Use The F Word Properly!

The "F" Word is FORBEARANCE

Know how to use it properly.. 

😎

Credit Scores Explained

When it come to mortgages it's good to know.

Your credit score has a big impact on your personal finances, with a good score translating into a better rate on everything from home mortgages to auto loans to credit cards. So how do credit scores work?

Your credit score can range from 350 to 850. The higher, the better. The five factors that determine that score, and the percent to which they count towards your score, are as follows.

Payment history: 35%

This is your record of making payments on time and in full. Timely mortgage payments are particularly important. A single late mortgage payment in the last 12 months can downgrade your score. Late payments on other debts such as credit cards and car loans are also bad for your credit score, as are judgments, charge-offs and collections accounts. 

A single bankruptcy in the past seven years can damage your ability to get a new credit account or a loan. If you’re looking to get a loan, you’ll have to pay off any judgments or liens first, and possibly get a “satisfaction of judgment” from the court. Your credit score will also reflect the amount of time it takes you to make a late payment. The later the payment, the worse it will be for your score. Being in default of a debt is the worst situation.  

 To avoid damage to your score, pay bills on time, settle any delinquent accounts and check your credit report regularly to make sure you’re not being held responsible for disputed bills.

The balance you owe compared to your available credit limit: 30%

 Ideally, you should keep your balance below 30 percent of your credit limit. At the very least, it should be below 50 percent. While it may seem like a good idea to close credit accounts you don’t use often, you’re actually better off leaving them open. Also, don’t concentrate large balances in a few accounts. It’s better to spread the balance across credit lines than to have one or two accounts with a balance constituting more than 50 percent of the limit. If your credit card company is willing to increase your credit line without pulling a new report, you should take advantage of that.

How long your accounts have been open: 15%

The longer your accounts have been open, the better it is for your credit score. Again, avoid closing credit accounts. But if you have to, close the newer instead of the older ones. And opening new accounts can lower your score initially, so keep that in mind if you’re tempted to open one just to get a 0 percent introductory rate or a discount at the store. That being said, opening a few extra accounts that you don’t intend to use may not be a bad idea if you intend to get a mortgage eventually. If you don’t have much of a credit history, those extra accounts can raise your score eventually if you keep them active and their balances low.   

Type of credit: 10%

A mix of credit types is best, including mortgage, auto loan and not more than five credit cards. Having nothing but a lot of credit cards will hurt your score. 

Number of recent inquiries by creditors: 10%

Checking your own credit report won’t affect your score. But when a potential creditor — such as a mortgage or auto loan lender, credit card company, or department store   — performs an inquiry on your credit, that can have an impact on your score for up to a year. But you can reduce that impact by taking certain steps. When they’re done within 45 days of each other, multiple inquiries about mortgage or auto loans are treated as only one. However, if you already have a mortgage in the works, you might want to wait until the loan closes before applying for any new credit.   

Please keep in mind that this is only for informational purposes, and that you should consult with appropriate professionals for tax, legal and financial planning advice. 

Skyrocketing Rents Begin to Fizzle (not as much as you may think)

RISMEDIA, Friday, February 03, 2017:

Skyrocketing rents will begin to fizzle in 2017, driven by a multifamily market marked by less starts and oversupply, according to the Freddie Mac Multifamily Research Group's 2017 Multifamily Outlook.

"Demand for rental units is at a historic high due to demographic changes and lifestyle preferences, but increasing new supply and other factors are likely to moderate multifamily market growth in 2017," says Steve Guggenmos, Freddie Mac Multifamily vice president of Research and Modeling. "In particular, landlords are likely to pull back on rent increases as new supply enters the market and vacancy rates rise."

Rents are expected to grow at their 2016 pace; vacancy rates are expected to reach 5 percent for the first time since 2011.

 For more information go to: http://www.freddiemac.com/

A Local Perspective by: Dominick Leone

Northern Ocean County in New Jersey is still reeling from the effects of Super Storm Sandy, not just destroying homes but peoples credit and lives in general. Just after the storm, there was an unprecedented rush to locate rental housing for the storms victims who were left homeless. Years later, those who lost their homes, started to suffer financial hardships while trying to untangle the FEMA paper-jam and insurance nightmares. It drove some people to just abandon their homes and move on. 

