The list of advantages to the buyer of Renting to Own goes on and on. We've outlined several in previous posts.
Here are two more advantages:
* The Money You Put Down is Fully Credited Toward the Purchase Price. The money you put down toward a Rent to Own -- typically between three and five percent of the purchase price of the home -- is 100 percent credited toward the purchase price.
* Your Rent Money Is Working For You, For A Change. Instead of just securing your landlord's financial future by paying his rent, some or all of your rent money actually goes toward the purchase price -- and the equity -- of your home! Once you pay rent on a straight rental, that money has left your life forever.
But when you pay rent on a Rent to Own home, part or all of the rent you pay is credited toward the purchase price of the home. Many banks or mortgage brokers will consider this your "down payment" on the home. IN our current economy, unless you have pristine credit AND 25 to 30 percent to put down on a home, no one is going to give you a mortgage. So how are you ever going to save up that down payment money? By earning Rent Credit while you Rent to Own. There is no better way.
Rent credit varies from home to home, but we can help you earn thousands of dollars toward the purchase of your next home through our easy to qualify Rent to Own program.
Call us at 630-697-4500 and we'll help you make your rent money work for you instead of against you.
See Rent to Own properties we have available and join our email list at MyHappyHomeSolutions.com
Thursday, March 1, 2012
Wednesday, February 15, 2012
What Are The Advantages of Renting to Own My Next Home? Part 2
There are many advantages to Renting to Own over simply renting. We outlined two -- lower down payment and earning rent credit toward the purchase price -- in a previous post.
Here are two more advantages:
* Qualifications Not As Strict as in Conventional Financing. Your credit score and other such factors are not as important when renting to own as they are when you purchase with a conventional mortgage. In fact, most Rent to Own buyers are in the process of credit repair while renting to own. You can earn rent credit toward the purchase price while you repair your credit, and then qualify for a mortgage a year or two down the road -- but having earned thousands or tens of thousands in rent credit toward the home which you otherwise would have lost in rent money.
* Past Credit Problems Not a Roadblock. Bankruptcy, foreclosure, short sale, collections from medical bills... You will have a tough time getting a conventional loan for quite a while with these on your credit report. Fortunately, with rent to own, you can begin earning money toward the purchase of the home while you work at resolution of some of these credit trouble spots, or while you let time erase some of them.
We can recommend credit repair specialists and programs -- or even mortgage brokers who specialize in working with credit repair -- to help you clean up your reports, all while you are putting your rent money to work toward the purchase of your next home.
Call us at 630-697-4500 and we'll help you get out of the rental road to financial ruin.
See Rent to Own properties we have available and join our email list at MyHappyHomeSolutions.com
Here are two more advantages:
* Qualifications Not As Strict as in Conventional Financing. Your credit score and other such factors are not as important when renting to own as they are when you purchase with a conventional mortgage. In fact, most Rent to Own buyers are in the process of credit repair while renting to own. You can earn rent credit toward the purchase price while you repair your credit, and then qualify for a mortgage a year or two down the road -- but having earned thousands or tens of thousands in rent credit toward the home which you otherwise would have lost in rent money.
* Past Credit Problems Not a Roadblock. Bankruptcy, foreclosure, short sale, collections from medical bills... You will have a tough time getting a conventional loan for quite a while with these on your credit report. Fortunately, with rent to own, you can begin earning money toward the purchase of the home while you work at resolution of some of these credit trouble spots, or while you let time erase some of them.
We can recommend credit repair specialists and programs -- or even mortgage brokers who specialize in working with credit repair -- to help you clean up your reports, all while you are putting your rent money to work toward the purchase of your next home.
Call us at 630-697-4500 and we'll help you get out of the rental road to financial ruin.
See Rent to Own properties we have available and join our email list at MyHappyHomeSolutions.com
Wednesday, February 1, 2012
What Are The Advantages of Renting to Own My Next Home?
Whether you call it Rent to Own, or "lease-purchase" or "lease-option" or "lease with an option to buy," it can make good sense to acquire your next home using this technique.
Whether it is your dream home we're talking about, or maybe just your "starter" or "re-starter" home, Rent to Own has many advantages for the buyer.
