What Makes Denver Great!

-

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

Separation anxiety for pets

This article is by Purina Pet Care.

Back-to-school time creates a dramatic shift in family schedules, which can have a devastating impact on family pets that have spent more time with their owners over the summer vacation season.

PurinaCare Pet Health Insurance, which is committed to helping pet owners provide a lifetime of care for their pets, is urging all pet owners to be aware of the signs of post-summer separation anxiety in both dogs and cats. Pets suffering from post-summer stress can exhibit a wide range of abnormal behaviors as families return to school and work.

Signs of Post-Summer Separation Anxiety include:

-Hyper-salivation or drooling
-Soiling the pet owner’s belongings
-Chewing or scratching at doors or crate
-Non-stop howling, barking, meowing
-Compulsive grooming or licking
-Tearing up furniture or pushing items off counters

“Dogs are naturally social animals and especially sensitive to loneliness this time of year. The family fills the role of ‘the pack’ and in their absence; dogs can feel abandoned and become quite destructive,” says Dr. Bill Craig, DVM, Chief Medical and Underwriting Director of PurinaCare Pet Health Insurance. “Teaching dogs that their owners will return and the ‘pack’ will be reunited is the key to alleviating the stress of post-summer separation anxiety.”

Prepare your Pet for Post-Summer Routines:

-Wean them into new post-summer schedule. Give positive reinforcement with praise and treats for appropriate behavior
-Resume normal leash/walking schedules
-Take the drama out of leaving- grab your coat and keys at times when you are not leaving so your pet doesn’t connect the action with being alone
-Create a pet safe haven- a well-lit area where the family “pack” normally gathers, keep the TV or radio running, leave plenty of toys and safe clothing/items with family scents on them
-Don’t punish bad behavior related to anxiety; it will only reinforce the stress
-For pets with severe stress, medications are available. They will rarely work alone without a behavior modification regimen. A veterinarian must prescribe these drugs.

11:21 AM - Oct. 11, 2009 - comments {0} - post comment

Ways to save money

This article is by Katie Adams at Yahoo Finance.

While the media can't decide if the recession is nearing its end or not, we do know that there hasn't been a tremendous surge in wages, job creation or the stock market. Consequently, most of us are staying pretty conservative on our spending. Here are a few relatively simple ways to keep an eye on your pennies while you're waiting for that brighter economic future to arrive.

1. Schedule automatic payments. Have (at least) your fixed monthly bills paid automatically to avoid missing a payment and having to fork over extra money for late fees and/or interest. You can set up auto pay features through your bank's online bill paying service or by arranging it directly with the company or service provider.

2. Eat your groceries. Did you know that Americans regularly throw away nearly 15% of the food they buy at the grocery store each year? That can add up to hundreds or, depending on your supermarket budget, thousands of dollars each year. Save money by actually eating what you buy. Not sure how? Bypass the bookstore and borrow a cookbook from the library!

3. Bundle services. If you're paying different vendors for similar services you may be overpaying. Call your communications providers to see what price you'll be quoted if you switch and bundle your internet, phone and cable TV services.

4. Pay off credit card. If you're not paying off your credit card balance each month you're paying interest and, for most Americans, it's a pretty steep rate. Pay it off and you could save a tidy sum by eliminating your interest charges.

5. Mark your calendar. Whenever you rent something - library books, videos, etc. – mark it on your calendar and save money by avoiding those quickly mounting late fees. Many stores and libraries also now offer email reminders to help the constantly harried so sign up for the extra help!

6. File your taxes on time. Or if you need to file an extension at least pay what you owe on the due date. You'll avoid annoying notices from the IRS and, more importantly, save on penalties, fees and interest.

7. Roll it over. If you're switching jobs and you can't leave your 401(k) invested with your current company, roll your 401(k) into either your new employer's 401(k) or an IRA within the 60-day window instead of withdrawing the money. By doing so you'll keep the money invested -  and earning interest - and avoid those nasty taxes as well as the additional 10% penalty.

