldiers enlisted in military service. There are several ways to observe Memorial Day. Citizens can visit a memorial, they can decorate the graves of fallen soldiers with flags or flowers, and they can fly the U.S. Flag at half-mast from dawn until noon. For more ways to honor Memorial Day in and around Dallas, you can participate in a number of special activities offered over the three-day weekend:• May 30 - Central 214 Memorial Day Patio Party, with cocktails and a late night menu, benefits the North Texas Food Bank. Suggested donation $10, 7 p.m. at the Hotel Palomar 5300 E. Mockingbird Dallas 75206 or 214-443-9339 for more info.
• May 31 – University Meadow’s Neighborhood Associations Annual Memorial Day Parade.
9:45 a.m. – Parade participants line up at Berwyn and Creighton (75214). Ribbons will be given for the coolest antique cars, decorated bicycles, scooters, wagons and anything on wheels. Snazziest looking pets will also be recognized. 10 a.m. – Parade begins, with Fire Department and Police escorts, and proceeds to Zion Lutheran Church. 10:30 a.m. – Awards and ceremony honoring Veterans. Special guest include Councilman Sheffie Kadane, the Lake Highlands Wranglers Dance Club and Pageant winners. Join the parade or cheer neighbors along the parade route.
• May 31 - Sen. Kay Bailey Hutchison and Rep. Kenny Marchant will speak at the Department of Veterans Affairs and the Texas National Cemetery Foundation’s Memorial Day ceremony. 3 p.m. at the Texas National Cemetery 2000 Mountain Creek Parkway, Dallas 75211 or call 214-467-3374 for more information.
• May 31 - Eddie Coker Memorial Day Children’s Concert and Picnic in the Garden at the Dallas Arboretum features Sara Hickman, singer songwriter, from 11 a.m. – 12 p.m. and 2 p.m. – 3 p.m. on the Martin Rutchik Concert Stage. 8525 Garland Rd. Dallas 75218 or 214-515-6500 for more information.
• May 31 - Dallas Symphony Orchestra’s Memorial Day Concert at Flagpole Hill features Tchaikovsky’s 1812 Overture solennelle, Opus 49. 8 p.m. 8100 Doran Circle Dallas 75238 or www.dallassymphony.com for more information.
Courtesy of Barbara Johnson - White Rock Lake Weekly
Thursday, May 27, 2010
Just Listed - M-Street Colonial
Beautiful Colonial home sits on 1.5 lots. The 1st floor has a living room, study, dining, bath, powder bath and an eat-in kitchen. Kitchen remodel boasts sub zero, 6 burner gas stove with pot filler faucet, built in wine cooler, apron sink and granite counters. All three bedrooms are upstairs, 2 full baths plus the over sized utility room with sink.6027 Vanderbilt, Dallas, TX 75206
Wednesday, May 26, 2010
Noboby Likes to Live Around A Crime Scene
Wells Fargo Bank was the only bidder this week for a house in Waterloo, Ill., where a former bodyguard apparently strangled his wife and two sons to death. The bank offered $256,420.
Other homes that were the sites of violent crimes also have attracted few buyers.
The Chicago-area home where John Wayne Gacy tortured and strangled at least 33 men, then buried them in the crawl space, has been torn down and a new home built on the lot. The three-story apartment building in Milwaukee where the remains of 11 of the 17 people Jeffrey Dahmer confessed to killing was demolished and the lot remains vacant.
Only two states – Alaska and South Dakota – require sellers to disclose if there was a murder or suicide on the property.
Other homes that were the sites of violent crimes also have attracted few buyers.
The Chicago-area home where John Wayne Gacy tortured and strangled at least 33 men, then buried them in the crawl space, has been torn down and a new home built on the lot. The three-story apartment building in Milwaukee where the remains of 11 of the 17 people Jeffrey Dahmer confessed to killing was demolished and the lot remains vacant.
Only two states – Alaska and South Dakota – require sellers to disclose if there was a murder or suicide on the property.
Tuesday, May 25, 2010
People Like Renting!!
More than 76 percent of people say they would prefer to rent a home than buy one, up 5 percent from 2009, according to this year’s survey from the National Apartment Association.
The survey also calculated that 60 percent of renters plan to continue renting in 2011, with only 12 percent planning to buy a home in the next year.
Some 64 percent of renters cited having no responsibility for major repairs or maintenance as the primary reason they prefer to rent, followed by 33 percent who cited not being impacted by an unpredictable real estate market or susceptible to foreclosure.
The survey also calculated that 60 percent of renters plan to continue renting in 2011, with only 12 percent planning to buy a home in the next year.