Banks and lending institutions, not being as liberal as they would like (especial local community banks) under the Dodd-Frank regulations, developed a new set of hurdles for homeowners to jump over. Those who abandoned there homes had foreclosures on record because, while paying rent, they couldn't afford to continue a mortgage as well and this became a massive burden on their credit scores. This carried on to owners of homes who ran out of government assistance waiting for their homes to be raised and rebuilt, also having the burden of rent and mortgage payments at the same time. 

I'm not saying that things aren't getting better, I'm saying that there are still people trying to dig themselves out of a tough situation and their FICO scores are suffering because of it. So, buying a home is not within reach as of yet for many of the people who lost it all in the storm. To add insult on top of injury, when your credit is damaged (regardless of circumstance), renting a home isn't easy ether.

With the inventory becoming depleted and credit scores dropping, the rent rates jumped to all time highs. Like I said before, things seem to be improving a little, but I don't see much of a decline in rent rates for 2017. 

Those who invested in distressed and "bargain" properties with a fix and hold (for rent) portfolio may be the smart ones, creating  an annuity plan with equity growth in the future paid by their tenants. Passive income, 26 year depreciation on the property with added capital improvement and business tax benefits seems like the the winning formula in the long term real estate game.

I Can't Believe This Happened to Me!

A True Story

(I can't believe this guy is still in the business)

It All Started Out Good

It's a simple formula. Buyer calls with a particular property need, the real estate agent runs a search and finds properties that meet the buyers needs. Appointments are made and we're off to see the properties. Simple, Right?

Well, we found a property that had been reduced by $50,000 and fell right into the buyers price range This was on a Thursday, so I make a call and going back and forth, we have an appointment for Monday. 

I arrive on site and the listing agent meets me on site to discuss some of the particulars about the property before my clients arrive. He is an older man in his 80's, tells me he's been doing this since the 1950's and hands me a folder from his agency for me to hand my clients (Really?), which was a poor example of a property information binder to begin with.

Everyone arrives on site to see the property

My clients arrive on site and after introductions, we continue to discuss the property, we turned to him to confirm the listing price and low and behold the price was increased by $50,000. He even has the gall to say to me, "didn't you look at the price?" I showed my listing paper which was updated with the reduced price only 29 days ago and printed on Friday. The listing agent shows me his paper with the increased price and it was updated TODAY for an additional $50,000. 

Of course, shock was an understatement to my reaction. Now, I'm told that the owner  had made a whole bunch of improvements and he wanted to put the price back to where it was originally. All the listing agent could say was "I'm sorry, I guess I should have discussed this with you before you came here" Well DUH! My emotions ranged between Embarrassed to Pissed in record time. 

Needless to say, my clients are looking to move on to another property and by no means will they reconsider this one. Not even for free!

This is where Real Estate Agents get a bad rap

Public opinion has it that real estate agents are as trustworthy as used car salesmen! Wow that hurts, considering how much ethics training, continuing education, expensive fines and penalty's we face, today's real estate agent makes every effort to avoid bad press. Now, along comes an agent who blows all of this positive effort out of the water and acts like an old used car salesman who was only missing his cigar and wide rim fedora (at least when I met him)

Who's paying the price?

The Seller just lost an opportunity to move his property to the closing table and stop paying carrying costs, which are digging a hole in his bottom line and is stuck in limbo, with a property that remains on the market. Just as a side note, if he doesn't get rid of his agent, chances are it will be there a LONG TIME. Way to go "Old Timer".

The Buyer is feeling totally abused by this Bait and Switch tactic presented to him by the sellers agent. Here was a perfect property that suited the buyer to a tee and priced right that they will not even give a second look to. (before the switch).

With all that today's real estate agent has to do to maintain professional standards, there will always be one bad apple here and there, who makes up the rules as they go along. We can only hope that they somehow choose other professions or just retire and give the rest of us a break.

Choosing a real estate agent is not a task to be taken lightly. This seller made a big mistake that cost him carrying costs for the property and a chance to sell the property at a fair market price.  Select an agent who will be looking out for your interests and will represent you in the best possible way to get your property sold. 

Drop a comment below and give me your opinion. - Thanks

5 Common Credit Score Killers

Re-posted from CBS Money Watch

By Christine DiGangi/Credit.com

Having a good credit score can help you save a lot of money over your lifetime, but many people find themselves with scores lower than they'd like because they don't know how much everyday things can hurt their scores.

