Butler County Blog -News you can Use!

Foreclosures Move Up-Market

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Tue, 13 Oct 2009 12:02:31 -0500

RISMEDIA, October 12, 2009-Recently, there's been a fair bit of anecdotal discussion around the assertion that foreclosures, once a problem just for the sub-prime segment of mortgages, have been moving up-market. That is, people are suggesting that we're seeing more foreclosures in the mid- to high-end segments of the market.

Turns out, there's a lot of truth to this idea. In 2006, at the height of the real estate bubble, homes in the bottom one-third of home values made up almost 55% of all foreclosures. Homes in the middle one-third of home values made up almost 29% of foreclosures and homes in the top one-third represented just 16% of foreclosures. In the accompanying chart, you can see the dramatic changes in the distribution of home values among foreclosed homes. In July 2009, the bottom one-third made up 35% of foreclosures, compared to 35% and 30% for the middle and top one-thirds, respectively. Those are shocking numbers: Thirty percent of foreclosures are homes in the top tier of local home values. That means that top-tier homes make up almost twice the proportion of foreclosures as they did just three years ago.

High delinquency rates in Prime, Alt-A and Option ARM mortgage products and declining cure rates (the rate at which borrowers resolve their delinquency status) are resulting in many more foreclosures among borrowers outside of the sub-prime mortgage market (and in higher priced segments of the market). Amherst Securities Group recently provided some data showing the higher delinquency rates for these products and the strong relationship between increased negative equity and decreased probability of resolving delinquency status (see their Exhibit 9, which shows, of borrowers who are 30 days delinquent, the percentage who become 60 days delinquent by their current loan-to-value ratios, where values greater than 100 indicate negative equity). As of the end of the second quarter of this year, Zillow estimated that 23% of single-family homes with mortgages are underwater on their mortgages, so expect cure rates to stay lower than they would be otherwise.

Methodology
Looking at the distribution of foreclosures by home value can be significantly distorted by the variances in home values across the country. For example, it might appear that high-end homes as a percentage of all foreclosures is quite high nationally, but the reality is simply that areas with lots of foreclosures happen to be areas where home prices are higher. In order to better isolate the distribution of foreclosures by price segment without introducing the geographic variability of home prices, we have examined home prices while controlling for the local price level of all homes.

Specifically, from all homes in the Zillow database with valuations (~70 million), Zillow computed the ratio between the current house value and the current level of the Zillow Home Value Index for the county in which the home is located. We then computed the 33rd and 66th percentiles of this ratio and assigned all homes to three price tiers: bottom (homes where the ratio was less than the 33rd percentile), middle (homes where the ratio was between the 33rd and 66th percentiles) and top (homes where the ratio was greater than the 66th percentile). We then extracted all foreclosures since 2000 and computed, by month, the percentage of foreclosures in the month represented by homes in each price tier.

Home Price Reduction Levels Stay Above 25% for Fourth Consecutive Month

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Tue, 13 Oct 2009 12:00:28 -0500

RISMEDIA, October 12, 2009-Trulia, Inc announced that 25.6% of homes currently on the market in the U.S. as of October 1, 2009 have experienced at least one price cut. More than one in four current listings on Trulia have been reduced in price for the fourth straight month. The total amount slashed from home prices is $28.4 billion, a $967 million increase from June 2009. The average discount for price-reduced homes continues to hold steady at 10% off of the original listing price.

Northeast with Most Homes Reduced; West Sees Biggest Cuts
Five of the 10 states with the highest percentage of homes with price reductions are in the Northeast- Massachusetts, Rhode Island, Connecticut, New Hampshire and New Jersey. One in three homes in these states has cut their list price at least once.

Seven of the 10 states leading the country with the biggest listing price cuts are in the West, where heavy foreclosures have taken their toll. In Nevada, Idaho, Arizona, Wyoming, Hawaii, Utah and California, cuts are an average of 13% off the original list price. Of the $28.4 billion slashed nationally, New York, California and Florida account for 35% of the total value of reductions.

Report Findings
For the first time in four months, Jacksonville no longer holds the top spot for highest level of home-price reductions: Memphis replaced Jacksonville with 36% of current listings experiencing at least one round of discounts. Several cities continue to see high levels of cuts on home prices with Indianapolis, Milwaukee, Minneapolis, Portland and Raleigh, all earning a place in the top 10 for the third consecutive month.

"Interest in real estate typically wanes at the end of the year, which means that sellers who didn't aggressively price their homes may find themselves making difficult decisions to reduce their prices or delay the sale until interest piques again in January," said Pete Flint, Trulia co-founder and CEO. "We are seeing the beginning of this trend in the Northeast and Western United States with discounting happening at all price points, and expect it to continue."

Cities experiencing significant increases in percentage of listings with price reductions from June 2009 to October 2009 include:
-Kansas City, MO - 50% increase in price reductions
-Colorado Springs, CO - 32% increase in price reductions
-Louisville, KY - 27% increase in price reductions
-Indianapolis, IN - 27% increase in price reductions
-Portland, OR - 25% increase in price reductions
-Oklahoma City, OK - 24% increase in price reductions
-Memphis, TN - 24% increase in price reductions
-Tulsa, OK - 23% increase in price reductions
-Milwaukee, WI - 22% increase in price reductions
-Arlington, VA - 22% increase in price reductions

Cities showing the highest percentage of declines for listings with price reductions from June 2009 to October 2009 include:
-San Antonio, TX - 37% decrease in price reductions
-Las Vegas, NV - 36% decrease in price reductions
-Oakland, CA - 17% decrease in price reductions
-San Jose, CA - 16% decrease in price reductions
-Los Angeles, CA - 14% decrease in price reductions
-Honolulu, HI - 11% decrease in price reductions
-Long Beach, CA - 11% decrease in price reductions
-Dallas, TX - 11% decrease in price reductions
-Washington, D.C. - 10% decrease in price reductions
-New York, NY - 9% decrease in price reductions

Luxury Market Not Immune
Luxury homes (those listed at $2 million and above) continue to bear the brunt of discounts being offered with an average of 14% being slashed from the original asking price compared to the national average of 10%. Additionally, luxury homes represent less than 2% of all current listings on Trulia, but are responsible for 25% of the $28.4 billion in home price reductions.

Being a Green Consumer Means Living Conscientiously

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Fri, 09 Oct 2009 10:47:52 -0500

RISMEDIA, October 8, 2009-(MCT)-Green living in a down economy has become a concern for many Americans, but while adopting eco-conscious practices may seem challenging at first, it's simple to make an impact.

"It's easy to be planet-friendly and human healthy," said eco-expert Kim Carlson, founder of EarthSmart Consumer Certified, a retail product certification program that collaborates with leading environmentalists to ensure the products we buy don't damage our planet. "You just have to kind of know your way around that world and once you do-it's easy. It's just changing a few behaviors."

Minor modifications such as using power strips for your electronics and switching out your old light bulbs for compact fluorescent ones will reduce your carbon footprint and save some money, but you can always do more.

"We're hitting and bumping up against the limits of the resources here on the planet," she said. "Wise use of those resources is the whole point of being green."

Below are a few tips Carlson, author of "Green Your Work: Boost Your Bottom Line While Reducing Your Carbon Footprint" suggests to help others develop healthier lifestyles, become more aware of the environment and eat with green in mind.

Choose products with reduced packaging
As consumers, most of us don't pay attention to the packaging of the products we buy, and with all the distractions (long lines, free samples, etc.), it's understandable why.

-Tip: Pre-packaged goods are convenient but they could be packaged differently, so stick to the perimeter of your grocery store for non-processed foods, including fresh fruits and vegetables, dairy products and meats, which are both minimally processed and minimally packaged. Then hit the bulk aisle for rice, cereal, pasta and nuts. You'll have more space in your cabinets and fewer packages to toss out later.
-Reminder: Buying dry goods over wet products will result in lighter trucks using less fuel and fewer emissions released into the atmosphere.

Shop with reusable grocery bags
"Any time you can reuse something, you're ahead of the game because you don't have anything to throw away," Carlson said about the widespread use of the popular reusable shopping bags. "You don't have to worry about composting or what to do with it; you just keep using it until it wears out."

-Tip: Take advantage of new technologies when you can. "There's bags that are being produced out of bioplastics like corn and switchgrass," Carlson noted. "Things that can biodegrade."
-Reminder: Most reusable bags cost about $1, so stock up-every bag makes a difference.

Buy locally raised ingredients
Purchasing local products instead of their commercial counterparts will keep your dollars close by and guarantee fresher and more nutritious foods.

-Tip: Pay a visit to the nearby farmer's market. Buying produce such as lettuce, eggplant and potatoes from neighborhood vendors is a great way to invest in your community and purchasing in-season products will assure you of quality and lower prices.
-Reminder: Ask the sellers where the items come from at each stand to ensure they were grown in your area.

Select sustainable seafood
Fishing practices worldwide have destroyed habitats, depleted fish populations and polluted the oceans, but smarter shopping could offset the consequences of over-fishing.

-Tip: Pick up one of the Monterey Bay Aquarium's Seafood Watch pocket guides, which are handy region-specific booklets full of suggestions for favorable seafood purchases. Also, eat at your favorite restaurants that recognize the issue and work to serve quality, sustainable dishes.
-Reminder: Ask for "ocean-friendly" seafood: Arctic char, bay scallops and rainbow trout, among others, are "abundant, well-managed and caught or farmed in environmentally friendly ways," one guide states.

Green night out
It's one thing to buy local ingredients and products with reduced packaging for your meals at home, but if your family frequents restaurants several times a week, broaden your scope.

-Tip: Choose environmentally cognizant restaurants-typically non-chains-that serve locally grown cuisine, recycle waste and conserve energy resources.
-Reminder: When you come across a great eco-friendly restaurant, spread the word!

Other ways to make an impact
Eating is a social bonding experience; it should be a carefree occasion, not a chore.

-Tip: Plant your own garden, replace meat with wheat or introduce unusual grains into your diet to mix things up a bit.
-Reminder: When cultivating a garden, you can choose to go all-organic with soil, plants and fertilizer, or low-impact, by abstaining from using pesticides.

