Orlando Real Estate Voice

Consumers are proving they can turn back time on identity theft by following a prescribed program of diligent document protection and criminal deterrence.A well-measured program of preventive steps can protect your identity from theft.

ID theft-related fraud fell by 12 percent in 2007 and 300,000 fewer adults were victims, according to the latest from Javelin Strategy & Research, the longest-running ID theft study in the nation.

At the top of the list of reasons for the decline is “greater consumer vigilance and awareness,” according to the report.

When someone steals your identity, you don’t wander around aimlessly like some John or Jane Doe. Someone pilfers enough of your personal identifying information –name, address, Social Security Number, drivers license, credit and financial account numbers and the like — then masquerades as you to make purchases, withdraw cash or otherwise undermine your financial assets and your name.

ID theft can cost you time and money (averaging $691, according to the report) to correct the misdeed and it can ruin your credit enough to prevent you from making major purchases including buying a home.

Companies that manage personal information have improved their ID theft protection measures, but consumers who protect their own personal information is the first line of defense.   Here’s what Javelin suggests.• Move your financial transactions online by turning off paper invoices, statements and checks, including paychecks, and replacing them with electronic versions where offered by employers, banks, utilities or merchants. Avoid mailing checks to pay bills or deposit funds in your banking account. Instead, pay bills online and use remote deposit check imaging services on online banking sites.

This effort rubs out the paper trail. Crooks are more likely to steal information on paper, from personal belongings and through telephone calls, rather than online.

• Monitor your accounts regularly online at bank and credit card websites. Americans who monitor their accounts online are most likely to uncover suspicious or unauthorized activity early.

• Likewise, review your credit information frequently. You can do so three times a year for free at the federally-sanctioned AnnualCreditReport.com by getting one report, from each of the three major credit reporting agencies — Equifax, Experian and Transunion — in turn, every four months.

• Reduce unnecessary access to your personal information wherever possible. For example, don’t carry Social Security cards, unused credit cards or checks, and don’t leave sensitive documents out in the open.

• Never provide sensitive financial information over the phone or Internet, including Social Security numbers, passwords, PINs or account numbers, unless you placed the call directly to a verified and trusted location, such as the number on back of a credit card or statement.

• Add your name to the federal Do Not Call registry and direct marketing opt-out lists to reduce solicitations that could be bogus.

Even as overall ID theft has fallen, “vishing,” criminals using telecommunications, voice over Internet protocol (VoIP) and like methods, is on the rise. That’s because, as more consumers shift more transactions to secure online services, thieves are becoming more creative on the telephone claiming to represent non-profit and charitable operations.

In the same vein, wireless phone accounts have become the most frequent types of new accounts opened fraudulently by criminals using stolen data. The trend exceeds that of fraudulent new credit cards, loans, checking or savings accounts.

• Install and regularly update firewall, browser, anti-spyware, and anti-virus security software on your personal computer, and keep operating systems updated. Updates typically come with spyware, virus and other protections.

• Consider placing a credit freeze on your credit report or your child’s credit report if you know you won’t be using credit for some time. Child ID theft is on the rise because thieves know you and your kid aren’t likely to check the child’s credit report for some time due to a lack of credit use. Check your state’s “credit freeze” law. The cost may be nominal or free. The three credit reporting agencies offer the service for a fee.

• If you are an ID theft victim, report it to the police, affected accounts, and call any one of the three credit bureaus to have a fraud alert placed on your account to prevent future infractions as you sort out the mess. Contact one bureau to place a fraud alert on your credit report and that company is required to notify the other two so that they too can place an alert on their versions of your report.

Recently came across this information thought some of you might find it interesting.

The Senate Banking Committee has just passed the Federal Housing Finance Regulatory Reform Act of 2008 by an overwhelming and bipartisan vote of 19-2.

Buried in the proposed legislation is something new and revolutionary, an effort to stop mortgage walk-aways.

Walk-aways arise when a borrower can no longer make monthly mortgage payments or sell the property. Rather than wait for foreclosure, the borrower simply sends the keys back to the lender. This is not a minor matter. Fitch Ratings reports that “the apparent willingness of borrowers to ‘walk away’ from mortgage debt has contributed to extraordinarily high levels of early default, which is particularly noticeable in the 2007 vintage mortgages.”

Unfortunately, sending back the keys is not the same thing as giving up title. The lender must get the public records changed, a process made both difficult and expensive when a borrower cannot be found.

Worse, while property ownership is in limbo the home can be damaged by weather, vandals and squatters.

The Senate legislation addresses the walk away issue by saying that before borrowers can get FHA financing they must certify that they have not intentionally defaulted on any debt, not just their current mortgage. Lying about this issue can be considered perjury, and perjury can result in a jail sentence.

No less important, if a homeowner has walked away from an FHA loan, then the borrower would have to repay the government for any loss on the property — potentially tens of thousands of dollars. In the same way that we should hold lenders to certain standards, borrowers also have an obligation to meet certain requirements. Sending back the keys — creating so-called “jingle mail” — is not fair and it’s not right. The Senate committee has the correct idea: Walking away from a mortgage should not be a free pass to new financing, especially financing insured by the federal government.

