What to Do When Your Identity Is Stolen

What if you were sitting down to review your mortgage paperwork, and were given a poor rate because of bad credit?  And you knew you paid everything on time.  You should have a score over 750!  But you don’t because someone stole your identity, opened up a number of credit lines in your name, and never paid.  If you think you should know because they would call, or you’d receive a bill at your address, you’d be mistaken.  They can often use a different address and phone number claiming that you just moved.  And unfortunately, it happens more often than you’d think.

Large companies like Home Depot, Toys R Us, and Kohl’s are often the target of identity thieves.  It’s easy to open up a credit card, and they can buy items like gift cards.  But because the actual amount is usually under $2000, the corporation doesn’t want to spend the time or money to prosecute.  But your credit report shows you in default of $10,000.

So What Do I Do?

If your identity was stolen, you need to report it to your local police.   A crime was committed, and it needs to be reported.  Then you will use that report when you contact the major companies letting them know that a card was opened without your permission.  They will be responsible for closing out the account and removing it from your credit file.  You also need to put an alert on all three credit bureaus that you were a victim of identity theft.  They will lock down your file and work with you and the corporations to remove the false items.

Unfortunately, it doesn’t always end there.  Some companies will open up a line of credit, or will sign someone up for a cell phone without checking the report.  They’ll just note if there is a credit score. 

Additionally, the thief might use your information to obtain health care benefits that could come back to you if the bills are unpaid.  So even when you think you have things cleaned up, something new could show up even with a locked credit report.  Therefore, you need to check regularly.
Here are some resources with checklists and links:

• NoLo Press
• FTC (Federal Trade Commission)
• BBB

Maybe your identity wasn’t fully stolen.  But thieves can still draw on your checking or savings or charge against your credit card leaving you with no money and a huge bill.

Can I Prevent This From Happening?

It’s not fool-proof, but there are definitely things you can do to lessen the possibility of having your identity stolen.

1. Lock your credit reports down.  It will cost you about $5-10 depending upon where you live and the fees vary by the reporting agency.  The good news is that it will cut down on the junk mail you get.  Secondly, it will cut down on your impulse purchases because you won’t be able to open up a credit card on the spot.  You will need to plan ahead when you make purchases like a home or an automobile.
2. Shred, Shred, Shred.  Any item that has personal and identifying information should be shredded before you recycle.  This includes your medical statements, credit card statements, bank statements,
3. Change your passwords often.  Don’t have them written down.  This includes your PINs as well.
4. Review your statements carefully when they arrive.  Yes, it’s easy to toss it into the “I’ll get to it later” pile, but the sooner you find something, the easier it is to fix it.
5. Never give your credit card number over the phone to an unsolicited caller.  You may genuinely believe in their cause, but it’s best to have them send you a statement, and you can validate the address before you send it.
6. Avoid writing personal checks to people you don’t know.  They can use all of the routing and banking information to print checks, and then write checks against your account.
7. Ask your credit card companies to stop sending you promotional checks against your account.  Unlike checking accounts, credit card companies don’t keep a signature card, and these are easily used to draw money against your credit card.
8. When purchasing online, make sure you’re buying from a reputable place, and that it’s a secure transaction.  You can verify that by looking up at the URL area and seeing if it tells you that it’s secure, or https.
9. Write “Please Ask for Photo ID” on the back of your credit cards in permanent ink.  Some people recommend putting tape over it to prevent it from being modified.  And then make sure you bring your photo ID with you.  Some people recommend signing, but then the thief can practice your signature and use it for other things.
10. Get your credit reports annually and review them carefully.

We hope you never need to use this blog post!  Have you ever known anyone who was the victim of identity theft?

Are We Losing the Mortgage Interest Deduction?

There’s a lot of talk in the news about the financial cliff, and the expectation of both sides giving in. One item that some want to be on the table is the mortgage interest deduction. Actually, this has been brought up for quite a number of years and was brought up in 2010 as well.

What is the mortgage interest deduction

When filing out your taxes, you can deduct the amount you paid for your mortgage interest against your gross income. It’s especially loved in areas where the cost of housing is high. It’s also a way that home investors can provide savings back to their renters.

How much would I lose?

The San Jose Mercury News published an article with some charts using the 2010 rates and income levels. For Santa Clara County, the median price was $610,500, and the first full year’s interest is $16,945. This would yield a tax savings of $5,084 which could be a nice vacation.

If you’re a renter, your rent may go up if your landlord loses their deduction. These costs usually get passed along down the line.

Is there anything good about the phaseout?

Some believe that a tax deduction is inefficient and a tax credit would be a better way to help more people. This blog post at HSH.com explains in greater detail about how the mortgage interest deduction was created, and their opinion as to how it’s not helping those it should.

SFGate also explains the history and the effectiveness of the mortgage interest deduction.  Their conclusion is that it may change form, but it will always be a part of our tax structure.

So, if you’re concerned, find a professional tax advisor and review your current mortgage and taxes, then you will know a firmer number.  Contact your representatives and let them know how it will impact you.

Do you think the federal government will phase out mortgage interest deductions?

Owning Rental Properties - Part 2

In yesterday's blog, we talked about rentals as retirement income.  In this post, we’ll take another step and review what you need to know before buying an investment property.

First Rental Property Resources

Neil Uttamsingh has a website focused only on helping you get your first rental property. His message is that you should manage the property yourself and make sure you do your due diligence with home inspections.

A recent blog discussed that you should not rush the process or you will miss out on some important decision points:

• Buying a property that doesn’t cash flow
• Buying a property in the wrong area
• Buying a property with the wrong tenant profile
• Losing Money
• Wanting to sell the property after a short period of time
• Becoming discouraged
• Going to court with your tenant due to mismanagement of the property

One of the fastest ways of learning these skills is by finding a real estate workshop to understand how to analyze the value of the property, where it’s located, and what kind of tenants you could anticipate i that location.