Some 64 percent of renters cited having no responsibility for major repairs or maintenance as the primary reason they prefer to rent, followed by 33 percent who cited not being impacted by an unpredictable real estate market or susceptible to foreclosure.
Monday, May 24, 2010
Europe's Crisis Making New Home Buyers HAPPY!!
Europe’s financial problems are pushing U.S. mortgage rates lower and lower.
Because international investors see the U.S. as in much better shape than Europe, investors are putting their money into U.S. government securities, driving mortgage rates down near record lows.
Some in the industry predict that rates could be as low as 4.5 percent this summer, although some warn that this may come with lots of volatility as investors jump in and out of the market.
Not long ago, many experts were predicting that rates were likely to rise to at least 6 percent by this fall since the Federal Reserve stopped buying mortgage securities.
Because international investors see the U.S. as in much better shape than Europe, investors are putting their money into U.S. government securities, driving mortgage rates down near record lows.
Some in the industry predict that rates could be as low as 4.5 percent this summer, although some warn that this may come with lots of volatility as investors jump in and out of the market.
Not long ago, many experts were predicting that rates were likely to rise to at least 6 percent by this fall since the Federal Reserve stopped buying mortgage securities.
Friday, May 21, 2010
The Government Does Something RIGHT!!!
The Senate on Thursday approved the most extensive overhaul of the banking system since the 1930s.
The legislation must still be reconciled with the House bill passed in December.
Measures in both bills that directly affect property transactions include:
* Limits on the ability of mortgage lenders to penalize borrowers who pay off loans early.
* Stated-income loans would be effectively eliminated.
* Lenders would be required to obtain proof from borrowers that they can pay for their mortgages. Buyers would be required to provide tax returns, payroll receipts, or bank documents.
* Lenders and brokers will be prohibited from pushing borrowers to accept loans with higher interest rates or with risky features.
The legislation must still be reconciled with the House bill passed in December.
Measures in both bills that directly affect property transactions include:
* Limits on the ability of mortgage lenders to penalize borrowers who pay off loans early.
* Stated-income loans would be effectively eliminated.
* Lenders would be required to obtain proof from borrowers that they can pay for their mortgages. Buyers would be required to provide tax returns, payroll receipts, or bank documents.
* Lenders and brokers will be prohibited from pushing borrowers to accept loans with higher interest rates or with risky features.
Thursday, May 20, 2010
You live where, make how much and you're how old?
Last night on the CBS11 news there was a story about an internet site called Spokeo whose tag line is "Not your grandma's phone book." That is because they have consolidated boatloads of information on each of our personal lives from all over the internet. What they do is scour all the social networking sites, public records, email accounts and so on and so on and make all of this available in one convenient place. Granted some of this information is public record anyway but this is way too invasive for me.I went out to the site and by pulling up my name and email addresses and without even signing up for the reasonably priced (although auto recurring billing) service, I realized the information is frighteningly accurate. Spokeo knew the following about me (some right, some wrong and some unknown):
- My age
- My address (with pictures)
- My email addresses
- Personal pictures of me
- My marital status
- Whether I had children or not
- Occupation (fairly accurate)
- Political Party (unknown)
- Religion (unknown)
- Hobbies (fairly accurate)
- Estimated home value (wrong info)
- Zodiac sign
- Education (partially accurate)
- Registered voter
- Home Owner
- Length of ownership (wrong info)
- Quality of neighborhood (wrong info)
- Lifestyles and interests (fairly accurate)
- Play lists of music from Pandora
- Books I have purchased on Amazon
- IP addresses of computers I have used
- Amazon
- Bebo
- BizShark
- Blogger
- Buzznet
- Digg
- Facebook
- Flickr
- Flickr Group
- Flixster
- Fotolog
- Friendster
- Goodreads
- Hi5
- iLike
- Last.fm
- LinkedIn
- LiveJournal
- Multiply
- MySpace
- MyYearbook
- Netlog
- Pandora
- PhotoBucket
- Picasa
- PictureTrail
- Slide
- Stumbleupon
- Tagged
- Target
- Twitter
- Upcoming
- Veoh
- Vox
- Web Results
- WebShots
- Windows Live
- Wretch
- Xanga
- Yelp
- You tube
Interestingly the site that gets the most publicity about their privacy settings, Facebook had not released any information about me. However, Amazon, Myspace, Youtube, Google, Bebo, Yahoo, Twitter, Picasa, Blogger, MSN, Digg and Pandora had. It appears that virtually every site has its default privacy settings set to release your information.
