The financial regulatory reform that is taking effect will have an impact on everyone including borrowers and mortgage lenders in many different ways.  The Bill is 2319 pages long, and will cover many areas that will affect everyone in the months to come.  Not everything is covered in our synopsis of the bill, but this will give you an overview on changes you can expect to see over the next couple years.

This bill is to aid with the changes that are being made to mortgages.  This will help consumers to avoid high fees, and do away with bad loan terms.  Prepayment penalties will also no longer be allowed. 

Before a borrower will be able to get a loan, mortgage brokers and lenders will be required to determine if the borrower can actually pay back the loan by checking all borrowers income, and assets prior to approving the loan.  The stricter verification process will make it more difficult for self –employed individuals or those who earn their salaries from commission to obtain a loan or qualify for a loan.  On the other hand, it will give borrowers more leverage on contesting foreclosures if they are approved for a loan they cannot afford.

The bill will also prevent lenders from offering mortgage brokers bonuses or incentives for giving unfavorable loan terms to borrowers (like increased interest rates).  This will have an effect on mortgage brokers (who are the middle men) by eliminating YSP (Yield Spread premiums-this is where the mortgage broker gets the loan at a lower interest rate, and sells the loan at a higher rate to the borrower, keeping the profits) With this being eliminated, they will lose one of the ways they make their money since the mortgage brokers make money 2 different ways, by YSP, and origination fees (% of loan size, usually fixed rate).  Since the YSP’s will be eliminated, the only other way they will be able to make their money will be by increasing origination fees.  This may mean borrowers will be avoiding the use of mortgage brokers more, and going directly to lenders. 

With mortgages becoming less profitable to the lenders, it will also become harder for a consumer to obtain a loan, (lenders are already starting to require higher down payments).  Anyone denied a loan or credit, will be eligible to get a free credit report through one of the major credit unions. 

As far as bank bailouts go, the new bill should decrease the amount of money spent by the taxpayer if the bank goes out of business.  If a financial institute fails, the FDIC (Federal Deposit Insurance Corp) will borrow from treasury to pay the costs of liquidation and get the money back by selling the financial institutions assets.  Also, if the financial institute fails, the FDIC will also have the ability to take back any compensation that has been given to the senior executives for 2 years prior to the institutions failure.

The bill will offer financial literacy study to teach Americans about fees, liens, savings and loans.  It will also require that all disclosures are to be made to investors prior to them investing any money into the institute.  The bill is not 100% perfected, but it should help the economy.  The legislations are not expected to go into effect for another 12-14 months.

In most states a “local move” or “intrastate move” is based on time so if you get your quote over the phone there is certain information that your local moving estimator should gather.  A visual “onsite” estimate is usually more accurate but for small moves like studio or one bedroom apartments a local quote can be given over the phone and still be good. There are generally 3 areas that should be covered to insure the proper information is conveyed to the move estimator.  Those areas include how much do you have to move, what are the logistics of your origin and destination, and how far and what type of drive is it from your origin to your destination.  This is assuming you don’t need your boxes packed for you.  If you do, an onsite estimate is a better idea.

The first area to cover is how much do you have to move?  You need to determine what’s in each room (not just how many rooms you have) so it’s best to go from room to room while on the phone with the local move estimator listing the furniture (and boxes) you have.  Each room is different so the more detail the better (even the smaller items matter).  Any local estimator worth his or her salt will also ask questions prompting you like is there any artwork? Are there any lamps? (what style, what size, etc).  Calculating your number of boxes can be difficult for a novice but the estimator should, again, ask questions, like how many linear feet of closet rod do you have (for wardrobe boxes), how many, and what length shelves  of books do you have? (For book boxes) how many cabinets do you have in your kitchen? How full are they? Of what? (for dish packs and large cartons).  These questions can help figure out the most difficult part of your local or intrastate moving quote.  Once you complete what’s in your apartment (or condo) your local moving estimator should check with you to see if you have any storage either in the building (or off site) or any garage or outdoor items like patio furniture, bikes, grills, or sports equipment.  It doesn’t matter whether you think something “isn’t much” or “isn’t a big deal”, the more precise you can be with your list of goods to be moved; the more accurate the local move estimator will be on his or her moving quote.

