Credit - Karen's Perspective

Mortgage Resets – Here comes the next wave

I know everyone really wants to believe the housing market is going to get better in 2010. I know we’ve all had enough of the gloom and doom, but it appears we have to brace ourselves for more of the same, at best.

We’re so used to turning the channel when we get bored with what’s on. We expect to drive up to the window and have our food ready. We swallow a pill in anticipation of instant headache relief.

But, from the looks of this graph, we’re going to be in this one for a while. It’s better to know ahead of time to be prepared. Stop spending. Save what you can, when you can. Scale back, downsize, reuse, recycle.

The real estate market will come back strong. It always does. We’ll just have to be patient a while longer.

So, what’s the good news? There’s never been a better time to invest in real estate.

If you live in the Triad area of North Carolina, we’d love to help you with your investing. Check out our Triad Master Mind. It’s a great group of local investors and we’re all working together to help each other profit through real estate.

Don’t wait to invest, invest and wait! Huge returns will be there to reap in your future.

Happy investing!

02 / 05 / 2010
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How do you Protect What you Have?

Lock by AMagill. photo by AMagill

With the implosion of the housing market, the collapse of credit, and the unpredictable ups and downs of Wall Street, how do you protect what you have?

If you listen to the news, you’ve heard that trillions of dollars have been lost in savings this year alone, 7.6 million people are newly unemployed, and there is a record high in home foreclosures & bankruptcies with more to come. Add to that the fact that, according to the Consumers Union, 8.3 million + Americans have their identities stolen each year .

The news is worrisome at best, the outlook bleak for the near future. But, don’t paralyze. Get busy informing yourself and protecting what you have and what you plan to accumulate in the upcoming years. You may not know enough now but, by this time next year, let’s all vow to be better informed.

Should you handle your finances on your own?

To begin with, know your rights and study your investments. The ones you trust your money to should know what they’re doing. Do they? Ultimately, you are the one who is responsible for your own success.

What are some pro-active things you can do?

Turned Down for a Mortgage? What’s Next?

First of all, you’re not alone. Hope that helps… According to the Mortgage Bankers Association in Washington, D.C., about half of all mortgage applicants are now being turned down. Half. Good grief, that’s a lot.

Did you receive a formal rejection spelling out the reasons you were turned down? If you were turned down because of information on your credit report, federal law entitles you to something called an “adverse action” notice.

According to the Federal Trade Commission, when credit is the issue, you’re entitled to a copy of the results showing the reason for the negative report from the credit reporting agency that provided the data on which the lender based its decision. Whew! You’re also entitled to a free credit report; see the FTC web site for more information.

You’ll want to know the reason for the rejection so you can fix what’s wrong, if anything is, and make sure you clear it up. You also want to make sure that the reason is valid and not a mistake on your credit report.

Debit Card – do you use one?

photo from TalkforFinance

We’ve talked about credit cards in New Credit Card Laws go into Effect August, 2009, and Your Credit Card is Canceled.

But we haven’t talked about Debit Cards. Do you use one? Do you know the danger if you do?

For example, if you use the card and don’t have enough money in your checking account to cover the charge, you can be fined up to $39 every single time you exceed your balance.

May not sound like much but, if you’re out shopping and charge 5 or more times, it adds up!

And, many banks don’t debit your account in transactional order. What I mean is, you could have $400 in your account and make several $20 purchases. Later in the day, if you charge $350, you’re over for the day. You would think that the three $20 purchases would not incur a fine, but, if the bank takes out your last charge first, you’ll pay a fee for every purchase made that day.

Your Credit Card is Canceled

Possibly without notice..

You may be aware that many new laws protecting consumers when dealing with credit cards have recently been passed. Credit card companies, for example, are now required to give customers a 45 day notice before making significant changes including changes in interest rates.

However, canceling cards without warning is allowed. Is this not a significant change?

Credit card companies say that, if they warn consumers that their card is going to be canceled, the user could run up the card balance and never pay it leaving the issuer on the hook.

It is required that you get notice of the cancellation, eventually, just not necessarily before it happens. You must be given notice within 30 days, which could create some very embarrassing moments at the cash register.

None of us should be dependent upon credit cards, certainly not now more than ever. Pay down your balances because, more big news, interest rates are going to continue to go up on credit cards next year and, if you have large balances, you may never get them paid off.

Pay down and pay off your cards. A good 2010 resolution may be to use them less and less.