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Teaching your kids financial responsibility

If the current economic recession has taught us anything, it's that financial education and responsibility are critical in today's fast-paced, wired world. All too often, however, children grow up immune to the financial world around them. As a result, they're often ill equipped to manage their own finances when they become adults and leave home.

With the economy in the news almost daily, now's a perfect time to start educating your children about how to manage money more responsibly. The tips below can help you get started.

1. Give an Allowance

If your children don't have money of their own, it's hard for them to really grasp the value of it. So if you don't pay your children allowance, consider starting. You don't need to pay a lot–a little goes a long way. The most important thing is that your children learn the value of completing even small chores around the house to earn their own money.

2. Make a Plan and Set Guidelines

Before you start giving your children an allowance, sit down with them and set some expectations. Discuss the specific chores and timelines for completing those chores, as well as the amount of money they'll earn for each chore and when they'll be paid. This helps instill a strong work ethic in children as well as drive home the message that money is earned, not given.

3. Save for the Future

As part of your financial discussion, consider implementing a savings rule for your children. For example, make a rule to save half or one-third of their allowance. You can go with them to the bank to establish a savings account in their name and then take them to make their deposits. Or, if your children are still young, you can set up a special savings bank. Let your children decorate a jar or can to give it some personality and then have them deposit a portion of their money in that special bank whenever they receive their allowance.

4. Educate on Interest

Talk to kids about savings accounts and the value of interest. If you start a savings bank at home, offer to pay your kids a small amount of interest on their savings. Once a month, sit down with your kids and count how much they have deposited, how much interest they have earned, and how much they have as a result. Compare the amounts each month, so your children can see the benefits not only of saving, but also the benefits of compounding interest.

5. Save for a Big Purchase

The next time your child shows you an expensive toy or big-ticket item that he or she wants, consider striking a deal where the child saves up for half of the cost. For instance, consider a "match plan" in which you match every dollar your child saves for the item. This will not only teach the value of saving, but also help your child learn to budget and plan for expenses–which is a lesson that can pay off in the future when your child becomes a credit-card-carrying adult.

6. Take Your Children Shopping

Take your children grocery shopping with you. As you go down your shopping list, have your children help you compare the prices of the different brands, sales, and quantities per package. You can also have your children try to keep a running tally and make a guess of what the total cost will be.

7. Set Them Free to Shop

Once your children have a sense of money matters, you may want to take the lesson up a notch. For instance, when your children need new school clothes, you try giving them the money and putting them in charge of what to buy. Then, as they shop, help them compare the prices and number of items they can purchase within their budget. You could even purchase a Visa gift card with a specific dollar value on it. That will help your children not only learn about the value of a dollar and making smart purchases, but it will also introduce them to the credit card system, in which money may not seem real because it's unseen. In today's electronic financial world, this lesson will become more and more important as your children get older.

8. Teach by Example

Remember, children are always watching. So if you educate them on saving for purchases and budgeting but make rash decisions on big-ticket items yourself, you may find them learning a different lesson than you intend. So make sure you follow your own rules when it comes to spending, saving, and fiscal responsibility. You may even want to consider discussing your donations to help your children understand the importance of supporting charities.

9. Be Consistent

Teaching children about money isn't something that can be done in a short period of time. Children are always re-experiencing their environments and testing their boundaries. So make sure that once you implement an allowance, savings, and budgeting plan that you stick with it. Over time, you may decide to raise your child's allowance or change the terms of their savings. But those shouldn't be quick decisions. Instead, if you and your child want to revisit the financial plans or to add a new element, take the time to sit down, write out what the changes will be, discuss how this will impact the child's level of responsibility, and make sure you end the conversation with agreement on what will happen going forward. Then, be consistent; don't waiver.

At times your child may beg for an exception. But by being consistent, your children will be much better prepared to deal with the real financial world that they'll face when they grow up.

3:01 PM - Nov. 20, 2009 - comments {0} - post comment

Creating the perfect home office

These days, more and more people are working all or part of the time from home, making a home office a necessity. Here are some tips for creating the perfect home office.

• Closets are great for storage. Not only can they house filing cabinets, but they are also perfect for storing the items you don't need to access on a regular basis. This helps to maximize the actual workspace of your office.
• Shelving is one of the most versatile options for storage. Shelves can be purchased cheaply and come in a variety of sizes. They are easily installed and take up zero floor space.
• Don't forget about your garage. When it comes to older files or anything that is rarely accessed, a garage can provide ample storage space. Word to the wise, however, the garage can be a dirty place. Plan accordingly by storing paper items in boxes and wrapping equipment in protective plastic.
• Visit a store that's dedicated to home organization. Nowadays it seems like nearly every mall has a store of this kind. You'd be surprised at some of the inexpensive, space-saving storage options available.

2:49 PM - Nov. 18, 2009 - comments {0} - post comment

Waiting really could cost you

 Low interest rates this year have lulled many people into believing that home loan rates in the 5.00% and lower range are "normal". This is not the case and if you are in the position where you could refinance or are considering buying a home, complacency is not your friend.

Stimulus provided by the Obama administration has been instrumental in creating the environment that has lowered rates, increased home sales and assisted distressed homeowners.

Uncle Sam Lends a Temporary Hand
Tick tock, tick tock. Just as summer turned to fall on September 22nd, deadlines await two programs that supplied the heat directed at the housing markets.

Government programs in the housing and interest rate arenas are slated to end in coming months. The time to take advantage of these programs is now. Stimulus programs from Washington have led to incentives for first time home buyers (FTHB), artificially low interest rates, and typically unallowable refinance transactions.

Infinite stimulus for the housing sector is not in the cards nor is it reasonable to expect. Deadlines are approaching. Whether you want to buy a home or need to refinance one, do not procrastinate. The best path is to investigate options now before you may find that none are available to you.

First Time Home buyer Alert
If you are a FTHB who wants to take advantage of the tax credit, think two words. GET BUSY. The tax credit of up to $8,000 is set to expire November 30th. While there is talk that this program may be extended, nothing is certain and millions of FTHBs have already taken advantage of the credit. With real estate closings taking as long as 60-90 days, according the National Association of Realtors, you need to get under contract shortly if you want to take advantage of the tax credit.

Home prices are down significantly across the country from their high points the past few years. However, median home prices in August were up 7.8% from their low point earlier this year. If you have been waiting for home prices to decline further, perhaps you should not. Great opportunities are available but many real estate agents report multiple contracts being offered on hot properties. If you wait, you may be disappointed.

Check with your mortgage professional to see if he or she can accommodate you if you go under contract in the next two weeks. Many lenders will still be able to help you but only if you have all your paperwork in order.

Rates Are Great – NOW!
Interest rates dipped in late September to near the lowest points ever recorded. As reported by Freddie Mac, rates for conforming loans approached 5.00% for a 30 year fixed rate and below 4.50% for a 15 year fixed rate with additional fees paid to obtain these rates. Rates for FHA, VA, and USDA Guaranteed loans typically offer slightly higher rates.

There is one reason that home loan rates are as low as they are. Last November the Federal Reserve announced a program to purchase up to $1.25 Trillion in mortgage backed securities. This effort lowered rates to the lowest level of all time and has kept rates, according to Freddie Mac, below 5.50% this year compared to rates as high as 6.48% last year for a 30 year fixed rate.

This program was slated to end December 31st of this year but in September's Federal Open Market Committee meeting, it was announced that the program will be extended to the end of the first quarter of 2010. However, the amount the Fed will purchase will not change.

Peter Hooper, chief economist at Deutsche Bank, told Bloomberg that a sudden end to the Fed purchases could cause rates to rise by a half to one percentage point. If you delay your financing, you could well see rates that are significantly higher than what is available today.

Upside Down – Refinance to 125% of Value
Even if you owe up to 125% more on your mortgage than your home is worth, you may be able to refinance. For example, if your home is worth $200,000 but you owe more than that, qualifying homeowners can now refinance up to $250,000.

The Making Home Affordable program was initially structured to accommodate homeowners with a new loan to 105% of their home's value. This has recently been increased to 125%. There are requirements to qualify including whether your loan is currently owned by either Fannie Mae or Freddie Mac. You can find out if your loan is held by either agency by going to the Loan Lookup section of the Making Home Affordable web site.

According to First American Core Logic, more than 15.2 million homes had negative equity in June of this year. This represents nearly 33% of all mortgaged properties across the country. Where in the past, being upside down on your loan would have precluded your ability to seek relief, you now may have an opportunity.

What Now?
With incredibly low interest rates and current stimulus programs available to help many, explore the options that may best suit you but do so quickly. However, just as you wouldn't go out Trick or Treating on November 1st, options that exist today may not be available to you should you wait.

2:52 PM - Nov. 16, 2009 - comments {0} - post comment

Travel Speak

For many people, insurance can seem like a foreign language that only those fluent in ‘insurance speak’ can understand. To master the art of insurance appreciation however, you don’t need instruction from RosettaStone or Berlitz, just a little help from InsureMyTrip.com. 