Of course, once you know what those things are, you're better equipped to improve your credit.

Here are five common things that can hurt your credit.

1. High credit card balances

One of the most influential factors in credit scoring are your revolving credit balances relative to your credit limit. You may be able to afford to spend much or all of your available credit and pay the bills in full, but that doesn't mean you should.

The ratio of your credit card balance to the card's limit is called credit utilization -- it's calculated for each revolving credit account you have, as well as your total balances relative to your total amount of available credit. (Installment loans factor into credit utilization, too, but revolving credit has a greater impact.)

On average, Americans use 24 percent of their available credit, which isn't a bad place to be, but the lower you can get that credit utilization rate, the better. If you have low credit card limits and want to use your cards for a lot of purchases, consider paying your bill more frequently so the balance doesn't creep up.

2. Late payments

This is even more important than keeping your debt levels low. In fact, the most important thing you can do for your credit is make your credit card and loan payments on time. (Missing other bills, like for utilities, generally isn't reported to the credit bureaus, but unpaid accounts could be sent to a debt collector, and collection accounts hurt your credit.)

A single missed payment could knock dozens of points -- even 100 points -- off your score, so pay close attention to due dates.

3. Applying for a bunch of credit  cards at once

When you apply for a credit card or a loan, the potential creditor will want to see what your credit looks like. Credit checks for the purpose of extending credit are considered hard inquiries (a soft inquiry occurs during something like an account review, employer credit check or when you check your own credit), and hard inquiries will knock a few points off your score. If you apply for many credit cards in a short period of time, those little dings add up to a big dent in your score, but applying for loans is a bit different, since scoring models group those inquiries together so as not to penalize you for shopping around.

(You can read here about how applying for loans affects your credit scores here.)

4. Closing credit cards

It may seem strange to keep open an account you don't use, but it can make sense from a credit score perspective. Even if you don't use a credit card anymore, keeping it open can help improve your credit utilization rate. As soon as that account is closed, you lose that available credit, so you would need to reduce the amount of spending you do on credit cards to keep your utilization from increasing.

If a credit card is one of your older credit accounts, you would want to keep it open for the sake of keeping up your average age of credit, because that's something that takes a long time to build up. Having an average credit age lower than seven years can suppress your score.

5. Identity theft

You may not be able to prevent it, but the longer identity theft goes unchecked, the higher the chances it will hurt your credit score. A fraudster may open up accounts in your name or run up a huge balance on a stolen credit card, and if you don't stop it before the activity is shared with the credit bureaus, you'll also have to deal with getting that information off your credit reports. Identity theft is extremely common, so the best thing you can do is monitor your financial accounts closely and act quickly to cut off a fraudster as soon as you notice anything suspicious.

You can see the factors affecting your credit, plus create an action plan to improve your scores by checking your credit scores for free on Credit.com, which also shows a summary of your credit history so you can tell if you're dealing with any of the typical credit-score killers.

Curb Appeal - The WOW! Factor

Increase your homes value from the outside in.

Curb appeal is everything when it comes to selling your home, and that means your home’s exterior needs to be in optimal condition. In fact, 71 percent of prospective home buyers say that a home’s curb appeal is an important factor in their buying decision. This Article shows seven exterior home improvements that can increase resale value and help sell your home even faster:


Replace Your Front Door
Believe it or not, a front door says a lot about you and your home. A quality front door can be a huge asset for your home’s value, and how secure your home feels upon entrance. Kelly Fallis of Remote Stylist says, “It’s the first thing a buyer walks through. Repaint or replace; their first impression rests on it.” According to House Logic, a standard 20-gauge steel door can cost around $1,230, but that investment can more than pay for itself with the amount of value it adds to your home. A quality front door replacement can bring you a return of around 102 percent, which makes it a great bang for your buck.

Updated Landscaping
Over 92 percent of prospective home buyers use the Internet at some point during their search process, meaning a lot of eyes are going to be looking for pictures of your home. You want to be able to showcase your property in the best light possible to drive interested parties in for a closer look.According to Bankrate, a quality landscaping job has the potential to net you a whopping 252 percent return in increased home value. John Harris, a landscape economist, has stated that updated landscaping can increase a home’s value by 28 percent and have it sold 10-15 percent quicker.