Among them:
* Low Down Payment to Get Into the Property. You won't need nearly as much to initiate making this your home long-term as you would if you were just buying it today. Instead, you can put down a lesser amount now, and then build on that over time, especially when you...
* Receive Rent Credit Toward The Purchase Price. The amount and terms vary from home to home, but almost all rent to own properties allow you to apply some (sometimes even all) of your rent toward the purchase price of the home.
Many mortgage brokers and banks will consider this your "down payment" when considering your loan application, so it allows you to build up potentially tens of thousands of dollars you would otherwise have simply spent on rent, with no long-term benefit to you and your family's financial future. How else are you ever going to save that much money? Most people never do.
Don't throw your hard-earned money away on rent -- once you pay the rent, that money is gone forever. With Rent to Own, that money can still work toward your future financial security.
Rent to Own homes are not always easy to find, but we've always got several available. Call us at 630-697-4500 and we'll help you find a Rent to Own home of your own!
Adam and Diane St. James
MyHappyHomeSolutions.com
Whether it is your dream home we're talking about, or maybe just your "starter" or "re-starter" home, Rent to Own has many advantages for the buyer.
Among them:
* Low Down Payment to Get Into the Property. You won't need nearly as much to initiate making this your home long-term as you would if you were just buying it today. Instead, you can put down a lesser amount now, and then build on that over time, especially when you...
* Receive Rent Credit Toward The Purchase Price. The amount and terms vary from home to home, but almost all rent to own properties allow you to apply some (sometimes even all) of your rent toward the purchase price of the home.
Many mortgage brokers and banks will consider this your "down payment" when considering your loan application, so it allows you to build up potentially tens of thousands of dollars you would otherwise have simply spent on rent, with no long-term benefit to you and your family's financial future. How else are you ever going to save that much money? Most people never do.
Don't throw your hard-earned money away on rent -- once you pay the rent, that money is gone forever. With Rent to Own, that money can still work toward your future financial security.
Rent to Own homes are not always easy to find, but we've always got several available. Call us at 630-697-4500 and we'll help you find a Rent to Own home of your own!
Adam and Diane St. James
MyHappyHomeSolutions.com
Tuesday, January 24, 2012
Major Investment Expert Says the Time to Buy Houses is NOW!
One of our local realtors recently wrote an article quoting a major investment expert, a former Goldman Sachs investment banker -- and the man who wrote two books predicting the real estate bubble, and it's burst...
Woodridge Realtor Elena Taylor knows it, and you should too -- with home prices at their lowest levels in 10 years, and mortgage rates at their lowest levels just about ever -- now is the time to buy.
And if you aren't quite ready to take advantage of this rare economic situation right now, then take a few minutes to investigate the Rent to Own option. Call us at 630-697-4500 to discuss.
Read Elena's article here:
Goldman Sachs Investor Says Buy or Refi a Home NOW!
Woodridge Realtor Elena Taylor knows it, and you should too -- with home prices at their lowest levels in 10 years, and mortgage rates at their lowest levels just about ever -- now is the time to buy.
And if you aren't quite ready to take advantage of this rare economic situation right now, then take a few minutes to investigate the Rent to Own option. Call us at 630-697-4500 to discuss.
Read Elena's article here:
Goldman Sachs Investor Says Buy or Refi a Home NOW!
Monday, January 23, 2012
Even the Mega-Rich Rent to Own their Dream Homes!
Why Do Even the Mega-Rich Often Rent to Own Their Homes? Because it Makes Sense. On many levels.
* Get to experience the home and the neighborhood before you commit to the actual purchase.
* Instead of just throwing away money on rent, which you will never get back, you can apply part -- or sometimes even ALL -- of your rent payments toward the purchase price of the home, helping you build up the down payment amount mortgage brokers and banks will require you to put down before they give you a loan. Is there any other way you are going to save up $10,000 or $20,000 or more?