“Travel insurance like all insurance is complex,” explains Jim Grace, President and CEO of InsureMyTrip.com, “but a fundamental understanding of industry terms and phrases that commonly cause confusion, can clear up some of the mystery. At InsureMyTrip.com, one of our key goals is to help travelers understand travel insurance, and that means starting with the basics.” These are the top 10 travel insurance terms that every consumer should know as they prepare to purchase trip protection for their upcoming travels: 

1. A.M. Best Ratings – Industry watchdog A.M. Best rates and assesses insurance companies’ financial strength and ability to meet their obligations to policyholders. InsureMyTrip.com features a user-friendly monitoring tool for consumers to check the A.M. Best Ratings of all the leading U.S. travel insurance companies before you purchase coverage.

2. Unforeseen – means not anticipated or expected and occurring after the effective date of the policy.

3. Primary - This section of the policy will pay first, before any other collectible insurance.

4. Secondary - This section of the policy will pay you after any other Primary collectible insurance has paid the claim and the Primary policies’ limits have been exhausted.

5. First Trip Payment Date - This is the date that money first exchanged hands for the trip you want to insure. This is the date the check is written, not the date it is cashed.

6. Pre-existing Medical Condition Waiver - Many policies have a pre-existing medical exclusion, meaning that coverage is not available for pre-existing medical conditions. A Pre-existing Medical Condition Waiver essentially deletes that exclusion and extends your policy to cover pre-existing condition-related risks. To be eligible for a Pre-Existing Medical Condition Waiver, the majority of travel insurance policies require that you purchase your policy within 10 to 21 days of your first trip payment date and insure for the full amount of your non-refundable travel arrangements.

7. Look Back Period - This is the number of days that the insurance company will ‘look back’ from the date the insurance was purchased to see if your claim is related to a pre-existing medical condition. The Look Back Period varies by company and plan and does not apply if you qualified for the Pre-existing Medical Condition Waiver offered by many plans.

8. Cancel For Any Reason – This is an optional benefit that empowers travelers to cancel trips for any reason including sudden unemployment, schedule conflicts, even bad weather, up to two days prior to departure. Cancel For Any Reason policies vary by company and must be purchased within 10-21 days of your first trip payment date.

9. Financial Default – This is a benefit that is part of Trip Cancellation/Interruption coverage. This protection applies if the airline, cruise line, or tour operator goes out of business and you are unable to travel as a result or suffer financial loss. Since this coverage is time sensitive, you must purchase a policy within 10 – 21 days (varies by company) of your first trip payment date. All of the plans that contain this benefit have a 7-30 day waiting period from the time of purchase before becoming effective. Typically, if you purchase travel insurance directly through a travel supplier such as an airline, cruise line, or tour operator, you cannot protect yourself should that travel supplier go bankrupt or become financially insolvent, so it is always best to purchase your travel insurance protection from a third-party source.

10. Travel agent vs. Tour Operator - A Travel Agent is someone who books flights, cruises and tours. A Tour Operator is a company which specializes in the organizing and operation of pre-planned vacations which are usually sold to the public through travel agents. 

2:18 PM - Nov. 14, 2009 - comments {0} - post comment

Roofing 101

This article is by Tim Gentry, technical director of DaVinci Roofscapes:

Replacing a roof is a major investment for any homeowner. When considering such a significant home improvement project, it makes sense that consumers will have questions.

“Thoroughly researching roofing options should be a priority for any homeowner considering a new roof,” says Tim Gentry, technical director of DaVinci Roofscapes®. “Many aspects should be considered, including a product’s warranty, style and durability. A homeowner should ask the question ‘what will this roof do for me’ before making a decision.”

According to Gentry, who served 20 years as a roofing installer and has been in the industry for 40 years, a roof should be carefully selected to complement a home’s design and geographic weather conditions. It should also provide long-term comfort and safety for those who live in the home. Some of the most frequent questions Gentry receives from homeowners nationwide include the following:

Q: What are the pros and cons of different roofing materials?

A: Three-tab asphalt shingles are relatively easy to install, inexpensive and look good on ordinary homes. However, they can be a poor environmental choice because they go to a landfill after 20 years, they perform only moderately well, and they don’t add any special design appeal to a home.

Real wood shingles or shakes look good on some styles of homes and are moderately priced, however they have little or no resistance to fire or impact unless specially treated. They also attract insects, have relatively poor long-term performance and are generally considered a poor use of our natural resources.

Real slate shingles also provide a good look on some styles of homes and can be considered very long-lasting when installed properly. However, they are very expensive and extremely heavy. During installation you can have a significant amount of waste from cracking and breaking of slate tiles.

Metal roofs are perfect for some very specific home designs. They have a unique look to them, are lightweight and snow can easily slide off of them. Watch out when it rains or hails though … these roofs are noisy on the inside of the home during storms.

Synthetic roofing tiles provide a high-performance option for homeowners. The tiles come in a variety of styles, including slate and shake, are lightweight and have long-term durability. These tiles are moderately priced and a good environmental choice. While the look complements many home styles, synthetic roofing tiles are moderately priced, so they’re not affordable for everyone.

Q: What are the life spans of different roofing materials?

A: Generally, real wood will wear out the fastest, followed by three-tab asphalt shingles. You can maybe get 15-20 years out of each of these. Some metal roofs can last up to 50 years, depending on their warranty. Synthetic roofing tiles last up to 50 years and require minimal maintenance attention. Real slate also lasts many years on a home … some slate can last up to 100 years!

Q: Why would I consider synthetic roofing materials over traditional asphalt products?

A: Aesthetics and durability. Typical asphalt shingles look ordinary. Consider this: when you look at many homes, especially those with steep roofs, almost half of what you see is the roof. When selecting a roof, think about curb appeal and resale value. Synthetic tiles make an ordinary home look extraordinary. Additionally, they give the homeowner peace-of-mind because these roofing tiles will perform exceptionally well against fire, impact, wind and other weather conditions.

Q: What is the synthetic roofing material made of?

At DaVinci, we use an engineered polymer, which is impregnated with fire retardant and state of the art advanced UV stabilizers specifically formulated for the tough conditions tiles are exposed to in all climates throughout the year. Our roof tiles use only 100% pure virgin resin in order to assure consistency, and are 100% recyclable.

Q: Do roofing tiles become more brittle over time?

A: That depends on the kind of roofing tiles. Asphalt and real wood roofing materials do become more brittle toward the end of their life cycles. DaVinci tiles do not have that problem. The engineered polymer used in DaVinci synthetic tiles changes very little over time or when subjected to extreme temperature and weather conditions. Third party independent extended life testing has shown minimal degradation of the material’s performance qualities.

Q: Which roofing tiles are consistent with their colors and won’t fade over time?

A: Most synthetic roofing tiles have their color blended completely throughout their tiles. These products won’t fade over time because UV protection has been built into each tile. When exposed to continual sunlight and UV rays, many other products, such as metal and asphalt roofing, will indeed fade over time, losing their original sharpness of color.

2:40 PM - Nov. 12, 2009 - comments {0} - post comment

Where are all the bank owned homes?

This article is by Rick Sharga of RealtyTrac, Inc.

Certain things in life are simply meant to be mysteries. There are ages-old philosophical questions that have kept philosophers busy for millennia: What is the sound of one hand clapping? If a tree falls in the forest and no one is there, does it still make a sound? Other mysteries hang heavy with intrigue: What really happened to Amelia Earhart? And who really kidnapped the Lindbergh baby? And still others simply defy logic: If Denny’s is open 24 hours a day, 365 days a year, why are there locks on the doors?

Now we can add another question to the list of ongoing mysteries: With foreclosure activity breaking records nearly every month, where are all the REOs?

It’s a fair question. In normal market situations, a bank will repossess a home and usually process it through to a listing agent to put on the MLS within 30 days. In a relatively short period of time, virtually every marketable REO property finds itself listed for sale on the local MLS. Today, that’s simply not the case; it’s likely that between 450,000 and 500,000 properties repossessed over the past year are still not on the market. And with buyers hungry for housing bargains, and agents and brokers chomping at the bit ready to sell the properties, it begs for a reasonable answer.

Lenders and servicers admit that it’s taking longer to process REOs than it has in the past, and they offer a number of legitimate reasons:

-Many of the properties have title issues that need to be resolved.

-Many of the properties are in states of utter disrepair.

-A number of states have strict redemption-rights periods, which prevents the lender from reselling the property.

-A few states have extended the length of eviction proceedings.

-The sheer volume of REO activity has created a “pig in the python” phenomena, (to put this in perspective, there will be roughly 10 times the number of REOs this year as in the last “normal” year, 2005).