Making certain that the property will provide a positive cash flow is the number one question you have to answer. The second is what monthly expenses can you expect?

The next step is to figure out how you will finance it. A good loan officer will help you crunch the numbers to find out what you can afford to invest. You will find out your options with how much money you can put down, whether you should get fixed or variable rate, what length of term you should use, and most importantly, you should get pre-approved so when the right property shows up, you can grab it.

Landlord Resources

Nolo Press has some of the best books that explain the law in plain English as well as useful forms. As we mentioned in the prior post, having a valid contract will protect you from a bad tenant.

In their Legal Encyclopedia, they have numerous questions and answers (FAQs) on signing leases and rental agreements such as how to enforce a ‘no pets’ policy, how to divide damages between departing cotenants, and how to handle a tenant wanting to break a lease due to noise.

Cautions

Once you’ve gotten your first rental property up and running smoothly, then start to look for additional properties. Don’t try to invest in too many properties too quickly until you’ve established procedures for analyzing a property as well as systems for finding good tenants.

Always keep a separate checking account dedicated to your rental properties. Deduct the mortgage payments, insurance payments, and maintenance work from this account. At the end of the year, your tax accountant will have a much easier job. Additionally, you can regularly check your cash flow to see if it stays positive. Also, if you personally have a large expense, it will be more difficult for you to borrow from your investment property cash, and you will have peace of mind that your properties are taking care of themselves.

Remember, looking at a house from the eyes of a homeowner is very different then looking at the house through the eyes of the investor.

What would you want in an investment property that you wouldn’t want in your home?

Rental Property As Retirement Income

Is now a good time to invest in property for passive income when you retire? And is it even a good idea for you?

Look before you leap

The Chicago Tribune had an interesting analysis back in May that counseled that loan requirements have changed dramatically over the last 5 years, and that the investor must have realistic expectations with the focus on long-term rather then flipping.  Purchasing an investment property as a rental can provide you with a steady stream of income.  There are still tax benefits with real estate investments, and you should talk to a professional to find out how it would impact your situation.

Real estate investments also mean that you will be a landlord, and either you need to handle finding tenants and repairs, or you need to hire a management company which will reduce your profits.  But you get to sleep through the night if a pipe bursts or the tenant gets locked out.

How much income?

Rents are set by where you live.  Usually, rents will go up, but the costs involved with owning the rental property will stay fairly flat especially if you choose a fixed rate mortgage.  Some investors clear $200-1000/month for one rental home.

Some landlords will increase rents every year or two, while others increase only when changing tenants.  If your mortgage stays the same, your income will increase over the years.

There will always be people looking for rentals.  If you have a clean home in a safe neighborhood, people will pay to rent it providing you with a passive income stream.

What should I be aware of?

Renters can leave with two weeks notice, and in some cycles, it’s difficult to replace them.  Always keep six months of expenses on hand per property so you’re not caught needing to sell the investment in a down market.

Always hire an inspector to rule out any large repairs such as foundation, roof or structure of the home.

Research monthly costs.

Talk to your Realtor® about comparable home sale prices in that area to have a good understanding of your investment.

Investopedia has a great article on Tips for the Prospective Landlord. One of the best tips is to ensure your leases are legal as this could have a long term impact if you end up with a bad tenant.  Also, the tip to join the Landlord’s Association in your area is helpful as you will learn a lot from seasoned investors.

What should I look for?

Look for a larger property in case you want to renovate or add on.

Single-family homes in a good school district rent more easily.

Look for properties that can generate positive cash flow of at least 6% above costs.

If you’re new to investing, consider purchasing properties close to where you live to keep tabs on the investment even if you use a property management company.  When you’re comfortable, consider looking into purchasing properties where you wish to retire.

So, to sum up…

Talk to a tax advisor to understand any tax implications rental property will have.  Find a reputable Realtor® and call your mortgage broker to find the best options for you.

To read more about things to look for and how to plan, read The income property: Your late-in-life retirement plan on Yahoo. The more knowledge you  have, the easier the process will be.

Have you purchased an income generating property or are you looking into one?

Staying Warm In The Winter

Welcome to part 4 of 4 on the preparing your home for winter series.  I hope you’ve enjoyed it and have gotten your weekend task lists completed.

The mornings are a lot chillier now, and you’re probably thinking about turning on your heater, if you haven’t already.  There are some tasks you should do before you really start using your heaters.

Furnace

Whether you have oil heat or gas heat, remove and replace your filters.  You may want to have a service technician out who will replace the filter, make adjustments for the burner, test the regulators, controls, motor and blower.  But otherwise, if you still have the manual for the furnace, you can look up the filter size.
If you measure it yourself, open up the furnace, and take out the filter.  Some will be horizontal, and some will be vertical.  Look on the filter itself for markings that indicate the size in inches.  If you can’t find it, pull out your measuring tape and measure the width and height including the frame of the filter.  Then measure the thickness. 

If the filter is missing (and these things just happen sometimes), measure the filter slot.  You will also want to know the height, length and width knowing that it may be off a little bit.  When you get to your hardware store, let them know, and they’ll be able to help you find a standard sized filter.  Remember, it’s better to buy one a little smaller than a little larger.

Heating System

Change the batteries in your thermostats.  Change to winter settings. Clean the registers and returns.

Remove the grills and vacuum out as much as you can.  Remove any legos or cat toys that might have fallen through.  You may want to consider hiring someone to professional clean your ducts if it hasn’t been done in awhile as dust can build up.

