WARNING: 2010 Census Cautions from the Better Business Bureau
Be Cautious About Giving Info to Census Workers
With the U.S. Census process beginning, the Better Business Bureau (BBB) advises people to becooperative, but cautious, so as not to become of fraud or identity theft. The first phase of the 2010 U.S. Census is under way as workers have begun verifying the addresses of households across the country. Eventually, more than 140,000 U.S. Census workers will count every person in the United States and will gather information about every person living at each address including name, age, gender, race, and other relevant data.
The big question is - How do you tell the difference between a U.S. Census worker and a con artist? BBB offers the following advice:
If a U.S. Census worker knocks on your door,
They will have:
a badge,
a handheld device,
a Census Bureau canvas bag,
and a confidentiality notice.
Ask to see their identification and their badge before answering any questions. However, you should never invite anyone you don't know into your home.
Census workers are currently only knocking on doors to verify address information. Do not give your Social Security number, credit card or banking information to anyone, even if they claim to need it for the U.S. Census.
REMEMBER, NO MATTER WHAT THEY ASK, YOU REALLY ONLY NEED TO TELL THEM HOW MANY PEOPLE LIVE AT YOUR ADDRESS.
While the Census Bureau might ask for basic financial information, such as salary range, YOU DON'THAVE TO ANSWER ANYTHING AT ALL ABOUT YOUR FININCIAL SITUATION. The Census Bureau will not ask for Social Security, bank account, or credit card numbers, nor will employees solicit donations. Any one asking for that information is NOT with the Census Bureau.
AND REMEMBER, THE CENSUS BUREAU HAS DECIDED NOT TO WORK WITH ACORN ON GATHERING THIS INFORMATION. No Acorn worker should approach you saying he/she is with the Census Bureau.
Eventually, Census workers may contact you by telephone, mail or in person at home. However, the Census Bureau will not contact you by Email, so be on the lookout for Email scams impersonating the Census.
Never click on a link or open any attachments in an Email that are supposedly from the U.S. Census Bureau
For more advice on avoiding identity theft or fraud, visit www.bbb.org
More than 1 in 8 homeowners are upside-down on the mortgage and don't know what to do. The search for a solution can be filled with misinformation and fraud, and often adds more frustration to this difficult situation. If you or someone you know is among the many homeowners who owe more money on their home than it's worth, know that there are options available. You need the facts.
Being educated in today's shifting market is the most important safeguard you can take in preventing lost opportunities and avoiding scams. Your first step as a homeowner in trouble is understanding all your options, including a mortgage modification. Should you qualify, a mortgage modification is an ideal solution for you and your lender. The average foreclosure can cost a lender from 35-50% of the value of a property (or more), so keeping a borrower in their home is a better alternative for both parties. Find out if a mortgage modification is the right option for you and get back on track to a secure, stable financial future.
MORTGAGE MODIFICATIONS
A mortgage modification is a process through which your mortgage lender changes:
• Your interest rate
• Your principal balance (through a reduction)
• Your loan terms (example: from an adjustable to a fixed rate)
• Any or all of the above
This process will often allow a borrower who can no longer afford their home at their current mortgage payment to stay in their property. A mortgage modification is ideal for homeowners experiencing a rate increase or a salary decrease, placing the mortgage payments just out of reach.
What do I need to qualify for a mortgage modification?
According to the Obama administration's Making Home Affordable program's website (www.MakingHomeAffordable.gov ), you will need the following information for your lender to consider a modification:
• Information about your first mortgage, such as your monthly mortgage statement
• Information about any second mortgage or home equity line of credit (HELOC) on the house
• Account balances and minimum monthly payments due on all of your credit cards
• Account balances and monthly payments on all other debts, such as student loans and car loans
• Your most recent income tax return
• Information about your savings and other assets
• Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources
If applicable it may also be helpful to have a letter describing any circumstances that caused your income to be reduced or expenses to be increased (i.e. employment reduction, sudden illness, divorce, etc.)
Who do I contact to qualify?
The first call you make should be to your lender. Have the information listed above ready to discuss with them, and call your customer service line to ask them what options you have available. Different lenders have different names for the department that handles these issues, such as:
• Loss Mitigation Department
• Mortgage Modification Department
• H.O.P.E. Department
• If Fannie Mae or Freddie Mac owns your mortgage, you may be eligible for a Home Affordable
• Refinance. This will allow you to refinance your home and often lower your payments.
Therefore, you should start by visiting: www.MakingHomeAffordable.gov Also, check the list of HUD-approved counselors provided in this document for organizations approved to work with borrowers by the federal government's Hope Now Alliance.
AVOIDING FRAUD
When considering a mortgage modification, beware of companies that advertise their ability to negotiate and lower your payments, and possibly your mortgage balance, for a commission or fee. According to the Federal Trade Commission, "People facing foreclosure should avoid any company or individual that requires a fee in advance, guarantees to stop a foreclosure or modify a loan, or advises the homeowner to stop paying the mortgage company." You should never have to pay upfront fees for this service.