I realize that we are going to have to embrace the fact that our lives are now a window to the world but you are going to have to look really hard to see through my window unless I choose to open the blinds.
NOW IS THE TIME TO BUY!!!!
When you compare the real estate downturn to the real estate market in the 1980s, Blumberg Capital Partners, which provides real estate investment management, finds similarities that lead the company to think now is an optimal time to buy.
Its analysts point out that the recession of the 1980s lasted 16 months, running from July 1981 to November 1982. Unemployment peaked in November of 1982 at 10.8 percent. From that point it took 38 months for the economy to recover fully and for unemployment to fall below 7 percent. It was another 10 months before unemployment was consistently below 7 percent.
Philip Blumberg, CEO of Blumberg Capital Partners, said in a note to investors that the real estate cycle is still three or four years from an optimal selling period, so now is the time for investors to buy.
Its analysts point out that the recession of the 1980s lasted 16 months, running from July 1981 to November 1982. Unemployment peaked in November of 1982 at 10.8 percent. From that point it took 38 months for the economy to recover fully and for unemployment to fall below 7 percent. It was another 10 months before unemployment was consistently below 7 percent.
Philip Blumberg, CEO of Blumberg Capital Partners, said in a note to investors that the real estate cycle is still three or four years from an optimal selling period, so now is the time for investors to buy.
Wednesday, May 19, 2010
Have you heard what the city wants to do to bicyclists?
- Do you ride a bicycle?
- Do you want to ride a bicycle and feel it's not safe?
- Do you want to see changes in your neighborhood?
- Come share your vision for a bicycle friendly Dallas!
If you cannot attend the meeting and would like to provide feedback or if you would like to be added to the email list for news about bicycle planning in Dallas, please contact:
Waco Moore, Dallas Bicycle Advisory Committee
waco.moore@gmail.com
972-352-3492
Whether you support bikers or not, this is your chance to have your voice heard.
The Top Worst Re-Modeling Projects
When considering adding value to a home, you consistently hear from the real estate industry that updated bathrooms and quality kitchens stand out in a home sale. Those are proven sale closers. There are certain other improvements you can make to your home that will beautify it or create convenience for your family. When it comes time to selling, however, those improvements may do nothing to increase the value of the property and may even turn off potential homebuyers.
1. Over-the-Top Renovations
Au contraire mon frère, not all renovations will raise the value of your home. Just `cause it's bigger doesn't mean it will be perceived as better by future homebuyers. Unless your home is located in Beverly Hills or some other very posh neighborhood, don't install the bathroom with the supersized steam shower, imported Italian marble and several different spray heads ... unless you have the money to do it for your own pleasure and enjoyment only. That kind of improvement doesn't typically do anything to increase the value of the average home.
On the other hand, if you updated an old bathroom, you could see an increase of several thousand dollars to your home's bottom line. Real estate professionals suggest that homeowners pour over local home listings to see what amenities are the standard in your area, then upgrade your home to meet it. If you overdo it, however, you may not recoup your investment.
2. Swimming Pools
If you think installing a swimming pool in the back side of your home will draw hoards of homebuyers clamoring to make offers on your home at sale time, you'd be wrong. Some may consider it a perk, but others may perceive it as a pain with all the maintenance it will require.
Homeowners have even paid to have their swimming pools buried to create more yard space. If you shell out the expense to build one, don't expect your home's value to budge. The only exception to building a swimming pool is if you live in states where they are considered the norm.
3. Home Office Renovations
Although, a home office is often an amenity appreciated by those shopping for a home, it should be built with frugality in mind. Overhauling an office doesn't pay off when it's time to sell your home. Don't steal usable space from another living area to create a home office. Instead, make sure the space can easily be converted back into a bedroom or other living space if needed. If you decide you just have to have the built-in Curly Maple wood shelves, know that you will only recoup around 50 percent of your cost at sale time.
4. Unique Builds
Home magazines are always coming up with clever and creative ways to change the look of your living space. Some are exotic and outlandish, but they can pique your interest. Tempted to put a classic disco ball with lights in your bedroom, a constellation ceiling in your family room or a peaceful Koi pond in your back yard? Avoid making outlandish changes to your home or changes that will be perceived as adding work for a future homeowner. Don't be tempted to incorporate these ideas into your own home, unless you don't plan on selling anytime soon. Homebuyers may not share your enthusiasm.
5. Roof Renovations
If your roof needs repair, don't hesitate to have the work done. It will be one less issue you'll have to deal with when listing your home. If in your pursuit to list your home you think replacing your roof with cedar shakes or clay tiles will increase the value, think again. Although they have the ability to make your home stand out, they probably won't inspire homebuyers to pay more for them. So, unless you have the money to burn, keep it simple when preparing your home to be listed on the real estate market.