8. Switch credit cards. If you're carrying a balance on a high interest rate credit card check out other card issuers to see if you could transfer your balance to one with a lower interest rate and fewer fees. Use sites like Creditcard.com or Bankrate.com to compare card rates, and pay careful attention to how long those terms last so you don't wind up paying a higher rate and erasing any potential savings.

9. Use your privileges. Are you an AAA member? Do you belong to the AARP? What about your local credit union? Check organizations you have memberships with to see if they offer buying privileges or discounts.

10. Rent instead of buy. You might be excited to expand your driveway but don't let your enthusiasm overtake good sense. Hold off on buying that jackhammer and think before you spend on big-ticket items or items that you'll use once or infrequently (like movies and books).

11. Buy instead of rent.  Don't pay the exorbitantly high prices charged by rent-a-center type stores for items you'll use regularly and keep long-term like computers, furniture and appliances. 

12. Ask. That's right, just ask. You can't be paying any more than you currently are, so why not ask if you can get the interest rate lowered on your credit cards or loans? Also, ask for a discount on services like your wireless phone, trash removal or pet care instead of switching to another vendor, and of course ask "is that the best you can do" on any big ticket purchases like cars, appliances and furniture.

In a tight economy it might be worth the seller's while to cut the price instead of losing the sale, and you'll both benefit in the end!

13. Just say no. To the extended warranty that is. They hardly ever make financial sense. Weigh the repair or replacement cost (and if you would even need or want to repair or replace it down the road) against the cost of the warranty and graciously pass when offered. 

14. Have the awkward conversation. Americans average more than $750 yearly on holiday gifts and that's probably much more than most would like to spend. If your gift-giving is costing you more than you can realistically afford there's a good chance it’s more than your relatives can afford (or would like to spend) as well. Take the plunge and broach the subject. Offer a more reasonable alternative (say, limit giving to children or put a dollar amount on gifts per person). More than likely your relatives will be grateful SOMEONE finally raised the subject and you’ll save money in the process.

15. Eat at home.  If the idea of cooking for yourself seems like too much work at least opt for take-out instead of dining out - you'll save on the tip, the alcohol and most likely the cost for appetizers or dessert.

16. Balance your checkbook. It might take a few minutes but it's something you should be doing anyway and it can pay off huge dividends by helping you avoid bouncing a check and incurring steep overdraft fees (not to mention a little embarrassment)!

17. Stick with your bank. When withdrawing cash drive or walk the extra minute it takes to use your bank's ATM and avoid the fee that could come with another bank's machine. Better yet - switch to a bank that doesn't charge fees!

18. Use your TV. If you're paying for cable why not use all of it - and save some money in the process? Cancel the video membership and watch movies through cable movie packages you're already paying for or check out your free "on demand" shows. Drop the gym membership and work out at home to channels like FitTV, and bag the magazine subscriptions and watch the same shows (like Martha Stewart) on TV instead.

19. Quit those bad habits.  Smoking, overeating and drinking are costly habits to maintain. Okay - this is the "lazy" way to save, not necessarily the easy way. But you can save boatloads of money in two ways by saying sayonara to your favorite vices: (1) You'll save money by cutting out on the regular spending it's costing you, and (2) you'll probably save on insurance premiums and long-term health costs. It's the ultimate win-win.

20. Forget the pet.  Sure it sounds heartless but did you realize that welcoming home a little Fido can cost you an average of more than $1,500 a year - or $15,000 over 10 years? Feline fluffies are pricey too - just under $1,000 a year or approximately $9,000 for 10 years of care. Looking at the long-term picture, that's a new car or the down payment on a home! Keep walking right past that pet store and keep the money in your pocket instead.

The recession won't last forever, but in the meantime take advantage of these lazy ways to stay on track financially, and develop some pretty good money management habits for the future!