1.4 Million Families Have Taken Advantage of First-Time Home Buyer Tax Credit, More Claims Expected

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Fri, 09 Oct 2009 10:45:04 -0500

RISMEDIA, October 8, 2009-With the First-Time Home Buyer Tax Credit deadline quickly approaching, the Internal Revenue Service recently reminded potential home buyers they must complete their first-time home purchases before Dec. 1, 2009 to qualify for the special first-time home buyer credit. The American Recovery and Reinvestment Act extended the tax credit, which has provided a tax benefit to more than 1.4 million taxpayers so far.

The credit of up to $8,000 is generally available to home buyers with qualifying income levels who have never owned a home or have not owned one in the past three years.

The IRS encouraged all eligible homebuyers to take advantage of the first-time home buyer credit but at the same time cautioned taxpayers to avoid schemes that help ineligible people file false claims for the credit. Currently, the agency is investigating a number of cases of potential fraud and is using computer screening tools to identify questionable claims for the credit.

Because the credit is only in effect for a limited time, those considering buying a home must act soon to qualify for the credit. Under the Recovery Act, an eligible home purchase must be completed before Dec. 1, 2009. This means that the last day to close on a home is Nov. 30.

The credit cannot be claimed until after the purchase is completed. For purchases made this year before Dec. 1, taxpayers have the option of claiming the credit on their 2008 returns or waiting until next year and claiming it on their 2009 returns.

For those considering a home purchase this fall, here are some other details about the first-time home buyer credit:

-The credit is 10% of the purchase price of the home, with a maximum available credit of $8,000 for either a single taxpayer or a married couple filing jointly. The limit is $4,000 for a married person filing a separate return. In most cases, the full credit will be available for homes costing $80,000 or more.

-The credit reduces the taxpayer's tax bill or increases his or her refund, dollar for dollar. Unlike most tax credits, the first-time home buyer credit is fully refundable. This means that the credit will be paid to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

-Only the purchase of a main home located in the United States qualifies. Vacation homes and rental properties are not eligible.

-A home constructed by the taxpayer only qualifies for the credit if the taxpayer occupies it before Dec. 1, 2009.

-The credit is reduced or eliminated for higher-income taxpayers. The credit is phased out based on the taxpayer's modified adjusted gross income (MAGI). MAGI is adjusted gross income plus various amounts excluded from income-for example, certain foreign income. For a married couple filing a joint return, the phase-out range is $150,000 to $170,000. For other taxpayers, the range is $75,000 to $95,000. This means the full credit is available for married couples filing a joint return whose MAGI is $150,000 or less and for other taxpayers whose MAGI is $75,000 or less.

-The credit must be repaid if, within three years of purchase, the home ceases to be the taxpayer's main home. For example, a taxpayer who claims the credit based on a qualifying purchase on Sept. 1, 2009, must repay the full credit if he or she sells the home or converts it to business or rental use at any time before Sept. 1, 2012.

Taxpayers cannot take advantage of the credit even if they buy a main home before Dec. 1 if:

-The taxpayer's income is too large. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above.

-The taxpayer buys a home from a close relative. This includes a home purchased from the taxpayer's spouse, parent, grandparent, child or grandchild.

-The taxpayer owned another main home at any time during the three years prior to the date of purchase. For a married couple filing a joint return, this requirement applies to both spouses. For example, if the taxpayer bought a home on Sept. 1, 2009, the taxpayer cannot take the credit for that home if he or she owned, or had an ownership interest in, another main home at any time from Sept. 2, 2006, through Sept. 1, 2009.

-The taxpayer is a nonresident alien.

6 Financial Moves That Sound Good -- but Aren't

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Fri, 02 Oct 2009 12:21:32 -0500

by Erin Joyce
Thursday, October 1, 2009

provided by

For most people, each and every day involves some type of financial decision. So how do you feel about your financial decision-making skills? If you think you are making sound choices, ask yourself this: Have you weighed the consequences of your choices against their apparent benefits? In many cases, the answer is no.

5 Ways to Make Your Nest Egg Last a Lifetime

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Fri, 02 Oct 2009 12:18:04 -0500

RISMEDIA, September 26, 2009-(MCT)-Back in the good old days, before the crisis of 2008-09, many experts suggested that all you needed to do was withdraw 4% per year, adjusted for inflation, from your nest egg. That strategy, experts said, was a near-guarantee that your nest egg would last a lifetime.

Well, go tell that to the guy selling apples and pencils on the street corner. Yes, conventional wisdom has proven to be more conventional than wise. And now everyone is trying to figure out the best way to turn a nest egg into an income stream that will last throughout retirement. And that includes AARP, which recently released two tip sheets that "challenge conventional thinking and offer general guidance about how to make the best decision for you and your circumstances."

One of the tip sheets, "Making Your Nest Egg Last a Lifetime," which was written by Anthony Webb of the Center for Retirement Research at Boston College, suggests the following:

1. Delay claiming Social Security.
Retirees and would-be retirees need to consider matching their fixed and best-case, inflation-adjusted sources of income against their fixed expenses. And one way to create the best inflation-adjusted source of income at the moment is to delay taking Social Security for as long as possible, certainly at least until your full retirement age if not longer, said Janet McCubbin, director of financial security at AARP's Public Policy Institute.

At the moment, many people claim Social Security-even though it means a reduced benefit-at age 62, using the faulty logic that they may not live past the so-called break-even point. The break-even point is the date at which the sum of your reduced early benefits no longer exceeds what you would have drawn with the heftier, delayed benefits.

There are plenty of Wed-based calculators to help you figure your break-even age, but such calculators fail to address at least three issues. One, the calculators typically don't address married couples. As is well known, husbands tend to die before their wives. And that means husbands who take a reduced Social Security benefit ultimately reduce their surviving spouses' benefit as well. Two, predicting your life expectancy is nearly an impossible task. And three, creating the largest Social Security benefit is fast becoming a basic component of a sound retirement-income plan.

"Delaying is like buying extra income that lasts a life time," said McCubbin. "For most it's optimal for the husband to wait to collect till at least full retirement."

2. Consider purchasing an annuity.
It's not right for everyone, said McCubbin. But for those who are retiring with a large nest egg and who don't have enough fixed and guaranteed sources of income to match their fixed expenses, an annuity might fit the bill. In essence, you want a fixed and dependable stream of income that covers your basic living expenses, she said.

According to AARP, an annuity would not, however, be appropriate for someone with little in savings or someone with a large share of preretirement income already replaced by Social Security or by a traditional pension plan. Annuities are not without their problems at the moment. Pricing is affected by adverse selection, for instance. But McCubbin said much is going on in the way of product development that could make annuities more widely accepted over the next few years. Such developments include in-service annuities, trial annuities and security-plus annuities, as proposed by the Aspen Institute.

3. Pay down your mortgage.
Many would-be retirees should enter retirement debt-free, owning their home free and clear, according to McCubbin. Unfortunately, many would-be retirees pay little attention to their homes as an integral part of their retirement-income planning process. In fact, most people age in place until they become sick or a spouse dies and then they decide to sell their home, according to AARP.

Instead, homeowners should analyze far in advance their living arrangements and whether they want to have a mortgage in retirement. According to AARP, some retirees might also want to consider whether a reverse mortgage is appropriate as well. A reverse mortgage is a complicated and sometimes expensive transaction so it's wise to get a handle on the pros and cons of such products before signing any contracts, AARP said.

4. Allocate your assets wisely.
Many retirees place large portions of their nest eggs in investments that provide a guaranteed return on capital. According to conventional wisdom, retirees should rebalance their nest eggs in favor of bonds as they age. But AARP's view is that retirees should build portfolios that are broadly diversified and based on one's tolerance for risk.

5. Withdraw funds carefully.
And that brings us back to the place we began. Conventional wisdom suggests that you should withdraw no more than 4% of your savings during retirement. But now, at least according to AARP, retirees need to be a bit more thoughtful and flexible about this.

"In tough economic times, you may want to withdraw a smaller percentage of your savings, if possible," AARP said. "When the returns on your investments improve, you can increase your withdrawals. Given the fluctuating nature of this income stream, consider pairing this changing income stream to variable or lifestyle expenses, such as gifts, vacations, etc."

What's more, AARP suggested that the amount retirees ultimately withdraw should be based on realized returns, not rules of thumb. It's not easy to make your nest egg last a lifetime and the process is only likely to get harder. But AARP's five suggestions are certainly a step in the right direction.

Treasury Says Millions More in Foreclosures are Coming; Are You Ready?

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Fri, 02 Oct 2009 12:16:28 -0500

RISMEDIA, September 17, 2009-According to recent announcements by the U.S. Treasury Department, another wave of foreclosures is on the way in 2010. For over a year, now, we've been digesting foreclosures and distressed properties and it looks like we'll all be doing it for another year or so. It's too large a market segment to ignore: in some parts of the country, distressed properties account for about 65% of sales these days. While some agents sniff imperiously and decline to partake in such unpleasant things as foreclosures, short sales, and Bank Owned Properties, others are laughing all the way to the bank.

They are not laughing at the plight of their sellers, they are laughing because -broken down to its simplest truth, the foreclosure craze breaks down to this -everyone wants a bargain, and it is a fact that a great many people who rise to the bait of foreclosure properties are simply looking for a bargain. Nothing drives investors like smelling bargains, and there are bargains aplenty in most markets these days. Do you have any properties in your inventory you consider a bargain? Then you should adjust your website to include foreclosures, because - to Internet buyers-"Foreclosures" and "bargains" are interchangeable.

Why you need to target Foreclosures and Bank Owned Properties

People are searching online for "Foreclosures" and "Bank Owned Properties" in your marketing area right now, regardless of your location. Will they find you when they do so? As we said above, many investors are prowling these channels looking for bargains. One such investor found Melanie Ross, the top agent with Coldwell Banker in Benicia, CA (and top-ten agent for CB in all of California) and Vallejo, CA. This one investor purchased nine homes through Ross early this year. In just the last quarter, Ross sold 15 homes with the help of her website and she has plenty of transactions pending for this quarter.