The second part of the local moving phone estimate equation is the logistics of your origin (where you live now), your destination (where you are moving to), and any restrictions that need to be followed related to the move.  Your local move estimator should find out what floor you live on, whether it’s an elevator or walk up (and the number of flights or stairs that are involved).  All these factors can affect your quote so be as detailed (and truthful) as possible, misinformation can only hurt you in the end.  Other questions should be is there a dock or loading area in the building? how far is it from the building to the truck parking (known as the push by movers) what is the distance from your unit to the elevator, etc? It sounds nitpicky but the logistical aspects of your move (on both sides) can make a difference of 25% to 35% in the time it can take to move out or move in.  Other areas of interest include are there time restrictions? If you live in an elevator building, do you have to make an elevator reservation? and is it exclusive use?  Are there height restrictions for the truck to get into the dock?  Do you have closing times?  The more information you give the better chance you have to get an accurate phone quote.  This is often the most over looked part of the local phone estimate process.

The third part of the local phone estimate is the distance and type of drive it is from your origin to your destination.  The local move estimator needs to get addresses (or at least neighborhoods) and the mileage between the two points to determine the time it will take a moving truck to get from point A to point B.  For instance, ten miles in a rural setting goes much faster than ten miles in a tight urban area.  Remember, in all traffic conditions a moving truck takes longer than a car to travel the same distance.

Once the local phone estimator retrieves all this information, he or she should be able to give you a quote including pricing (and how it’s determined), approximate length of time of your move, moving truck size, and approximate cost of materials, etc.  Also, if you can get 3 estimates you can compare and validate the quote you go with.  Like with any other part of the moving process, the more knowledge you have and your moving company has, the better decision you will usually make, and the more prepared your moving company will be to do you move.  Remember, you should always get the moving quote in writing after getting a phone estimate to insure there is no confusion.

If you want a home and do not want a “site built” house due to cost considerations, mobile home loans are the best option for you. Mobile homes are custom built homes which are built in factories and transported to the site where they are fixed on a permanent foundation.  Mobile home loans are much easier to obtain and such homes cost much less as compared to other traditional homes.  Mobile home loans are of two types:

•             Mortgage loans

•             Property loans

Mobile home mortgage loan

If you have set your mobile home on a fixed foundation you can ask for a mobile loan on both the land and the mobile home.  Both the cost of the home as well as the repairs, if any, are covered by the Mobile home mortgage loan. The actual value of the loan depends a lot upon the actual value of the mobile home.

Mobile Home loans are offered by credit unions, mortgage companies, banks, lenders, and local banks for purchase or refinance.  There are some hidden charges, like a credit report fee, loan application fee, origination fee, or doc preparation fee etc.  Before applying for a loan it is prudent to get an estimate from a lender about these hidden charges.  Learn about the terms and conditions to qualify for the mobile home loans.

Personal Property loan

This type of mobile home loan is meant for purchase of mobile homes which are fixed on a rented piece of land. Personal property loan can be obtained by retailers who sell mobile loans.  This is meant for purchase of homes on a rented lot as in mobile home parks.  A Personal property loan is offered by retailers who sell mobile homes. When you apply for a loan you will be asked to:

Make a down payment of 10% of the purchase price for a period varying from 10- to 30 years according to the terms of your loan. If you require improving the land around your Mobile home, like walkways’, Garages etc you can ask for a higher debt ratio and use the surplus money for your needs. If you already have a mobile home and need funds to improve upon it you can go for Title (I) loan. The maximum limit of this loan is $7500 and will be treated as a personal loan.

 You are eligible for a mobile home loan if the conditions given below are fulfilled:

•             Foundation requirements:  The house should be built after 1976

•             The HUD code requirements should be followed

•             Ownership Rights: You should have absolute right over the site

•             Credit Score: You must have a credit score of 680 or above

•             Down payment: You need to make a down payment of 10% of the actual loan amount

 RB- Mobile Home Loans are meant for those people who cannot afford a traditional home.