Fireplace

Before starting up the fireplace, the flue pipe should be inspected for nests or blockages.  Open the damper slowly until you’re certain nothing is going to fall in.  Leave the damper open, and using a hair dryer, blast hot air up in the flue line for 2-3 minutes to start an upward draft.  Then light a piece of newspaper and hold it up to see if the smoke goes up the flue.

If you haven’t cleaned all of the ash from last season, now is a good time to sweep it up.  You can put the ash in your compost bin.  If you want to put it directly around your plants, be prepared to dig it into the soil or else you’ll have ash blowing all over your yard causing a mess.

Pellet or Wood Burning Stove

To get your stove ready for winter, remove all ash and creosote from the stove.  Test the blowers.  You will probably need to vacuum and use a soft brush for both the combustion blower and convection blower on the pellet stove.  For both, the vent system should be cleaned by running a brush through it.  Inspect for creosote buildup or any wear or corrosion.

For pellet, wood burning stoves, and fireplaces, you may wish to have a chimney sweep come out to get your chimney clean of soot and creosote before the season gets underway especially if you use this as one of your primary sources of heat.

While You’re In There

Since you’re doing the winterizing anyway, here are some other quick maintenance tasks that you may need to do:

Basement sump pump

If you have a basement and a sump pump, verify that it’s operating properly by using a pail of water.  Visually inspect and check the valve for leaks.  You don’t want to find out that it’s not working when you need it.

Snow blower and shovel

Service and test your snow blower or the snowblower attachment for your lawn tractors.  Keep fresh fuel stored in a safe place outside.  Replace broken snow shovels, brooms and sidewalk ice scrapers.  Also find your snow brush and ice scraper for your car.

Hot Water Heater

You don’t want to be stuck with a cold shower, now do you?  Check and lubricate circulating pumps, clean the baseboard units, and test the system.

Air Conditioner

Yes, believe it or not, you should clean the unit of any leaves and debris.  You may want to consider covering it up.

Did you miss any of our others in this series:

part 1: Fall Maintenance from Top to Bottom

part 2: Storing your outdoor items for Winter

part 3: Preparing Your Yard for Winter

Preparing Your Yard for Winter - Part 3 in a 4 Part Series

Preparing Your Yard for Winter

Welcome to part 3 of our 4 part series on preparing your home for winter. Here in Northern California, we’re fortunate in that we don’t get snow. But we do need to prepare for frost and heavy rains. Some meteorologists are predicting that we’ll be getting an El Nino year. So the good news is it will be a warmer winter (unless you enjoy snow sports), but the bad news is that we will get more rain which could also be considered good news since we would be filling up our reservoirs and aquifers.

So here’s what you can do to get your yard ready for frost and heavy rains:

Remove Debris

First things first, you need to remove the debris before winter arrives including leaves, rocks, sticks, trash, and dead flowers. This will keep your yard and flowerbeds looking nice throughout the fall and winter months, as well as reducing the amount of yard work you will need to do in the spring.

Bushes

Roses, azaleas, and hibiscus will need to be protected against the cold weather. You can get creative with cardboard or garbage bags if you know there is a frost warning. Make certain you hold the cover down in place with stakes, bricks or heavy rocks.

Add mulch around the roots, but make sure it doesn’t touch the base of the plant. Give the plants a good watering before you turn off your sprinklers.

Trees

While the weather is still pleasant, put mulch around the base of the trees to help the tree retain water in the roots, and keep the soil at a steady temperature. This also cuts down on the weeds you will have to pull in the spring.

Mulch can be bark chippings, straw, pine needles, or a mixture of things. You can get free chippings by contacting your local tree removers and asking if they’ll drop off some mulch. But be aware that they may have a minimum amount that they drop off.

In a few weeks, you will want to trim your trees, bushes and roses. But, don’t prune now because the buds that will open in the spring have already formed, and you might clip them off accidentally. So what should you trim? Snip off unhealthy or dead sections, and trim off dead flowers.

Also, check to see if branches are close to your house. If they are, trim them back as you don’t want them banging against the house during strong winds.

Garden

If you have strawberry plants, they should be covered with layers of straw to keep them protected from getting frostbitten. Plant those bulbs now before the ground gets too hard to dig. You will be well rewarded in the Spring.

You can pull out your summer vegetable garden, or you can leave it to overwinter and see what pops up in the spring.

Consider planting a few cold weather flowers to brighten up your garden.

Sprinklers

If you know you’re not going to turn on your sprinklers at all during the winter, then drain them of any water. You would turn off the water supply going to the sprinklers, and then open the drains including the backflow to get all of the water out. Leave the drains open for several hours to ensure it’s completely drained. You can remove the sprinkler heads to allow the water to drain more easily, and you can hook up an air compressor to blow air through the system. Make certain that you’ve set the controller to Off or Rain.

If you’d like more detailed information, check out Irrigation Tutorials’s winterizing directions. There are detailed instructions for both temperate and cold weather.

Hoses

Make sure your hoses are drained completely, roll them up, and store them away in a shed or garage. Keeping them out of the elements will also prolong the life of the hose.

When do you expect the frost to hit in your area?

If you missed the other two blogs in our series, you can find them here:

Part 1: Fall Maintenance, Top to Bottom

Part 2: Storing Your Outdoor Items for Winter

Storing Your Outdoor Items for Winter - 2nd in a 4-Part Series

Storing Your Outdoor Items for Winter

Here in Northern California, we can get some pretty strong winds with our rain. To take good care of our patio furniture and our barbecues, we need to prepare and to store them properly so we don’t have to buy new furniture and grills in the Spring.