Frequently, agents who know what they are doing can make multiple sales to one client. These clients are not investors, just people that need help and who are grateful to receive it when up to their necks in alligators. For example, here's another real-life example that happened as I was writing this article: Joyce Tietz of Altera in Antioch, CA, received a call from a woman going through a divorce who was facing foreclosure and who was desperate to do a short sale. "I never look down on people having problems," Tietz says. "I just try to do my job that can help them, and the results are really gratifying." In this case, not only was Tietz able to stop the foreclosure proceedings and find a buyer for the property, she also was able to find a more reasonably priced property for the woman to acquire: One client, two sales. Opportunity is lurking in distressed situations.

What you can do to position yourself online to participate

The first thing you must do is adjust your attitude. There is no shame in helping people; whether it's helping someone eager to unload their home, or someone looking for a home they can afford. Anyone who says otherwise is just plain wrong.

Second, there are some basic technological things you can do to help yourself be found when people go online looking for foreclosed or bank-owned properties.

These include:

-Adding the terms "foreclosures" and "bank owned properties" to your html tags and something about them on your homepage;
-Adding pages and tabs on your site to include those subjects, along with a full explanation of what makes a short sale and how it works for the homeowner;
-Compile a list of such properties by towns in your marketing area and offer them at no cost to people who contact you;
-Advise people never to pay for such a list as you will provide it to them once you have their contact information. Then, call them and chat about it for a moment before telling them you're sending the list. Perhaps something good will develop from that brief chat, perhaps not; but you'll be talking to people interested in bargains, and that's never a bad thing in a bargain-filled marketplace.

What you should NOT do

Many agents want to implement all sorts of high-tech mapping solutions and other goodies to show prospective buyers every possible thing about every possible foreclosure in their state. It may be cool to give away all that information, but it will not be even 20% as effective as having the visitor contact you for a foreclosed properties list in the town they want to look for a home in. Ninety-five percent of agents and brokers fail at Internet marketing. They fail for different reasons, but a constant major reason is that these agents haven't figured out that the purpose of your website is to help you sell and list more homes, it is not to inform the world about everything they might ever want to know; conversely, your website exists to help you sell what you have and to bring you a source of prospects you would otherwise never engage.

To put it even more simply, it's not about giving information away. It's about collecting information from real people who want more of it-information that you make your living providing professionally. Do not give away information without getting some in return and you will have plenty of interested prospects to call on every day. Give them information they want, like lists of foreclosed or bank owned properties, and they will allow you to engage with them.

The suitcase and the handle effect

It is easier to be found on the Internet under "foreclosures" than under "real estate." However, one of the great things about the Internet is that as you are found under ANY description more, you begin to be found under all descriptions pertaining to real estate more. Thus, you will also start getting more leads from regular buyers and sellers. (We call this "the suitcase and the handle" and you can read about how it works here: http://www.theblackwatercg.com/what_we_do.html). Also, a beautiful thing about the Internet is that once it starts working for you it gets stronger with time.

In response

A few people write me from time-to-time and chide me for not going into more detail on these matters in these articles. To some of them, it appears that more could be explained. Folks, all I can say is that it is not easy to communicate complex ideas in 1,500 words. This article is meant to get you thinking about what you can do to partake of the coming resurgence in foreclosures and if you will think about what you can do and do just a few simple things, you will do better online. Thus, I invite you all to visit that site above and download any booklet you see there. Just go to "Success Stories" and hit the "Success Guides" button. These booklets are popular and filled with useful information and far more detail as to what it takes to succeed at online marketing for Realtors. They are also totally without cost, no one will call you, and you'll get our complimentary online marketing tips newsletter each month automatically.

Remember; it's not about foreclosures, it's about bargains. In the case of "foreclosure" seekers, they're really looking for "bargains." So, get smart and give the people what they want in your online marketing: access to lists of "bargains."

If you are in a marketplace where a large percentage of transactions involved distressed properties, why would you not want a piece of that marketplace for yourself? Bargain properties exist today in all price ranges-luxury to basic. I assure you that the commission checks on bargain properties cash just as smoothly as those for conventionally priced properties, but they come far more frequently, and at full commission, too.

Mike Parker has written more than 200 published articles about online marketing services for Realtors. For help in making your site effective for foreclosures or to request a free review of your website to determine if it can be found by Internet buyers and if it is set up to be effective for you, click here and we'll review it for you at no cost or obligation.

8 Ways to Stay Positive in Today’s Market

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Tue, 08 Sep 2009 11:10:45 -0500

RISMEDIA, June 26, 2009-So many real estate professionals today are wondering, "How can I stay positive in today's market?" Like any discriminating real estate professional, you realize the value of a positive mental attitude. Here are eight ways that you can create and maintain a positive mental attitude in today's market:

1. Avoid toxic people. What does this mean? Who are the toxic people? Toxic people can be well-meaning people but when they talk to you, they are coming from a negative attitude about money, finances, and especially about the current real estate situation.

They may be fellow real estate professionals who want to gather around the water cooler, they may be relatives who are just trying to protect you; they may even be friends and family.

You will know if you've been around a toxic person, because you will begin to feel deflated.

Here's your job: either change the subject or walk away. Better yet, speak up for yourself and mention that you want to think positively about yourself and about your business.

If you see one of them coming your way find a way to avoid the interaction because it does not serve your highest good (or theirs).

2. Set an internal boundary. If you've tried everything and exhausted ways to avoid toxic people, then you may have to set an internal boundary. You can do this very simply by having your own inner conversation if someone is saying something negative to you on the outside.

A great example of an inner conversation when someone is complaining about their business or about the marketplace is to say to yourself, "that may be true for you but it's not true for me." This can become your inner mantra.

3. Avoid the media. Why? Remember that the intention of the media is to sell newspapers and magazines. The more they can paint a negative and fearful picture, the more their sales go up. Why subject yourself to negative spins on the economy when you can find just as much information to point to the positive?

4. Successful real estate professionals do well in any market. Were you aware of that? Knowing that fact, none of us can continue to use the excuse about the market being bad. In fact, I am coaching several clients right now who in the last six months have doubled and tripled their incomes. In addition to the right marketing strategies and regular lead generation activities, you could help yourself with this empowered belief:

"I now draw clients to me who are ready, willing and able to make a transaction in the next 30 days."

5. Look for the opportunity in today's marketplace. There are many opportunities in today's market and successful real estate professionals are taking advantage of them.

Did you know that Donald Trump is buying up as much property as he can? Why do you think that is? He is a smart businessman, to say the least, and knows that this is the best time to buy.

Let your prospective clients know this and then say to them, "Let's get you a deal." Few could resist this invitation.

6. Remember that your success depends on your mindset, not on the outer conditions of the market. "If you believe you can or you can't, either way you are right," Henry Ford.

What mindset do you choose to nurture inside yourself? Do you want to believe, "I can "or "I can't". Your beliefs create your reality so whatever you choose to believe will become true for you.

7. Remember to engage the Law of Attraction as one of your most powerful tools. The law of attraction states that you get what you focus your attention on. Furthermore, your beliefs create your reality so choose your beliefs carefully.
Here's a tip: instead of saying "I can't possibly succeed in today's market," choose instead to focus one of these beliefs:

- "I achieve whatever I set my mind to"
- "I am a money magnet in any situation"
- "I attract clients who appreciate and respect my expertise"
- "My success depends on my attitude, not on any outer circumstances"

8. Be proactive. In any marketplace there are always people wanting to buy and sell homes. They need your help and they need your expertise. Your job is to become visible to them. In today's market, they are not likely to fall in your lap.
However with a good system of lead generation, you can contact them and use your intention to attract your ideal clients.

Clear out any self-limiting beliefs that stop you from picking up the phone. Follow the suggestions mentioned above and you'll be happy to notice that are only are you staying more positive, but also your income is increasing as well.

Dr. Maya Bailey, author of Law of Attraction for Real Estate Professionals, integrates 20 years of experience as a psychologist and 12 years as a business coach with her expertise in the Law of Attraction. Get Bailey's free report, 7 Simple Strategies For More Clients in 90 Days, by visiting www.90DaystoMoreClients.com.

New Credit Scoring Model May Boost Some Borrowers’ Scores

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Tue, 08 Sep 2009 11:03:20 -0500

RISMEDIA, September 1, 2009-(MCT)-Even the most responsible borrowers slip up sometimes. Maybe a utility bill went unpaid after you moved and the missed payment went into collections. Or, perhaps there are unpaid library fines or parking tickets in collections that are hanging onto your credit history and affecting your FICO credit score, which is widely used by lenders to evaluate your ability to repay a debt. With the newest version of the FICO credit-scoring system, however, minor delinquencies are now overlooked in calculating creditworthiness. Under the updated scoring model, called FICO 08, small, missed payments lingering in collections with original amounts of $100 or less will no longer do damage to your credit score. Consumers also are less likely to be penalized for any single delinquency if it occurred two or more years ago-and if their credit history is otherwise unblemished, says FICO, formerly Fair Isaac Corp., which developed the FICO scoring system.

"There's more flexibility with missing a payment," said Careen Foster, director of global scoring product management for FICO. "If you have a more habitual pattern of paying accounts late, you're more likely to get penalized for that." If a consumer's credit usage is high, that will be more likely to hurt his or her score with FICO 08. But getting close to your credit-card limits-even if you always pay on time-is penalized in some way in every FICO score, not only the recent edition, Foster said.

The new system has been available at all three credit bureaus-Experian, TransUnion and Equifax-since last month. The changes were made to provide lenders with a better risk assessment of borrowers, said John Ulzheimer, president of consumer education for Credit.com, a consumer education and advocacy site. FICO decided that one small library fine didn't really predict whether a consumer was likely to default, for example.

With the changes, individuals who pose a low credit risk will probably see their scores rise a bit, and those who are high risk could see their scores drop, he adds.

FICO 08 also addresses "piggybacking," a practice used by credit-repair companies to help people improve their scores, Ulzheimer said. In piggybacking, an individual pays to become an authorized user on a stranger's account. The account holder gets paid for allowing the person to be associated with the account, and the new authorized user is able to improve his or her credit score.

"It was a practice to misrepresent what your credit looks like to your bank," Foster said. FICO 08 aims to single out individuals who are named as authorized sources through deceptive means, Ulzheimer said. Those people won't see their credit scores rise as a result. But the scores of legitimate authorized users will be treated as they always have been.