The U.S. Department of Justice and U.S. Treasury Department also released a statement: "This administration is deeply committed not just to providing at-risk homeowners with assistance but also to cracking down on anyone who seeks to defraud them. Examples of possible signs of fraudulent activity, such as requiring that fees be paid before services are provided, are listed in the [advisory released by the Treasury.]" They also stress that none of the new programs announced by the Obama administration require any upfront fees.
Agents who charge a fee for a service they're not licensed or adequately trained to provide, and which the government has identified as fraudulent, cannot be tolerated. Let a trusted, educated agent guide you safely through your options. In addition, be very cautious as to the organization's affiliation. Many companies include key words like ‘Federal' or ‘Government' in their names, but are in no way affiliated with the government.
THE TRUTH ABOUT MORTGAGE MODIFICATIONS
While mortgage modifications can be an ideal solution for homeowners who qualify, it is important to understand the current trends concerning mortgage modification success rates. According to the most recent MHA report, only 12% of eligible homeowners have started a modification. The provider of this report understands that to increase this statistic, more homeowners need to find out if they are eligible and apply.
Also, a mortgage modification is primarily for those who can almost make their payments each month, but not quite. If you or someone you know is one of the many homeowners facing certain financial hardships-such as unemployment, forced relocation or divorce-you are less likely to qualify. The current re-default rate on mortgage modifications is 50-60%. Find out the facts, apply for a solution, but have a contingency plan. It is important to explore all of your options, and an educated real estate agent can help.
HAVING A PLAN
Setting goals and keeping updated records will streamline your process to success and recovery. It will also save you time, hassle and distress when making plans for your financial future.
If a mortgage modification isn't an option for you, a short sale might be. It's understandable if you've never heard of a short sale or don't know what one entails, but imperative that your agent is educated and experienced in this area.
Solutions are out there to ease your financial strain. Be sure to take advantage of all the options available. You can take back control of your financial future. Get all the facts regarding your situation, let a qualified agent help you formulate a plan, and get back on the right track.
Robert Reid, Premier Real Estate
1102 NE 19th Court Portland, OR 97045, 17500 SE 25th Way Vancouver, WA 98683
In October, the gap between same-month sales from a year ago continued to widen in Clark County. Compared to October 2008, pending sales rose 56.9% and closed sales increased 52%. New listings, on the other hand, dropped 13%. The 56.9% increase in pending sales is the largest on record since RMLSTM began tracking statistics for the area in 1996 and the 52% increase in closed sales is the largest since September 2003. When comparing October 2009 with September 2009, closed sales rose 13.8% (535 v. 470), while on the other hand pending sales dropped 1.2% (576 v. 583). New listings fell 6.6% (765 v. 819). At the month's rate of sales the 3,421 active residential listings would last approximately 6.4 months, down from 13.7 last year at this time and at its lowest point since September 2006.
Sale Prices
The average sale price for October 2009 was down 16.3% compared to October 2008, while the median sale price dropped 14.5%. See residential highlights table below. Month-to-month, the average sale price and median sale price decreased when compared with September levels; the average sale price fell 5.4% ($219,700 v. $232,200) and the median sale price was down 5.6% ($200,000 v. $211,800).
Sales activity in the Portland metro area continued an upward trend compared to same-month sales from a year ago. Pending sales were up 64% compared to October 2009 and closed sales rose 37.1%. New listings dropped 4.5%. The 64% jump in pending sales is the largest same-month increase since February 1996. The 2,009 closed sales this October was the highest total since August 2007 and its 37.1% same-month increase is the largest since January 2005. Compared to September 2009, closed sales increased 11.6% (2,009 v. 1,800), but pending sales dropped 9.1% (2,079 v. 2,286). New listings also fell 4.3% (3,443 v. 3,599). At the month's rate of sales, it would take approximately 6.5 months to sell the 13,101 active residential listings. This is the lowest mark for inventory since August 2009.
Sale Prices
The average sale price for October 2009 was down 12.6% compared to October 2008, while the median sale price declined 10.9%. See residential highlights table below. Month-to-month, the average and median sale price were mixed when compared with September levels; the average sale price was down 2.3% ($283,500 v. $290,100) and the median sale price increased 1.5% ($245,000 v. $241,400).
RISMEDIA, November 9, 2009-President Barack Obama has approved the first-time homebuyer tax credit extension which will extend the tax credit until April 30, 2010.
The extension is part of a $24 billion economic stimulus bill that will extend the $8,000 tax credit for homebuyers who are purchasing their first home from the current November 30 deadline and expands the program to offer a credit of $6,500 to homeowners who have lived in their current home for at least five years and are seeking to relocate.
The following details apply to the homebuyer tax credit expansion:
Who is Eligible -First-time homebuyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit. -Existing homeowners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence ("repeat buyer"), may be eligible for up to a $6,500 tax credit. -All U.S. citizens who file taxes are eligible to participate in the program.