1. Over-the-Top Renovations
Au contraire mon frère, not all renovations will raise the value of your home. Just `cause it's bigger doesn't mean it will be perceived as better by future homebuyers. Unless your home is located in Beverly Hills or some other very posh neighborhood, don't install the bathroom with the supersized steam shower, imported Italian marble and several different spray heads ... unless you have the money to do it for your own pleasure and enjoyment only. That kind of improvement doesn't typically do anything to increase the value of the average home.
On the other hand, if you updated an old bathroom, you could see an increase of several thousand dollars to your home's bottom line. Real estate professionals suggest that homeowners pour over local home listings to see what amenities are the standard in your area, then upgrade your home to meet it. If you overdo it, however, you may not recoup your investment.
2. Swimming Pools
If you think installing a swimming pool in the back side of your home will draw hoards of homebuyers clamoring to make offers on your home at sale time, you'd be wrong. Some may consider it a perk, but others may perceive it as a pain with all the maintenance it will require.
Homeowners have even paid to have their swimming pools buried to create more yard space. If you shell out the expense to build one, don't expect your home's value to budge. The only exception to building a swimming pool is if you live in states where they are considered the norm.
3. Home Office Renovations
Although, a home office is often an amenity appreciated by those shopping for a home, it should be built with frugality in mind. Overhauling an office doesn't pay off when it's time to sell your home. Don't steal usable space from another living area to create a home office. Instead, make sure the space can easily be converted back into a bedroom or other living space if needed. If you decide you just have to have the built-in Curly Maple wood shelves, know that you will only recoup around 50 percent of your cost at sale time.
4. Unique Builds
Home magazines are always coming up with clever and creative ways to change the look of your living space. Some are exotic and outlandish, but they can pique your interest. Tempted to put a classic disco ball with lights in your bedroom, a constellation ceiling in your family room or a peaceful Koi pond in your back yard? Avoid making outlandish changes to your home or changes that will be perceived as adding work for a future homeowner. Don't be tempted to incorporate these ideas into your own home, unless you don't plan on selling anytime soon. Homebuyers may not share your enthusiasm.
5. Roof Renovations
If your roof needs repair, don't hesitate to have the work done. It will be one less issue you'll have to deal with when listing your home. If in your pursuit to list your home you think replacing your roof with cedar shakes or clay tiles will increase the value, think again. Although they have the ability to make your home stand out, they probably won't inspire homebuyers to pay more for them. So, unless you have the money to burn, keep it simple when preparing your home to be listed on the real estate market.
Energy Wasting Day
I recently received information on Energy Wasting Day and while it made me laugh it also caused me to reflect on a blog article recently posted in the Advocate Magazine.
The article was about a free service (not really free since you pay a fee each month to Oncor to subsidize this program) where your electrical provider will send someone out to do a free energy audit on your home; seal HVAC connection points throughout the house to prevent air loss, weatherstrip doors, install foam insulators behind light switches and plugs, and seal plumbing penetrations beneath the sinks.
I, like the blog writer thought this was too good to be true. So I called the company in the article, E3 Solutions and Matt Newnham and his crew showed up. First they tested the amount of air that the home was losing and said it was quite a bit since my house was built in 1933. They proceeded to seal all the HVAC connections points, repair duct work that was leaking, seal plumbing penetrations underneath all the sinks and install foam insulators behind the light switches and plugs. While they will blow in attic insulation at a cost subsidized by Oncor, I was told it was unnecessary on my house. What they did not do was weatherstrip the french doors (3 sets) nor weatherstrip the windows. After all the work was completed another air loss test was completed and the air loss was reduced by 12%. This is not a huge difference but it would be nice if I got a 12% decrease in my electricity bill.
There are some limitations: your house has to have at least 50% of the HVAC vents in the ceiling and the home must have been built before 2002.
Oh and by the way, it was free and it took about two hours.
Give Matt a call at 214-995-9581 and try it out for yourself. It's only good until the funds run out which Oncor predicts will be sometime in late June to early July.
Collecting rents
Collecting unpaid rent is part of the 1st CAM process. The trick is to not let the situation get out of hand. The first month a tenant falls behind in the rent, you need to take action.
While it's important to respond quickly, you want to avoid face-to-face contact because it could lead to confrontation. The better alternative is to send a letter to the tenant, and because it's not one of the legal forms in your library, it doesn't have to be sent certified mail. Any letter that has the correct address and postage is considered received once it is mailed. The body of the letter should instruct the tenant to call you so that the matter can be resolved.