Borrowers shouldn't expect their credit to be graded by this new scale on every loan they now apply for. Not all lenders have adopted the new model, though more than 400 lenders are using or testing FICO 08, the company said. In a statement, Equifax said, "Currently, many lenders and businesses are validating the new score within their systems, and adoption will vary by financial institution based on business requirements and market need."

Many credit-card companies, auto lenders, regional banks and credit unions may have already adopted FICO 08, Ulzheimer said. But for mortgages, lenders doing traditional conforming loans backed by Freddie Mac and Fannie Mae likely haven't made the move yet, he said. That's because they're waiting for Freddie and Fannie to approve its use. Freddie Mac and Fannie Mae "are essentially the lender, they're the ones that set the underwriting criteria," he said. Ulzheimer said he expects Freddie and Fannie to adopt FICO 08 by the end of the year. Fannie declined to comment on FICO 08; Freddie wasn't able to provide a comment prior to publication.

While FICO 08 will help consumers' credit scores in some cases, people still should take steps to improve their credit. Granted, it's impossible for consumers to calculate their FICO scores themselves, said Rodney Anderson, of Rodney Anderson Lending Services in Plano, Texas. "It's almost like the Coca-Cola formula. No one has access to the Coca-Cola formula, no one has access to the FICO formula," he said. But by being proactive, you can start to work toward a higher score, something that will serve you well every time you apply for a loan.

Some suggestions for improving your credit score:

-Monitor your credit reports and correct errors. Look not only for negative events on your record, but also examine the credit limits to make sure they're accurate. If the credit limits appear lower on the report than they actually are, that has the potential to hurt your score.

-Pay bills on time and keep card balances low. Your payment history, and the amount you owe on your accounts as a ratio of the amount of credit you have access to, are important components of your score. FICO 08 is more sensitive to high credit usage, and consumers may see a lower score if their reported balance on one or more cards is near the account's limit.

-Take on new credit only when you need it. Some credit cards come with great offers, including a percentage off your bill if you sign up for one at the cash register. If you accept, make sure you're getting a big enough benefit to make it worthwhile-taking on additional credit could end up dinging your score.

Dow Jones Economic Sentiment Indicator Rises for Sixth Consecutive Month

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Tue, 08 Sep 2009 11:01:57 -0500

RISMEDIA, September 1, 2009-The Dow Jones Economic Sentiment Indicator (ESI) reached its highest level in a year rising to 35.5 in August, the sixth consecutive monthly increase. The ESI's continued improvement lends guarded support to the growing view that the U.S. economy may be moving out of recession and into a period of recovery.

"In addition to the ESI's positive trend, we've seen several months of positive movement in the Leading Economic Index and industrial production which have in the past signaled a move to economic growth," said Dow Jones Newswires ‘Money Talks' columnist Alen Mattich. "The continued improvement of the ESI coupled with the gains of other leading indicators is a sign that the U.S. economy continues to steer a course towards recovery."

Mattich points out, however, that it would be premature to call an end to the recession. "It will be months before the National Bureau of Economic Research determines the timing of the recession's trough and a return to growth. We continue to wait for the ESI to reach the upper 30s before anticipating an end to the recession and thereafter for it to reach the upper 40s before sentiment suggests the recovery is sustainable," Mattich said.

The National Bureau of Economic Research (NBER) is the official arbiter of U.S. economic cycles, identifying the dates of peaks and troughs that frame economic recession or expansion. On December 1, 2008, the NBER announced that it had determined the current recession began a full year earlier, in December 2007. The NBER's determination that November 2001 marked the end of the U.S. economy's previous recession was announced on October 21, 2003, 23 months after the economic recovery had begun.

The Dow Jones Economic Sentiment Indicator aims to predict the health of the U.S. economy by analyzing the coverage of 15 major daily newspapers in the U.S. It uses a numerical scale from 0 to 100 to express the balance of sentiment in articles about the economy. The ESI represents one of the most comprehensive and far-reaching examinations of media coverage as an economic indicator. The ESI's back-testing to 1990 shows that the ESI clearly highlighted the risk that the U.S. economy was sliding into recession in 2001 and 2008 and suggests the indicator can help predict economic turning points as much as seven months in advance of other indicators. Unlike some other indicators where 50 is a clear break-point between recession and recovery, the ESI needs to be read with reference to longer trends. Based on the ESI's performance since 1990, previous recoveries have been marked by substantial month-to-month gains, with a jump of three points seeming to be a sign of significant improvement. A drop below 50 marks the point at which there is a clear risk of a slowdown.

For more information, visit www.dowjones.com.

Economic Troubles Encourage Coupon Savings Habit

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Tue, 08 Sep 2009 10:56:50 -0500

RISMEDIA, September 3, 2009-Since the financial crisis deepened a year ago, coupon use has been on the rise. Marketers made substantially more coupons available to encourage consumer purchases, and shoppers responded by increasing their coupon use by approximately 20% during the first half of 2009.

That double digit growth in coupon use started during the fourth quarter of 2008 and coupon redemption has continued to rise ever since. "Coupons are even more influential in consumer purchasing decisions today due to the economic downturn as shoppers realize it's the smart thing to do," says Charles Brown, Co-Chair of the PMA Coupon Council. "Both manufacturers and retailers are promoting at a greater pace to appeal to consumers who are seeking deals to stretch their budget and changing their spending habits in ways that are expected to continue permanently, even when the economy recovers."

PMA Coupon Council Co-Chair Matthew Tilley adds, "Given the new frugality of American households brought on by the current economic hardship, the interest in finding new and additional ways to save is expected to continue. Coupons are a perfect fit as a convenient way to save a good deal of money without a lot of effort. That's something everyone likes to do, in good times and bad."

Coupon Statistics

-$3 billion of savings were achieved by consumers using packaged goods coupons last year.
-More than $400 billion of packaged goods coupons are offered annually.
The average value offered per coupon is approximately $1.35.
-94% of the overall population report that they have used coupons when shopping (for grocery, household and healthcare items), an increase of 5 share points.
-89% of the overall population report that they have prepared a shopping list using coupons, up from 78% who said they did so a year ago.

September is National Coupon Month, which is sponsored by the PMA Coupon Council. That makes September a great time for shoppers to refine their coupon saving skills by better organizing the coupons they receive, clip, or download to maximize their share of the $400 billion dollars of discounts available annually in the U.S.

"Once someone creates a coupon habit, they can achieve a lifetime of savings," said Brown. "The typical family can easily save $1,000 annually by spending just 20 minutes a week seeking, clipping and organizing their coupons. If you do that every year for the next 30 or 40 years, that's $30,000 or $40,000 at today's value of money. Imagine how you can stretch your budget over time by routinely using coupons when shopping."

"Organization is key," said Tilley. "Many shoppers sort coupons by category and keep their coupons in a file or envelope. But no matter how you organize your coupons the point is to be sure you take them with you to the store. When it becomes part of your shopping routine, the savings can be enormous."

For more information, visit http://www.nationalcouponmonth.org.

First-time Home Buyer? Get an Inspection

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Tue, 04 Aug 2009 13:17:17 -0500

RISMEDIA, July 9, 2009-As many consumers are considering buying a house to take advantage of first-time home buyer tax credits, the American Society of Home Inspectors (ASHI) reminds them about the importance of getting a professional home inspection. According to the IRS, the first-time home buyer tax credit allows taxpayers who have not owned another principal residence at any time during the three years prior to the date of purchase to deduct the lesser of $8,000 or 10% of the purchasing price of their home if they purchase before Dec. 1, 2009. This has encouraged many young professionals in their 20s and 30s to consider buying a house or a condominium.

"To minimize unpleasant surprises and unexpected difficulties, home buyers will want to learn as much as they can before they buy," said Bill Richardson, 2009 ASHI President. "A home inspection may identify the need for major repairs or builder oversights, as well as the need for maintenance to keep the house or condominium in good shape. With many choices on the market right now, including foreclosures and short sales that can sometimes be riskier for buyers, an inspection is especially important."

A standard home inspector's report will cover the condition of the home's heating system; central air conditioning system (temperature permitting); interior plumbing and electrical systems; the roof, attic and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement and structural components. The report will include covered systems and components the home inspector finds that are not functioning properly, significantly deficient, unsafe, or are near the end of their service lives.

According to a GAO (Government Accountability Office) study*, many home buyers do not know that appraisals are not home inspections and that the Department of Housing and Urban Development recommends that buyers obtain a voluntary home inspection. Many also think that FHA performs inspections automatically or do not realize that they need to initiate an inspection.

"Home buyers should know a professional home inspection is an examination of the current condition of a house," Richardson said. "It is not an appraisal, which determines market value."

Richardson also said that consumers should know that they can hire a home inspector after they've made an offer on a home and before closing. They also can request to have their offer be contingent on the findings of a home inspection, and have it stated in the contract. In some cases, home buyers also may be able to renegotiate their offers because of the results of the home inspection.

ASHI members applauded Congress for reinforcing the importance of a home inspection with the Mortgage Reform and Anti-Predatory Lending Act, which recently passed by a wide margin in the House of Representatives. Several provisions in the bill, which were supported by ASHI and championed on Capitol Hill by Rep. Nydia Velazquez (D-NY), advocate for first-time and low-income home buyers.

The Mortgage Reform and Anti-Predatory Lending Act includes language requiring the HUD to:

- Inform potential home buyers in both English and Spanish of the availability and importance of obtaining an independent home inspection;
- Publish HUD's "For Your Protection: Get A Home Inspection" and "Ten Important Questions to Ask Your Home Inspector" advisories; and
- Create a new booklet for home buyers advising them to obtain a voluntary home inspection addressing both FHA and non-FHA home sales.
- Home buyers can locate their closest ASHI inspector to schedule an inspection through ASHI's website at www.ASHI.org. ASHI's "Find an Inspector" tool allows homeowners to locate an inspector in their area by language or services provided.

Keep Summer Learning Going with Kids’ Garden

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Sun, 05 Jul 2009 23:18:27 -0500

RISMEDIA, June 20, 2009-(MCT)-Once school is out, kids look for stuff to do. Gardening could be part of the plan. In fact, gardening could be summer school in disguise, teaching kids math, science, nutrition and physical health lessons that are fun and adventurous.