There are so many things to consider and so many calculations to make when you’re securing a loan.  Since your home is usually the largest investment that you make what type of loan you get and other financial decisions you make can impact you greatly.  Now there is a widget to help calculate all sorts of mortgage options (19 calculators to be exact) without the pressure and subjectivity of going to one lender.  This is free information you can use to make intelligent decisions in the mortgage loan arena.  The widget includes a mortgage principal calculator, of course, but also has many unique calculators like a “should I refinance?” calculator and a“rent vs. buy” comparison calculator.  A “what if I pay more every month”? calculator shows the effect that an additional principal payment can make on your loan and the “which loan is better?” calculator can help you decide which type of mortgage product best fits your needs.

Other calculators like an “affordability” calculator, a “how much income do I need in order to qualify” calculator and a “payment per thousand financed” calculator help you do the research on the front side so you understand the price range that you can or are willing to afford.  Like every other purchase the more due diligence you do, and the more information you have at your disposal means the smarter decision you make in the end.  There’s even a “how can I pay off my credit card debt sooner” calculator which almost everybody can use.  If you’d like to utilize these and other helpful calculators click 19 mortgage calculators to explore this helpful widget.

Whether you have recently moved into a new home, or are relocating in the near future, your child should be comfortable with the concept of starting a new school.  This can be very stressful, so you want to make the transition as easy as possible on your kids or teens.  We’ve covered some areas that can help in making the move process and adaptation into a new school a little easier before and during the 1^st few weeks of the change.

Before you move and before school starts, make sure you discuss with your child that the move will be taking place.  The key to this is to stay positive and focus on the good points as we discussed in Helping your teen cope with a move.  Make sure your child or teen is included with the whole process.  Whether your focus is they are going to have a bigger home, or be closer to a grandparent, try to make it as positive of change for them as possible.

Remember it’s easier for a child or teen to start a new school at the beginning of a new school year.  Really try not to break up their school year, if it can be avoided.  This will make for a smoother transition, and studies have been shown that grades are less likely to be affected if the child is allowed to finish out the remaining time of their current school year. 

Include your kids and teens when finding a new school, and getting them registered.  Whether you arrange for a tour, attend school orientation, or have them at registration, make sure they are aware of their surroundings.  You may want to have your teen learn their bus route, or route they will take to get home for comfort levels.  For younger children, it is helpful to have them check out their classrooms, familiarize them with bathrooms, office, teachers, and surroundings.  When teens are entering high school, sometimes the school will have mentor–leadership programs for new students to familiarize themselves with the surroundings, it’s also a good idea if your kids are in middle school to check with the principle or dean to see if they have some type of buddy program or mentor program to help your student get more familiar also.

Get your teens and children involved.  The key to this is get to know what your child or teen wants to do, whether it’s them participating in a sport, activity, club, or hobby.  See what they most enjoyed about their old place, and try to make it as similar as possible.  Remember new friends can be made anywhere, so by helping them get involved with new clubs, sports, classes, libraries, etc, it will help with the success of their transition.  Making friends is important to your child’s development.  If your child or teen has a familiar face in their new classroom, it can also make things a little easier. 

Being Knowledgeable is key!  The more you know about the area and school and what they have to offer, the more you can ease your child’s anxiety, and the more you will be able to address any of your child’s or teens concerns.  If your child or teen is unhappy, figure out what exactly is the root of the problem.  Are they mad because they have to quit a club or sport?  Are they sad because they are leaving their friends?  Are they afraid they are not going to make new ones?  Are they concerned about new teachers?  This will help you address the potential problem, and surely ease a child’s concerns.

Encourage your child.  You as a parent need to be encouraging to your child, by reminding them of previous life changes that they have gone through.  This can help eliminate or decrease anxiety, or depression.  For instance, remember the first day of high school at your old place how scared you were?  Or when you first started junior high, or baseball, or anything new they might have done?  Assure your child or teen how they conquered their last task and got through the situation.  This can help your young one see the light at the end of the tunnel. 

When your teen or youth finally starts school, remember it is very important on your part, to stick with a routine.  A stable home environment will be more positive for your kid and they will have an easier time getting through the moving process.