Here's a Rent to Own success story about the former President of Facebook (now a mega-rich investment fund director, and founder of the newly popular music-sharing website, Spotify) and how he rented his new $20 million dollar home from some other mega-rich person before finally making the purchase,
Sean Parker, Spotify and Founder's Fund
Location: New York
Cost: $20 million
Bedrooms: 6
Bathrooms: 7 full, 1 half
Square footage: 7,500
Sean Parker disputes his bad boy portrayal by Justin Timberlake in the 2010 film "The Social Network." But the former Facebook president and Napster co-founder is certainly living it up in his new home, a $20 million West Village townhouse known as the Bacchus House.
Formerly owned by Italian liquor heir Enrico Cinzano, it includes an indoor pool and gym, garage, theater, a chef's kitchen and an elevator.
Parker, now a managing director at the Founders Fund, a San Francisco venture capital firm, and a director of Spotify, an online music service, PURCHASED THE HOME LAST YEAR, AFTER RENTING IT FOR SOME TIME, and throwing his share of over-the-top parties.
Call us at 630-697-4500 and we'll help you rent to own your dream home too!
Adam and Diane St. James
MyHappyHomeSolutions.com
* Get to experience the home and the neighborhood before you commit to the actual purchase.
* Instead of just throwing away money on rent, which you will never get back, you can apply part -- or sometimes even ALL -- of your rent payments toward the purchase price of the home, helping you build up the down payment amount mortgage brokers and banks will require you to put down before they give you a loan. Is there any other way you are going to save up $10,000 or $20,000 or more?
Here's a Rent to Own success story about the former President of Facebook (now a mega-rich investment fund director, and founder of the newly popular music-sharing website, Spotify) and how he rented his new $20 million dollar home from some other mega-rich person before finally making the purchase,
Sean Parker, Spotify and Founder's Fund
Location: New York
Cost: $20 million
Bedrooms: 6
Bathrooms: 7 full, 1 half
Square footage: 7,500
Sean Parker disputes his bad boy portrayal by Justin Timberlake in the 2010 film "The Social Network." But the former Facebook president and Napster co-founder is certainly living it up in his new home, a $20 million West Village townhouse known as the Bacchus House.
Formerly owned by Italian liquor heir Enrico Cinzano, it includes an indoor pool and gym, garage, theater, a chef's kitchen and an elevator.
Parker, now a managing director at the Founders Fund, a San Francisco venture capital firm, and a director of Spotify, an online music service, PURCHASED THE HOME LAST YEAR, AFTER RENTING IT FOR SOME TIME, and throwing his share of over-the-top parties.
Call us at 630-697-4500 and we'll help you rent to own your dream home too!
Adam and Diane St. James
MyHappyHomeSolutions.com
Thursday, October 14, 2010
My 10 Dumbest Money Moves -- And How You Can Avoid Them
Here's another informative article we've found about managing your money and living a better life! You can't do it all, but just start doing a little every week!
by Stacy Johnson
Thursday, October 14, 2010
My 28-year-old niece and I were recently talking about money. She's (finally!) become interested in accumulating more and spending less, and because I've been in the personal finance business in one capacity or another since before she was born, she logically assumed that I've always done everything right and know exactly what to do at all times.
Confession time: I've blown it big on more occasions than I care to mention. In fact, most of what I've learned about money I didn't learn in books or by being a CPA, stock broker, or financial reporter. I learned it the hard way — by making stupid decisions and missing opportunities.
So for her sake, and maybe yours, I've put together the following list of 10 mistakes — most of which I've made — that you really should try to avoid.
1. Not having a goal
Whether sitting in your car or standing at the airport, you'd never start a trip without a destination in mind. The same logic applies to money. You should decide exactly what it is you'd like to accomplish, then remind yourself of that goal early and often. Are you trying to buy a house? Become self-employed? Save for your kid's college education? Retire in your 50s? Whatever it is, write it down, picture it and share it with anyone else who you're counting on to help you accomplish it. Your goal isn't money — money's paper. Create goals — both short-term and long-term — then decide how much money you'll need to reach them. Take it from someone who wandered aimlessly for years: goals work.
2. Not having a spending plan
If you have a job of any kind, you can bet that your employer tracks every dime they make and every dime they spend. Granted, they have an incentive to do so — both income and expenses affect their income taxes — but it's only logical to want to know where your money is coming from and where it's going.