Barbecues and Grills

We won’t get into the debate over gas versus charcoal (or smokers, for that matter). We’ll save that for the Spring. Whatever you have, let’s get it safe and secure before the big Northern California rains in November.

If you have a portable charcoal kettle or gas grill, you may want to find room in your garage or car port to store it over the winter where it will be protected from rust. If you live in an apartment and have covered parking, you might be able to fit yours in between the wall and where your car bumper normally stops. Don’t use it here, though, as there’s a potential for fire or carbon monoxide poisoning.
To prepare your portable grill:

1. Clean completely. Get some oven cleaner and really spray down the grill part. While it’s doing its job, clean out any ash if charcoal, or clean the burners if you have gas. Throw out lava rocks for a gas grill and plan to buying new ones in the Spring. Grease can get stuck in the rocks which you’re never going to get cleaned out. And clean rocks reduce flare ups which provides a better flavor. Hose off the grill, and enjoy it’s bright shiny look.
2. Dry your grill completely to ensure there’s no rust. If there is rust, use steel wool or a wire brush to get it off, and then look if you need to re-coat the surface. You can polish the surface with a simple paste of baking soda and water.
3. Repair anything needing repairing. Nothing is worse then the first sunny day in April, pulling out the grill, and finding out that you needed to fix a burner.
4. Detach propane tanks if you have a gas grill. Make certain to store them safely in an upright position.
5. Read your manual to see if the manufacturer recommends anything specifically. If you can’t find your manual, many companies now put them online. Usually you can find this in Support.

Now put your grill buddy in a safe place. As we mentioned, if it can fit in the garage or carport, that’s the best place. If you can’t, look for an area where there’s an overhang to protect it as much as possible. And invest in a good cover. Make sure you tie down the cover so it doesn’t blow away.
If you have a built in grill, or a large island grill, barbecue or smoker, spend just as much time cleaning, reviewing your manual, and use the covers.

Some of you are able to grill almost all year round (Carmel, Monterey, Silicon Valley…). That doesn’t mean you can get out of doing a little cleaning and maintenance twice a year. Your grill will be so happy if you do. Leave a note in the comments where you are and if you can grill, barbecue or smoke all year.

Patio furniture

Some people have sheds for their patio furniture since they don’t want to spare the room in their garage. If you invested good money in chairs, tables, heaters, canopies and outdoor fireplaces, you will want to take care of them for the long term. Similar to grills, the steps are:

1. Clean off the pillows and umbrellas. Then store indoors. Some people like to put the pillows into large garbage bags to prevent dust from accumulating.
2. Clean all the dirt and grime off of the furniture. If you have wood furniture, consider using some wood soap, or a coating of water sealant.
3. Inspect for any repairs needed on all the parts. If you need a new cord on your umbrellas, order them now so you can repair it before you put it away.
4. Stack lightweight chairs on top of one another. If you can store them indoors like a garage, carport or shed, that’s your best bet. Otherwise the additional weight will keep them in place if a strong wind storm starts to blow. Find a cover to go over them to protect the chairs from the elements.
5. Store lightweight tables indoors. Again if this is not possible, put a cover over, and try to store in an overhang or an area where the wind won’t blow the stacks over.
6. Tie down all covers so they don’t blow away.

No matter how you store your outdoor items, make sure you keep your eyes peeled for spiders when you pull them out in the Spring.

When will you hold your final outdoor party before you put everything away for the season?

Here are the other articles in case you missed them:
Part 1: Fall maintenance from top to bottom

Quantitative Easing Explained

Fall Maintenance from Top to Bottom

 

 

Fall Maintenance from Top to Bottom

Now that we’ve passed the Autumnal Equinox, it’s time to start thinking about preparing you home for the winter. We’re going to post a four part series focusing on:

1. Cleaning your gutters and checking the foundation
2. Storing your outdoor furniture and bbq
3. Preparing your plants and sprinklers
4. Keeping your heating happy and running strong all winter long

Clean your gutters

You might think you should wait to clean your gutters until after all of the leaves have fallen. However, you’re better off cleaning them a few times during the autumn season to prevent major blockages in the downspouts, as well as ensuring that there is no damage to the gutters caused by falling branches.

You should be able to use a good ladder for single story, but you’ll need a really tall ladder and a good friend to spot you if you’re going up higher than that. When you’re up on the roof, look for loose shingles, and look for cracks in the masonry around your fireplace.

As you’re cleaning, look for cracks and rust in the gutters that should be repaired or even replaced.
Finally use a hose to clear debris from the downspouts. To make maintenance faster and easier, consider investing in leaf guards for your gutters to reduce the leaves that get stuck.

Lowe’s has a wonderful article here with graphics to show you where to look for rust points. Their advice for cleaning gutters is:
You may encounter stubborn, caked buildups. If so, they may be more easily removed a little while after a rain when they are damp instead of dry and hard. Of course, you can always create your own rain with a water hose, but resist the urge to clean your gutters with water pressure. It seems like it would be so easy, but you might pack debris tightly into the downspouts, and dirty water might splash all over your house.
Inspect your gutters as you clean. Look for corrosion, holes, leaking joints or loose, missing or bent hangers. Mark problem areas with masking tape so you can find the problem spots quickly when you are ready to do the repairs.

Wear gloves to protect yourself from scratches, and have handy a garden trowel or gutter scoop, a whisk broom and a rag. Put your tools in a bucket with a handle. The bucket should be fastened to your ladder with a wire hook. This will prevent you from having to juggle a lot of tools while climbing or descending the ladder. It will also remove the temptation of stuffing tools into your pockets – a hazard if you should happen to fall.

It is a good idea to flush your gutters with a garden hose after you have cleaned them. This will show how well the gutters are draining and will indicate any areas that are holding standing water, which contributes to many gutter problems.