If the tenant offers you a partial payment, 1st CAM recommends that you accept it. However, it is important that you give the tenant a receipt that clearly states that what you received is only a partial payment, and that you still have the legal right to collect the rest of the unpaid rent.
You may also feel that effective techniques require you to investigate how serious your tenant's financial crisis is. That means checking to see if they're still employed, and how much other debt they're carrying. If your original rental agreement doesn't prevent you from calling the employer listed, you can do so to see your tenant is still working for the company.
Also, as long as you maintain a debtor-creditor relationship with your tenant, the Fair Credit Reporting Act allows you can to get a copy of the tenant's credit report. Legal forms like your rental application usually have a release allowing this.
Although you can get this information, it really won't do you much good. Even if the tenant is unemployed and is carrying a huge debt, if they pay the rent they can't be evicted. The only value that information might have in terms of 1st CAM is if you use it to decide how much leeway you are willing to give them.
The real problems start when you've put off collecting back rent and the tenant is still in the apartment. Your only choice is to start eviction.
You begin by sending your tenant a Notice To Quit, which IS one of the legal forms in your library you have to use specifically. The letter tells your tenant how much time they have to pay the back rent, typically 3 to 14 days according to state law. If the tenant pays, they can stay, but if they don't, they must vacate.
Should your tenant leave still owing you back money, you're going to have to collect the debt some other way.
The Fair Debt Collections Practices Act (FDCPA), which protects consumers from abuse from debt collectors, says that a 1st CAM acting on their own behalf isn't subject to the provisions of the law because they aren't considered a debt collector. However, even though you aren't subject to the law, you can't engage in any of the abusive practices the law prohibits.
Employees of 1st CAM aren't considered debt collectors under the FDCPA either because the rental payments aren't owed to another individual or entity. But if at any time during the collection process the property manager mentions any name other than their own, that means that a third person is collecting the debt, and the property manager becomes a debt collector subject to the FDCPA.
If you can't collect on your own, you will probably have to sue for the amount owed under breech of contract. An attorney familiar with your state's collection laws and the necessary legal forms required to sue should be contacted.
While it's important to respond quickly, you want to avoid face-to-face contact because it could lead to confrontation. The better alternative is to send a letter to the tenant, and because it's not one of the legal forms in your library, it doesn't have to be sent certified mail. Any letter that has the correct address and postage is considered received once it is mailed. The body of the letter should instruct the tenant to call you so that the matter can be resolved.
If the tenant offers you a partial payment, 1st CAM recommends that you accept it. However, it is important that you give the tenant a receipt that clearly states that what you received is only a partial payment, and that you still have the legal right to collect the rest of the unpaid rent.
You may also feel that effective techniques require you to investigate how serious your tenant's financial crisis is. That means checking to see if they're still employed, and how much other debt they're carrying. If your original rental agreement doesn't prevent you from calling the employer listed, you can do so to see your tenant is still working for the company.
Also, as long as you maintain a debtor-creditor relationship with your tenant, the Fair Credit Reporting Act allows you can to get a copy of the tenant's credit report. Legal forms like your rental application usually have a release allowing this.
Although you can get this information, it really won't do you much good. Even if the tenant is unemployed and is carrying a huge debt, if they pay the rent they can't be evicted. The only value that information might have in terms of 1st CAM is if you use it to decide how much leeway you are willing to give them.
The real problems start when you've put off collecting back rent and the tenant is still in the apartment. Your only choice is to start eviction.
You begin by sending your tenant a Notice To Quit, which IS one of the legal forms in your library you have to use specifically. The letter tells your tenant how much time they have to pay the back rent, typically 3 to 14 days according to state law. If the tenant pays, they can stay, but if they don't, they must vacate.
Should your tenant leave still owing you back money, you're going to have to collect the debt some other way.
The Fair Debt Collections Practices Act (FDCPA), which protects consumers from abuse from debt collectors, says that a 1st CAM acting on their own behalf isn't subject to the provisions of the law because they aren't considered a debt collector. However, even though you aren't subject to the law, you can't engage in any of the abusive practices the law prohibits.
Employees of 1st CAM aren't considered debt collectors under the FDCPA either because the rental payments aren't owed to another individual or entity. But if at any time during the collection process the property manager mentions any name other than their own, that means that a third person is collecting the debt, and the property manager becomes a debt collector subject to the FDCPA.