Be prepared for a fight.  Most likely you will get some sort of a fight from your child, whether they are being rebellious, or going through crying stages, or fits.  Know that this is normal.  Once they have had a couple months to adjust, things will get easier.  If things have not changed after about 6 months, you may want to get a counselor or someone your child can talk to involved.

Now that you’ve settled in to your new area, get involved.  Whether you are being a little more social yourself, by setting up play dates, organizing a party, or social event, help your kids or teens get a little more social life.  You may want to even consider volunteering at a school or club, to help your kid.

Last but not least.  Keep in touch!.  Don’t forget your old friends, there are many ways your young one or teen can communicate with their old friends.  Skype, MySpace, face book, and phone are all good communication tools for the kids to use.  It’s much easier these days than 20 years ago to communicate.

Allow time! And you will succeed.

Here are some points to cover and questions to ask when renting a truck for your move.  There are different price points and different characteristics that you should factor in before you choose a rental truck facility.

1.  Decide what size rental truck you need before you call for quotes.  Most truck rental facilities have a general guide of what truck to use for a studio apartment, one bedroom apartment, two bedroom apartments or house, but for accuracies sake, visit our move calculator  on our home page to see how many cubic feet of household goods you have.  Once you do that, you can call facilities to get quotes.  Get the inside dimensions of the potential rental trucks box and multiply length by width by height in feet to get the capacity in cubic feet.  For instance, a 24’ long truck box, that’s 8’ wide 8’ tall, has a maximum capacity of 1536 cubic feet.  Since furniture and boxes don’t load perfectly, give yourself a 20% margin of error when figuring your needs.  If you have a house with 1200 cubic feet of household goods you should be ok with a 24’ rental truck if loaded properly, if you have 1475 cubic feet with the same truck, you may end up with an overflow.
2. Decide whether you should rent a diesel or gas rental truck.  Diesels get considerably better m.p.g, for the longer distance moves a diesel can be better.  When renting a diesel vehicle, however, the weather can play a factor.  A diesel engine, when under about 32 degrees Fahrenheit, should be “plugged in” overnight to insure that it will start.  What “plugged in” means is there is an electrical plug coming out of the engine, that can be plugged into a garage or outdoor electrical box that powers a small heating element in the oil pan.  This helps the vehicle start on cold days.
3. Make sure the vehicle you are renting has the characteristics you need.  To tie down your load your rental truck should have slats to tie nylon straps to or “etrack logistics” (slotted metal rails that special nylon buckle straps can clip into).  For loading, most rental trucks have a built in ramp to walk up or a lift gate to lift items up into the rental truck.  A translucent roof (opaque fiberglass) on your rental truck can help light shine through better than an aluminum roof, making it easier to work and see your load.  The outside height of the truck is also something that can affect you.  If you’re renting a truck in an urban area with low bridges, etc, a shorter truck, can make navigating your city a lot easier.  It can also save you money since roof damage is generally NOT covered by the insurance taken from truck rental facilities.

When comparing pricing with the different rental truck facilities, know that they are not all the same. 

Ask these questions:

What is the per day rental rate?  Is there a grace period if returned in more than 24hours?  (do I get charged for a whole 2^nd day if I have the truck returned 24hours and 45 minutes)?

If I return the vehicle after hours, how do I confirm my actual charges?  And the vehicles condition?

What are my insurance options and the costs of each?

What is the per mile rate? (These can vary from .12 cents per mile to over .50 cents per mile) Are there any miles included with the per day rate?

Is there a surcharge if the vehicle is brought back with less fuel than it had when it was checked out?  What is the per gallon charge for fuel (it’s going to be way higher than typical pump price).

Are moving blankets/pads included with the truck rentals?  How much are they if they have to be rented, or can they be rented?

Are dollies, 2-wheelers, 4-wheelers included with the truck rental?  They can make transferring your items from house to truck a little easier if used properly.

These are just a few rental truck tips to help make a self move easier.  Get referrals from friends or business associates and always make reservations way in advance to avoid problems (especially on busy summer weekends).