What else could be slowing things down? A popular theory is that many banks are holding the properties off the market in order to defer losses. There is some accounting logic to this theory, as in most cases, banks aren’t required to adjust asset prices until the actual resale of the property. Another idea is that the industry is holding back the inventory to create leverage with the government in order to force the creation of a “toxic bank” or RTC-like entity that would buy the distressed assets at 50 to 60 cents on the dollar rather than the 30 to 35 cents available on the market today. This theory suggests that, seeing the threat of a massive inventory of distressed homes being released all at once, the government would “blink” rather than risk another housing market meltdown.

Whatever the reason—process issues or conspiracies—we’re going to continue to see record-breaking numbers of REOs for at least the next year, and we’ll all be watching to see when these sought-after homes finally make their way to the market.

2:37 PM - Nov. 10, 2009 - comments {0} - post comment

Best tools of 2009

This article is by Front Range Inspection:

		The first one is called the quick point gun, it is a gun that speeds up the delivery of mortar for repointing/tuckpointing the mortar on brick homes and chimneys. This is a very useful tool for the professional handy man, fix and flipper or anyone looking to upgrade the appearance of a brick wall. Click here for pricing and a short video on its use.
		This one simplifies the leveling challenge, sometimes it is hard to get a cabinet or picture level while paying attention to making the first marks. This little gadget helps you keep your eyes on the prize. It can also be attached to a 48 inch level modernizing your old and trusted friend. Click here for pricing and here for a short video.
		This tool is more for the professional or that tool junkie that needs all the new tools. This little gem lets you look behind all kinds of things (walls, inspection covers, hatches, siding, plumbing and more). Plus you can take pictures with an on board digital camera so you can defer evaluation and diagnosis to your chosen expert confidant. Range in price from $150 to $300 depending on make and extensions needed. This is the best unit I have seen. Clicking here will take you to a website with different models and pricing.
		Keep in mind the holiday season is just around the corner.

2:32 PM - Nov. 8, 2009 - comments {0} - post comment

Home affordability

The 2009 Coldwell Banker® Home Price Comparison Index (HPCI) recently released found a price gap of more than $2 million between the most expensive and most affordable U.S. housing markets.

In the annual comparison of similar 2,200-square foot homes in 310 U.S. housing markets, La Jolla, Calif. led the list as the most expensive real estate market in the country with an average home price of $2,125,000. Grayling, Mich., also known as the “canoe capital of the world,” ranked as the most affordable market in America, where a similarly sized home costs $112,675.

La Jolla was joined on the most expensive list by 13 other California markets while Grayling was one of 20 Midwest communities on the most affordable list. Internationally, Singapore was the most expensive market for the same type of home, $1.9 million U.S. dollars, compared with Salinas, Ecuador, which at $69,375 U.S. dollars was the most affordable studied international market.

Differing from most housing reports that compare median prices, the annual Coldwell Banker HPCI, provides an apples-to-apples comparison of similar 2,200 square foot, four-bedroom, two-and-a-half bath homes in the United States, Puerto Rico, Canada and a sampling of countries/territories outside of North America where Coldwell Banker Real Estate has a presence.

”While price differentials are interesting to compare, I am most intrigued with the affordability levels now seen across much of the nation,” says Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate LLC. “The four-bedroom, two-and-a-half bath home is one we deem ‘aspirational’ and usually purchased by move-up buyers experiencing lifestyle changes. Thirty percent of the markets show this type of home to be below $200,000, illustrating the opportunity to take advantage of price declines, interest rate levels and increased selection of homes. Encouraging these move-up buyers back into the market is a crucial next step toward helping to rejuvenate the housing industry and the overall U.S. economy.”

A “Snapshot” of U.S. Home Affordability

Offering a “snapshot” of affordability across the United States, the Coldwell Banker HPCI evaluates average home values for select 2,200 square foot single-family homes with four bedrooms, two-and-one-half baths. The cumulative average sales price of the four-bedroom homes surveyed in the 310 U.S. markets (including one in Puerto Rico) covered in the Coldwell Banker HPCI is $363,460.

Through the comprehensive HPCI section on the Coldwell Banker website (http://hpci.coldwellbanker.com), prospective homebuyers and sellers can calculate what similar homes may be worth in other areas and gather preliminary intelligence about the affordability of housing from one market to another.

2009 Coldwell Banker HPCI – Highlights and Top Market Lists
Affordable and Attractive: In addition to Grayling, Mich., the following are interesting tidbits about the other nine most affordable U.S. markets:

-Akron, Ohio ($121,885), won the All-American City award three times and is birthplace to the ice cream cone
-Fayetteville, N.C. ($130,875), a historic city known for its strong military ties
-Canton, Ohio ($131,867), birthplace of American professional football and home to the NFL Pro Football Hall of Fame
-Detroit, Michigan ($132,000), America’s automotive manufacturing and Motown music hub
-Arlington, Texas ($138,775), home to the Dallas Cowboys’ new stadium which will host the 2011 Super Bowl XLV, and the Texas Rangers’ Ballpark
-Macon, Ga. ($139,007), hometown to many legendary soul and blues acts like Otis Redding, and home of the Georgia Music Hall of Fame
-Eau Claire, Wis. ($141,270), which has been named one of the 100 Best Communities for Young People by America’s Promise in the past
-Port Charlotte, Fla. ($142,750), which is minutes away from the Gulf of Mexico and setting to some of the country’s best sunset views
-Wichita, Kans. ($144,625), home to more than 30 museums and a haven for art-lovers, theatre-goers and golfers alike

Low Cost to Homeownership: In total, there are 84 U.S. markets in which the sample home price averages under $200,000. The monthly mortgage cost for homes in this price range could average less than $600, and down payments could amount to less than $4,000.

Luxury Living: La Jolla, Calif. heads the list as the most expensive real estate market in the country ($2,125,000), beating out its California neighbor Beverly Hills, where the average home costs $1,981,750. Greenwich, Conn., whose average price of $1,519,250 places it as the most expensive market on the East coast, followed by Boston at No. 7 overall. In total, 11 U.S. markets exceeded the $1 million average price for the surveyed home. Note: Manhattan in New York City was not included in the study because of the lack of comparable single-family homes.

On Average: The overall national average price of homes in the 2009 Coldwell Banker HPCI is $363,401.

Canadian Prices Reach Record Levels: Canada’s brief market downturn is over, with record prices now seen throughout the resurgent market. Vancouver, BC leads the hot-again west coast at $1.17 million U.S. dollars for the studied home, nearly double that of nearby Burnaby BC at $611,243. Boomtown Fort McMurray at $593,340 surpasses Calgary as Alberta’s most expensive market. Canada’s largest city, Toronto, Ontario comes in at $766,643, while Charlottetown PEI remains the country’s most affordable market, priced at $147,560 U.S. dollars.

Most Expensive Internationally: The most expensive market outside the United States is Singapore, where an HPCI subject home averages $1.9 million U.S. dollars, ten percent lower than La Jolla. Coldwell Banker Real Estate compared a total of 57 markets in 29 countries outside of the United States, with those international home prices averaging $487,844 in U.S. dollars.

The top 10 most expensive and most affordable surveyed U.S. markets overall in 2009 are:

Rank   Most Expensive   2009 Avg. Sales Price   Most Affordable   2009 Avg. Sales Price

1            La Jolla, Calif.              $2,125,000             Grayling, Mich.              $112,675

2           Beverly Hills, Calif.       $1,981,750             Akron, Ohio                    $121,885

3            Greenwich, Conn.         $1,519,250             Fayetteville, N.C.           $130,875

4           Palo Alto, Calif.              $1,489,726             Canton, Ohio                  $131,867

5            Santa Monica, Calif.    $1,460,912             Detroit, Mich.                 $132,000

6            San Francisco, Calif.    $1,363,250           Arlington, Texas             $138,775

7            Boston, Mass.                 $1,337,578           Macon, Ga.                       $139,007

8            Newport Beach, Calif.   $1,315,505           Eau Claire, Wis.               $141,270

9            Palos Verdes, Calif.        $1,237,041           Port Charlotte, Fla.         $142,750

10          San Mateo, Calif.            $1,090,000          Wichita, Kans.                 $144,625

2:16 PM - Nov. 6, 2009 - comments {1} - post comment

When is a foreclosure not a foreclosure?

This article is by George W. Mantor who is known as “The Real Estate Professor” for his wealth building formula, Lx2+(U²)xTFP=$? and consumer education efforts.


 

The latest chapter in the mortgage meltdown is being written in court, as one by one, judges are putting a halt to foreclosures. The latest was a recent Kansas Supreme Court case. In Landmark National Bank v. Kesler, the court held that a nominee company called MERS had no standing to bring a foreclosure action.

Nor was Kansas the first. In August 2008, Federal Judge for the U.S. Bankruptcy Court for the District of Nevada ruled MERS had no standing. ”Indeed, the evidence is to the contrary, the Note has been sold, and the named nominee no longer has any interest in the Note.”

In September of 2008, A California Judge ruling against MERS concluded, “There is no evidence before the court as to who is the present owner of the Note. The holder of the Note must join in the motion.”

