Zillow Advice RSS: Guide,Other,

Hong Kong

Fri, 23 Oct 2009 17:30:00 GMT

Hong Kong is Asia's Major Financial Center, The New York City of the East. Most consider Hong Kong to be the gateway to China and its thriving international population represents citizens from most countries in the world. Hong Kong have over 250,000 Expats and many more who have become permanent residents now classified as 'Local'. It is a very freindly city for Westerners to acclimate and offers all the convenience and comfort or home in a fast paced and high energy environment.

Hong Kong is very similar to New York city with a high density population where people live primariy live in high-rise buildings. English is commonly spoken and is the language all business and contacts are conducted.

The property market in Hong Kong is well established and resembles that of the United States. It is situated near 45 minutes from mainland China. Hong Kong has the most efficient and advanced airport in the world with convenient daily direct flights to all major APAC cities and major global cities.

See listings in every major city in Hong Kong.

See home prices in Hong Kong.

See Hong Kong property information at the local level and learn more about the people in the area.

Other areas in Hong Kong:

Hong Kong Island
Kowloon
New Territories
Outlying Islands

More at PropGo.com

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Category - Real Estate Scams

Tue, 20 Oct 2009 17:21:00 GMT

Consumers, beware! White collar crime is invading the real estate industry and the scammers are targeting homeowners, home buyers and home sellers with fraudulent deals. There's a lot of crazies out there, so stay on top of your game. Here is a list of some of the most popular real estate scams:

Foreclosure Fraud

Home Equity Fraud

Home Improvement Fraud

Loan Servicing Fraud

Mortgage Fraud

Spanish Real Estate Scam

Other Real Estate Scams

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Types of Mortgages

Wed, 08 Jul 2009 00:41:00 GMT

Fortunately for buyers, there are a variety of mortgages to choose from. It is in your best interest to investigate each of them to determine which is the best for your situation. You probably won't qualify for all of them. In fact, you may only qualify for one. But if you do qualify for more than one, you may save yourself money (and worry) in the long run if you do your homework before signing on the dotted line.

Fixed Rate Mortgages

Consider a fixed-rate mortgage if either of the following describes you:

You plan on living in your new home for many years, and/or
You are not a risk-taker and prefer the stability of knowing how much your payment will be each month.

Since most home loans are for a period of 30 years and if you want a payment you can count on, a fixed rate mortgage may be what works best for you. Once your loan amount and interest rate are calculated and locked in, a fixed rate mortgage will guarantee that you will have the same payment over the life of the loan. Making extra payments to principal will allow you to pay your loan off sooner.
The downside of fixed-rate loans is if interest rates are very high at the time you take out your loan, you'll be stuck with that high interest for the life of the loan (unless you choose to refinance). Conversely, if interest rates are very low, you'll come out the winner with interest rates that will stay low no matter how high interest rates go in the future.

The following are the advantages and disadvantages of the varying lengths and terms of fixed-rate mortgages:

15-Year Fixed-Rate:

Pay off the loan in half the time of a 30-year loan.
Equity builds up more quickly than in a 30-year loan.
Payments are higher (which may be a problem if you lose your job or become unable to work).

20-Year Fixed-Rate:

Pay off the loan in 2/3 the time of a 30-year loan.
The overall interest paid is considerably less than for a 30-year loan.

30-Year Fixed-Rate:

The most common choice, especially for first-time homebuyers, as it's the easiest of the fixed-rate loans to qualify for.

Monthly payments are lower than for 15-year and 20-year loans. This can prove especially helpful if you do not have a lot of "padding" between the amount you can afford to spend and the monthly payment for your desired property.

More desirable if you plan on staying in the same home for years, since equity builds more slowly than for shorter-term loans.

For income tax purposes, this term provides the maximum interest deduction.