If you can't collect on your own, you will probably have to sue for the amount owed under breech of contract. An attorney familiar with your state's collection laws and the necessary legal forms required to sue should be contacted.
D.C. Pushing for FREE CREDIT SCORES!!!!
People who are denied credit or a job because of their credit history may soon be able to get their credit score free of charge, thanks to an amendment passed by the Senate Monday evening.
The measure, part of the massive Wall Street reform bill being debated in the Senate, would expand an existing law that, in December 2003, gave consumers the right to one free credit report every year from each of the top three consumer reporting agencies -- Equifax, Experian, and TransUnion.
The credit score, however, has not been made available for free. It is a numerical representation of the information in a consumer's credit report, which covers a consumer's entire credit history -- all debts, payment habits, and jobs held. The credit score is widely used as a shortcut by lenders, so monitoring it is crucial.
But options for getting a credit score have been limited to many "for-fee" sites. Some have lured consumers in by offering a "free" score in return for signing up to a credit monitoring service that could cost $14.95 a month or more, if consumers don't opt out before the end of the trial period.
The amendment "dramatically increases the number of people getting this critical piece of information," said Jennifer Talhelm, a spokeswoman for Sen. Mark Udall, D-Colo., who is sponsoring the effort.
A recent survey from the National Foundation for Credit Counseling found that some 65% of adults have not checked their reports in the past year. And nearly one-third of adults don't know their credit score.
Your credit score is used to determine far more than the cost of borrowing money.
Finding a job. More and more often, employers are using credit reports to help make decisions about job applicants. Employers conducted credit checks on 60% of job candidates in 2009, according to a recent survey from the Society of Human Resource Management, looking for top red flags such as bankruptcies or accounts that are in debt collection. By law, your employer must inform you if you're denied a job because of your credit history.
Buying a house. The consumer credit rating agencies use different numerical scoring systems, but generally speaking a 680 and above sits within the "good to excellent" range, while scores below 680 are labeled "ok to poor."
Only a credit score of 740 or better get the best mortgage rates, according to Greg McBride, senior financial analyst for Bankrate.com. A score between 700 and 740 could jack up interest rates by 0.5% to 0.8% on average. Anything less than 700 could be problematic in today's tight credit market.
Credit cards and student loans. If your credit score is 700 or better, you're in great shape to get the most competitive credit card rates, which average about 14% for a variable rate card. For those with marginal or poor credit, it will be more difficult to get a card at all. And those who do qualify will see lower credit limits, rates in the high teens to low 20% range, and more credit card fees, said McBride.
Even college students need to pay close attention to their credit scores because it's the primary factor in determining the rate on private student loans, which can range anywhere from 5% to 13% these days.
Auto insurance premiums. Insurers look at things like payment patterns, length of credit history, and the number of new applications for credit when calculating their risk formulas.
Not only can credit problems signal that you have little cash on hand to absorb the cost of an accident, making you more likely to file a claim, but studies have shown a correlation between bad credit and accidents. This could translate into higher premiums.
Consumers should not apply for loans, just to get their scores. Multiple "inquiries" on your credit report can lower your overall credit score.
Although experts say Udall's bill is a step in the right direction, some are concerned that it will fall flat if it doesn't address the fact that lenders use multiple scores to assess creditworthiness.
"The most widely used score is the FICO," says Gail Cunningham, a spokeswoman for the National Foundation for Credit Counseling, "but the top three bureaus' are proprietary scores based on their information."
And some say that without context, including credit score ranges and scores relative to other credit rating agencies, consumers will not gain much.
"That's the type of context consumers will need to get the most benefit from having this type of information," said McBride. "Otherwise, [the credit score] is just a 3-digit number, which wouldn't be terribly meaningful to many consumers."
Still the bill may open the door to wider availability of free credit scores - for example, not just when you're denied credit, but perhaps once a year as is the case with your credit report.
"The government's website (annualcreditreport.com) started much in the same way, where consumers got their free credit report when denied credit," said Cunningham. "This may be a first step toward universally providing free credit scores to consumers."
The measure, part of the massive Wall Street reform bill being debated in the Senate, would expand an existing law that, in December 2003, gave consumers the right to one free credit report every year from each of the top three consumer reporting agencies -- Equifax, Experian, and TransUnion.
The credit score, however, has not been made available for free. It is a numerical representation of the information in a consumer's credit report, which covers a consumer's entire credit history -- all debts, payment habits, and jobs held. The credit score is widely used as a shortcut by lenders, so monitoring it is crucial.
But options for getting a credit score have been limited to many "for-fee" sites. Some have lured consumers in by offering a "free" score in return for signing up to a credit monitoring service that could cost $14.95 a month or more, if consumers don't opt out before the end of the trial period.