On March 19, 2009, the Supreme Court of Arkansas determined that MERS was not the true beneficiary because the Note had been sold. Alabama and Florida have made similar rulings.

In each case, the reason stems from a fundamental misstep in the handling of Notes and Trust Deeds that runs contrary to established court policies which require that the real parties identify themselves to the court. Each of these cases involved MERS and, in each case, the courts’ rationales were almost identical.

First, a little background. Over the last 40 years, mortgage lending has evolved from a bank holding the mortgage to the mortgage being bundled and sold as part of an investment pool, usually in the form of a bond.

As a registered security, the Note is a negotiable instrument, like money or a cashier’s check, and under securities law that Note must be given to the investor. In this case, mortgage backed securities, (MBS) were bundled together in a pool and shipped to…well, we don’t really know.

One of the impediments to an MBS is the need to file assignments for the beneficiaries in each county each time the mortgage is resold. And apparently, no one holds them for very long because most have been passed around several times.

In order to avoid the logistical nightmare of trying to maintain a public chain of title, the biggest lenders joined MERS, Mortgage Electronic Registration Systems, Inc.

MERS was created with the sole intent of evading the recording fees due to the county in which the security is located.

In so doing, in my opinion, they also destroyed the age-old practice of making a public record of information concerning real property in general, and legal interest specifically. The chain of title is a vital record produced to resolve many a dispute.

Now, that’s gone. I believe, erased simply so they themselves, MERS, could siphon off the recording fees for themselves. They sold their business model to lenders as a better way to track mortgages that were being sold and resold all over the world.

But, as there often is with a BIG IDEA, there were also unintended consequences. Only now are they coming to light. Until MERS was challenged in a foreclosure proceeding, no one had taken a look at the law.

The law, according to a Nevada Judge, is that for purposes of foreclosure, both the Note and the Deed of Trust must be assigned. When the Note is split from the Deed of Trust, the Note becomes unsecured. A person holding only a Note lacks the power to foreclose because it lacks the security.

MERS lost track of the Notes. In some cases, according to my research, they deliberately destroyed them.

Every thing was fine until the economy contracted. MERS began foreclosing on delinquent home loans and then one day; someone said “show me the Note.”

In reviewing the judge’s rulings in the above matters, several key points have been determined:

• MERS is not the beneficiary of the Notes and has no skin in the game. It did not lend any money, collect any payments or do anything more than track the sale of the securities.

• Judicial procedure requires that parties identify themselves and prove their standing.

• Splitting the Note and Trust Deed leaves no party with standing to foreclose. The true holder of the Note, the security, paid the lender so the lender is covered. The true holder of the Note was insured by AIG so they are covered. AIG and the banks were bailed out by taxpayers. So, unless the American tax payer can produce a “blue-ink” original Note, no one has standing to foreclose.

• Allowing a foreclosure to proceed without the original Note places the homeowner in double jeopardy. If the original Note were to surface, the holder of the Note would be entitled to payment, but from whom? The borrower is still on the hook.

MERS currently holds 50 to 60 million loans so this is no small matter. And, just because they have lost repeatedly doesn’t mean they will give up. They will keep right on foreclosing in hopes that the homeowner won’t fight back and, in most cases, they won’t be stopped.

2:12 PM - Nov. 4, 2009 - comments {0} - post comment

Sell your home to yourself

This article is from Lifetime Products:

As you look around your home, it’s hard not to notice all the minor flaws. Maybe you want to move to something bigger and better, but your realtor thinks you’re better off staying put for a while. You don’t have to wait out the market in a house that makes you cringe. Instead, real estate expert and author Loren Keim offers a few simple tips to help you turn a flawed house back into your (temporary) dream home: 

Honey Do It Now- As you walk through your home, you’re bound to see little things that have been on the “honey do” list for years: the dripping faucet, broken closet shelves, ugly caulk in the bathtub. Set aside one weekend to tackle all these minor repairs; the house will instantly seem newer, and when it does come time to sell, you’ll already have these things completed. 

Treat Your Windows- Send those dated mini blinds packing. New curtains, drapes and modern blinds may be the quickest, easiest and least expensive method of changing the entire look of a room. Old or worn window treatments can make a room look drab and dated, but a bold new style or color can instantly update a room. 

Splash of Color- A home can be completely transformed by the addition of the right colors. A fresh coat of white paint on the ceiling brightens a room and gives the illusion of height, while bold wall colors drastically change the look of an entire space. Paint wall and door trim in a contrasting color to make it stand out, or match the wall color to blend into the background. Beware: dark colors generally make rooms feel smaller and liberal applications of wallpaper tend to make a home look old. 

The Grass Is Greener- Most realtors will tell you that beautiful lawns help sell homes because they make an entire house look new and fresh. Give your lawn an inexpensive makeover by trimming bushes and trees, weeding the garden and planting colorful flowers. Additionally, remove any large plants that hide the home’s facade and add new mulch to flower beds to really make the exterior pop. 

Spread Out- A major reason people move is for more storage space. However, you can add hundreds of square feet of storage to your current property with an outdoor shed from Lifetime Products. These sheds are weather-resistant, lockable, ventilated and they cost a mere fraction of what you’d spend on a home addition. They also have decorative shutters and a wood grain finish, so they’ll look great in your newly-manicured lawn. 

2:04 PM - Nov. 2, 2009 - comments {1} - post comment

Burn and Fire Prevention Tips

9:41 AM - Oct. 31, 2009 - comments {0} - post comment

Buyers are changing shopping habits

Whole Foods Market, one of the leading natural and organic foods supermarket, announced results from its annual Food Shopping Trends Tracker survey conducted by Harris Interactive, which found that two out of three (68%) U.S. adults have changed their cooking and eating habits because of the current state of the economy, with about half (51%) eating dinner at home more often and more than a third (37%) budgeting food shopping trips more strictly. 

At the same time, the survey found that the majority (76%) say they do not want to compromise on the quality of the food they buy, regardless of current food prices. While three in four (75%) also continue to purchase natural and/or organic foods in the same quantities as they always have, nearly two-thirds (65%) of consumers surveyed say they would like to find ways to be able to buy these foods within their budget. 

“We recognize that shoppers should be able to cut costs, not corners when buying natural and organic foods,” says A.C. Gallo, co-president and chief operating officer for Whole Foods Market. “This research is in sync with what we are seeing right now with our customers as they are taking advantage of our in-store value programs and specials, and they are turning to us for meal planning and ideas more than ever before, especially via our website.” 

Of the adults who said their grocery shopping habits have been affected by current food prices, half (54%), are using more coupons are more likely to comparison shop (50%), and are more likely to buy private label/grocery store brands (45%). Interestingly, four in five adults (80%) think the price of groceries, in general, has increased since this time last year, according to the survey. However, according to the federal government’s Bureau of Labor Statistics Consumer Price Index release for July 2009, the food at home index has declined for the seventh time in the past eight months for a total decrease of 2.6% from its peak in November 2008. 

Learn to Cook. Learn to Save. Eat Healthy.

The survey found that most adults (79%) cook at home. More than half (54%) saying they do so to save money, while 44% of respondents say they simply enjoy eating their favorite foods in the comfort of their home and 41% say they cook at home to ensure they are eating healthfully. 

Among parents who provide breakfast, packed school lunches and/or after-school snacks for their children, nearly half (45%) say they would like to find ways to provide these types of healthy foods within their budget, and some (20%) insist on providing these healthy food items, with little attention to price. 

Additional survey results include:

-Three in four (73%) continue to purchase natural and/or organic foods. Three in four (75%) continue to purchase natural and/or organic foods in the same quantities as they always have.

-The majority (76%) say that they don’t want to compromise on the quality of the food they buy regardless of current prices.

-Two out of three (65%) say that they would like to find ways to be able to buy natural and/or organic foods on a budget.

-Four in five (82%) say the way they shop for groceries has been affected by current food prices. Of these adults, 54% indicate that they are using more coupons, 50% are more likely to comparison shop and 45% are more likely to buy private label/grocery store brands.

-Most adults (68%) say the economy has affected their cooking and eating habits. About half (51%) say they now eat dinner at home more often, more than a third (37%) say they budget food shopping trips more strictly and more than one-quarter (28%) say they focus meals on inexpensive pantry staples like beans and whole grains.

-Most adults (79%) say they cook while only 22% say they don’t cook often or at all. Over half of all adults (54%) say they cook because it saves them money while 44% say they cook because they like to enjoy their favorite foods in the comfort of their own home.

-The majority (87%) of parents of kids aged 3-17 say they provide breakfast at home, an after-school snack (70%) and a packed school lunch (55%) for their kids. Of these parents nearly half (45%) say they would like to find ways to provide healthy breakfasts/lunches/after school snacks for their children within their budget. Another 40% say they try to provide breakfasts/lunches/after school snacks for their children in reusable containers while 26% try to provide them in disposable items such as sandwich bags and paper lunch sacks.