Adjustable-Rate Mortgages (ARMs)

If you are more comfortable in taking a risk with your money or if interest rates are very high at the time you take out your loan, an adjustable-rate mortgage (ARM) may be the solution for you. You might also choose this type of loan if your planned ownership of the property is short-term or if you expect your income to increase to cover any potential rise in the interest rate.

Generally, the interest rate when you take out your loan will be lower than a fixed-rate mortgage. Please note that this is true initially, not necessarily long-term.

Since an ARM rate rises and falls depending on the prevailing interest rate, your mortgage payment will rise and fall accordingly. If your income is not sufficient to cover the highest possible payments, then this option is not for you. On the positive side, the lower initial payments will allow you to qualify for a larger loan than if you choose a fixed-rate. The downside is that your payments will increase if/when the rates go up.

Typically, ARM interest rates are tied to a specific financial index (such as Certificate of Deposit index, Treasury or T-Bill rate, Cost of Funds-Indexed Arms or COFi, or LIBOR [London Interbank Offered Rate]) and your payment will be based on the index your lender uses plus a margin, generally of two to three points. Get the formula used by your lender in writing and make sure you understand what it means.

Fortunately, the amount an ARM can increase is limited. There are "caps" on how much your lender can increase your rate, both for a period of one year and for the life of the loan. Plan ahead, and have your lender calculate what the maximum payment would be if your rate went to the highest amount allowed by the cap for your particular mortgage. If you are not confident you'll be able to pay that amount on a monthly basis, perhaps you should reconsider this type of loan.

Convertible ARMs
If neither the fixed-rate or the adjustable-rate mortgage seems like the best option, perhaps the convertible ARM will be right for you. This alternative combines the initial advantage of an ARM with a fixed rate after a predetermined number of years. Obviously, this type of mortgage has more advantages when the initial interest rate is low and the future rate is not guaranteed.

Government Loans

Another mortgage option available to some people is a government loan, providing that you meet the qualifications for these loans.

VA Loans: Veterans may qualify for a loan from the Veterans Administration. There is a limit on the amount you can borrow, so this option works best for those buying a lower priced home. .
FHA Loans: The Federal Housing Association offers loans to lower-income Americans. Look for the phrase "FHA approved" when looking at ads for homes.

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China

Wed, 22 Apr 2009 17:03:00 GMT

China has been the world's fastest growing economy for the past 15 years and represents over 1.3 Billion Consumers. Growth rates as projected to exceed 8% to 10% over the next 5 years. It is projected that over 200,000,000 Million people will move from rural areas to the cities - Creating one of the largest populations migrations the world has ever seen. China's major cities are concentrated along key coastal cities and the real estate market has experienced rapid growth as new supply especially in urban areas is required to meet ever expanding demand.

See listings in every major city in China.

See China property information at the local level and learn more about the people in the area.

Areas within China:

Beijing
Shanghai
Dalian
Kunming

More at PropGo.com

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Singapore

Wed, 22 Apr 2009 17:03:00 GMT

Singapore is the Geneva of Asia and represents one of the most affluent countries in the APAC region. Singapore is a very Expat and family freindly environment. The market is set up to cater to Expats who primarily work for large financial institutions, large global companies, and other global enterprises who want to expand into the fast growing APAC market. Singapore offers a very business friendly, safe, and convenient environment with all the comforts of home and more.

The property market is Singapore is well established and resembles that of the United States. It is situated near China and Hong Kong and there are regular daily flights out of the Singapore airport to most APAC and China cities.

See listings in every major city in Singapore.

See Singapore property information at the local level and learn more about the people in the area.

More at PropGo.com

1 reply

International Real Estate

Tue, 07 Apr 2009 23:34:00 GMT

Asia
China
Hong Kong

Southeast Asia
Singapore

Europe
Sweden

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Sweden

Tue, 07 Apr 2009 23:33:00 GMT

Sweden

See Sweden Real Estate at Booli

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What Is the Federal Reserve

Mon, 01 Dec 2008 03:11:00 GMT

You've probably heard a lot lately about the Federal Reserve, commonly referred to as "the Fed". Recent economic news has focused on the Fed raising interest rates. It was also announced this week that President Bush has nominated Ben Bernanke to become the next chairman of the Federal Reserve. If confirmed, Bernanke will succeed current chairman Alan Greenspan after his term expires in January next year.