At Coventry Elementary School in Yorktown, Va., schoolchildren have been planting tomatoes, carrots, squash, beans and lettuce in a school garden. Yorktown master gardener Barb Dunbar and other master gardeners guide them through the process.

"We planted spinach and quite a few said they had never had spinach in a salad but were going to try it," she says.

The kids do their gardening organically and plant herbs to host caterpillars that turn into butterflies.

"Many parents come back and say their child wants a vegetable garden at home after doing one at school," says Barb.

If you opt to garden with youngsters this summer, use these pointers from Melissa Butler, curator of herbaceous plants at the Norfolk Botanical Garden in Norfolk, Va., where there's a special hands-on garden set aside for curious kids.

-Let kids pick the seeds and/or plants. They may not like to eat tomatoes but if they pick out the colorful seed packet with the picture on it, or nurture a seedling to maturity, they are probably more willing to give the veggie a taste.

-Look for vegetable names kids will like - Cinderella pumpkin, Atomic Red carrot and Zebra eggplants.

-Skip the garden chemicals. It's a wonderful experience to pick a vegetable like a cherry tomato right out of the garden and pop it in your mouth.

-Use an inexpensive magnifying glass. See who can find the weirdest, coolest, pretties and tiniest things in the garden. Buy dollar store gifts as prizes.

-Learn a little, teach a little. The Internet is a wonderful source of information you can share with kids, factoids that will get their attention. For example, did you know a cucumber is 20 degrees cooler on the inside than the outside temperature?

-Chill out. Even the best farmers have crop problems or failures. A raccoon may get the first cukes, the beans may wither if you forget to water them or a kid accidentally steps on the tomato seedlings while he's planting squash. Move on to the next packet of seeds or tray of seedlings and just enjoy being outdoors.

-Share some. Encourage kids to plant extra crops for the food bank, an elderly neighbor or a needy family you know.

-Reap what you sow. Often a vegetable garden is abandoned after the initial spring enthusiasm. Keep the project going by adding marigolds, new crops and different game-like lessons. Power off everything and get out in the garden - kids and parents. When you fix burgers and dogs on the grill, add some vegetables from the garden and munch a bunch of what you grow.

The $8,000 First-time Homebuyer Tax Credit – A Great Tool

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Sun, 05 Jul 2009 23:15:35 -0500

RISMEDIA, April, 2009-The recently enacted first-time homebuyer tax credit is making a big splash with Realtors® across the country. Traffic and interest have increased as the word has spread to potential home buyers. While there are rules and limits governing the credit, a lot of people stand to benefit. In fact, NAR's economists estimate the credit could contribute up to 500,000 more home sales this year. In fact, first-time home buyers made up more than 50% of the market in the most recent NAR home sales release. Coupled with historic affordability and record-low interest rates, the new credit is yet one more reason why it is a good time to buy for many people who have been sitting on the fence.

The new credit is retroactive to January 1, 2009. The repayment feature has been eliminated for 2009 purchasers. Regrettably, the old $7,500 credit (which was more like a 15 year, interest-free loan) for purchasers in 2008 must still be repaid. Realtors banded together, however, to convince Congress to remove the repayment feature, increase the credit, and make it available to everyone. When the stimulus proposal was introduced, the tax credit wasn't even included so we faced an uphill battle. Thanks to nearly 300,000 letters from Realtors and the hard work of NAR's leadership we did get the repayment feature removed and got the credit increased to $8,000 (though not the $15,000 we were hoping for). However, it is still for first-time home buyers only.
Here are some basic rules about the credit:

1) It is available to first-time home buyers only, but that means people who have not owned a home in the past three years. The home must be the principal residence and there is a recapture provision if one moves out or sells before the end of three years.
2) It is limited by income and starts to phase out for individuals at $75,000 and couples filing jointly at $150,000. The credit completely phases out at $95,000 and $170,000 respectively.
3) It expires on November 30, 2009. For existing home buyers you must close by that date, for new construction buyers you must occupy by that date.
4) It is not available directly at the closing table, though a number of states are creating bridge loan programs. So far, Colorado, Idaho, Missouri, Nebraska, Ohio, Pennsylvania, South Dakota, Tennessee and Texas have or expect to have bridge loan programs up and running. There are other ways to leverage the credit at closing, but you must close before you can claim the credit.
5) One does not need to wait till 2010 to claim the credit. One can claim it on their 2008 taxes by filing an amended return after they close on their home. If one has not filed yet, they can claim it on their return due April 15th or file for an extension. The credit is 10% of the price of the home or $8,000, whichever is less. If more than one eligible person is making the purchase, the credit must be divided. In other words, it is up to $8,000 per home purchased, not per first-time home buyer. So if two eligible buyers buy a home together, they must split the credit. The same is true for a married couple filing separately. Best of all, the credit is refundable, which means even if one does not owe taxes or is entitled to a refund, the credit is added to the refund.
6) There aren't many restrictions on the type of home, even houseboats are included; however, one cannot purchase a home from a close relative.

These are the basic rules regarding the credit. It should be noted that we have no indication that in a situation where, for example, a mother and son are purchasing a house jointly and the mother is not a first-time home buyer, that the son is ineligible to claim all or part of the credit. As long as the first-time home buyer meets the rules, they can claim the credit. There are scenarios where the credit might have to be reduced or divided depending on the structure of the deal.

As with all tax matters, responsibility for complying with the tax code belongs to the taxpayer. Real estate professionals should recommend that their buyers consult their tax professionals to ensure eligibility for the credit and the proper way to claim the credit. For more information including the required IRS form visit: www.realtor.org/2009housingtaxcredit.

7 Tips for Consumers Preparing to Purchase a Home

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Sun, 05 Jul 2009 23:13:51 -0500

RISMEDIA, June 3, 2009-June is National Homeownership Month and like many other consumer advocates, the Oregon Bankers Association (OBA) urges consumers to get informed as they prepare to buy a home. Today, there are a growing number of obstacles for home buyers, including a higher credit score standard and more restrictions on credit. Despite current challenges in the secondary mortgage market, home loans are available to credit-worthy buyers and Oregon banks stand ready to assist prospective home buyers.

Whether you live in Oregon or New Jersey, or anywhere else in between, it's crucial that you have a thorough understanding of the changing market when shopping for a mortgage. Here are seven tips to help you do exactly that:

1. Learn about first-time home buyer programs. Consider taking a first-time home buyers course or visit with your local banker to find out about programs available to you, such as the new federal $8,000 first-time home buyer credit for 2009 home purchases.
2. Get pre-approved. Know the difference between "pre-qualified" and "pre-approved." Getting pre-qualified is a casual process where the lender tells you how much you should be able to borrow based on how much money you make, how much debt you have and how much you have to put down on a house. Pre-approval occurs only after you actually apply for the loan and the lender gives you in writing the amount you can borrow. A buyer who is pre-approved is more attractive to sellers and their agents than one who is only pre-qualified. Once you find a mortgage that is best for you, get pre-approved before you start making offers on a home.
3. Be honest with the lender and yourself. You don't want to borrow more than you can afford. Your bank can provide a calculator to determine if you can afford to borrow and if so, how much. The American Bankers Association has several home financing calculators available at www.aba.com/aba/static/calculators.htm.
4. Look at the basics of the loan. Don't get distracted by all the bells and whistles. Choose the type of loan that makes the most sense for you.
5. Know your credit situation. Obtain a copy of your credit report and FICO score or VantageScore at least six months before you apply for a mortgage. This should give you enough time to challenge and remove any errors on your credit report and take care of anything that's hurting your credit score. To obtain a free copy of your credit report, visit www.annualcreditreport.com.
6. Consider all the costs. A lender will review costs like fees, closing costs, points, homeowner insurance, and taxes. But consumers should also consider repairs and maintenance costs. As a homeowner, you are responsible for those additional costs - there won't be a landlord to call.
7. Organize your finances before you go to the bank. While each bank may require different documentation, at a minimum you will need:

- Pay stubs.
- Tax returns.
- Financial statements (one that is less than 60 days old).
- Copies of additional monthly payments such as car loans, credit cards, student loans, etc.
- Any additional information (such as proof of additional income) that you think will help your banker to positively evaluate your credit request.

Guidelines for a Successful Summer Move - Be Prepared

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Sun, 05 Jul 2009 23:08:26 -0500

RISMEDIA, June 18, 2009-The market is warming up, the kids are out of school, and more Americans are gearing up to move long distances. A recent survey by relocation.com shows staggering data when it comes to moving:

70% of consumers are moving more than 1,000 miles, up from 38% last year
60% listed financial reasons for their move
28% are moving for family reasons compared to 18% last year
52% of Americans have a high level of fear when moving

This summer's moving season could be a hectic one for your clients, but there are ways to move and keep your sanity. Here are some things for your clients to keep in mind to make their summer move a success:

Start Early - Allow plenty of time to get estimates from movers. It takes time to get an estimate from different companies, compare, and make a decision. 45 days prior to a move is a good time to begin to ensure the best choices are available.

Be Prepared - If your clients are doing their own packing, advise them to get supplies and start packing early. Not finishing on time and leaving work for the moving company can result in additional costs.

Be Careful - Choosing a mover can be confusing. Comparing estimates from different companies that might reflect different items, terms, and coverage can add considerable time to the process.

The Move Advocate is a great resource to offer your clients to set up a summer move for success. Our dedicated Moving Coach will work with your client to choose the best movers in their area, get multiple estimates, advise them on preparation, and audit and compare movers for them. Best of all this is a free service that you can offer to them with no obligation. Sign up today at http://www.moveadvocate.com/agent/starterkit.asp for an Agent Starter Kit and start giving your clients up to 60% off their next move.

7 Tips for Consumers Preparing to Purchase a Home

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Tue, 16 Jun 2009 09:15:17 -0500

Tax Credit Is Good News for Prospective Home Buyers

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Tue, 16 Jun 2009 09:09:46 -0500

RISMEDIA, June 3, 2009-(MCT)-The popularity of reality-based TV shows focusing on the experiences of first-time home buyers paints a rosy picture, but the recent national news of mortgage foreclosures has darkened that picture a bit.

Not to worry, said Carole Buckholts, a broker/associate with Kay's Real Estate in Duncan. There is good news for people who are in the market for their first home.