11:15 AM - Oct. 9, 2009 - comments {0} - post comment

Six figure jobs

Getting paid a six-figure income in today's job market is pretty tough, but maybe you're looking in the wrong fields. According to the U.S. Bureau of Labor Statistics' Occupational Employment and Wage Estimates, which are compiled from 2008 data, the six-figure salaries for the following careers just might surprise you.

Human Resources Manager – Top 10% Minimum Annual Income: $163,220; Average Annual Income: $103,920 Top-Paying State: Delaware.

Astronomer – Top 10% Minimum Annual Income: $156,720; Average Annual Income: $99,730; Top-Paying State: Maryland.

Art Director – Top 10% Minimum Annual Income: $154,840; Average Annual Income: $88,510; Top-Paying State: New York.

Pharmacist – Top 10% Minimum Annual Income: $131,440; Average Annual Income: $104,260; Top-Paying State: California.

Film or Video Editor – Top 10% Minimum Annual Income: $112,410; Average Annual Income: $62,500; Top-Paying State: Massachusetts.

Forbes Magazine also recently listed more surprising six-figure income jobs that do not require a college degree, which include, Air Traffic Controller (income for the 90th percentile: $186,000; 75th percentile income: $156,000); Court Reporter (income for the 90th percentile: $104,000; 75th percentile income: $84,100); Hotel Executive Chef (income for the 90th percentile: $107,000; 75th percentile income: $86,500); and Ultrasound Technologist (income for the 90th percentile: $110,000; 75th percentile income: $82,500).

1:59 PM - Oct. 7, 2009 - comments {0} - post comment

Property tax bills

This article is by Pat Mertz, Kiplinger's Personal Finance.

If you anticipate a silver lining in the black cloud of declining home prices – in the form of lower property-tax bills – you may be disappointed. The National Taxpayers Union figures that as much as 60% of taxable property in the U.S. is over-assessed, largely because assessment cycles haven't caught up with the decline in home values.

In California, for example, a home's assessed value is based on its purchase price, plus increases of up to 2% annually. The house isn't revalued until it's sold again. To capture the price plunge of the past few years, homeowners must file an appeal and prove that their home's assessed value exceeds its market value. In San Diego County, the assessor's office processed 80,000 appeals in 2008; the average reduction in assessed value so far is $110,000, equivalent to a tax cut of $1,200.

Many jurisdictions calculate a home's assessed value as a fraction of its market value, so do the math to make sure your home is priced fairly. Also verify that you have received any breaks you're entitled to, such as a homestead exemption or a reduction for seniors or veterans.

How to appeal. Go to the assessor's Web site or office to double-check the "property card" and any working papers for your home. Are the figures for square footage and number of bedrooms and bathrooms correct? Has the assessor accounted for any features that could detract from your home's value, such as an irregularly sized lot or a carport instead of a garage? Pull the property cards for five or ten neighboring homes that are similar in terms of age, style and features. If the assessments on similar properties are a lot lower – 10% or more – you have a good case based on uniformity.

Otherwise, if you believe your home's assessed value exceeds its market value, you'll have to provide sales-price data for several comparable homes. You can get that information from a real estate agent, or check the local public library or your county assessor's or county clerk's office. Ask the assessor whether a recent appraisal for, say, a refinancing is acceptable proof of your home's market value.

Two chances. Read your assessment letter for details on how to appeal. You'll probably have two windows of opportunity: During the first, you may request a reduction in the assessed value of your home for the forthcoming tax bill. During the second, you may appeal for a retroactive reduction and refund.

Until your appeal is resolved, pay your tax bill in full to avoid incurring penalties and a lien against your home. As a last resort, you could go to court, but that's an expensive process usually best suited for commercial property owners with more at stake.

You may see advertisements for companies that will help you appeal your assessment, often in exchange for about half of any savings on your tax bill. But with the right preparation, you can probably do just as well yourself using a guide such as How to Fight Property Taxes ($6.95), from the National Taxpayers Union. The NTU's Web site also has links to state and local taxpayer associations that may offer further insight into the appeals process.