-One in five parents (20%) who say they provide breakfast at home, an after-school snack and a packed school lunch for their kids aged 3-17 say they try to look for the most convenient -not necessarily the healthiest foods- to provide, while the same percentage of these parents say they insist on providing these items with little attention to price.

-Some of these parents (14%) also say they would like to provide healthy -breakfasts/lunches/after-school snacks for their kids ages 3-17 but are not always sure what the most nutritious option are and some (6%) say their kids ages 3-17 simply won’t eat healthy breakfasts/lunches/after-school snacks. 

3:10 PM - Oct. 29, 2009 - comments {0} - post comment

Are you having a failure to communicate?

This article is by George W. Mantor who is known as “The Real Estate Professor” for his wealth building formula, Lx2+(U²)xTFP=$? and consumer education efforts

 

Failure to communicate is a fact of everyday life. “Nobody told me.” “I couldn’t open my e-mail.” “I didn’t get the message.” 

Your success in business will largely be dependant on your ability to transmit your message. What you say, how you say it, and the media you employ are critical to effective communication. You will regularly collect, process and distribute vital information. 

You will set appointments and reschedule them. You will make representations and commitments. You will interpret laws and rules. You will be responsible for millions of dollars changing hands based on representations made by you. 

And, if you have a failure to communicate in business, you could lose a client, lose a friend, lose a transaction, lose a suit, lose your license and maybe even your freedom. And, it can happen so easily. 

I was lost in thought when my concentration was shattered by the ringing of the phone. Not wanting to get derailed from what I was working on, I decided to let voice mail take care of it. Though it turned out to be a wrong number, I had to pick it up. It was a government agency and the message was intended for a prospective grant recipient. The caller warned that she had 48 hours to respond to his call and no other attempt would be made to contact her. 

Had the intended recipient been “The Amazing Kreskin,” she would have known that someone was trying to reach her. And, doesn’t that make you wonder about the important message you never got? 

Now I bring this up not to disparage the inefficiencies of government employees, but as prelude to the most important lesson you will ever learn. 

It is the most fundamental and immutable law of human relations. 

The sender of the message is always responsible for whether or not it is received. 

Always. 

The entire point of communication is to get the message delivered. If I write and no one reads it, I haven’t communicated. 

A real estate company owner flew from Austin to Chicago to meet with an agent. When the agent was a no show, he called the woman. She was still in bed and told him that she had canceled the meeting by leaving him a voice mail message the night before. Who is responsible for his wasted cross country trip? 

For all the communication devices we have, we are by every measure less skilled at the art of communication than our grandfathers. 

We have reverted to monosyllabic grunts. “Yo! Yo! Whassup?” 

Soon, we’ll never be out of cell phone bars but we won’t know how to say anything. Our writing seems to be devolving into a hybrid of primitive cave scratching and Gregg shorthand. 

Most of us take for granted that we are good communicators. But, without proper focus, and some actual study of the skills necessary to foster effective communication, there is always the possibility for miscommunication. 

As a businessperson, you want to employ strategies that minimize the potential for miscommunication and enhance your ability to communicate more and more effectively with your target audience. 

Fortunately, there are principals and techniques that you can learn that will improve your communication ability. But first, let’s take a look at the bigger picture. 

There are two modes of communication: verbal and non verbal. 

Factors which influence the effectiveness of verbal communication include: 

Clarity—Is the message concise and to the point, and does it flow in a logical order? 

Vocabulary—the very words you use create the flavor and nuance necessary to transmit complex and precise information. 

Denotative meaning—this is the specific meaning of a word. For example, let us say that we describe Jack as being determined. 

Connotative meaning—this is the suggested meaning. By saying that “Jack doesn’t know when to quit,” we have attached a negative connotation. If we say that “Jack has stick-to-itiveness,” we make his determination a positive quality. 

Pacing—Is the delivery fast and excited or measured and calm? 

Timing—If it seems like a bad time to launch into a topic, maybe it is. 

Relevance—Communication can often be derailed or delayed by either straying from the topic or with the introduction of non-sequitors and “red-herrings.” 

Factors which influence the effectiveness of non verbal communication need little explanation. They include: 

Personal appearance
Intonation
Facial expression
Eye contact
Posture and gait
Gestures
Touch 

Additional factors that impact both types of communication include: 

Development
Perceptions
Values
Emotions
Sociocultural background
Knowledge
Roles and relationships
Environment
Space and territoriality

Here are 15 steps you can take to become a great communicator: 

1. Keep the objective in mind. You are in a personal service business and good communication is your ultimate objective. Why? You need to get things done. Much of it requires the voluntary cooperation of others. You deal with facts and figures that have meaning and must be conveyed to the extent that the ramifications are clear to the other party. You have the responsibility of being certain that the people who rely on you are informed about the decisions they are making. 

2. Seek first to understand. The better you understand what other people are feeling and wanting, the better you can fulfill your role as a trusted advisor. 

3. Think like a detective not a judge. Ask questions that are open-ended. Probe the answers. Clarify. 

4. Listen more carefully and responsively. 

5. Retain your perspective. This will help you to be a better listener. See yourself outside of the dialogue rather than getting caught up in it. 

6. Take responsibility for your message getting through. Sending an email or leaving a voice message isn’t communication. It is attempted communication and should be followed up on until confirmation of receipt is certain. 

7. Stay in character. Never, ever, ever let them see you sweat. As a professional, it is unacceptable for your personal feelings to obscure the communication process. Displays of anger will not encourage what you need most from other people—open dialogue leading to cooperation. 

8. Be forthright. Don’t play games or manipulate. What works in other social settings most often won’t work in business. Vow never to play the Victim or the Persecutor. 

9. Maintain eye contact. By focusing first on one eye, and then the other, you’ll find it easier to maintain eye contact without losing concentration. Try it; it really works. 

10. Build your vocabulary. According to linguistic research there are over 600,000 word forms. The average person knows maybe 20,000 words and uses about 1,500 in the course of a week. A powerful vocabulary could be your competitive edge. 

11. Take a writing course. From your local library to community colleges and senior centers, numerous writing courses are available. 

12. Enroll in Toastmasters. This could be the best investment you will ever make in your life. Toastmasters is a support group dedicated to helping people become better speakers. 

13. Join a community theatre. The world of business has its own characters, roles, and scripts. Know your part and play it well, and you will be rewarded. 

14. Give examples. Understanding is created by building on a base of common knowledge. Frequent examples give those unfamiliar with the message many ways to understand it. 

15. Tell stories. All great communicators have the ability to tell an engaging tale. Work on your stories. 

Succeeding in business demands good communication skills. Fortunately, effective communication can be learned. You can be as good a communicator as you want to be. 

Many people have a limited arsenal of communication tools because they place no value on them. 

Over the years, I have heard agents say things like, “Yeah, I told ‘em, but they just don’t get it.” Or, “I left them a message; I don’t know why they didn’t show up.” 

Remember, the single most important principle of effective communication is that the sender of the message is always responsible for whether or not it is received. When I say responsible, I don’t mean in some business practices sort of way, I mean in the real practical life-and-death sort of way. If you are adrift on the ocean and a ship comes into view, don’t whisper for help. 

This brings us to a few final thoughts about recent innovations in technology and their sometimes unintended consequences. 

Why are you yelling at my voice mail? 

On more than one occasion I have been the recipient of a prolonged flaming by another agent. Today, your competitor could take an angry message from you and put it on his website for the whole world to hear. 

What if someone else is listening? 

Many professionals have home offices. It may be possible that family members, guests, and others could hear your message as you leave it. The purpose of voice mail is to leave a message to get a return call; it is not a dump box for 5 minutes of blather or angst. 

Listen to the outgoing message to make sure you have the right person. 

In a seemingly bored and condescending voice, the following message was left on my voice mail by an annoyed female practitioner, “Well, that deal still stands, I know it’s only a half million dollars.” Loud sigh. Click. 

That was it. No name, no phone number, and no way to even contact her as a courtesy and let her know that she had the wrong person. I’ve played that message back to a lot of people as an example of what not to do. To this day, I have no idea who she is, and I guess “that deal still stands.” 

Precede and end every message by slowly stating your phone number. 

Trust me on this one. It’s hard to hear out there. Your recipient may not be able to write down a number. They don’t want to listen to the entire message again to get the number. Keep the message brief. 

You’ve got mail. 

The good thing about email is that there is a record of what was said. The bad thing about email is that there is a record of what is said. Every email should be written as though it will be read by your enemy’s lawyer, your employer, and your mother. 

Gr8 deal 4 u boi. 

Texting may ultimately destroy writing as a communication vehicle. Too many things cannot be adequately abbreviated. Use it sparingly, and remember its business. 

The BLOG cometh, be afraid, be very afraid. 