But what is the Federal Reserve; what does it do; and how does it affect the nation's economy?

The Federal Reserve
The Federal Reserve was founded by Congress to provide the country with a stable, yet flexible monetary and financial system. Its main purposes are to:

Conduct the nation's monetary policy

Supervise and regulate banking institutions

Maintain financial stability and contain financial risk in the markets

Provide financial services to the U.S. government, foreign official institutions and "depository institutions" (financial institutions that obtain funds through deposits from the public, like commercial banks, savings and loans, savings banks and credit unions)

The Federal Reserve Act was passed in 1913 "to provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes."*

The objectives of the Federal Reserve include: "economic growth in line with the economy's potential to expand; a high level of employment; stable prices (that is, stability in the purchasing power of the dollar); and moderate long-term interest rates."*

Structure of the Federal Reserve
The Federal Reserve is run by a Board of Governors and 12 regional Federal Reserve banks which are responsible for regulating financial institutions and their activities, providing services to depository institutions and the federal government, and for making sure that consumers are treated fairly within the banking system.

The Federal Open Market Committee (FOMC) is run by members from the Board of Governors and 5 presidents of the regional Federal Reserve banks, including the president of the Federal Reserve Bank of New York.

The FOMC supervises open market operations which the Fed uses to influence monetary policy by controlling the fed funds rate. The fed funds rate is the interest rate at which depository institutions lend balances to other depository institutions overnight.

How the Fed's Policies Affect the Economy

In a general sense, one of the Fed's main objectives is to ensure economic growth while controlling inflation.

The FOMC tries to maintain the fed funds rate at a level where it will help the FOMC achieve its objectives. It will adjust the rate depending on current economic developments. The level of the fed funds rate affects short-term interest rates (rates on Treasury bills with maturities less than a year). Short-term interest rates, in turn, affect long-term interest rates (rates on Treasury bills with maturities greater than a year).

When the Fed raises or lowers interest rates, it affects how strong the demand is for goods and services. By altering interest rates, the Fed is "altering borrowing costs, the availability of bank loans, the wealth of households, and foreign exchange rates."**

In the housing market, when mortgage rates are low, housing becomes more affordable and the number of home purchases rises. Current homeowners tend to refinance more to take advantage of falling rates and the opportunity to lower their mortgage payment.

Conversely, when mortgage rates rise, housing becomes less affordable and the number of home purchases may drop. For existing homeowners, the trend often reverses. As rates rise, homeowners with adjustable rate mortgages (like ARMs or HELOCs) often refinance into fixed-rate mortgages to insulate themselves from rising mortgage payments.

For more than a year, the Fed's stance has been to fight inflation by raising short-term interest rates. They're expected to raise interest rates another quarter percent when they meet next week on November 1st. This will be the 12th consecutive time the Fed has raised rates; and they're expected to keep raising rates in the near future.

If you currently have an ARM or a home equity line of credit (HELOC), it's probably a good time to think about locking in your rate for 15 or 30 years.

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Attorneys

Fri, 21 Nov 2008 23:41:00 GMT

Certainly in a transaction as important and expensive as the sale of a home, you are smart to have at least one experienced professional -- agent, attorney or otherwise -- advising you. But do you need an attorney to buy or sell a home? The answer depends on where the home is, on the nature of the transaction, and on whom you ask.

Many states require an attorney to participate in the closing, especially in the eastern and southern United States. Elsewhere, the closing may be performed by an attorney, an escrow agent, or other non-lawyer. You should first check your local laws.