The article further discusses what to use to repair your gutters and prevent damage from leaves and branches.

Check Foundations

Take some time on a clear, sunny day to walk around your home looking carefully around the edges.

. Rake away all debris and edible vegetation from the foundation.
. Seal up entry points to keep small animals from crawling under the house.
. Tuckpoint or seal foundation cracks. Mice can slip through space as thin as a dime.
. Inspect sill plates for dry rot or pest infestation.
. Secure crawlspace entrances.

Steel wool is highly recommended for plugging up holes against rats
and mice

You’ve paid a lot of money for your home, and doing the right things at the right time will protect that investment for years to come.

Getting rid of dust mites

Dust mites have a major ick factor, and unfortunately can make our allergy or asthma symptoms worse.  In addition, they can cause skin problems called scabies.

Let’s look at what dust mites are and how you can best conquer the little invaders.

If your allergist says dust mites are aggravating your asthma or causing a skin problem, here are some steps you can take, according to the University of California, Berkeley:

1. Buy a good vacuum cleaner with a HEPA filter. Replace the HEPA filter regularly. Also, if you suffer from the allergies, get someone else to vacuum and dust.
2. If your allergies are severe, remove carpet, upholstered furniture and drapes from your bedroom. Install flooring such as hardwood, laminate, or tile that is easy to clean and dust. Also, switch over to wooden blinds.
3. Wash bed linens and blankets in hot water each week and use a hot dryer setting.
4. Use impermeable covers to encase pillows, mattresses and blankets that can’t be washed.
5. Replace all pillows periodically, no matter what they are made of.
6. In damp climates, use a dehumidifier. Dust mites thrive in humid conditions.

The Allergy Cleanup Handout also has tips for the kitchen, bathroom, attic, and basement.
eHow’s article on preventing dust mite allergies is quite similar.

1. Wash bedding on a weekly basis in hot water
2. Use a plastic dust mite covers on your mattress, box springs, and pillows. New ones are plastic on the inside and soft cloth on the outside.
3. Remove wall-to-wall carpeting.
4. Use blinds instead of drapes and curtains
5. Get rid of stuffed toys that cannot be washed in hot water.

Your child may be unhappy with the loss of the stuffed toy, but perhaps you can limit the number of stuffies in your home.

Squidoo had a great lens to better understand what dust mites are and how we can’t completely escape them:

We All Live With Dust Mites

Dust mites are the most common cause of allergic reactions. In Allergic asthmatics about 90% of them react to dust mites while 10% of non asthmatics react to them. The reactions would include sneezing, itchy eyes, stuffy nose and coughing. Dust mites are an allergy trigger and can cause an asthma attack. New research says they trick the immune system into believing it is being infected by a bacteria therefore it tries to fight it off, this can cause an attack.

Dust mites like dark, humid environments so sunlight and humidity under 50% is not good for them and their populations decrease. They are not as prevalent in cold, dry or very hot places. Also they are seen in reduced numbers in high altitude areas.

They live on all kinds of fabrics, wool, cotton, polyester and are even found on clothing. It was shown that people wearing wool sweaters had higher levels of dust mites than other materials. The fact that people don’t wash wool in hot water might be one factor. Dry cleaning is said to kill the mites but not all the allergens.

The type of furniture and decorations in the home can make a difference in the amount of dust in the home. Carpets can be great hiding places for them, especially hard to vacuum shag type. Upholstered furniture, multitude of pillows, stuffed animals, dried flowers and knick knacks harbor them. Also the amount of furniture in the home can make a difference. If your home is cluttered it will collect more dust than if it is sparsely decorated. But even a empty home will have dust.

So, do what you can to keep the dust at bay, and if you suffer from severe allergies or asthma, consider modifying your home to reduce the allergens.

Sellers are Getting a Few Breaks

Sellers are getting a few breaks

If you’re looking at selling your home, you’re in luck. Right now, more people are looking to buy homes then sell them for the seventh straight month, per the Wall Street Journal.  Average days on the market have gone from 96 days one year ago to 69 days in July, 2012.

Housing prices are rising due to the limited supply, and interest rates are staying low.

From the WSJ:

With buyers acting more quickly, sellers have been able to boost their listing prices. Asking prices were up by 2.3% in August compared with the same month last year, according to real-estate website Trulia. It was the seventh straight month in which sellers hiked their asking prices, and 68 out of the 100 largest U.S. metropolitan areas reported asking price increases.
With housing demand recovering and home construction lagging, buyers are getting impatient for fear that they have missed the bottom of the housing market, said Jed Kolko, Trulia’s chief economist. However, sellers may be still holding off putting their homes up for sale in hopes that they can get a better price in the future as the housing market gradually climbs back.

While some homeowners are struggling, Lawrence Yun, the chief economist for the National Association of REALTORS®, has stated that “Homes that are correctly priced tend to sell quickly, while those that aren’t often languish on the market.”

So to get the best price, remember four important things:

1.  Find a REALTOR® with the experience in your neighborhood, and the drive to advertise, negotiate, and be your advocate for all facets of the sale.

2. Price your property competitively. Your real estate agent can make a competitive market analysis (CMA), considering prices and features of recently sold homes in your area. He or she will help you zero in on the best asking price.

3. As the seller, you need to do your part by presenting a home that is attractive, clean and uncluttered. Make any necessary repairs so the home is in “move-in” condition.

4. Consider your home’s curb appeal. Cut the grass, place pots of flowers by the door and make sure the windows shine.

And when you receive multiple bids, work with your REALTOR® to find the best all-around offer.