"Under the new administration's stimulus plan, ‘first-time home buyers' are eligible to receive an $8,000 tax credit. The tax credit is equal to 10% of the home's purchase price, up to a maximum of $8,000," she said. "For example, if the purchase price of a home is $60,000, then the buyer would be eligible for a $6,000 tax credit."

For purposes of the tax credit, a first-time home buyer is defined as "someone who has not owned a principal residence during the last three years prior to purchase," Buckholts explained.

That opens the program not just to young people who are looking for a first home, but also to those who have owned homes in the past but have sold them, perhaps because of death or divorce in the family, she said. Many of those people do not realize that they can qualify as first-time buyers, even though it's not the first home they've purchased in their lives.

The tax credit is available for homes closed on or after Jan. 1 of this year, and on or before Nov. 30, 2009.

The purchaser would file IRS form 5405 with his or her form 1040 tax return, attesting to the purchase.

"I would recommend that they consult their tax professional for those details," Buckholts said. "There is even a way that people who are planning to purchase a home can change their deductions on their W-4 withholding form with their employer, and have less tax held out during the year, which can then be saved and used for a down payment or closing costs when they buy their home. Again, it's a bit complicated, so before people make any drastic changes in their tax withholding, they should definitely check with their tax person."

If the property is held for a minimum of three years, the tax credit does not have to be repaid. This provision differs from the $7,500 tax credit available in 2008 in that the 2008 tax credit had to be repaid in 15 years, she noted. The purchaser can elect to take the new tax credit in 2008 or 2009, though taking it in 2009 would probably be a better option because it would not have to be paid back.

"Also, it should be noted that there are income limitations where the tax credit begins to phase out for people who have an adjusted gross income over $75,000 individually, or $150,000 if filing jointly," Buckholts said. "Say you are an individual with an adjusted gross income of $85,000. You would get half of the tax credit. If you hit $95,000, then you would no longer be eligible. You can go to IRS.gov for more information.

"This is a unique opportunity for certain individuals to realize the American Dream of homeownership and help our housing market recover in the process," she said. "There are a lot of homes available now in a good variety of price ranges. There's not as much activity in home sales as there was in 2007, but a lot of folks are buying and selling these days.

"It's definitely a buyers' market."

Playing House for the First Time - Priorities for New Homeowners

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Tue, 16 Jun 2009 09:08:02 -0500

RISMEDIA, June 8, 2009-(MCT)-Home prices have moderated, interest rates are reasonable, supply is abundant-and then there's that $8,000 tax credit. Yes, it's a great time to buy your first house.

If you do, you'll have to furnish it, and that can be a challenge, especially if you have put much of your disposable income into a down payment. But you're a grown-up now, and your first real home is no place for that grungy old futon or bookcases constructed with bricks and boards. It deserves better.

So what's the best way to go about furnishing your new home? We've asked a variety of experts for their ideas on what to do after your offer has been accepted. Here are their ideas:

"Before you get carried away, take some time to determine what you have, what you need and what you want," says Milwaukee-area interior designer Susan Michalek of Desumi Design Inc. "Deal with what you need first. That should be your highest priority."

Wanda M. Colon, a designer who can be seen as host of TLC's "Home Made Simple" and HGTV's "24-Hour Design," suggests that any assessment should include the amount of money you have to spend.

"It's easy to overspend or make impulse purchases if you don't have a budget," she says. If you watch what you spend and stay within your limits, "as a bonus you might have money left over to purchase some extra goodies."

Evaluate each room, says interior designer Jane Klein of Fox Point, Wis., and figure out how you plan to live in the house, considering: "Where you will spend most of your time, what you will do in each room? Will you want a table in the family room for work space, for example, or a comfortable chair and good lighting in the bedroom for relaxing and reading?

"Also think about the size of each room and the appropriate scale for the furniture," Klein says. "You might fall in love with a sectional, but the reality is that it might not fit in a small room."

Gary Steinhafel, president of Steinhafels Furniture, with six locations in Wisconsin, agrees.

"Not long ago, manufacturers were producing furniture designed to fill oversize great rooms," he says. "Now many manufacturers are offering furniture on a smaller scale than ever for smaller homes and for people who are downsizing. Be aware that there are choices and figure out what works best for your home."

Go Shopping, But Leave the Plastic Behind

Your early shopping trips should be a way to gather ideas, not furniture. As you walk up and down the store aisles and view furniture groupings, pay attention to colors, furniture styles, wood choices and more.

If you're shopping with your significant other, have some discussions about what you like and don't like, and what you think works well together and with the style of your home.

"You don't have to choose strictly contemporary or strictly traditional," Steinhafel says. "More likely the choice will be made based on whether you are going for a casual or more formal look."

But remember that while an "eclectic" look works, that doesn't mean anything goes. There should be some continuity or unifying elements so that the result isn't a hodgepodge.

Colon suggests that you visit a variety of stores to see what's available.

"Don't buy everything in one place," she says. "This allows you to compare styles and prices."

It also gives you the opportunity to ask questions and to learn what goes into a quality piece of furniture.

As you peruse what's available, take pictures of what you like, Klein says. "If you think it might work, take a picture, at stores, consignment shops, wherever you go. Then look at the pictures when you get home to remind you of the choices and to see which pieces work together."

Get to Work

It's easier to paint a house when it's empty and to refinish or replace flooring or knock down walls when you're not living there. So if there's work to be done, allow time for that after closing but before you move in.

"The biggest change you can make for a minimal amount of money is with color on the walls," Michalek says. "Buy good quality paint with no VOCs (volatile organic compounds), and if you do the job right you won't have to paint again for a while."

The colors you choose should coordinate with what you plan to buy and what you already have, of course, so take along strips of paint samples from the paint store or home center. Often furniture stores will allow you to take a fabric sample or sleeve cap home to help match colors. Make sure to look at them in a variety of lighting situations and at different times of the day to get a true idea of how well the colors coordinate.

Make Major Purchases

At minimum you will need: a good mattress and box spring and a bed or headboard to give the room a polished look; a quality sofa and chairs; a console unit for the television; and a table and chairs for dining (either for the kitchen or dining room).

Bette Kahn, spokeswoman for Crate & Barrel and CB2 stores, says microfibers are a good fabric choice for sofas because they're so durable.

"They take cleaning or washing well and never show wear," she says. "If you're getting another fabric, make sure it's fabric-protected. Solid colors are classic, but not as interesting as tweeds with small touches of color."

She suggests going with neutrals for big pieces, "but if that's too basic, they can always be made more interesting with pops of color through pillows, which can be changed."

Steinhafel is a fan of leather for sofas.

"It wears three times longer, and prices have come down significantly because the tanning process is more sophisticated," he says. "There's a ton of variety in color, but shades of brown are very popular. It's the new neutral and works well with other colors and with wood floors."

"Make sure the frame of your sofa or chairs is high quality," says Kahn, adding that if the piece wears out or looks outdated, it can be slip-covered or reupholstered if necessary.

If you buy high-quality pieces, you can build a room around them for years to come.

Fill in Creatively

After you've found the big pieces that serve as the foundation for a room, it's time to fill in with smaller pieces. This is where you can have some fun, save money and add a touch of personal style.

Consignment stores, estate sales, resale shops and even Grandma's attic are great places to find furniture, especially if you're willing to fix it up.

For example, if you've purchased a bed but need a dresser or two, you might be able to find used pieces with similar lines. You can refinish or paint the dressers to match (assuming they aren't valuable antiques, in which case the original finish should be preserved) and change the hardware for a coordinated look.

In the dining room, a horizontal dresser also can work as a server; the drawers can hold flatware and table linens. Antique chairs, even if they're mismatched, add interest around a dining room table.

An odd-shaped table can find a new home in the corner of a living room or a foyer; add an oversize vase for visual interest. Don't be afraid to rough up the surface and paint it so that it coordinates with the colors you've chosen in the room.

"America tends to be wasteful and often will replace a perfectly good piece with something that's new," Michalek says. "But you can find all kinds of new uses for older pieces of furniture that are built well."

Area rugs, artwork and accent pieces are fun to shop for and also add personality to a room.

"Sometimes people spend a lot of time shopping for the big pieces but don't do much to make the space their own," Klein says. "A piece of art can do that, or an art furniture piece. They don't have to be expensive but can wind up being a special focal point for a room."

Be Patient

It probably took awhile to find the right house. It stands to reason it won't be furnished in a week, a month or perhaps even a year.

"Many purchases can be put off, especially the decorative pieces," Kahn says. "Besides, you'll have more fun collecting those as you go through life."

Colon warns first-time homeowners to take their time. "Don't impulse-buy and end up feeling stuck because you acted too hastily," she says.

Klein says: "Give yourself a little time. When you make a decision, use your head and your heart. Look at different options, ask lots of questions.

"When you see it, you'll know when it is right."

8 Reasons to Skip the Hotel and Choose the Vacation Rental Route

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Tue, 12 May 2009 12:51:25 -0500

RISMEDIA, May 9, 2009-Since the beginning of 2008 (or long before), most of your worries have probably involved dollar signs. Whether you're fretting over your job security, your retirement portfolio, or where our economy is headed in general, the rule of the day is save, save, save. But as the days get warmer, your thoughts and those of your family will likely drift to summer vacation. And if you've been pushing those thoughts from your head with a stern ‘We just don't have the money,' you'll be happy to hear there's a cost-effective solution you may never have considered: the vacation rental home.

Karpinski offers the following reasons why a vacation rental is a better choice than a hotel:

There are plenty of vacation homes to choose from. An overcrowded real estate market means more and more people are choosing to rent out their second homes rather than try to sell them. If you're looking to stay closer to home this year to cut back on gas or airfare costs, you'll be happy to know that there's a vacation home within a two-hour drive of most metropolitan areas in the U.S. By visiting respectable websites-such as HomeAway.com or its affiliates VRBO.com, CyberRentals.com, GreatRentals.com, or Holiday-Rentals.co.uk-you can quickly find the one that's right for you.

The rental process is getting easier and more convenient by the day. Admittedly, it's not quite as simple to rent a vacation home as it is to book a hotel room, but it is still pretty easy. Websites like HomeAway provide details about the property and contact info and the consumer takes it from there. Homeowners themselves are becoming more consumer-friendly in their business practices though. Despite popular misconception, you don't always have to commit to a week. Many homeowners will let you rent by the weekend or even on a nightly basis, particularly during the off-season. And while some of them still expect you to send them a personal check, many others accept credit cards or PayPal.