Remember everything you’ve ever heard about first impressions as you prepare your home for sale. That impression starts the moment a potential buyer pulls up to your curbside.

Although the inside of your home has been spit-polished and is ready for review, your realtor has reminded you that unless you’re thinking of making a planter out of the lawn mower, you need to remove it from sight.  That, along with a long list of other things to create an appeal that entices a prospective buyer to come inside.

The same principles of home staging apply to the exterior of your house as you have done for the interior – Clean – De-clutter – Organize!

CLEAN (AND REPAIR)

After you’ve rented the power washer and hosed down the doors, shutters and siding, wash all the windows until they sparkle.  Don’t forget the driveway and sidewalks, as well. 

Don’t stop now!  Trim the bushes, cut the lawn and pull the weeds (every week) and remove all the dead brush from around your house.  And when you’re finished, check the paint for peeling and replace or repair loose gutters and roof tiles.  Finally, give a fresh coat of paint to chipped or faded doors, windows and gutters.

DECLUTTER and ORGANIZE

Make sure the garbage cans, mower, sprinklers and hoses are put away after use.  Also, have the kids pick up their bicycles and toys.  (It’s a good idea if the dog picks up after himself too.) 

NOW, CREATE YOUR STAGE 

Flowerpots at the door offer a warm welcome.  Consider painting the front door a bright color for a dramatic entrance.  Set up your outdoor patio or porch with furniture, flowers, and candles to set a stage of hospitality.  Next, add exterior lighting to highlight exceptional garden features, a walkway, or other lovely exterior elements.

Although your house now looks like no one actually lives there, it will have the appearance of extraordinary organization, maintenance and beauty – the realtor’s definition of curb appeal.

What are loan modifications?  The answer is Loan modifications are offered by some mortgage lenders as a courtesy to their customers who are having financial hardships or difficulty making their mortgage payments.  The agreement can be a permanent or temporary fix to the mortgage rate, term, and monthly payments.  Loan modifications are to help reduce a borrower’s payment to equal about 31% of their total income.  Bottom line, loan modifications are there to help the homeowner avoid foreclosure.  True mortgage lenders are trying to help you keep your home.

Whenever there is a circumstance where the borrower may receive financial assistance, remember there are always scammers lurking!   Loan Scammers make promises that they will not keep, and they will pretend to have contact with your mortgage lender which they do not!  There are many loan modification scams out there, the most important thing you should remember is if you are getting ready to try to get a loan modification, you should always check with your current mortgage lender, and see if you may qualify for a government approved loan modification.  They will be your best resource.  If you decide to go another route, here are some red flags to look for along with current scams that are going on:

Company wants you to stop paying your current lender, or to transfer your payments to them instead of the lender.  It is important to always get approval directly from your mortgage lender before discontinuing any payments to them. 

Company Guarantees a loan modification or promises your home will not go into foreclosure.  For your information, no company can guarantee that you will get a loan modification before they get all of your information, and cannot stop your home from going into foreclosure.  Most government approved agencies will let you know they are there to help you as much as possible to avoid foreclosure, but will not make any promises.

Avoid a company who is charging you counseling fees, requiring fees up front for loan modifications.  Be careful of a company who is requiring fees for counsel, or requiring money to do the loan modification.  They may even suggest you cut off all communication with lenders, attorneys, etc.  Many times these scammers will insist you pay them first, and once you pay them, your house will be out of foreclosure.  BEWARE!  Sometimes these scammers will take your fee, and say they will get your home refinanced, and instead of doing so, will file bankruptcy under your name to stop your home from going into foreclosure instead of refinancing.  While this will stop your home from foreclosing temporarily, your money has been taken by the scam, and the scam artists are gone.

Make sure you know what you are signing, and never sign over your deed.  Never sign anything without the approval of your attorney or legal counsel, and make sure you read what you are signing.  Many times the scammer will want you to sign documents right away or persuade you to sign over your deed to save your home.  Scammers will sometimes trick you to sign documents but you are actually signing over your deed, so make sure you read.   Another common scam that has been done is the loan scammer will convince you to sign over your deed, and will allow you stay in your home and rent back, with the assurance  you can always buy your home back from them at a later time.  However they have no intention to ever sell your home back.  What they do is they let you live there for a couple months, and change the new terms so they are impossible for you to pay back, and once you default after a couple months, you are evicted, and the lease is in their name, so now you’ve lost your home, forever. 