Tracking and categorizing your expenses with a budget — or spending plan, as I prefer to call it — is the single greatest tool you have to accomplish your money-related goals. A plan that includes what you intend to spend on things like entertainment, food, housing, etc., vs. what you actually spend allows you to fine-tune your finances and find places to save. Not doing this is like driving with your eyes half-closed: You might reach your destination, but you're certainly going to take more time getting there.
If you're not writing down every penny of money coming in and money going out,
3. Attempting to derive self-esteem from possessions
Although we all know that money doesn't buy happiness, very few of us act that way. Instead, we seem to go out of our way to appear successful by driving the right car, living in the right house, and wearing the right clothes. Nothing wrong with nice things — if you can afford them.
But here's something that life has taught me. It's a quote from my most recent book, Life or Debt 2010: You can either look rich or be rich, but you probably won't live long enough to accomplish both.
Attempting to derive self-esteem from possessions is dumb on two counts. First, it's expensive.
More important? It doesn't work.
NOTE FROM HAPPY HOME SOLUTIONS: We can't tell you how many times we've gone in to clean up a property after a tenant has moved out, only to be amazed (and saddened/disgusted) at the purchases made -- and often left behind -- by people who couldn't seem to pay to keep a roof over their heads! A bunch of $100 shoes aren't going to do you any good if you're homeless -- especially if you charge them to your credit card, and then leave them behind when you you get evicted!
Almost all purchases except real estate go down in value over the long term (if not right away). Yes, real estate goes down sometimes too, but it ALWAYS goes back up.
The moral of the story is, if you're living in a $500 per month apartment, you shouldn't plan on throwing away money on a big screen TV and a different pair of Nikes for every day of the week (I've seen it done)!
I'm still watching the 25" TV I bought in '98 -- and it works just fine -- and so does the money I invested in real estate! Don't be dumb about material possessions.
4. Doing what everyone else is doing
One of the world's wealthiest men, Warren Buffett, said, "Be fearful when others are greedy; be greedy when others are fearful."
During the recession-induced stock market rout that began in the summer of 2008 and bottomed in March of 2009, the Dow Jones Industrial Average plunged all the way from 10,000 to 6,600. It was at that time that I bought most of the stocks I now own in my online portfolio. I didn't buy then because somebody on TV told me to — the "experts" were as fearful as everybody else. I bought then because I'd missed similar opportunities in similar downturns before, and I was determined to learn from that mistake this time.
Likewise, when the housing bubble was at its zenith, many of my friends were buying as many houses as they could possibly borrow for, even though it should have been apparent that prices were over-inflated. Now they're broke — and I'm shopping for real estate. Again, not because I'm smart, but because I've also missed that opportunity before. Hence this recent story Why You Should Buy Stocks and Houses Now.
It's common knowledge the economy runs is cycles of boom and bust — yet when times are good, everyone seems to believe that trees grow to the sky. When they're tough — like they are now — the same people stand like a deer in the headlights.
If you're convinced the economy is going to zero, buy guns and canned goods. But if you can reasonably expect a recovery some day, invest — even if that day is a long way away, and even if it's possible things could get worse before they get better.
5. Starting to save large and late rather than small and soon
If you're 25 and you save just 5 bucks every day ... call it $150 a month ... and earn 10 percent, by the time you're 55, you'll have $340,000.
If you wait till you're 45 to start accumulating that same 340 grand, you'll have to save $1,700 every month for 10 years. True, you can't earn 10 percent today, at least without risk.
But over time and by taking a measured amount of risk, you can.
6. Paying interest to buy things that drop in value
There are only two situations where paying interest makes sense, at least mathematically. The first is when the purchase goes up in value at a rate greater than the rate of interest you're paying to finance it. Example: You borrow money at 5 percent to finance real estate that you think might return 8 percent on your overall investment. Other examples might include a business loan or a student loan — in other words, something that's going to return more (at least potentially) than it costs in interest payments.
The other situation where paying interest makes sense is when you can earn more on your cash than you're paying in interest. Example: After taxes, I'm only paying about 3.5 percent to finance my house. Since I think can make more than 3.5 percent after-tax in the stock market, I'll forgo paying off the mortgage, even though I have the cash.