Maybe there is some business advantage to carrying on an endless dialogue, but it appears to me to be outweighed by the potential to look stupid. If you BLOG, get your facts straight, check your spelling, and remember, it’s indelible. It might be best to BLOG calm and sober. 

From Myspace to disgrace. 

My next door neighbor refers to himself on his myspace.com personal web site as “an insurance and home loan Ninja”. But apparently, when he’s not Ninjaing loans he’s either drunk, dressing in drag, or exposing himself as demonstrated by the photos on his site. 

Social networking has its place but it also has its perils. 

Already, crimes have been solved and jobs have been lost over the content on personal web sites. Search engines will find you and more people are searching professionals before committing to them. And remember, once it’s on the Internet, it may be impossible to remove every link. Think of it as your 21st century tattoo. 

Tila Tequila Tweets a lot, should you? 

Yes, but probably sparingly. There are essentially two components to our craft: one is the legal and precise knowledge component, and the other is the creation of customers. As a mechanism for conveying the former, the 140 character limit seems too limiting. As a tool in the customer creation process, it could be a double-edged sword. Think before you tweet. 

Communication is at the heart of a professional’s stock and trade. Yet too many professionals take for granted that they are good communicators and spend little or no time working on the fundamentals of communication. Commit some time every day to improving your communication skills, and both business and personal relationships will be richer and more satisfying.

3:14 PM - Oct. 27, 2009 - comments {0} - post comment

You can go green

 It's tough to argue against the idea of leading an environmentally conscious existence. But, a concern for many people is that going "green" means spending extra money on eco-friendly products. Here's a list of products that will not only help preserve our environment, but our budgets as well.

The GoGreenMug
It is estimated that Americans throw away 25 billion Styrofoam cups and 18 billion paper cups every year. Paper and cardboard make up over 40 percent of the solid waste buried in American landfills. Of that, 40 percent is attributed to disposable coffee cups. Adding to the waste are the plastic lids, straws and cardboard sleeves associated with the purchases made at coffee shops.

One way to help counteract this issue is by purchasing an insulated travel mug. A product that we love is the GoGreenMug available at gogreenmug.com. For less than $15, you can completely personalize a 16-ounce travel mug that will take the place of the hard-to-recycle paper cups found at most coffee shops.

How will this save you money? Many baristas will actually fill your 16-ounce GoGreenMug for the same price as a small coffee. It's also not unusual for coffee shops to offer discounts to customers who provide their own mugs. Regardless, the GoGreenMug is a fun way to take your coffee on the road while also reducing waste.

CFL Light Bulbs
Switching to compact florescent light bulbs is one of the easiest ways to diminish the energy used in your home, as well as the associated costs. While CFLs are more expensive than incandescent bulbs, they last about 10 times longer. Each bulb actually pays for itself after the first six months of use, and will save you at least 30 dollars over the course of its lifetime.

Aside from using less energy, CFLs reduce the amount of carbon dioxide, sulfur dioxide, nitrogen oxide and mercury released into the atmosphere. To find out more about CFLs, as well as to find a retailer near you, log on to energystar.gov.

Water Filter and Reusable Water Bottles
The bottled water industry is thriving, so it's no wonder there are concerns regarding the oil it takes to manufacture and ship the polyethylene terephthalate (PET) plastic bottles, as well as the effects on our landfills after they're discarded. The good news is that the recycling of these bottles is on the rise. The problem, however, is that our dependency on plastic as a whole is taking a toll on our environment.

Another issue is the cost of bottled water. While tap water is not free, the U.S. Conference of Mayors estimates that bottled water costs between 1,000 and 4,000 times more!

We suggest that a great way to do your part, and save money while doing it, is to invest in a water filtration system for your home, as well as a reusable stainless steel drinking bottle. There are many out there to choose from, so opt for models that are right for your lifestyle and budget. No one is saying that bottled water needs to completely go away, as there are many practical uses. A reduction in our use of plastic water bottles, however, will benefit everyone.

Rechargeable Batteries
Even more disturbing than the millions of batteries purchased and thrown away each year, is the fact they contain heavy metals (lead, cadmium and nickel), which can leach into our environment. Whenever a battery is no longer of use, we suggest storing it in a non-disposable container. Every few months you can take the used batteries to a local recycling center. To find a center near you, log onto earth911.com. The search engine located at the top of the homepage is sure to help.

If you are looking to also save money on your battery usage, you may want to think about purchasing rechargeable batteries, as well as a battery charger. Both can be found in many retail locations, but for a great selection and prices check out amazon.com.

Faucet Aerators and Low-flow Showerheads
It is fairly easy to understand why both of these products are good for the environment, and your budget. Not only are you using less water, but you are also heating less water. In turn, your bills will decrease.

Gone are the days when "low-flow" meant a lackluster shower, or drippy faucets. New technology allows for air to be mixed in with the water. In layman's terms, the aeration provides for less water usage without pressure being sacrificed. In addition, both products are fairly inexpensive and can be easily installed, without the use of any tools.

While both of these products can be found at many hardware and home improvement stores, we ask you to check out ItsEasyBeingGreen.com. There, you will find no shortage of the aforementioned products, as well as many others that are sure to save on energy used, and money spent.

Stainless Steal Drinking Straws
This may not be a product for everyone, but if you're partial to using drinking straws, or you have children who enjoy smoothies on a regular basis, they're perfect! In addition to reducing your waste, they add cache to any drink you may serve to dinner guests. Figure on spending $10 for a set of four, but understand that they have the ability to last a lifetime.

Most endurable drinking straws are guaranteed to never rust or tarnish, and can be easily cleaned in the dishwasher. As an added bonus, they add to the coldness factor of any beverage. Conducting a simple Google search should turn up a plethora of buying options.

Go Online
The fact that you are reading this article means you are already online. So, as long as you have a reasonable understanding of computers and the Internet, you may as well be using it to save money, as well as trees and landfill space.

Nowadays many banks and companies are offering "paperless" statements and online bill paying. Just think of the paper that just one person would conserve if they never received a bill in the mail or wrote a check.

The money you'd save would come from not having to mail the check to the company. But, there is another bonus. With online bill paying comes the ability to pay whenever you want. In other words, no more mailing a check a week before it's due. Simply pay the bill on the day it's due.

Vinegar
Yes, you read it correctly. White distilled vinegar may be one of the most versatile products, not to mention environmentally friendly and downright cheap to buy. Not only can you do some healthy cooking with vinegar, but it also has over a thousand household uses, everything from cleaning and laundry to pets, garden and automotive.

For tips on how to effectively use white distilled vinegar, log onto vinegartips.com. You will be amazed how many toxic and expensive products you will no longer need to buy.

Final Thoughts on Being Green
There are two final thoughts we'd like to share. The first is the items presented in this article only scratch the surface of products that are both eco-friendly and budget-friendly. Look around your home for products that you regularly use and then discard. Simply replace them with products that are reusable.

Lastly, doing your part to preserve our environment doesn't have to be about making drastic changes to your life. It is more about making a few minor changes and sticking to them. Don't feel the need to use all these suggestions. Instead find one or two that work for you and go for it. But whatever you do, please don't believe the myth that going green means going broke.

2:53 PM - Oct. 25, 2009 - comments {1} - post comment

Buying Your First Home

 First-time homebuyers (FTHB) are taking advantage of one of the best real estate environments we have ever seen. Home affordability this year has been at an all time high with low interest rates and declining home prices. However, buyers on the fence should not be complacent.

Home prices in many markets have not only stabilized but are rising. Interest rates, while still incredibly attractive, could be poised to rise in coming months as stimulus from Washington is scheduled to end in December. Finally, the tax credit of $8,000 for qualifying FTHBs is currently scheduled to end November 30, 2009.

Why Buy a Home?
One of the first questions someone naturally asks themselves as a renter is, "Why should I become a homeowner?" There are many reasons, but probably the first one is the pride in knowing that you have established a foundation for building personal wealth as well as a basis for future memories.

Thinking back to your childhood, many of your fondest memories may be from events in your childhood home. Holidays, birthdays, and family events all typically took place in your home growing up. Anything you and your parents wanted to do to your home, within reason of course, were options of your choosing.

Knowing that you have taken a major step in financial independence also creates a sense of pride that few things can replicate. However, it's one thing to say owning a home makes sense, it's another to actually look at how owning a home can help you financially.

Financial Reasons to Buy
Aside from the emotional implications, any decision involving money has to make sense. There are few things anyone can do that have a greater impact on their finances than owning a home.

The reasons to buy your first home are numerous, not only today, but anytime. In a comparison of renters versus homeowners, the U.S. Federal Reserve Board of Consumer Finance found that the average net worth of renters was $4,000 compared to homeowners at $184,400.

Building personal wealth can be accomplished a number of ways but owning a home provides a path that takes advantage of several ways at once, compounding their net impact on your bottom line. Increasing equity leveraged from the reduction of mortgage debt and home price appreciation are one path. Income tax deductions both from the sale and ownership of the property are another.