New Paint
Most prospective homeowners tend to look at what they need to update or work on in the homes that they look at. Repainting your home can cause less stress on the buyer since they know that the job is fresh and adds to the look of the home. That being says, don’t go overboard with color choices. Choose warm and inviting colors, such as taupe, tan or white. “Individuals too often minimize the impact of a first impression,” says James Alisch, managing director of WOW 1 DAY PAINTING. “The exterior paint job of a home greatly impacts how potential buyers feel about a place.” You want to make sure that potential buyers can envision themselves inside your home, and having a neutral exterior color is appealing to a larger pool of buyers. If you do feel the need to add some brighter colors, make sure that they aren’t overpowering and can work well with the neutral base. It’s best to consult your local home improvement store to discuss your options and budget.


Add Home Automation
The home automation industry is expanding faster than ever. Nearly everyone has a smartphone with them at all times, so adding wireless automation to your home could be the feature that sways a buyer.According to HomeAdvisor, the average cost of adding home automation into your residence is around $2,100. Clair Jones of LocalInternetService.com says, “Most smart locks are available for under $250. For such a small purchase cost, homeowners can expect a full return on their investment when they sell their home, and may even see an opportunity to present their property as a ‘smart home,’ which is a hot market term right now.”

Like most technology products, the price ranges vary from cost-effective to break the bank, so weigh your potential return with your REALTOR® before proceeding.


Add a Privacy Fence
Having a quality fence can drastically change the look and security of your home and property. Depending on where you live, fences are on average four to nine feet tall and made of quality materials such as wood or stone. While a chain link fence is an option and may be secure, it won’t look good or provide the privacy that a wood or stone wall will. The average cost of a wood fence is $2,450, but homeowners can expect to get 100 percent back in updated home value.


Updated Windows

Replacing old, single-pane windows is a great way to add a level of security, modernize your home, and help bring energy costs down. According to Energy Star, you can save from $125-$465 per year on energy bills. While you may not recoup the entire cost of the new windows when you sell your home, many prospective buyers will see value in energy saving additions. New windows are a great way to give new life to your home without a ton of changes, and can help sway a buyer to choose your home.


Pressure Wash

Pressure washing is hands down the best bang for your buck in terms of rejuvenating the exterior look and feel of your home. Many people don’t realize how dirt their driveways and walkways are until they start pressure washing the surfaces and seeing the difference. Bob Vila says, “If the paint is still in good condition, a light pressure wash will brighten it up and welcome visitors.” For the low average price of $236 (maybe more depending on lot and home size), you can have your home and property pressure washed. You also have the ability to rent a machine at almost any home improvement store and turn it into a weekend project for yourself.

Home Photography - How Does Your listing Show?

What's in Your Listing?

Most home buyers run through sites like Realtor.com, Trulia.com, Zillow.com and many others to find that perfect home that suits their needs. Having your home properly displayed in pictures will make all the difference in whether your house will be a candidate to be shown or not. 

First Impressions are Lasting Ones.

A home's first impression is created with the initial listing photo, which also appears as the primary photo for all of the real estate web sites as well. Once the search engine criteria is met and homes are displayed, the buyer runs through the photos first and then the details. Homes listed without photos usually go to the bottom of the buyers preference list. The first photo should be the most appealing part of the home. Most cases, real estate agents just take a photo of the outside and set it as the primary photo, when the inside of the home has some exceptional details that may be instant eye catchers and are hidden in the background photos. 

Prepare your home for the photo shoot.

• Remove the Clutter: One of the most common issues in home sales and photography is that over the years, people tend to accumulate a lot of items which personalize the home and sometimes overwhelms it. If possible, remove extra furniture, wall accents, family photos, etc. to a storage facility for later on when you move. Clean and simple is the rule.

• Home Staging: Just like when you might go to a portrait studio for a resume photo or head shot, you want to look your best. You get into a good looking suit or dress, hair in place, bright smile, etc. Your home should be staged to portray its best qualities and functionality. Not everyone can afford a home staging service to rent furniture and accessories and set up the rooms for magazine quality effect. In most cases, it may be that some of your existing furniture and effects need to be re-arranged and you can still have some great photos.  

• Grounds Maintenance: The outside of your home is as important as the inside. It's the first thing a buyer sees and can set the expectations for what they will be expecting inside. That first look has to say WOW!!! As a seller, don't loose this opportunity

Your homes listing photos are the main attraction, when it comes to getting prospective buyers to see your home. Make sure their the best they can be.