Now is the time to lock in a rate

Fannie Mae and Freddie Mac, the U.S.-owned mortgage finance companies will raise the fees they charge lenders to guarantee loans (“g-fees”), the Federal Housing Finance Agency (FHFA) said in a statement.

This guarantee-fee increase will take effect between November 1 and December 1 depending on the investor.  Most mortgage bankers expect to see this increase passed along to borrowers in the form of higher interest rates offered by investors.

The good news is that it shouldn’t stall mortgage lending, as many lenders have been anticipating this since FHFA were seized by regulators in 2008.

Per BusinessWeek’s article recently, David Stevens, president of the Mortgage Bankers Association, stated that the lack of private capital in the housing market isn’t driven only by competition from Fannie Mae and Freddie Mac but also by uncertainty about prices and other concerns.

Bloomberg’s article on the subject states that FHFA Acting Director Edward J. DeMarco sought the fee increase to boost fiscal stability at the government-sponsored enterprises and shrink their footprint in the mortgage market, where they own or guarantee about 60 percent of U.S. home loans.  Additionally, the last g-fee increase took effect in April after Congress boosted them to fund a payroll tax cut.  The net result was a slight increase in interest rates.

So the reality is that it will have some impact on pricing, so now would be the time to contact your mortgage consultant to look into whether refinancing or buying now is the right move for your current fianancial situation and goals.

Decisions When Replacing a Roof

The National Roofing Contractors Association says if you’ve already fixed a few leaks and replaced missing shingles in recent years, it’s probably time to put on a new roof. If the shingles are bare, curling, cracking or mossy, start now.

Get estimates, check references

Since you’ll be spending $5,000 to $10,000 or more, be sure to hire the right person or company. Get three estimates and check references.
Have the roofer agree to remove only as much roofing at one time as he can replace during that day.

What about tear-off?

If you already have two or three layers of old roofing, building codes require you to strip them off, adding $1,000 or more to the job. If a single layer has been on the roof for many years, it can be worth what it costs to remove it so the roofer can repair decking and worn flashing.
A rubber membrane called ice and water shield can be installed to prevent leaks when gutters freeze up.

Rent a dumpster

Unless you want the labor and expense of covering the entire area around your home with tarps and plywood, you’ll need a roll-off dumpster. As a rule of thumb, 8-10 squares of shingles weigh about 1 ton. Shingles from a single residential roof will fit in a 10 cubic yard roll-off dumpster.
As the roofer tears off shingles, the old decking and nails, they all go to a dumpster beside the house.

Selecting shingles

You’ll pay more for 50-year shingles than for 25-year, but they last longer. Architectural shingles cost a little more, but they add beauty to any building, say advisors at Money magazine.

Home Sellers Get a Few Breaks

The numbers are starting to add up for home sellers (and buyers). Statistics show consumer confidence is on the rise and that could be good for the economy.

At the same time, low mortgage interest rates are making home ownership a reality for many people.

When you add up the factors that are in a seller’s favor, it could finally be time to put up the “For Sale” sign.

If you plan to sell and buy another residence, this might be the very best time to do it. In some areas of the country, sellers are receiving multiple competing offers for their homes. In some areas, you might get a little less for your home than you want, but you’ll also pay less for your dream home.

Experts at wealthpilgrim.com give a comparison of trade-up home values. Say your current home is worth $250,000 and you want to buy one that costs $500,000. If you wait a few years to complete the deal, your present home might go for $25,000 more, but your new home will cost $50,000 more. And today’s super-low interest rates might not be there when you trade up.

There are four key elements that go into a successful home sale:

* Find a realtor who has the experience and the work ethic to advertise, negotiate, use technology and handle all facets of the sale.

* Price the property competitively. Your real estate agent will make a competitive market analysis (CMA), considering prices and features of recently sold homes in your area. He or she will help you zero in on the best asking price.

* As the seller, you need to do your part by presenting a home that is attractive, clean and uncluttered. Make any necessary repairs so the home is in “move into” condition.

* Consider your home’s curb appeal. Cut the grass, place pots of flowers by the door and make sure the windows shine.

Register For Your Down Payment

Many newlywed couples face a daunting down payment soon after marriage. This has gotten only more difficult as larger down payments are required since the reemergence of conservative underwriting standards.

A recent article in the Scotsman Guide discussed a new trend at weddings that can ease the financial burden: down payment registries.

“Homebuyers hoping to avoid the typical barrage of plates, glasses and cutlery now have a choice,” explained the article. Couples can learn about down payment registries from their loan officers and using that money as a gift fund for their new home.

Websites allowing secure payments for wedding guests to contribute is the common method, as down payment registries online can allow guests to see the homes a couple likes and feel more involved in the process, as opposed to just sending cash.

For more information about these registries, read the full Scotsman Guide article here and talk to your mortgage professional about it.

Humanitarian Help for Haiti

Christine Meserve, a loan officer at the Princeton corporate office, has spent the last fifteen years doing humanitarian work from Peru to Africa, and dedicated much of her time over the recent years to those suffering in Haiti.

As the Team Coordinator for The Flying Doctors International Chapter, she is responsible for 90% of the fund raising, purchasing and preparing for travel all of the necessary medications, pharmacy manager in country, among other responsibilities. In the years since the devastating Haitian earth­quake, Christine and her organization have been setting up remote medical clinics deep in the mountains and jungles of the country, where peo­ple have little access to medical care of any kind.

This past March, Christine visited two villages that had never seen a doctor before. The workload is intense, with over 2000 patients seen over a five day period, but she always feels that she receives more from this work than she gives.

“It is exhausting, challenging, heartbreaking, and I am grateful and honored to be a part of it,” she said.