Obviously there are times when we have no choice but to borrow. The point is that unless the math works out, the less you borrow, the better.
7. Turning down free money
If your employer is offering matching money when you participate in your company's 401k or other retirement plan — and you're not participating to the extent necessary to get the full match — you're literally refusing free money, not to mention ignoring an opportunity to get a tax deduction and grow your retirement savings tax-deferred.
There are only two kinds of people who turn down free money: people who really, truly can't afford to put up the money to get the match, and people who aren't thinking it through.
And yes, I've been one of those people.
8. Buying a new car
Everyone knows that cars drop 15-25 percent before you get them home from the showroom. Which makes it odd that so many people continue to buy one. My girlfriend just bought a 2009 BMW that still smells new for $26,000 — about $7,000 less than a new one would cost, and they look pretty much identical.
This is one mistake I can happily say I haven't made — I've never spent even that much on a car — or owned one that new.
If you're buying a car for transportation, it doesn't have to be either new or fancy. Cars are depreciating assets: the less you spend on one the better, especially if you're borrowing money to do it.
9. Buying more house than you need or can afford
It's practically gospel: spend 25 percent of your gross income on a mortgage, regardless of what size house you really need. While spending the maximum possible amount you can afford will make real estate agents happy, will it make you happy? When you buy more square feet than you're going to actually live in, you're required to insure them, furnish them, clean them, heat them, and cool them. All of that costs money, time and stress.
Buying a big house makes sense if you're trying to make a leveraged bet on the future of housing prices — or if you're trying to impress your friends.
If you're not doing either, buy what you need and put the money you save into more productive things, like meeting your financial goals.
10. Not protecting your good credit
Credit is like lots of things in life: simple to screw up, a bear to fix. And even though you may think it doesn't matter, some day it might, and probably will. If you've already messed up your credit, take the time and steps necessary to fix it and then keep in good shape.
That was my list of dumb moves to avoid, but I'll bet there are plenty of things that you could add. So let's hear it!
by Stacy Johnson
Thursday, October 14, 2010
My 28-year-old niece and I were recently talking about money. She's (finally!) become interested in accumulating more and spending less, and because I've been in the personal finance business in one capacity or another since before she was born, she logically assumed that I've always done everything right and know exactly what to do at all times.
Confession time: I've blown it big on more occasions than I care to mention. In fact, most of what I've learned about money I didn't learn in books or by being a CPA, stock broker, or financial reporter. I learned it the hard way — by making stupid decisions and missing opportunities.
So for her sake, and maybe yours, I've put together the following list of 10 mistakes — most of which I've made — that you really should try to avoid.
1. Not having a goal
Whether sitting in your car or standing at the airport, you'd never start a trip without a destination in mind. The same logic applies to money. You should decide exactly what it is you'd like to accomplish, then remind yourself of that goal early and often. Are you trying to buy a house? Become self-employed? Save for your kid's college education? Retire in your 50s? Whatever it is, write it down, picture it and share it with anyone else who you're counting on to help you accomplish it. Your goal isn't money — money's paper. Create goals — both short-term and long-term — then decide how much money you'll need to reach them. Take it from someone who wandered aimlessly for years: goals work.
2. Not having a spending plan
If you have a job of any kind, you can bet that your employer tracks every dime they make and every dime they spend. Granted, they have an incentive to do so — both income and expenses affect their income taxes — but it's only logical to want to know where your money is coming from and where it's going.
Tracking and categorizing your expenses with a budget — or spending plan, as I prefer to call it — is the single greatest tool you have to accomplish your money-related goals. A plan that includes what you intend to spend on things like entertainment, food, housing, etc., vs. what you actually spend allows you to fine-tune your finances and find places to save. Not doing this is like driving with your eyes half-closed: You might reach your destination, but you're certainly going to take more time getting there.
If you're not writing down every penny of money coming in and money going out,
3. Attempting to derive self-esteem from possessions
Although we all know that money doesn't buy happiness, very few of us act that way. Instead, we seem to go out of our way to appear successful by driving the right car, living in the right house, and wearing the right clothes. Nothing wrong with nice things — if you can afford them.