Move in and Watch it Grow
What do a tree and the impact of owning a home on personal wealth have in common? Neither grow quickly but both grow larger and become stronger over time. A home purchased today at a price of $150,000 will grow in value to $364,000 over 30 years at an appreciation rate of just 3%.

While the impact of home values over the last three years can not be ignored, during the period from 1950-2002, U.S. home prices appreciated at an annual growth rate of 4.8%, or significantly greater than the example just given.

The Impact on Your Wallet – Today
Owning a home creates a number of items that can result in both an immediate and long lasting boost to your wallet. The first is time sensitive and needs to be acted on quickly to benefit.

Income Tax Credit. The income tax credit available from the IRS for up to $8,000 for qualifying FTHBs is scheduled to end November 30, 2009.

Points Pay Twice. Many buyers today are opting to pay points to lower their interest rate. In some cases, this can be a negotiated expense that the seller may pay to incentivize you to purchase their home. Points paid to lower an interest rate are considered pre-paid interest by the IRS and would result in an income tax deduction for the buyer, regardless of who pays it.

Mortgage Interest. One of the largest tax deductions most people report each year is the amount of interest they pay on their mortgage. While not exact, on a $150,000 mortgage with an interest rate of 5.50%, the amount of the first year's interest would be approximately $8,000. For a family earning $70,000 in a federal tax bracket of 25%, this amounts to a significant savings, effectively reducing the amount of a homeowner's monthly mortgage payment. For those that pay state income taxes, the impact is even greater.

Private Mortgage Insurance (PMI). PMI is insurance that is mandated by a lender when the amount of a down payment is less than 20% of the purchase price. The purpose of PMI is to protect the lender in the event a borrower later falls into default and the home falls into foreclosure. PMI under most circumstances is a tax deductible expense. Consult your tax advisor for more details.

Real Estate Taxes. Property taxes, which can be normally included in the monthly mortgage payment to your lender are a deductible expense. This deduction also effectively reduces the monthly mortgage payment for the borrower at tax time.

Possibly More Dough. These are not the only expenses that can be deducted from your income at tax time. Other items can include moving expenses associated with a job relocation and home improvements that are deemed energy efficient as determined by the Recovery Act. As always, consult with your tax advisor for specific details about how each type of deduction mentioned in this article could apply to your situation.

Act Now and Plan Accordingly
If you or someone you know plans on purchasing a home in time to take advantage of the tax credit, there are some things to keep in mind. The last day to close to take advantage of the tax credit is Monday, November 30, 2009. Keep in mind, this follows Thanksgiving week. With the holiday offering a shortened work week for many, this will make closing at the end of the month more challenging.

Another item to take into consideration is recent legislation impacting a lender. If the Annual Percentage Rate, or APR, changes by more than .125% from the time of initial application, the lender is required to re-disclose the Truth in Lending statement. When this document must be re-disclosed, time must be allowed for a home buyer to receive the document in the mail and review it for approval.

One way to minimize any need to re-disclose your loan documents is to either lock early in the application process at the interest rate on the loan application or submit an initial loan application with a higher-than-current-market interest rate. So, if current rates are 5.50%, your mortgage professional may suggest your application reflect an interest rate of 5.75% for underwriting and initial loan disclosures.

A prudent buyer may plan for closing to occur no later than November 24, 2009 to allow for any possible delay and still take advantage of the tax credit before it expires on November 30. Another prudent decision would be to allow a minimum of 45 days to get your loan approved and closed. Just be sure that when you lock your interest rate, you allow for a cushion in your lock expiration date in the event your closing is delayed.

This would mean that, for your protection, you should work to get your home under contract not later than the first weekend in October. While some lenders may still be able to accommodate a later purchase contract signing, submitting your application earlier is advisable due to the volume of applications lenders may receive during this time.

Best Path to Take Now
Buying a home today could be the best financial decision a renter can make. Not only does this decision help turn a residence into a home, it establishes a foundation for future personal wealth, both immediately and over time.

To decide what works best for you or someone you know, get pre-approved today so you know exactly what you may qualify for both in purchase price and monthly payment. This one action can remove a lot of stress and simplify the home search process since you will know what you can afford.

2:42 PM - Oct. 23, 2009 - comments {1} - post comment

Manage your credit and debt

This article is by Jeff Mandel, president and Marlin Brandt, COO ofApprovalGUARD

 

Whether you’re looking for ways to dig out of your financial hole or ways to avoid getting into one, the importance of actively managing your credit and debt profile has never been greater. Americans have become well-versed in asset management but not necessarily liability management. Until recently, easy access to credit has made our current generation feel immune to the real risks that overextending yourself on credit creates. 

Fortunately, as a result of our current economic environment and hopefully going forward, it is apparent that consumers are beginning to spend more time and thought on the types of credit they have and how it is used. In parallel, banks and other creditors have begun to be much more restrictive about who gets approved for new credit and which consumers get the preferred interest rates and products. The reality is that consumers need to change their behaviors and adapt to the realities of the current environment and cannot wait for the market to change. 

Here are some simple first steps to consider in liability management: 

STEP 1: Understand How Credit Works–Now is not the time to be content with understanding 80% of what you need to know about your credit or saying, “I’ll get to it tomorrow because I don’t have time today.” Ninety-four percent of consumers are challenged with understanding the basics of how personal credit works to assure they have the best credit and debt profile possible. In most cases they build credit over a lifetime of “trial and error.” The constantly changing credit environment creates a situation whereby everyone can use a trained professional to help keep them educated. 

STEP 2: Continually Evaluate and Monitor the Health of Your Current Credit Profile–The second step is to evaluate your current credit and debt profile and establish a plan based on your short- and long-term credit needs. Continually monitoring your credit report and profile is no different or less important today than getting a physical exam by your doctor. 

STEP 3: Optimize Your Credit–Each of your debts should be periodically reviewed and analyzed. Are there options you can take to improve your overall credit profile so that you’re more desirable to creditors for their “preferred” interest rates? Should you consolidate some of your debt? Once you strengthen your credit and debt profile, do you have options on your home, auto and credit cards to negotiate lower interest rates and terms that would save you money monthly? 

STEP 4: Rethink New Purchases–Excellent credit is like an insurance policy. When you need to use it you want to help ensure you qualify for the preferred interest rates and terms that will give you the best payment options based on your needs and capabilities. Maintaining your credit “insurance policy” is critical for special purchases like a home, car or major appliances when needed. Don’t wait until there’s an immediate need because your chance of making a material and impactful change in your profile overnight is very difficult. 

Don’t let anyone mislead you. It takes time, knowledge and planning to assure you build, optimize and manage your personal credit and debt profile so that you can help maintain the affordability of what you have and/or create a better opportunity to qualify for preferred interest rates and terms on purchases requiring additional credit. Effective liability management all starts with the four steps above. There has never been a more important time to seek the help of a professional and personal credit coach to help ensure that your credit and debt profile is optimized not only today but on a continuing basis as well. 

5:38 PM - Oct. 21, 2009 - comments {0} - post comment

Manufactured homes - naturally "green"

This article is by Az Housing.

There is a “green” building revolution taking place, and manufactured housing is squarely in the forefront of this trend.  Due largely to the fact that manufactured homes are built in a controlled factory environment, implementing the latest construction technologies is easier, assembly is more efficient, and greenhouse gas emissions and materials waste is greatly reduced. All these factors directly contribute to the greater affordability of today’s manufactured homes. 

A number of efficiencies are inherent to the factory-built process. Factory employees are scheduled and managed more efficiently, as opposed to contracted labor employed by the site-built housing industry. 

Innovative building technologies are not always suitably adapted for site-built construction. Heavy machinery and delicate electronic equipment that would require daily transportation to the building site and back is inefficient to say the least, not to mention the additional man-hours required for set-up and the many pounds of pollutants released by transport vehicles. New equipment can be easily integrated into the factory environment, where it is protected from the elements, leading to a longer life span, and saving time, money and natural resources. The use of precision machinery also contributes to more efficient use of materials by greatly reducing human error and generating far less wasted product. 

Manufactured home building also benefits from the ability to purchase large quantities of building materials and products. As a result, manufacturers are able to negotiate better prices on materials for their homes and pass these savings on to the homebuyer. The controlled environment and assembly-line techniques also help manufacturers avoid many of the problems encountered with site-built construction, including inclement weather, theft, vandalism, and damage to building products and materials stored on site. 

Factory construction can also be credited with a substantial reduction of greenhouse gas emissions, as most of the materials-handling machinery is powered by propane and compressed natural gas, both of which are cleaner, more efficient, and more economical than gasoline and diesel-powered equipment. There is also extensive utilization of electrically operated machinery, which would require diesel generators for site-built operation. More and more building materials, such as adhesives, paints and sealants, are low VOC and no VOC, further reducing harmful pollutants in the environment. 