Christine is especially passionate about medical humanitarian aid in developing countries, and she advises those looking to get involved to choose an organization that caters to your passions as well. There are likely already outstanding organizations you can join that have the same goals as you – improving education, the environment, and so on.

“I love the people in these countries, the inspiring individuals I work with, and the remote and chal­lenging nature of the locations that we travel to,” said Christine. “The clinics are real, raw, and the gratitude that these patients genuinely have is humbling. Their needs are simply greater than anything we can imagine here. Last year we took over 1600 pounds of medical supplies alone.”

Now Cheaper To Buy Than To Rent

It is now considerably cheaper to own a home than to rent that same home, something unheard of since 2008.

This and other promising information about the housing market was recently released by Harvard in their annual “State of the Nation’s Housing,” an in-depth study performed by The Joint Center for Housing Studies at Harvard University.

Because of historically low mortgage rates and low home prices post-recession, it is a perfect time to buy.

On the other hand, rent prices are soaring, especially in the Bay Area. According to Trulia, San Francisco and Oakland saw the biggest jumps in rent in the United States over the last year, with increases of 14.7 percent and 11.2 percent, respectively.

“With rents up, home prices sharply down, and mortgage interest rates at record lows, mortgage costs relative to monthly rents haven’t been this favorable since the early 1970s,” said Eric S. Belsky, managing director for the Joint Center for Housing Studies at Harvard.

The report also noted that today, mortgage payments for the median priced US home are roughly half of what they were in 1990. The study showed that mortgage payments are now 23% less than rent payments for the median priced home.

This means that it is a fantastic time to be a home buyer, and to get off of the fence if you’ve been waiting for the market to turn around.

Take a look at the entire Harvard study here:

http://www.jchs.harvard.edu/research/state_nations_housing.

New-Home Sales Rise 7.6%

New-home sales got a boost in May, with a 7.6% rise in single-family homes, the highest level since April 2010. They are also selling at the quickest rate in two years, reported the Commerce Department.

Prices of new homes are also on the rise, with a 5.6% increase over year-ago levels, for a median price of $234,500.

According to David Crowe, National Association of Home Builders’ chief economist, “May’s sales report is a welcome sign that the market has returned to a more solid growth path following lackluster reports in March and April, and is in keeping with our expectations for continued, steady improvement through the end of this year.”

However, full recovery is still being held back by low appraisals and lack of available credit, said Crowe.

To read more, check out Realtor Magazine’s article here.

Buying Short Sales or Foreclosures

There’s no question that negotiating the short sales or a foreclosure can be time-consuming and frustrating. It can take months. But if you’re patient and willing to do the work, your reward will be a great house at a bargain price.

Short sales

For a distressed property, you could be dealing with third parties, each with their own agenda and process rules.

On short sales, banks will price a home close to the market value, but they are often willing to take less to avoid a costly foreclosure. The average short sale in the past year has sold at14 percent off the list price, compared with a 7 percent discount for foreclosure and regular sales.

Dealing for a foreclosure

Because banks are eager to unload properties they own, they list the home at a price at which they think it will sell quickly. These properties are often bought for cash by investors. In California, 31 percent of recent deals were by cash, according to Money magazine.

In some cases, the bank that handles the foreclosure may not own the loan. During the real estate boom years, many loans were sold off to other investors. In that case, the bank who owns the property has to consider the amount investors who own the loan are willing to accept.

Wells Fargo short sale and foreclosure servicing department says, on loans insured by the Federal Housing Administration, lenders can accept no less than 88 percent of appraised fair market value in the first 30 days. That declines to 84 percent after 60 days.

How to make an offer

In deciding what to bid on a foreclosure or short sale, remember that banks aren’t interest in making several counteroffers, though they may come back to you once or twice. In weeks to come, you could resubmit the offer and it might be accepted.

Your initial bid should be 10 percent to 20 percent below the list price.

How To Grow A Vegetable Garden

With summer finally showing its true colors, it is the perfect time of year to grab a pair of gardening gloves and beautify your yard.

Growing a vegetable garden or beautiful flower bed it not as daunting a task as it may seem, and can increase a home’s perceived value when on the market.

A vegetable garden is a practical idea; you can grow your own organic food and fresh herbs, saving money at the grocery store.

The video below shows how to start growing a vegetable garden in your yard. Take a look!

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The Complicated World of Credit Scores

Lenders use different credit scores for different purchases.

If you have successfully navigated a website that offers to sell you your credit score, you may think you have all the information you need in order to apply for a loan or new credit card.

Not necessarily. The score you received could be quite different from what a lender receives. Different scores are offered for mortgages, car loans, insurance and more.

Under the Fair Credit Reporting Act that took effect January 1, lenders must either tell those who apply for credit what score was used, or tell them how it was used if the applicant doesn’t receive the best terms available.

Here are some reasons why a credit score (a number between 300 and 850) still won’t tell you how a lender evaluates of you:

* Some lenders give the best rates to people with a score of 740, others may use 760 or higher. Some give credit to people with scores in the high 500s, but others require 620 or more.

* Credit scores don’t reflect whether you are making good financial decisions or poor ones.
If you refinance your home at a lower interest rate, inquiries could show up on your report. Inquiries lower a score.

* Late payments show up on your score for a couple of years, but paying down a high balance has an immediately beneficial impact.

* If you pay your credit card bill in full every month, you don’t get a zero balance on your credit report. The report shows the balance at the end of the billing period, before the payment.

* Rather than checking your score frequently, you are better off making sure the information on your report is correct. Make your payments on time and reduce monthly balances for a month or two before applying for a loan or mortgage.

Loan Pre-Approval and Turning Yourself Into a “Cash Buyer”

Being pre-approved for a loan puts you in a great position when buying a home. It puts you on equal footing with an all-cash buyer, in essence turning yourself into a cash buyer.