1:56 PM - Oct. 5, 2009 - comments {0} - post comment

Men really ARE from Mars

This article is by Diann Patton of Coldwell Banker.

It often seems as though men and women are from different planets, but every day millions of couples navigate through day-to-day and even life-altering decisions. Because a home is the biggest purchase most people will make in their lifetime, Coldwell Banker Real Estate LLC surveyed 1,000 individuals to discover how much men and women differ in the home-buying process.

The real estate company engaged a third-party research firm, International Communications Research (ICR), to delve into the innerpsyche of men and women, asking questions such as “How long did it take for you to know that the last home you purchased was right for you?” and “If you found the home of your dreams but had concerns about its security, would you still be interested?” Coldwell Banker Real Estate also surveyed couples on additional topics, such as “Who wears the pants in the relationship?” when it comes to making major financial decisions.

“The results were surprising,” said Diann Patton, the Coldwell Banker consumer real estate expert. “Not only did we uncover some of the inherent differences between men and women, but we also pinpointed a number of ways that the two genders are actually the same. For example, both men and women are increasingly concerned with having a space to work in their homes- something we would not have seen 40 years ago.” Patton continued, “We also found that feeling insecure about a home’s safety is a deal-breaker for most people, regardless of gender.”

Patton noted this topic is particularly timely given that many first-time homebuyers are hoping to take advantage of the $8,000 tax credit before it expires on December 1, 2009.

Below are some key highlights from the Coldwell Banker Real Estate study:

Women may be inclined to make up their mind more quickly than men.
-When asked how long it took before they knew their home was “right” for them, almost 70% of women had made up their mind the day they walked into the house, vs. 62% of men. Conversely, significantly more men needed two or more visits: (32% of men vs. 23% of women).

Women would rather live closer to their extended family than to their job.
-55 percent of women find it more important to be closer to their extended family (those that do not live in their household) than to their job, compared to only 37% of men.

A home’s security is a deal-breaker for both men and women.
-64 percent of women said that if they found the home of their dreams but had concerns about its security, they would no longer be interested. More than half of men agreed (51%).

Couples say that no one “wears the pants in the relationship” in terms of major financial decisions.
-When asked who wears the pants in the relationship (when it comes to major financial decisions, such as purchasing a home), almost 70% of respondents living with their significant other said it’s actually mutual.
-However, 23% think that they, themselves, wear the pants in the relationship, not their partner. More men than women said this (26% vs. 20%, respectively).

Men and women agree on how they would use a spare room, for the most part.
When the respondents were asked how they would use an extra 12 x 12 room if it could be anything they wanted, men and women agreed on the top three most popular, and very practical, responses:

-Bedroom: 25%
-Office/Study: 15%
-Family Room / Den: 11%

However, men really do want a “Man Cave.”
-Interestingly, out of the 8% who indicated they would turn that spare room into an entertainment center, it was a preponderance of men leading the charge. In fact, four times as many men as women said they would use the extra space for recreation / entertainment.

1:29 PM - Oct. 3, 2009 - comments {0} - post comment

Which Bills Should I Pay This Month?

This article is by Jeff Mande (President) and Marlin Brandt (COO) of ApprovalGUARD


 

As our economy continues to stagnate, more and more Americans are faced with the challenge of picking which bill(s) they should pay or not pay because they just don’t have enough money to cover them all. The question often revolves around which bill(s) is the most important to pay “now:” their mortgage/rent, car payment, utility bills, cable bill or credit cards? Although this seems like a fairly straightforward answer, for many Americans, it’s not as black and white as you would think.

Many different things impact these decisions, such as necessity, amount of money owed and perceived consequences of not paying. Intuitively, paying your mortgage/rent and car payment first seems like the easy answer. However, many Americans are faced with the dilemma that the value of their homes and cars are currently less than the amounts they owe. As a result, many believe they have no alternative but to turn the keys over and walk away.