They say they have a new buyer with better credit.  Another scam that is out there, is the loan scammer will offer to find a new buyer if you sign over the deed.  What they do, is they rent out the property, and keep the money they are receiving for rent, while your mortgage company is still going through the foreclosure, which at the end you still lost your property, and you’re still responsible for the mortgage left.

Don’t ever Release your information to anyone you don’t know.  Never release your information over the phone especially personal or financial information especially if you’ve never worked with the company before.  Always contact your current lender to make sure they are approving the 3^rd party you are working with if you decide to go that route.

Beware of Fake Government Agencies.  There are many legit companies out there, but many times the cons will make their company sound like an approved government agency, for instance “LANP”, or something that sounds professional.  A good recommendation would be for homeowners to call the HOPE HOTLINE 1-888-995-HOPE (4673) for more information on making homes affordable programs that are out there.  They are there to help you.

Remember, there are many scams out there, and the scam artists are lurking anytime you are calling your mortgage lenders.  Above are some of the scams, and tips to look out for so you do not fall victim to  this evil crime. 

If you have been a victim of a loan scam, you can file a complaint with the (FTC) Federal Trade Commission, 1-877-FTC-HELP (382-4357) and make sure you call your mortgage lender for help.

How to buy foreclosures

In today’s challenging economic times, the subject of buying a foreclosure can come up.  Television shows proclaim you can buy a house for little or nothing down or for $10,000, or $20,000 and people become either excited about the potential deal or wary of the potential pitfalls.  Buying a foreclosure is like any other purchase decision and the same rules of due diligence exist.  Les Christie, staff writer at CNNMoney.com, has written an informative article on the prospect of buying a foreclosure. 

The article starts by explaining the 3 stages of foreclosure purchasing: pre-foreclosure, sheriff’s auction, and repossession also called REO (Real estate owned by the bank) and the characteristics of each.  Whether you inspect the home thoroughly and what potential level of pricing and the 2 major points covered here.  After the types of foreclosure purchases are covered the article covers the common mistakes foreclosure buyers can commit.  Most of these errors appear to be related to inexperience and not taking the time to review all the data available. 

The areas include:  getting caught in a bidding frenzy, under estimating repair costs (which can be devastating for a novice), not knowing what comparable properties cost, buying in a neighborhood flooded with foreclosures and not having financing in place.  The message appears to be either do lots of homework or align yourself with experts like realtors and general contractors if you want to venture into this potentially rewarding (and scary) arena.  If you’d like to learn more, read http://money.cnn.com/2010/05/04/real_estate/how_to_buy_a_foreclosure/.

The internet is a wonderful thing. You can reach out to old high school friends you haven’t seen in years or sell junk out of your attic to strangers with a minimum of effort.  What you need to remember is it’s a place with tons of information but not all of the information is accurate.

Ilyce Glink provides insight with a 4 Point article into how people can use the internet to misrepresent various areas of a home they are trying to sell.  In the first of 4 points Ilyce covers how photos can be manipulated in Photoshop and videos can be edited to make properties look more enticing.  In the second section, the subject of home valuation and how you can receive vastly different opinions on the same property is discussed.  One of the strongest messages throughout the article is the idea of stepping out of the internet world and getting real world experts to asssist you in yourhome search.  Independent appraisers for valuation, local respected lending institutions for loans and referred your realtors for home search are all suggested to make the process of buying a home a success.  Phantom mortgage rates that may or may not be available to all customers and unreal property descriptions with their pitfalls and possible remedies are covered in the final sections of the article.  There’s even a bonus section with common “euphanisms” on what is said in a home listing and what is really meant by the phrase used.

To enjoy the article in its entirety read http://moneywatch.bnet.com/saving-money/article/real-estate-biggest-lies/401529/ by Ilyce Glink to learn about some ways to avoid being suckered by manipulative home sellers.