With a real pre-approval, the buyer is the next-best-thing to being a “cash buyer” because the seller can rest assured that the buyer will qualify for a loan.

A truly “all-cash buyer” does not have to worry about lender approvals, but will typically still be concerned with a property appraisal and an acceptable title report.

Being pre-approved for a loan puts a buyer in a better position with the seller of the property. It allows the buyer to understand the costs associated with the purchase as well as the monthly costs associated with the ongoing ownership.

The Pre-Approval Process

The pre-approval process simply means that a buyer is getting approved for a loan prior to reaching an agreement with a seller of a property. The buyer will provide the lender with current income, asset and credit documents and the lender will determine the loan amount for which the buyer will be able to borrower.

The pre-approval process can take anywhere from 2 – 30 days, depending on the variables surrounding the possible transaction (credit worthiness, location of assets, calculation of income, etc).

Once a loan amount and purchase price have been determined by the lender, the final approval will usually be subject to an acceptable purchase contract, property appraisal, title report and final interest rates.

While it will vary from borrower to borrower based in the individual characteristics, a lender will typically be able to pre-approve a buyer within 5 days of receiving all of the applicable income, asset and credit documents.

Being pre-approved for a loan puts you in a great position when buying a home. It puts you on equal footing with an all-cash buyer, in essence turning yourself into a cash buyer.

With a real pre-approval, the buyer is the next-best-thing to being a “cash buyer” because the seller can rest assured that the buyer will qualify for a loan.

A truly “all-cash buyer” does not have to worry about lender approvals, but will typically still be concerned with a property appraisal and an acceptable title report.

Being pre-approved for a loan puts a buyer in a better position with the seller of the property. It allows the buyer to understand the costs associated with the purchase as well as the monthly costs associated with the ongoing ownership.

The Pre-Approval Process

The pre-approval process simply means that a buyer is getting approved for a loan prior to reaching an agreement with a seller of a property. The buyer will provide the lender with current income, asset and credit documents and the lender will determine the loan amount for which the buyer will be able to borrower.

The pre-approval process can take anywhere from 2 – 30 days, depending on the variables surrounding the possible transaction (credit worthiness, location of assets, calculation of income, etc).

Once a loan amount and purchase price have been determined by the lender, the final approval will usually be subject to an acceptable purchase contract, property appraisal, title report and final interest rates.

While it will vary from borrower to borrower based in the individual characteristics, a lender will typically be able to pre-approve a buyer within 5 days of receiving all of the applicable income, asset and credit documents.

Best Eco-Friendly Lightbulbs

For the best eco-friendly light bulb, consider how and where it will be used in your home.

Compact fluorescent bulbs (CFLs) and light-emitting diodes (LEDs) have improved dramatically and are getting even better. You can choose a light bulb that makes everything look as nature intended and still get energy savings.

The best LED bulbs can cost $10 to $70, but considering that they last for up to 25 years, they are a worthy investment.

When selecting a bulb, lighting expert Michael Hsu says considering how it will be used makes a big difference. His recommendations:

For Recessed lighting, Hsu uses the Sylvania Ultra Professional Series LED. It’s exceptionally good at highlighting colors when illuminating people, plants and furniture. It works well in track lighting ($33 to $70 at sylvania.com).

For a shaded floor lamp, the Phillips L Prize LED bulb sends light in all directions ($50 at usa.lighting.phillips.com). The GE Reveal CFL does the same and has very pleasing light (from $8 at gelighting.com).

For task lamps, which cast focused light, LED’s are a good match and don’t produce as much heat as incandescents. Quoted in The Wall Street Journal, Hsu likes the Sylvania Ultra Professional Series PAR20 ($33 at sylvania.com), because it renders beautiful colors.

For mood lighting, the GE Energy Efficient Reveal Clear halogen is about 30 percent more efficient than an incandescent, and the light quality is crisp and white. It creates a cozy pool of light ($5 at gelighting.com) and has a standard light bulb base.

The halogen, a form of incandescent, is the least efficient, but its light closely resembles that of a traditional bulb and creates ambience.

Sales In These Categories Rise, Indicating Recovery Is For Real

A retail analyst at NPD Group says they should have known the economy was in trouble in 2009. Sales of underwear were down, signaling a major economic downturn.

* Underwear makers have good news for you. Yearly sales for 2011 jumped 6.6 percent. According to the Underwear Index (championed by Alan Greenspan), the uptick in staples, like boxer shorts, is a sign that consumers are upbeat and not pinching pennies.

* Golf courses had an increase of 21.4 percent in rounds played during 2011. The rise included both public and private courses, meaning that all kinds of golfers were willing to pay. They had a more positive outlook.

* Sit-down restaurant sales rose by 8.7 percent in January 2012 over January 2011. Because more diners chose full-service places, as opposed to fast food, it’s a sign that the economy is back on track.

* Pay-TV sales were up a little in 2011. In spite of options like Netflix and Hulu Plus ($7.99 a month), Americans are still spending $50, $100 or more per month for pay-TV packages.

* Beauty salon sales grew by 5.4 percent over the last two years. In downturns, many customers skimp on hair gels, creams and haircuts. The turnaround is proved by 34 percent of salons saying they have hired more stylists in the past two years.

* Mobile home makers shipped 3,800 units in December 2011, up 30 percent from the month before. A strategist at ConvergEx says strong trailer-park sales may signal stronger overall housing numbers before long.

Interviewed in Time, authorities say the only loser in their survey was the tooth fairy. Per-tooth payouts dropped in 2011, but the non-profit Delta Dental says the tooth fairy is hopeful for improvements this year.