Vacation homes are more spacious and comfortable. Think about the difference between a tiny hotel room, possibly with limited amenities, and an actual home with multiple bedrooms and bathrooms and kitchens, living and dining areas. People who stay in private homes don't feel so compelled to wear themselves out cramming in every touristy activity in town. They don't mind just hanging out in the living room and relaxing more, which after all, is what a vacation is supposed to be.

You can live like a local. No one wants to feel or look like a tourist, an "outsider." When you stay in someone's home, you get a more authentic experience.

You can get inside information from the homeowner. One big reason vacation home renters get to "live like locals" is that most homeowners love to provide their guests with helpful hints. They'll point you to the best restaurants in town, the best hiking trails, and the best bike rental places. They'll tell you who has the cheapest gas, which roads to take to avoid traffic, and which attractions are overpriced "tourist traps."

You can cook and do laundry. If you're on a budget, both of these factors can be huge benefits. Obviously, eating every meal in a restaurant gets pricey. The ability to prepare your own meals not only saves money, there's just something nice about savoring a home-cooked meal while on vacation. As for the washer and drier factor-being able to bring fewer clothes is not only a sanity saver during packing, it's a spacesaver for those long car rides.

If the weather's bad, there's more to do indoors. Most vacation rental homeowners provide DVDs (along with the electronic equipment to view them on), board games, playing cards, and other family-friendly diversions. Also, more than half of all rental properties now have Internet access.

You might even be able to bring Fido or Fluffy. Many vacation property owners will accept pets, which makes their homes especially attractive to families who can't bear to part with their four-legged friends for a week.

"Once you go the vacation home route, you probably won't go back to hotels," says Karpinski. "Yes, it takes a little effort on your part-and you may have to contact several different owners before you find the right home-but the results are definitely worth it."

5 Trouble Spots Homeowners Can’t Afford to Ignore

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Tue, 12 May 2009 12:49:59 -0500

RISMEDIA, May 9, 2009-Homeowners might be tempted to put off fixing their home until the economy rebounds. But Consumer Reports warns that some problems, if left unchecked, can lead to thousands of dollars in repairs and might even compromise your family's health. The trouble signs are easy to spot, provided homeowners know what to look for. What's more, contractors aren't as busy now, so they're likely to be more flexible on price.

The following are the five biggest red flags of home maintenance:

Runaway rainwater. Gutters, downspouts, and leader pipes collect rainwater and channel it away from the house. In very wet regions, leaders should extend at least five feet from the house. Check the entire gutter system seasonally for proper pitch and for clogs, corrosion, broken fasteners, and separation between connections and where gutters meet the fascia board.

Roof and siding. Roofs are the most vulnerable to water infiltration, given their exposure to the elements and the laws of gravity. On a sunny day, use binoculars to spot cracked, curled, or missing shingles, which are signs that the roof is near its end of life. Also check flashing around chimneys, skylights, and roof valleys, and the rubber boots around vents for cracks. Siding is also susceptible to leaks, especially where it meets windows and doors.

Pest infestations. Termites and carpenter ants gravitate to moist soil and rotting wood, another reason to make sure your gutters are in good shape and soil around your foundation is graded properly. Keep mulch, firewood, and dense shrubbery away from your foundation. Once termites infiltrate a home, they can bore through the structure in a few short years.

Mold and mildew. Even houses in arid climates aren't immune. Hot outdoor temperatures can drive even small amounts of water trapped in the structure to condense on colder interior surfaces, leading to mold. Musty odors, dank air, and family members with chronic runny noses are warning signs. Check under carpets and around windows for visible mold or mildew. Remove cover plates for cable-TV, phone, and Internet connections, and use a flashlight to peer behind walls and wallpaper for mold.

Foundation cracks. Some cracks are harmless, but others can mean trouble. Monitor them using a ruler. Cracks wider than 3/16 inch, even vertical ones, can be a problem. Mark smaller cracks with tape and monitor their progress over the coming months. Be on the lookout for horizontal cracks or bulging or buckling. Along with expanding cracks, those conditions require the attention of a structural engineer.

5 Recommendations for Navigating Today’s Mortgage and Housing Markets

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Tue, 12 May 2009 12:46:01 -0500

RISMEDIA, May 9, 2009-"There are five distinct strategies that can help home owners, buyers, and sellers successfully navigate today's turbulent mortgage and housing markets," said Gibran Nicholas, chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers.

1. Understand and Utilize the New Tax Credits. Many home owners are not aware that the latest government stimulus package gives them a special tax credit of up to $1,500 for making certain home improvements. Also, if you are buying a primary home and you have not owned a primary residence in the last 3 years, you may qualify for the new $8,000 first-time-homebuyer tax credit. "Although you can't use the credit to help with your down payment, the credit can be claimed on your 2008 tax returns if you buy the home in 2009," Nicholas said. "This means that even if you buy the home after you file your taxes on April 15, you can simply file an amended 2008 tax return and the IRS will send you a refund check for $8,000."

2. Consider Paying Points for Your Mortgage Transaction. Mortgage "points" are upfront fees that you pay in order to lower your mortgage interest rate. One point is equal to 1% of the loan amount. "In the past, it almost never made sense to pay points in most situations where you were refinancing your mortgage," Nicholas said. "However, enormous changes have taken place in the mortgage securitization process. Wall Street investors are demanding higher upfront fees for borrowers with credit scores below 740, and mortgage lenders don't have as much flexibility when pricing loans. This means that the interest rate savings can be very significant when you pay upfront points."

"If you are buying a home, negotiate into your purchase contract for the seller to pay points on your behalf," Nicholas said. "In addition to the significant interest and payment savings you will enjoy, you will also receive a tax deduction this year for points paid by the seller on your behalf. If you are selling a home, offer to pay points for potential buyers as part of your marketing efforts. This will make your home more affordable for potential buyers and help your listing stand out from the glut of available inventory in today's market."

3. Carefully Structure Your Real Estate Short Sale Transaction. A real estate short sale is when a home owner sells their property for less than what they owe on the mortgage, and the lender gives their permission to do this by forgiving the difference and/or releasing the mortgage lien on the property. "Short sales are very common in many markets because of negative home owner equity due to the steep decline in house values," Nicholas said.

"If you are selling your home as part of a short sale transaction, make sure to negotiate for a release and full satisfaction of the mortgage from your lender. Depending on the laws of your state and your individual circumstances, lenders may be able to wait a year or two for you to improve your financial situation, and then file a deficiency judgment against you to try and recover the money that you still owe them. The only way for you to avoid this risk is to have the lender not only release the mortgage lien, but also agree in writing to a full satisfaction of the mortgage."

If you are a buying a home as part of a short sale, Nicholas advises you to take steps to make sure the deal is closeable. "It is estimated that approximately 30% of short sale listings are not closeable deals because the lender simply won't approve it. In most of these cases that aren't closeable, the first or second mortgage lender is expecting home sellers that have money to contribute something to the deal. One way to avoid getting caught up in the middle of this is to have your Realtor verify the status of the seller's hardship package with their lender."

4. Utilize the Special Options Available for Seniors Age 62 or Older. "If you are 62 or older, you could use a reverse mortgage to buy a new home without making any monthly mortgage payments," Nicholas said. "This is a fantastic opportunity if you are contemplating a move but are worried about trying to sell your current home into a down market. Additionally, reverse mortgages can be used to supplement your retirement income that may be declining due to unfavorable economic or financial market conditions."

5. Carefully Interview Your Mortgage Professional. With all the noise, confusion, fear and misinformation in today's market, it is more important than ever for you to work with a Certified Mortgage Planning Specialist who has the training and experience to guide you through the home buying or refinancing process. The largest financial transaction of your life is far too important to place into the hands of someone who is not capable of advising you properly and troubleshooting the issues that may arise along the way.

Eating Healthy While Saving Money at the Grocery Is Possible with Strategic Shopping

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Tue, 12 May 2009 12:43:28 -0500

RISMEDIA, May 9, 2009-"Shopping strategically at the grocery store to save money is not changing the way you eat, it is about changing the way you buy the food that you like," says Stephanie Nelson, the Coupon Mom. "If you are working on losing weight, or improving your families' health, you can save money on groceries when you know how to be a strategic shopper."

Nelson has taught millions of people how to save money while using coupons, but she says some people believe they have to trade healthy choices for saving money. "It's just not true, you can have a healthy diet and save money, too," she says.

More than 1.7 million shoppers have joined the CouponMom.com website to save money on groceries. Nelson, one of the country's leading experts on coupons, has taught millions how to save money on her website as well as on Oprah, The Today Show, Good Morning America, AOL, Wall Street Journal and CNN Money.

Some basic tips to saving money while serving healthy food include:

-Do it yourself, don't pay for convenience
-Simple substitutions-be aware of less expensive, comparable alternatives
-Plans meals based on overall meal cost
-Save 10 to 40% by avoiding all food waste
-Save money and calories with proper portion control
-Use strategic shopping (combining store sales with coupons) on your key items
-Be store flexible: know the prices of your common items and shop where prices are lowest

How to save on produce:
-Compare prices for your common produce at a few different types of stores, such as a discount store (Wal-Mart or Target supercenters), a no-frills discount store (Aldi or Sav-a-Lot), a wholesale club (Costco or BJs) and a couple of local supermarkets. You may find that an alternate store is a better source of produce in the off-season. During the summer, a local farmers' market could be a good source of healthy produce at a lower cost.
-Talk to the produce manager about markdowns, and find out what time of day they markdown produce (that is generally perfectly good).
-Buy fresh produce in season, concentrating on the featured sale items. If not on sale, buy frozen vegetables as they tend to be less expensive and have coupons available for name brands. Frozen vegetables are frozen at the peak of freshness so they may have more nutrition than fresh vegetables that have been in storage for a longer period of time.
-Save money by doing it yourself. The cost savings of washing your own lettuce, peeling your own carrots, cutting your own fruit equates to an hourly wage of over $50. If it takes 5 minutes to save 60-70%, it's worth doing yourself.
-Consider the cost per serving of fruits and vegetables and make simple substitutions to vary your diet and save money. Also compare the cost per piece of fruit or potatoes of a 5-lb. bag as compared to buying individual pieces by the pound. Smaller apples cost less, lead to less waste, and have fewer calories.
-Pay attention to food waste and work to reduce it to zero. Food waste accounts for 10% to 40% of families' overall grocery spending (the average percentage increases as the average grocery spending increases according to USDA statistics). Serve realistic portions for weight-management and proper nutrition. Don't serve children more food than they would realistically eat.