We believe it’s important that consumers are fully educated, prior to making these decisions, regarding the impact these decisions may have on their credit profile in both the short- and long-term. All too often, an uninformed decision can result in a worse-than-expected result and a negative impact to their credit score.

There may be several steps a family can take to tighten their belt while strategically considering the best options that meet their needs and have the least negative credit score impact. In many cases, it all starts with making a list of their debts as they are today and then building a plan. Each debt is reviewed to identify any and all options for reducing the monthly payment (interest rate change, term change, debt consolidation, selling of respective asset, etc). Several reputable services offer a personal coach and online tools to help consumers with tips on building their plan. It takes a little work, but when it’s all done, it is typically well worth the time and effort.

In the majority of foreclosures/defaults occurring across the United States, one of borrowers’ biggest mistakes is that they never contacted their lender. Home loans typically have the biggest overall impact on credit scores. If a consumer is struggling to maintain their house payment, the first steps should be to:

1) Contact their home loan servicer or lender
2) Explain their challenge
3) Ask them to assist with finding any available solutions

Home interest rates are at their lowest point in years and, for some homeowners, simply refinancing their first and/or second mortgage will be the best option. However, lenders have more options at their disposal today than ever, including HASP (the Homeowners Affordability and Stability Plan), so there are multiple ways they can help consumers in lieu of foreclosing.

Regardless of their personal situation, each individual has an opportunity to take the guesswork out of the process and then begin to understand their options to more effectively manage their credit and debt. The key to the process is to become proactive because the importance of building a plan to evaluate and optimize your existing debt and credit has never been greater. The good news is that options and services exist to help you weather this storm.

12:46 PM - Oct. 1, 2009 - comments {0} - post comment

How the First Time Homebuyer Tax Credit Works

This article is by Kimbrough Gray. Ki has sold Austin real estate for almost 10 years.

There is a provision in the Housing and Economic Recovery Act of 2008 that allows first time home buyers the ability to receive a credit on their taxes of up to $7,500 for purchasing a home. There is also a provision in the American Recovery and Reinvestment Act of 2009 that expands this tax credit for qualified first time home owners. The provision is called the first-time homebuyer credit.

The 2008 first-time homebuyer credit was created to infuse the slumping housing market, and is treated like an interest-free loan. Qualified participants were required to repay the loan interest-free over a period of 15 years, making 15 equal annual payments. You can find more details about this tax credit on the IRS website.

The provision in the American Recovery and Reinvestment Act of 2009 increased the first-time homebuyer tax credit to $8,000 for purchases made January 1 - November 30, 2009. In contrast to the 2008 tax credit, new home owners do not have to repay the credit as long as they do not sell their home within three years of closing on the home.

You need to be armed with the facts before you go to purchase a home on the assumption that you'll receive the credit. The following FAQs will help you navigate through the quagmire of confusion that has surrounded this tax credit.

* Who is eligible? Taxpayers who have not owned a home within the U.S. three years prior to purchasing a new or resale home in the United States. The closing and transfer of title on the home must be completed between April 9 and December 31, 2008 for the 2008 credit, and between January 1, 2009 and November 30, 2009 for the 2009 credit.

* What is the amount of credit? The credit allows for 10 percent of the purchase price. The maximum credit is $7,500 for 2008 and $8,000 for 2009.

* Are there income limits? Income limits are $75,000 for a single filer and $150,000 for a couple filing jointly. The IRS bases the credit on your modified adjusted gross income (MAGI). Your MAGI equals your adjusted gross income (AGI) plus IRA contribution deductions, foreign housing deductions, student loan deductions, higher education expense deductions and foreign income. Partial credit is available to some with higher MAGI.

* Does my home qualify? The home qualifies if it is the taxpayer's principal residence, is located within the U.S. and purchased between April 9, 2008 through July 1, 2009 for the 2008 tax credit, and January 1, 2008 through November 30, 2009 for the 2009 tax credit. For new construction, the date you actually occupy the residence will be considered the purchase date.