Income Limits Homebuyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000. -For married couples filing a joint return, the combined income limit is $225,000. -Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit. -The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000.
Effective Dates -The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.
Types of Homes that Qualify -All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.
Tax Credit is Refundable -A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.
-For example: -A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time homebuyer tax credit). -A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit). -All qualified homebuyers can take the tax credit on their 2009 or 2010 income tax return.
Payback Provisions The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.
The www.federalhousingtaxcredit.com site is being updated. Check the site next week for more detailed information on the new tax credit.
A short sale can be an excellent solution for homeowners who must sell and owe more on their homes than they are worth. Unfortunately, a number of myths about short sales have developed, and it is important to understand the reality of this process should you find it meets your current needs.
Myth #1 - The Bank Would Rather Foreclose than Bother with a Short Sale
This is one of the most common misconceptions. The reality is that banks do not want to foreclose on your property because the foreclosure process is incredibly costly. Banks, investors, and even the federal government have all publicly stated that if a person is qualified for a short sale, the deal needs to be considered. Overwhelmingly, banks receive more on their investment through a short sale than a foreclosure.
The qualifications for a short sale include:
•1. Financial Hardship - There is a situation causing you to have trouble affording your mortgage.
•2. Monthly Income Shortfall - "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
•3. Insolvency - The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
Myth #2 - You Must Be Behind on Your Mortgage to Negotiate a Short Sale
While this may have previously been the case, today lenders are looking for verifiable hardship, monthly cash flow shortfall, or pending shortfall and insolvency.
If you meet these three requirements and believe that you soon may be unable to afford your mortgage, act immediately. Any delay could limit your options. Do not wait until the countdown clock to foreclosure has started and you have even less time left. If you meet these three requirements and believe that you soon may be unable to afford your mortgage, act immediately. Any delay could limit your options. Do not wait until the countdown clock to foreclosure has started and you have even less time left.
Myth #3 - There is Not Enough Time to Negotiate a Short Sale Before My Foreclosure
This is a myth that probably hurts homeowners the most. Many do not realize that foreclosure is a process, and that there is time to make decisions that may result in better outcomes.
The foreclosing party-in most cases a lender-can stall a foreclosure up to the final day of the process. Today, many lenders will stall a foreclosure with as little as a phone call from you explaining that you are trying to sell and almost all lenders will stall a foreclosure with a legitimate contract. For real estate professionals who understand foreclosures and short sales, there is time available until the foreclosure process is complete
Myth #4 - Listing My Home as a Short Sale is an Embarrassment
It is understandable to have reservations about letting the world know that you owe more on your home than it is worth. However, according to recent estimates, more than one out of eight homeowners in the U.S. is in the same situation. You are to be congratulated for admitting you need help, taking action, and finding a professional who can work with you toward a solution.
With recent estimates showing 40-60% of U.S. sales will be short sales or foreclosures, you are not alone.
Myth #5 - Short Sales are Impossible and Never Get Approved
This is a complete falsehood. Are short sales more difficult to execute? Yes. Do you, as a homeowner, need to learn about a new process? Yes. Are they impossible? Absolutely not, for example, agents with the Certified Distressed Property Expert® (CDPE) Designation receive thousands of short sale approvals on a monthly basis. These professionals have undergone extensive training in methods to help homeowners in distress and process short sales. While there are no guarantees in any transaction, more and more short sales are being approved regularly. This is far from an impossible process.
Myth #6 - Banks are Waiting on a Bailout and Not Accepting Short Sales
You may have heard this, but the reality is that banks (and the U.S. government) are trying to do anything they can, within reason, to avoid foreclosing on properties. It is preposterous to believe they would deny a short sale in hopes that some future legislation would pass and pay them for losses.
Today, more banks are aggressively pursuing short sales and working with agents who understand how to process them. Freddie Mac recently hosted a national training Webinar for real estate agents where they expressly stated the organizational goal of "eliminating distressed assets through modification or short sale."
Myth #7 - Buyers are Not Interested in Short Sale Properties
This is a myth that potential sellers hear all the time. Thankfully, this is just not true. In fact, many agents are getting calls from buyers who say they only want to look at foreclosure and short sales.
For buyers, short sales and foreclosures have become synonymous with "good deals." More specifically, international buyers are targeting these properties. Listing with an experienced agent who is educated in the short sale process will provide you with a great chance of quickly seeing a contract on your property.
In September, sales activity in Clark County continued to exceed totals from the same month of the year prior.
Compared to September 2008, pending sales rose 33.4% and closed sales increased 20.2%. New listings, on the other hand, dropped 10.4%.
When comparing September 2009 with August 2009, closed sales rose 2.4% (470 v. 459), while on the other hand pending sales dropped 1.4% (583 v. 591). New listings fell 6.3% (819 v. 874).
At the month's rate of sales the 3,560 active residential listings would last approximately 7.6 months, down from 12.7 last year at this time.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Powellhurst, Portland
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