How to save on meat, chicken, fish:
-Only buy main dish ingredients when they are on sale. Pay attention to your stores' featured sales item on the first page of their weekly ad and plan that week's meals around that ingredient. Chicken is a common sale item, so be creative about finding healthy recipes that your family likes using various types of chicken. Buy at least one or two extra weeks' worth of the main ingredient item to freeze so you don't have to pay full price in the future.
-Consider buying fish that is flash-frozen to save, or only buy the type of fish that is on sale.
-Talk to your store's butcher about daily markdowns and check them out each time you visit the store. Stores will frequently mark down items with sell-by dates of that day or the next day. As long as you freeze or prepare the item immediately, it is perfectly safe to eat.
-Buy larger family-pack quantities of meat, chicken or pork and package them into smaller quantities for the freezer to pay a lower per-pound cost.
-Buy less expensive cuts of meat and prepare them to be healthier. Marinate less-expensive cuts of steak to tenderize them, which tend to be healthier because they are lower in fat.
-Only buy boneless chicken breasts when they sell for half price. If not on sale, compare the per-pound price of individually frozen chicken breasts sold in the bag.
-Buy whole chickens at a lower per-pound price, or less-expensive chicken drumsticks or thighs. Buy chicken leg quarters and cut off the skin and visible fat. Bake some for dinner and bake additional pieces to use in a chicken soup, stew or casserole later in the week.
-Compare the per-pound cost of your favorite cuts of meat, pork, chicken, and fish at a local wholesale club to save 20-40%. Buy the large quantity for your freezer or divide with a friend.
-Substitute ground turkey for ground beef when it is less expensive in soups, pasta sauces and casseroles.
-Compare the cost of frozen ground turkey to fresh ground turkey; allow time to thaw if frozen is less expensive.
-Don't buy sliced deli turkey for $8 or $9 per lb. at the deli counter-make extra grilled chicken breasts and slice for sandwiches during the week. You can also buy your own turkey breast and roast it and slice it for sandwiches.

Snacks:
-Managing snacks is important because family members are likely to eat planned ingredients for other meals if you don't have easy snacks available. Let family members know what snacks are available and encourage them to choose the healthy options.
-Examples of inexpensive snacks include store brand pretzels, popcorn, store brand graham crackers, carrot sticks, small apples, bananas, frozen banana smoothies with skim milk, diet hot cocoa packets, diet gelatin or pudding, saltines, yogurts bought on sale with coupons, and homemade cookies and brownies.

Avoid food waste:
-Plan a leftover night once per week or plan a consecutive meal based on leftover ingredients.
-Have one shelf in your refrigerator with clear, see-through plastic containers with leftovers. Use for lunches, snacks or leftover night with a different meal for each person if necessary.

For more information, visit www.couponmom.com.

Top 10 Myths About Credit Scores Debunked

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Tue, 12 May 2009 12:20:47 -0500

RISMEDIA, May 7, 2009-With many Americans considering a home purchase or refinance, seeking a new job, purchasing a new car, or striving to pay off credit card debt, 2009 might be the year of the credit score, said Bills.com president Ethan Ewing.

"Many Americans hold mistaken beliefs about credit scores," cautioned Ewing, who heads the free online consumer portal at Bills.com. "Misinformation on television and in hearsay from friends and neighbors only compounds the problem."

Here are the top 10 commonly held myths surrounding credit scores:

Myth #1: A credit score is a credit report. The credit report is a detailed listing of all debts and payments, going back throughout an individual's entire payment history, Ewing explained. For each entry, it shows the creditor's name, amount owed, the highest balance owed, the available credit, whether the account is open or closed (and who closed it), the number of late payments and whether the account is in default. A credit score is a number between 300 and 850 that is based on complex formulas incorporating all the data in the credit report.

Myth #2: Those who are not in default do not need to check their credit report. Everyone should check his or her credit report at least once a year (quarterly is not a bad idea in today's market) to be sure the report contains no erroneous information. Visit www.annualcreditreport.com for a free, no-obligation copy of the report.

Myth #3: Checking a credit report damages credit. Reviewing your own credit information has no effect on a credit score, Ewing said. Neither does a credit report review by a prospective landlord or employer.

Myth #4: Everyone has one credit score. Credit score calculations are compiled using data from three different credit scoring agencies (Equifax, Experian and TransUnion). The resulting scores might vary slightly among the three agencies if they have slightly different information, but they will be similar.

Myth #5: Married couples share a credit score. If all of a couple's accounts are joint, their scores will likely be similar, but each individual maintains a unique credit record and credit score. On the flip side, after a divorce, ex-spouses need to follow protocol to have creditors remove either party from a joint account.

Myth #6: Shopping for a loan destroys credit. It is true that "hard inquiries" - examinations of a credit score in preparation for extending credit can have a small negative impact on credit. However, credit bureaus take into account that consumers might inquire about a loan from multiple mortgage companies or auto lenders. "If multiple inquiries are received from the same type of lender within a 14-day period, the credit scoring companies do not count each inquiry against the borrower," Ewing explained. But credit card account inquiries to open new accounts are counted individually.

Myth #7: To improve a score, close unused accounts. An important component of a credit score is available credit, or the unused credit that has been offered (on a credit card, for instance) but not used. Closing unused cards removes those available balances from the equation and can actually lower a credit score. Today, some banks are automatically lowering limits or closing accounts to reduce their own credit exposure. Individuals whose debt load is manageable should not experience an extreme effect on their scores.

Myth #8: To boost credit quickly, just pay off bills. Credit scores reflect performance over time. Scores will not change overnight.

Myth #9: For a fee, vendors can fix a bad score. Again, credit scores show historic behavior. Be cautious about companies that claim to "fix" or "repair" credit. "You yourself can remove inaccurate information," Ewing said. "Beyond that, be aware that some companies send credit scorers a deluge of letters asking that they verify - and in the process, remove all past negative information. If and when truthful information is verified, however, it will quickly return to the credit report."

Myth #10: Never get help - it is too hard on credit. It is true that credit counseling, debt settlement and bankruptcy all can cause significant black marks on a credit report. "If you are in real trouble, however, you can and should seek help," Ewing urged. "Which option you choose will depend on the severity of your situation. Credit counseling can help to manage bills, and lower interest rates and monthly payments to creditors. Debt settlement firms can negotiate to lower the principal amount of your debts, typically providing a faster path to debt freedom than credit counseling. Bankruptcy, an even more serious alternative, should be discussed with a bankruptcy attorney."

"Credit is important, but knowing the truth about credit might be even more important," Ewing concluded. "Before taking action that might hurt or help your score, check your facts to be sure your actions will help your financial picture."

Time to Get Your Mower in Gear

Amy Cordell (GMAC Real Estate Mayfield & Associates) — Tue, 14 Apr 2009 11:40:45 -0500

RISMEDIA, April 13, 2009-(MCT)-With the arrival of Spring and April showers, homeowners find themselves with a list of new chores that need to be accomplished now that the weather is nice. Along with the showers comes the task of mowing the lawn while the grass seems to grow faster than you can tend to. Taking the time to maintain your lawn mower is one quick and easy way to help maintain the health of your grass.

A sharp mower blade, part of routine maintenance, is essential to maintaining a healthy lawn, say the turf experts at Texas A&M University. Dull blades leave a ragged top, which turns brown and makes the lawn look tired. More important, "ragged tops are prime points of entry for many fungal pathogens and small turf insects," A&M says.
Shops that sell mowers also service them. If you're not handy, getting them to do it could be a big relief.

With the proper tools and the time, you can do routine maintenance yourself. Here are some tips from DIY Network, Texas A&M and About.com:

1. Drain the gas tank, and run the engine until it stops.
2. Disconnect the sparkplug wire so there is no chance of the mower starting.
3. Remove the oil drain plug, and drain the oil into a drip pan.
4. Replace the plug securely.
5. With the mower on its side and using a putty knife, scrape matted grass from the underside of the mower's deck, which is the housing for the blade. Use a hose sprayer to blast off remaining grass and dirt. If that doesn't get it all, use a brush and soap and water.
6. Hold the mower blade with a rag or towel and, using a socket wrench, unscrew the mounting knob of the blade.
7. Sharpen the blade or have a lawn mower shop do it.
8. Turn the mower upright.
9. Clean or replace the air filter.
10. Find the spark plug, which will probably need to be removed with the barrel of your socket wrench.
11. With a wire brush, clean off carbon deposits. Or, replace with a new plug.
12. Screw in and tighten the sparkplug.
13. Fill the oil compartment with 30-weight oil (unless your owner's manual recommends another kind).
14. Reconnect the sparkplug wire.
15. Lubricate all moving parts, including wheels. Tighten engine mounting bolts and any other nuts or screws.
16. Fill the mower with gas and you are ready to go.

Other words of advice:
-When you turn the mower on its side, turn it so that the air-filter side of the machine is up. Otherwise, oil drains out of the filter and the mower won't start.
-If your machine's engine runs roughly, you may need an expert to adjust it.
-Dispose of the used oil and filter properly.

Sharpening a mower blade:
-A grinding wheel is handy, but you can also use a file, and be sure to wear safety glasses.
-Use smooth, quick swipes across the grinding wheel or with the file. Try to keep the original angle of the blade.
-Dip the blade in cold water every few swipes so the steel doesn't get too soft.
-After grinding, test for balance. Place the center hole of the blade on your fingertip or on a screwdriver. If it balances, great; if not, the heavier side needs more work. If you're satisfied with the sharpness, leave the angle alone. It's best to grind a little steel off the back or a corner of the blade to balance it.
-Carefully file off any burrs left by the grinder.
-Oil the bolt hole on the blade and reattach.