* What if I don't owe taxes or I'm exempt from filing? It doesn't matter. The credit applies to qualified applicants regardless of filing requirements, even to those who do not owe taxes or are exempt from filing. You may file solely to claim the first-time home buyer credit.

* How do I claim the credit? Although you are not required to claim the credit, you may do so by filing a Form 5405. You'll need to file the form with the applicable 2008 or 2009 federal income tax return.

* Does the tax credit act as a tax deduction? No. A tax deduction only diminishes the amount of income taxed. For instance, if the taxpayer's AGI is $40,000, then a deduction would reduce the amount taxed by $8,000, depending on the amount of applicable credit. The taxpayer would be taxed on the remaining amount of $32,000. Instead, the credit is directly deducted from what the taxpayer owes the government. If the taxpayer owes $2,000 to the IRS, then $6,000 would be the amount refunded to the taxpayer. If the taxpayer owes nothing, then the entire $8,000 would be refunded, depending on the applicable credit.

12:39 PM - Sep. 29, 2009 - comments {0} - post comment

Fannie Mae affects corporate relocations

This article is by Peg Guinta, CRP, Projects Director for RISMedia’s RIS Consulting Group.

 

Because of changes announced in June by Fannie Mae (FNMA), the largest mortgage purchaser in the country, transferring families’ purchasing power could be significantly impacted.

FNMA’s June 8th Announcement cites it will now disallow inclusion of secondary wage earner’s projected income in loan qualifying income ratios. Fannie Mae has in the past allowed “trailing secondary wage earner income” when determining housing affordability prior to a spouse or partner securing a position in the new location, but has now eliminated this policy.

Dual income families comprise about 70% of all corporate transfers so FNMA’s policy change may impact affordability for many whether purchasing or selling in corporate neighborhoods. For dual income families who rely on both a primary and secondary income to maintain lifestyle, securing employment at the new location in this economy may prove especially challenging.

Previous to this ruling, real estate agents and corporate administrators alike have seen many effects of this market: declining transfer acceptances, sluggish home sales, tightened mortgage lending and lengthier stays in temporary housing. Fannie Mae’s new policy may only reinforce these scenarios for certain corporate transfer populations.

To maintain mobility goals corporations must align relocation policy support with transferring family needs while keeping company objectives in mind. Employers should reevaluate relocation policy assistance periodically - especially when significant market changes in housing and mortgage markets occur, but not all do.

How can real estate agents support transferees’ buying and selling strategies?

Real estate agents are in an influential position in both the early inbound or outbound relocation phases and can help prepare transferring families for smoother passage ahead.

For corporate buyers, awareness and preparation are key:
• determine if your client is affected by the ruling and create awareness of its potential impact during pre-decision or familiarization trips to the new location
• if not already required by employers, urge mortgage preapproval prior to actual house hunting activities
• if not already provided by employers refer spouses/partners to employment assistance counselors and recruitment offices early in the process.
• research alternate lending sources having the ability to portfolio loans or sell to other investors.

For corporate sellers support may mean enhancements for their dual income buyer prospects. Agents’ price opinions and market reports should indicate if potential prospects are likely to be inbound corporate transfers who could potentially benefit by seller-provided incentives.

Appropriate marketing strategies in support of these buyer profiles could include assistance or incentives such as a:
• temporary mortgage rate buy down
• portion of buyer’s closing costs
• credit for first three mortgage payments.

While these seller-assisted incentives won’t change FNMA guidelines, it may attract buyers’ attention while offering a bridge of support until ‘trailing’ income materializes.

Some corporate employers already provide this type of assistance within home sale assistance policies, but many are not yet tuned into supporting seller-offered financial incentives for home selling transferees. In a market of multi-tiered challenges employers may be more receptive to allowing certain exceptions to support sales opportunities and perhaps also avoid another inventory property.

12:19 PM - Sep. 27, 2009 - comments {0} - post comment

RSS Blog Feed

Categories

Favorite Links

Favorite Blogs