The amendment "dramatically increases the number of people getting this critical piece of information," said Jennifer Talhelm, a spokeswoman for Sen. Mark Udall, D-Colo., who is sponsoring the effort.
A recent survey from the National Foundation for Credit Counseling found that some 65% of adults have not checked their reports in the past year. And nearly one-third of adults don't know their credit score.
Your credit score is used to determine far more than the cost of borrowing money.
Finding a job. More and more often, employers are using credit reports to help make decisions about job applicants. Employers conducted credit checks on 60% of job candidates in 2009, according to a recent survey from the Society of Human Resource Management, looking for top red flags such as bankruptcies or accounts that are in debt collection. By law, your employer must inform you if you're denied a job because of your credit history.
Buying a house. The consumer credit rating agencies use different numerical scoring systems, but generally speaking a 680 and above sits within the "good to excellent" range, while scores below 680 are labeled "ok to poor."
Only a credit score of 740 or better get the best mortgage rates, according to Greg McBride, senior financial analyst for Bankrate.com. A score between 700 and 740 could jack up interest rates by 0.5% to 0.8% on average. Anything less than 700 could be problematic in today's tight credit market.
Credit cards and student loans. If your credit score is 700 or better, you're in great shape to get the most competitive credit card rates, which average about 14% for a variable rate card. For those with marginal or poor credit, it will be more difficult to get a card at all. And those who do qualify will see lower credit limits, rates in the high teens to low 20% range, and more credit card fees, said McBride.
Even college students need to pay close attention to their credit scores because it's the primary factor in determining the rate on private student loans, which can range anywhere from 5% to 13% these days.
Auto insurance premiums. Insurers look at things like payment patterns, length of credit history, and the number of new applications for credit when calculating their risk formulas.
Not only can credit problems signal that you have little cash on hand to absorb the cost of an accident, making you more likely to file a claim, but studies have shown a correlation between bad credit and accidents. This could translate into higher premiums.
Consumers should not apply for loans, just to get their scores. Multiple "inquiries" on your credit report can lower your overall credit score.
Although experts say Udall's bill is a step in the right direction, some are concerned that it will fall flat if it doesn't address the fact that lenders use multiple scores to assess creditworthiness.
"The most widely used score is the FICO," says Gail Cunningham, a spokeswoman for the National Foundation for Credit Counseling, "but the top three bureaus' are proprietary scores based on their information."
And some say that without context, including credit score ranges and scores relative to other credit rating agencies, consumers will not gain much.
"That's the type of context consumers will need to get the most benefit from having this type of information," said McBride. "Otherwise, [the credit score] is just a 3-digit number, which wouldn't be terribly meaningful to many consumers."
Still the bill may open the door to wider availability of free credit scores - for example, not just when you're denied credit, but perhaps once a year as is the case with your credit report.
"The government's website (annualcreditreport.com) started much in the same way, where consumers got their free credit report when denied credit," said Cunningham. "This may be a first step toward universally providing free credit scores to consumers."
Tuesday, May 18, 2010
Having Trouble Closing On That New House?
Have you ever stopped to think of all the people that are involved in making a real estate closing occur.
Take a look at the list and tell me it's not a miracle when a closing happens on time.
I’m sure we could add more in today’s market with Internet technology. What do you think?
- The seller
- The buyer
- The seller's Realtor
- The buyer's Realtor
- The buyer's lender
- The lender's underwriter
- The appraiser
- The home inspector
- The FHA underwriter
- The surveyor
- The escrow officer
- The escrow processor
- The courier
- The title company underwriter
- The appointment service
- The contractors
- The notary
- The phone company
- The electric company
- The gas company
- The cable company
- The county clerk
- The buyer's employer
- The buyer's current landlord or mortgage company
- The credit bureau
- The attorneys
- The PMI company
- The home warranty company
- The MLS provider
- The tax office
- The buyer's home owners insurance agent
Friday, May 14, 2010
Lakewoodstock is this Sunday
The Lakewoodstock Neighborhood Festival is this Sunday the 16th from Noon till 8 pm. There are live bands all day long on three stages, arts, crafts, food and shopping.
The Friends of the Santa Fe Trail are also sponsoring a bike ride in conjunction with the festival. The ride will officially start at Main Street Garden, the cool new park in downtown Dallas and take the Santa Fe Trail to Lakewoodstock in Lakewood village at 1pm.
There are at least 58 neighborhood sponsors and over 70 Lakewood businesses in the immediate area that are involved.