For years, the Veterans Administration has allowed “Jumbo” VA loans; it’s just that hardly anyone knew about them. The current VA loan limit with zero down, is $417,000, matching the conforming loan limits set by Fannie Mae and Freddie Mac. But the VA does make allowances for VA loans above that amount … way above. Say around $700,000.

Current Jumbo fixed rates are anywhere from 1.00 percent to 1.50 percent higher than conforming rates. That’s a lot, and has many Jumbo buyers in a quandary. A 30 year fixed conforming rate might be 6.00 percent while a similar Jumbo rate could be 7.50 percent. That spread used to not be so vast. Prior to the current mortgage mess, Jumbo rates were typically about .25 to .5 percent higher than a conforming loan. But not so with a VA Jumbo loan. VA Jumbo rates are near conforming rates, about .25 percent higher. And loans can be as high as $700,000. So how does this work?

First, if you’re a qualified Veteran or Reservist, there simply is no better home loan out there with no money down. Period. Even when every lender on the planet was shouting “No Money Down!” for their home loans it couldn’t hold a candle to a VA loan when comparing rates and closing costs. As long as the VA loan didn’t exceed $417,000 ($625,000 for Alaska and Hawaii). But a little “quirk” in VA lending allows for VA loans above that $417,000 as long as the veteran comes up with some down payment — as with any Jumbo mortgage.

To figure out how much down payment a veteran will need, simply multiply the amount of the sales price over $417,000 and take 25 percent of that. For instance, a home sells for $650,000. Now subtract the maximum “zero down” VA loan amount of $417,000 and you get $233,000. 25 percent of $233,000 is $58,250. That’s the down payment needed from the veteran. That works out to about 9 percent down payment on a $650,000 home! As on all VA loans, there is a Funding Fee of about 2.2 percent of the loan amount but that can be rolled into the loan and not paid out-of-pocket. In this example, the final loan amount would be about $604,750. With a conventional Jumbo loan, you’d need 20 percent down and pay a higher rate, say 7.50 percent compared to 6.25 percent.

Not all lenders will offer this program, so you’ll need to do a little homework and even those that do may have their own VA Jumbo limits. But if you’re in the Jumbo market and are VA eligible…give this program a hard look.

Update

Fannie Mae nixes extra five percent down in “declining markets.”  On May 16, the country’s largest secondary mortgage market company, Fannie Mae, announced that it will no longer require borrowers to put up an extra five percent down payment when purchasing homes in areas deemed “declining markets.” According to an NAR: “Fannie Mae had been hearing concerns from REALTORS and others for months that its declining-markets policy was bad for the housing market because it discouraged consumers from buying homes in markets hardest-hit by foreclosures.”

About the author: 

Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.JerrySellsOrlando.com for your real estate needs.  Please give me a call if you have questions about the Orlando and Central Florida real estate market.

Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011

(Copyright © 2008 By Jerry LaRose, P.A. All Rights Reserved.)

National REO Banks:

• Bank of America – REO Search
• Bank One – REO Search
• Beal Bank - Commercial
• CitiMortgage - REO Search
• Compass Bank - REO Search
• Countrywide - REO Search
• Downey Savings & Loan – REO Search
• Freemont Investment & Loan – REO Search
• First Union Bank - REOs
• GreenPoint Financial - REO Search
• GRP Financial Services Corporation – REO Search
• Home Loan and Investment Bank - REO Search
• HSBC - REO Search
• IndyMac Bank - REO Search
• IAS – Integrated Asset Services - REO Search
• M&T Bank - REO Search
• Ocwen Financial Corporation - REO Search
• People’s Bank - REO Search
• U.S. Home Mortgage - REO Search
• Wilshire Credit Corporation - REO Search

Regional REO Banks:

• 1st National Bank of Scotia - New York
• Coast and Country - Southern California
• Community Commerce Bank - Southern California
• Lexington State Bank - North Carolina
• National Bank of Arizona - Arizona
• New South Federal Savings Bank - Southern US
• nNYRealty.com - New York
• Pacific State Bank - California
• Texas State Bank - Texas
• Unity Bank - NJ, Pennsylvania
• Virginia Housing Development Authority (VHDA) - Virginia
• Western Bank - Puerto Rico
• Zions Bank – CO, ID, MT, UT

Other REO Sources:

• REO Source - Good National REO Search Site
• REO Talk – Publishers of REO Talk Magazine

Get Your Home Ready To Sell

In preparing your house to sell, ask yourself over and over if your house looks like someone else’s dream house. Houses in move-in condition tend to be inviting to buyers; houses that are like new typically sell the fastest and procure the best price.With that in mind, here are a few things to consider when getting ready to sell:

Exterior
Remember the 60-second rule: that’s all the time you have to create a good first impression! Mow the lawn, rake leaves, trim trees and shrubs that keep light out of the house and remove dead plants. Pick up tools, garbage cans, hoses, toys, and building materials and store them neatly in a storage area. Replace broken or missing roof shingles and straighten and clean the gutters and downspouts. Clean all windows and mend torn screens. Painting your house helps improve curb appeal more than any other fix-up! If you decide against painting the entire house, consider painting the front door, window frames and shutters. Seal or resurface the driveway and repair broken steps and walkways. Paint or replace your mailbox and post. Dress up the front yard with some simple landscaping. Clean, Clean, Clean
Step back for a moment and look at your home as if you were seeing it for the first time. Every room should be spotlessly clean, dusted and uncluttered. Steam clean the carpets and wax the floors. Wash the walls, windows and light fixtures. Tighten loose stair railings and clean all woodwork. In the event that you feel a project of this magnitude is better left to a professional, ask your real estate agent to recommend a cleaning service.Entryway
Use bright light bulbs in the foyer and throughout the house. Fill the house with a pleasant aroma, such as berries in the summer or cinnamon in the winter.

If Buyers are saying that then Let them know that waiting may well make their home MORE expensive not less! How is that possible if the price drops? Unless the Buyer really does pay all cash even a small increase in intrest rates can wind up wiping out most if not all of saving from the price decrease because of the increased interest costs. And as article below indicates – interest rates are very likely to be going UP.

Here is a simplified example: On a $220,000 house if the price goes DOWN by $10,000 but interest rates go UP by only 3/4%, then the Buyers will pay $8,600 MORE in interest during the first 10 years and $17,200 MORE during the first 20 years. Pull out your financial calculator and check it out! Oh – the monthly payments are nearly $400 MORE per year too!

[Price NOW $220,000 - With a $20,000 down payment and $200,000 30yr fixed at 6% - will result in $111,263.58 of interest during 1st 10 years.

Price drops by $10,000 to $210,000 and intrest rates increase by only 3/4% - With $20,000 down payment and $190,000 30 yr fixed at 6.75% - will result in $119,952.26 of interest during 1st 10 years.]

So to paraphrase an old saying – A Buyer who hesitates may suffer a big loss!

There is a growing sense that the worst of the credit crunch may be behind us. And despite a tamer-than-expected reading for April, inflation is still very much a concern for many Americans.

So with that in mind, could the Federal Reserve be forced to raise interest rates before the end of the year….even in the midst of the presidential race?

The Fed has historically been reluctant to make significant policy moves in the months leading up to the election.

The market now seems to think that Fed chair Ben Bernanke may take action just a few days before Election Day on Nov. 4.

According to futures listed on the Chicago Board of Trade, investors are currently pricing in a 56% chance that the Fed will raise its benchmark federal funds rate by a quarter of a point, to 2.25%, at the conclusion of a two-day meeting on Oct. 29. Traders widely expect the Fed to keep rates at 2% at meetings in June, August and September.

There have been calls for the Fed to, at the very least, leave rates alone for the foreseeable future. Critics of the Fed have maintained that a relatively low federal funds rate, an overnight bank lending rate that affects how much interest many consumers and businesses pay on loans, has weakened the dollar and helped fuel the boom in commodity prices.

What do you Think?

I just don’t understand the course we’re on.
 
Since when is it OK to just walk away from your responsibilities when things don’t work out the way you wanted them to? Many people treated their homes like a day-trade on the stock market. Now that their ‘gamble’ isn’t working out, they seek government bailouts (not unlike their lenders and mortgage companies at my expense as a taxpayer) or the ability to just walk off into the sunset to live a carefree stress-free life. What about all the people that WERE responsible, who didn’t wipe out every penny of their equity, who didn’t run out buying three and four condos, who lived within their means? Why is it now our responsibility to bail these clowns out? It’s just not right.
 
I find myself having a hard time feeling sorry for all these people, especially when Washington wants to tap my tax dollars to bail all these irresponsible people out of their irresponsible decisions. And I’m not falling for all the whining. “Oh, I didn’t KNOW what was happening … Oh, I had NO idea my loan was adjustable … Oh, I didn’t know housing prices would EVER go down…” Are you kidding me? Please spare me the melodramatics.
 
The marching masses of consumer zombies need to wake up and smell the toast burning, which just might be the two brain-cells they have left to rub together. You can’t just live buying everything you want, the minute you want it, and spend more money than you earn. Many people now live like indentured slaves. They owe more than they will ever be able to payoff in a lifetime. Hopefully, they learned their lesson and will encourage others not to make the same mistakes they made.
 
I don’t know how this is all going to end, but I can tell you it won’t be pretty, and it will be a very long time until this whole mess is straightened out. You should forego your “now’s the time to buy” campaign in lieu of a re-education program that explains to people what they can and can’t afford on their salary – not some pie in the sky delusion on a suicide-loan with the hopes that the real estate market is going to take-off again at any moment. You’re perpetuating an already bad situation.
 
Owning a home is NOT a given ‘right,’ it’s a ‘privilege’ – one that has to be earned and that includes responsibilities. That’s the message you need to be sending.