But here's something that life has taught me. It's a quote from my most recent book, Life or Debt 2010: You can either look rich or be rich, but you probably won't live long enough to accomplish both.
Attempting to derive self-esteem from possessions is dumb on two counts. First, it's expensive.
More important? It doesn't work.
NOTE FROM HAPPY HOME SOLUTIONS: We can't tell you how many times we've gone in to clean up a property after a tenant has moved out, only to be amazed (and saddened/disgusted) at the purchases made -- and often left behind -- by people who couldn't seem to pay to keep a roof over their heads! A bunch of $100 shoes aren't going to do you any good if you're homeless -- especially if you charge them to your credit card, and then leave them behind when you you get evicted!
Almost all purchases except real estate go down in value over the long term (if not right away). Yes, real estate goes down sometimes too, but it ALWAYS goes back up.
The moral of the story is, if you're living in a $500 per month apartment, you shouldn't plan on throwing away money on a big screen TV and a different pair of Nikes for every day of the week (I've seen it done)!
I'm still watching the 25" TV I bought in '98 -- and it works just fine -- and so does the money I invested in real estate! Don't be dumb about material possessions.
4. Doing what everyone else is doing
One of the world's wealthiest men, Warren Buffett, said, "Be fearful when others are greedy; be greedy when others are fearful."
During the recession-induced stock market rout that began in the summer of 2008 and bottomed in March of 2009, the Dow Jones Industrial Average plunged all the way from 10,000 to 6,600. It was at that time that I bought most of the stocks I now own in my online portfolio. I didn't buy then because somebody on TV told me to — the "experts" were as fearful as everybody else. I bought then because I'd missed similar opportunities in similar downturns before, and I was determined to learn from that mistake this time.
Likewise, when the housing bubble was at its zenith, many of my friends were buying as many houses as they could possibly borrow for, even though it should have been apparent that prices were over-inflated. Now they're broke — and I'm shopping for real estate. Again, not because I'm smart, but because I've also missed that opportunity before. Hence this recent story Why You Should Buy Stocks and Houses Now.
It's common knowledge the economy runs is cycles of boom and bust — yet when times are good, everyone seems to believe that trees grow to the sky. When they're tough — like they are now — the same people stand like a deer in the headlights.
If you're convinced the economy is going to zero, buy guns and canned goods. But if you can reasonably expect a recovery some day, invest — even if that day is a long way away, and even if it's possible things could get worse before they get better.
5. Starting to save large and late rather than small and soon
If you're 25 and you save just 5 bucks every day ... call it $150 a month ... and earn 10 percent, by the time you're 55, you'll have $340,000.
If you wait till you're 45 to start accumulating that same 340 grand, you'll have to save $1,700 every month for 10 years. True, you can't earn 10 percent today, at least without risk.
But over time and by taking a measured amount of risk, you can.
6. Paying interest to buy things that drop in value
There are only two situations where paying interest makes sense, at least mathematically. The first is when the purchase goes up in value at a rate greater than the rate of interest you're paying to finance it. Example: You borrow money at 5 percent to finance real estate that you think might return 8 percent on your overall investment. Other examples might include a business loan or a student loan — in other words, something that's going to return more (at least potentially) than it costs in interest payments.
The other situation where paying interest makes sense is when you can earn more on your cash than you're paying in interest. Example: After taxes, I'm only paying about 3.5 percent to finance my house. Since I think can make more than 3.5 percent after-tax in the stock market, I'll forgo paying off the mortgage, even though I have the cash.
Obviously there are times when we have no choice but to borrow. The point is that unless the math works out, the less you borrow, the better.
7. Turning down free money
If your employer is offering matching money when you participate in your company's 401k or other retirement plan — and you're not participating to the extent necessary to get the full match — you're literally refusing free money, not to mention ignoring an opportunity to get a tax deduction and grow your retirement savings tax-deferred.
There are only two kinds of people who turn down free money: people who really, truly can't afford to put up the money to get the match, and people who aren't thinking it through.
And yes, I've been one of those people.