Wednesday, May 12, 2010
Is White Rock Lake worth $528,783,552,000?
I had an opportunity to go to New York this past weekend and since the weather was so nice, I decided to take in Central Park. The park is on 843 acres right smack dab in the middle of Manhattan.Central Park has its own wildlife and also serves as an oasis for migrating birds, especially in the fall and the spring, making it a significant attraction for bird watchers; 200 species of birds are regularly seen. The 6 miles of drives within the park are used by joggers, bicyclists, skateboarders, and inline skaters, especially on weekends when automobile traffic is banned.
The real estate value of Central Park was estimated by property appraisal firm Miller Samuel to be $528,783,552,000 in December 2005.
It got me thinking about the crown jewel of our park system.
Our park is on 2,115 acres (including 1,015 of lake surface) right smack dab in the middle of Dallas. It has 9.33 miles of hike and bike trails, an Audubon Society-designated bird watching area and wetlands, tennis courts, picnic shelters, playing fields, dog park, fishing piers, boat house, historic buildings for rent, a museum and oh yea - a lake.
I'm not sure what the real estate value of White Rock Lake Park is, but to me as the Visa commercial says "it's priceless".
Beautiful Video from the Dallas Morning News
Lake Statistics
Take out the trash!
Just try to drive down Santa Monica on a Saturday morning by Lindsley Park. Cars are parked on both sides of the street while Mom, Dad and kids are running around everywhere playing soccer, grilling and having birthday parties among other things. The pathway between cars is so narrow that a suburban can barely make it through much less two cars trying to go in opposite directions. But the parking near the park is another story.It is obvious by the number of people at the park on Saturday and Sunday that it is a popular weekend activity. But drive by on a Monday morning and it looks like a war zone. The amount of paper plates, napkins, water bottles and beer bottles (which incidentally are illegal in Dallas Parks) is sickening.
Doesn't it seem like it would be a better use of the Parks and Rec departments time and money to mow, seed, landscape and repair the athletic equipment than spend their Mondays cleaning up litter?
Do your part, pitch in. If we need more trash cans, lets figure out a way to make that happen.
Monday, May 10, 2010
Tree & Plant disease/insects
Last month the eight year old Carolina Jessamine in my yard was blossoming more beautifully than in any of the past years, but this weekend I noticed that it had suddenly died.To be honest, I still don't know what attacked it or caused both plants to die but it did prompt me to examine all of my landscape. After taking samples to Redenta's on Skillman and Oram I realized that this past winter was unusually hard on our plants. My pecan tree leaves have these unusually large green pimple on them (sometimes 10-12 per leaf), the black walnut tree has some type of unknown scale or bug, a hibiscus has aphids or white fly, the shrubs and roses have scale and I mentioned the Carolina Jessamine.
Both Walton's and Redenta's have provided me with excellent counsel in the past and I am sure there are other arborist and horticulturalists in the area that would also. With that said, I don't think there is a better blog out there that either addresses or links solutions to our N. Texas landscape issues. DFW Gardening Blog
Keep an eye out because my guess is that I am not the only one who is having issues.
Real Estate Laughs
Thinking about moving? This website is always good for a few laughs while on your home search.
Wednesday, May 05, 2010
No Trespassing - Trail Closed
Although few people pay attention to them, I wonder why the city suddenly showered "No Trespassing" and "Trail Closed" signs on the Santa Fe Trail after months and months of grading, utility work, laying re bar and pouring wet concrete. They appear to be about 90% complete.
Tuesday, May 04, 2010
Got Flood Insurance......
Many of the people in Middle Tennessee didn't think they needed it either.Nashville just had an epic flood and almost no one is noticing. It seems we are too focused on an oil slick, illegal immigration and an unexploded car bomb to notice that at least 29 people are dead, historic landmarks are destroyed and homeowners who never thought they needed flood insurance are now homeless.
Makes you think that the Dallas city council's hasty decision to spend the money to fix the levees wasn't such a bad idea.
http://www.tennessean.com/article/20100504/NEWS01/5040352/Thousands+wonder+how+to+recover
The forgotten tragedy
Illegal immigration, an unexploded car bomb and an oil slick have all overshadowed a harrowing scene in Middle Tennessee.
The city of Nashville and surrounding areas had 14-15" of rain in a 24 hour period and at least 29 deaths. Thousands of homes and most major tourist sites have been devastated with rising water.
I can only hope that if something happened like this here that we would not be forgotten like they have been in Tennessee.
To make a donation, please call 1-888-540-5200 or donate online www.cfmt.org/floodrelief
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