The continual evolution of energy efficiency resources has resulted in a significant jump in the numbers of manufacturers building EnergyStar-labeled Manufactured Homes. Manufacturers are taking full advantage of the latest discoveries in material recycling to produce insulation, carpeting and building materials that not only outperform traditional materials, but also last longer, help reduce costs and are environmentally friendly as well. Dual-pane windows, compact fluorescent light bulbs (CFLs), and more energy-efficient heating and cooling equipment and appliances help homeowners realize substantial savings on their energy costs. 

Manufactured housing offers a unique source of quality, non-subsidized homes that people can afford. With an average per-square foot cost savings of up to 35% less than site-built homes, with actual savings dependent on the geographic region, today’s manufactured homes provide homebuyers with the best value to be found in the housing marketplace. 

An emphasis on eco-friendly building techniques and innovation is propelling the manufactured housing industry forward in many new areas. With continued advances in technology and public acceptance, manufactured housing will remain a major provider of quality, affordable, environmentally friendly housing in the 21st century. 

5:30 PM - Oct. 19, 2009 - comments {0} - post comment

Swine flu facts

Since it first emerged in April, the global swine flu epidemic has sickened more than 1 million Americans and killed about 500. It's also spread around the world, infecting tens of thousands and killing nearly 2,000.

This summer, the virus has been surprisingly tenacious in the U.S., refusing to fade away as flu viruses usually do. And health officials predict a surge of cases this fall, perhaps very soon as schools reopen.

A White House report from an expert panel suggests that from 30 percent to half the population could catch swine flu during the course of this pandemic and that from 30,000 to 90,000 could die.

So how worried should you be and how do you prepare? The Associated Press has tried to boil down the mass of information into 10 things you should know to be flu-savvy.

1. No cause for panic.

So far, swine flu isn't much more threatening than regular seasonal flu.

During the few months of this new flu's existence, hospitalizations and deaths from it seem to be lower than the average seen for seasonal flu, and the virus hasn't dramatically mutated. That's what health officials have observed in the Southern Hemisphere where flu season is now winding down.

Still, more people are susceptible to swine flu and U.S. health officials are worried because it hung in so firmly here during the summer — a time of year the flu usually goes away.

2. Virus tougher on some.

Swine flu is more of a threat to certain groups — children under 2, pregnant women, people with health problems like asthma, diabetes and heart disease. Teens and young adults are also more vulnerable to swine flu.

Ordinary, seasonal flu hits older people the hardest, but not swine flu. Scientists think older people may have some immunity from exposure years earlier to viruses similar to swine flu.

3. Wash your hands often and long.

Like seasonal flu, swine flu spreads through the coughs and sneezes of people who are sick. Emphasize to children that they should wash with soap and water long enough to finish singing the alphabet song, "Now I know my ABC's..." Also use alcohol-based hand sanitizers.

4. Get the kids vaccinated.

These groups should be first in line for swine flu shots, especially if vaccine supplies are limited — people 6 months to 24 years old, pregnant women, health care workers.

Also a priority: Parents and caregivers of infants, people with those high-risk medical conditions previously noted.

5. Get your shots early.

Millions of swine flu shots should be available by October. If you are in one of the priority groups, try to get your shot as early as possible.

Check with your doctor or local or state health department about where to do this. Many children should be able to get vaccinated at school. Permission forms will be sent home in advance.

6. Immunity takes awhile.

Even those first in line for shots won't have immunity until around Thanksgiving.

That's because it's likely to take two shots, given three weeks apart, to provide protection. And it takes a week or two after the last shot for the vaccine to take full effect.

The regular seasonal flu shot should be widely available in September. People over 50 are urged to be among the first to get that shot.

7. Vaccines are being tested.

Health officials presume the swine flu vaccine is safe and effective, but they're testing it to make sure.

The federal government has begun studies in eight cities across the country to assess its effectiveness and figure out the best dose. Vaccine makers are doing their own tests as well.

8. Help! Surrounded by swine flu.

If an outbreak of swine flu hits your area before you're vaccinated, be extra cautious.

Stay away from public gathering places like malls, sports events and churches. Try to keep your distance from people in general. Keep washing those hands and keep your hands away from your eyes, nose and mouth.

9. What if you get sick?

If you have other health problems or are pregnant and develop flu-like symptoms, call your doctor right away. You may be prescribed Tamiflu or Relenza. These drugs can reduce the severity of swine flu if taken right after symptoms start.

If you develop breathing problems (rapid breathing for kids), pain in your chest, constant vomiting or a fever that keeps rising, go to an emergency room.

Most people, though, should just stay home and rest. Cough into your elbow or shoulder. Stay home for at least 24 hours after your fever breaks. Fluids and pain relievers like Tylenol can help with achiness and fever. Always check with a doctor before giving children any medicines. Adult cold and flu remedies are not for them.

10. No swine flu from barbecue.

You can't catch swine flu from pork — or poultry either (even though it recently turned up in turkeys in Chile). Swine flu is not spread by handling meat, whether it's raw or cooked.

5:22 PM - Oct. 17, 2009 - comments {0} - post comment

Sitting on the tarmac

Earlier this year, a Continental Airlines flight stranded passengers on the tarmac for 6 hours. A couple weeks after that, passengers on a Sun Country flight also sat on the tarmac for a grueling 6 hours.

• Notify passengers of known flight delays and cancellations
• Meet customers' essential needs during long on-aircraft delays
• Allow reservations to be held or tickets to be refunded within 24 hours of purchase
• Be more responsive to customer complaints

5:11 PM - Oct. 15, 2009 - comments {0} - post comment

Tax breaks for everyone

This article is by Amy McAnarney, executive director of The Tax Institute at H&R Block.


First-time homebuyers aren’t the only ones to benefit from tax breaks. H&R Block urges homebuyers who are relocating for work or buying for other reasons to take advantage of incentives that can lower their tax bill. Plus, sellers should know how to report profits and losses to avoid a hefty tax bill.

“Now is a great time to buy or own a home,” said Amy McAnarney, executive director of The Tax Institute at H&R Block. “There are great tax incentives for buying and owning a home, whether you’re a first-time homebuyer or a repeat buyer. People selling their homes also need to know if they’ll need to report the profit to the IRS.”

Buying a home
Homebuyers can make the most of several tax breaks that help lower their tax bill based on the purchase of an existing or new home. For instance:
-First-time homebuyers: The Recovery Act provides a credit of up to $8,000 if a taxpayer buys a home between Jan. 1, 2009 and Nov. 30, 2009. The homebuyer also must not have owned a home in the previous three years and the home must be the primary residence.
-Points: The points paid on a mortgage are generally deductible as interest if taxpayers paid enough of a down payment or earnest money at closing to cover the points. Homebuyers can deduct the points even if the seller paid them.
-PMI premiums: Buyers who make a down payment of less than 20% of the home’s cost usually pay private mortgage insurance (PMI). But the PMI premiums generally can be included in your home mortgage interest deduction.
-Job relocation: Taxpayers who moved due to a job change can deduct the cost of moving. In order to take the deduction, they must move within one year of starting the new job, work full-time at least 39 weeks during the first 12 months at the new location, and the new job must be at least 50 miles further than the old residence was from the old job. Qualified moving expenses include your out-of-pocket cost of moving yourself, your family, and belongings to the new location.

Owning a home
If a taxpayer typically has claimed the standard deduction, owning a home will likely mean itemizing for extra deductions. Some tax breaks for homeowners include:
-Mortgage interest: For most taxpayers, the biggest tax break comes from deducting mortgage interest. Taxpayers can deduct interest on up to $1 million of the loan used to buy, build, or make substantial improvements to a main or second home. Interest on a home equity loan up to $100,000 secured by the main or second home is deductible too.
-Real estate taxes: Taxpayers can deduct real property taxes they pay on real estate to their municipalities, whether made directly or through their lending company.
-Home improvements and energy credits: The Recovery Act gives incentives to homeowners making improvements and energy-efficient upgrades to their homes. Taxpayers can get credits for 30% of the cost of qualifying doors, windows, HVAC, water heaters, roofing and insulation, up to a maximum credit of $1,500. Solar energy and wind energy systems are each 30% of cost with no maximum.

Selling a home
Sellers won’t have to pay taxes on a profit up to $250,000 for single filers and $500,000 for joint filers. Taxpayers must have lived in the home for at least two of the past five years to claim this exclusion. In some cases, taxpayers can claim a partial exclusion if they are selling due to a change in employment status, health reasons, divorce or other unforeseen circumstances.

Taxpayers whose homes were foreclosed may be able to exclude the mortgage debt that was forgiven in connection with the foreclosure. This provision applies to debt forgiven in calendar years 2007 through 2012, of up to $2 million is eligible for this exclusion ($1 million if married filing separately).

“Homeowners should maximize all the credits and deductions available. Knowing the tax incentives and how to take them is key for homeowners,” McAnarney said.

11:28 AM - Oct. 13, 2009 - comments {0} - post comment

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