8. Buying a new car
Everyone knows that cars drop 15-25 percent before you get them home from the showroom. Which makes it odd that so many people continue to buy one. My girlfriend just bought a 2009 BMW that still smells new for $26,000 — about $7,000 less than a new one would cost, and they look pretty much identical.
This is one mistake I can happily say I haven't made — I've never spent even that much on a car — or owned one that new.
If you're buying a car for transportation, it doesn't have to be either new or fancy. Cars are depreciating assets: the less you spend on one the better, especially if you're borrowing money to do it.
9. Buying more house than you need or can afford
It's practically gospel: spend 25 percent of your gross income on a mortgage, regardless of what size house you really need. While spending the maximum possible amount you can afford will make real estate agents happy, will it make you happy? When you buy more square feet than you're going to actually live in, you're required to insure them, furnish them, clean them, heat them, and cool them. All of that costs money, time and stress.
Buying a big house makes sense if you're trying to make a leveraged bet on the future of housing prices — or if you're trying to impress your friends.
If you're not doing either, buy what you need and put the money you save into more productive things, like meeting your financial goals.
10. Not protecting your good credit
Credit is like lots of things in life: simple to screw up, a bear to fix. And even though you may think it doesn't matter, some day it might, and probably will. If you've already messed up your credit, take the time and steps necessary to fix it and then keep in good shape.
That was my list of dumb moves to avoid, but I'll bet there are plenty of things that you could add. So let's hear it!
Friday, October 8, 2010
Maybe This Affects You: BofA Halts Foreclosure Sales in 50 States
We've reprinted this article from AP because we feel it may affect some who read our blog. If you are currently going through a foreclosure, the action taken by BofA (and most certainly to be followed by other banks very soon), may give you some hope of halting your foreclosure. If you think you might fall into this category, you might consider contacting your lender and/or your attorney regarding this matter -- it may save your home!
October 8, 2010
By ALAN ZIBEL, AP Real Estate Writer Alan Zibel, Ap Real Estate Writer – 20 mins ago
WASHINGTON – Potential flaws in foreclosure documents are threatening to throw the real estate industry into a full-blown crisis, as Bank of America on Friday became the first bank to stop sales of foreclosed homes in all 50 states.
The move, along with another decision on foreclosures by PNC Financial Services Inc., adds to growing concerns that mortgage lenders have been evicting homeowners using flawed court papers.
Charlotte, N.C.-based Bank of America Corp., the nation's largest bank, said Friday it would stop sales of foreclosed homes in all 50 states as it reviews documents used to process foreclosures. A week earlier, the company had said it would only stop such sales in the 23 states where foreclosures must be approved by a judge.
"We will stop foreclosure sales until our assessment has been satisfactorily completed," company spokesman Dan Frahm said in a statement. "Our ongoing assessment shows the basis for our past foreclosure decisions is accurate."
Bank of America did not disclose how many homeowners would be affected.
State and federal officials have been ramping up pressure on the mortgage industry over worries about potential legal violations amid growing evidence that mortgage company employees or their lawyers signed documents in foreclosure cases without verifying the information in them. Also Friday, Sen. Christopher Dodd, D-Conn, the chairman of the Senate Banking Committee, said he would hold a hearing on the issue next month.
"American families should not have to worry about losing their homes to sloppy bureaucratic mismanagement or fraud," Dodd said. "Regulators at the federal, state, and local levels have a responsibility to uphold the law and protect consumers from unfair foreclosure, and lenders have a duty to not cut corners around the law."
A document obtained last week by the Associated Press showed a Bank of America official acknowledging in a legal proceeding that she signed thousands of foreclosure documents a month and typically didn't read them. The official, Renee Hertzler, said in a February deposition that she signed 7,000 to 8,000 foreclosure documents a month.
Earlier in the week, Senate Majority Leader Harry Reid, D-Nev., urged five large mortgage lenders to suspend foreclosures in Nevada until they have set up systems to make sure homeowners aren't "improperly directed into foreclosure proceedings." Nevada is not among the states where banks had suspended foreclosures.
Also Friday, PNC Financial Services Group Inc. said it is halting most foreclosures and evictions in 23 states for a month so it can review whether documents it submitted to courts complied with state laws. An official at the Pittsburgh-based bank confirmed the decision on Friday, which was reported earlier by the New York Times. The official requested anonymity because the decision hasn't been publicly announced.
PNC becomes the fourth major U.S. lender to halt some foreclosures amid evidence that mortgage company employees or their lawyers signed documents in foreclosure cases without verifying the information in them.
In addition to PNC and Bank of America, Ally Financial's GMAC Mortgage unit and JPMorgan Chase & Co. have announced similar moves in the past two weeks.
In some states, lenders can foreclose quickly on delinquent mortgage borrowers. By contrast, the 23 states use a lengthy court process. They require documents to verify information on the mortgage, including who owns it.
*************
If you're in a pre-foreclosure situation, perhaps it's time to consider finding someone to take over your mortgage payments -- a rent to own tenant, or possibly a real estate investor willing to work with you to keep you from foreclosure. Call us and let us discuss your options: 630-780-HOME (4663).
October 8, 2010
By ALAN ZIBEL, AP Real Estate Writer Alan Zibel, Ap Real Estate Writer – 20 mins ago
WASHINGTON – Potential flaws in foreclosure documents are threatening to throw the real estate industry into a full-blown crisis, as Bank of America on Friday became the first bank to stop sales of foreclosed homes in all 50 states.
The move, along with another decision on foreclosures by PNC Financial Services Inc., adds to growing concerns that mortgage lenders have been evicting homeowners using flawed court papers.
Charlotte, N.C.-based Bank of America Corp., the nation's largest bank, said Friday it would stop sales of foreclosed homes in all 50 states as it reviews documents used to process foreclosures. A week earlier, the company had said it would only stop such sales in the 23 states where foreclosures must be approved by a judge.
"We will stop foreclosure sales until our assessment has been satisfactorily completed," company spokesman Dan Frahm said in a statement. "Our ongoing assessment shows the basis for our past foreclosure decisions is accurate."
Bank of America did not disclose how many homeowners would be affected.
State and federal officials have been ramping up pressure on the mortgage industry over worries about potential legal violations amid growing evidence that mortgage company employees or their lawyers signed documents in foreclosure cases without verifying the information in them. Also Friday, Sen. Christopher Dodd, D-Conn, the chairman of the Senate Banking Committee, said he would hold a hearing on the issue next month.
"American families should not have to worry about losing their homes to sloppy bureaucratic mismanagement or fraud," Dodd said. "Regulators at the federal, state, and local levels have a responsibility to uphold the law and protect consumers from unfair foreclosure, and lenders have a duty to not cut corners around the law."
A document obtained last week by the Associated Press showed a Bank of America official acknowledging in a legal proceeding that she signed thousands of foreclosure documents a month and typically didn't read them. The official, Renee Hertzler, said in a February deposition that she signed 7,000 to 8,000 foreclosure documents a month.
Earlier in the week, Senate Majority Leader Harry Reid, D-Nev., urged five large mortgage lenders to suspend foreclosures in Nevada until they have set up systems to make sure homeowners aren't "improperly directed into foreclosure proceedings." Nevada is not among the states where banks had suspended foreclosures.
Also Friday, PNC Financial Services Group Inc. said it is halting most foreclosures and evictions in 23 states for a month so it can review whether documents it submitted to courts complied with state laws. An official at the Pittsburgh-based bank confirmed the decision on Friday, which was reported earlier by the New York Times. The official requested anonymity because the decision hasn't been publicly announced.
PNC becomes the fourth major U.S. lender to halt some foreclosures amid evidence that mortgage company employees or their lawyers signed documents in foreclosure cases without verifying the information in them.
In addition to PNC and Bank of America, Ally Financial's GMAC Mortgage unit and JPMorgan Chase & Co. have announced similar moves in the past two weeks.
In some states, lenders can foreclose quickly on delinquent mortgage borrowers. By contrast, the 23 states use a lengthy court process. They require documents to verify information on the mortgage, including who owns it.
*************
If you're in a pre-foreclosure situation, perhaps it's time to consider finding someone to take over your mortgage payments -- a rent to own tenant, or possibly a real estate investor willing to work with you to keep you from foreclosure. Call us and let us discuss your options: 630-780-HOME (4663).
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