Second, even where an attorney is not required by law, it may be to your benefit to consult one. MLSs or other real estate organizations produce form purchase and sale documents that target an "average" transaction. In most states, an agent can assist you in completing a lawyer-created form, but the agent cannot revise the form, as this may constitute "legal advice." You certainly can negotiate the deal documents to your benefit with the assistance of a lawyer. Also, transactions outside the "norm" -- perhaps involving water rights, easements, or unusual condominium restrictions -- would benefit from the help of a knowledgeable real estate lawyer. If you are buying or selling without an agent, an attorney can be invaluable. In many areas, attorneys will work with FSBO sellers or buyers for a reasonable flat fee of a few hundred dollars.

Different sources will give you different advice on whether you need a lawyer. Your agent may or may not advise you to retain one. Most lawyers, as you imagine, advise you to hire them -- but not all, as this letter from the Department of Justice indicates.

If you want to hire a lawyer, or just talk to one about the possibility, see Finding an Attorney.

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The Truth About the Mortgage Market

Thu, 13 Nov 2008 00:50:00 GMT

The Truth About the Mortgage Market

SCOTTSDALE, AZ – Subprime mortgages have now been credited for bankrupting well over 110 lenders and seriously damaging operations at many major mortgage firms. They've reportedly wiped out 5 hedge funds, tens of thousands of jobs, and have led to millions of foreclosures with millions more on the way. And, as if that weren't enough, subprime mortgages are also blamed for massive volatility in the stock, bond, credit, futures, and real estate markets here in the US and around the globe. Some say losses in the mortgage securities market alone could reach hundreds of billions of dollars this year.

This means that, for any Americans looking to buy, sell, or refinance a home, they are confronting a very different market from the one that existed just 6-12 months ago.

How did this happen?
The recent real estate boom was fueled by a period of record home appreciation and historically low interest rates. Banks, in order to compete, loosened guidelines and began offering more funding to more borrowers through riskier, non-conforming or "exotic" mortgages.

These ideal lending conditions persisted for several years, supported by high demand, historical real estate data, home prices, and massive trading volume/profits on mortgage-backed securities and other financial instruments on Wall Street.

Then, in 2006, a slowdown in real estate led to a deterioration of home values, an increase in inventories, and ultimately to today's tightening of credit guidelines, leaving many investors unable to sell or refinance out of their existing positions. Many Americans who had tapped into their equity were suddenly tapped-out and overextended as home values fell. Foreclosures followed in record numbers and a re-valuation of mortgage bonds and other financial instruments created the credit/liquidity domino effect we're now experiencing.

Unfortunately, it's going to get a lot worse before it gets better. According to the latest estimates, over 2 million subprime and Alt-A adjustable rate mortgage (ARM) holders will face payment increases of up to 30%-100% when their loans reset in the next 2 to 18 months. These loans make up less than 40% of the total mortgage market, but the negative effects, as we have seen, of increased foreclosure activity can have a ripple effect throughout the industry and around the globe.

What does this mean to you and your mortgage?

Sellers: If you're planning on selling your home, be prepared for an even smaller pool of qualified buyers. While some experts predict a settling of this credit crisis over the coming year, tightened credit guidelines and diminishing mortgage products could knock out as many as 15%-30% of potential qualified buyers. Now is not the time to sit and wait for the best possible price. Have a serious talk with your real estate agent. Having experienced buying/selling transactions in your area, he or she can help you price your home accordingly. He or she can also help ensure that your buyers are pre-approved and stay pre-approved throughout the entire transaction.

Buyers: Get pre-approved by your mortgage professional. While there are a lot of great deals out there, getting credit is becoming tougher and tougher, and it's taking longer and longer to complete a transaction. Remember, what you qualify for today could change tomorrow in a volatile market. For those looking to refinance, keep this in mind. There is no time to delay! Communicate with your lender. Don't do anything that could negatively affect your credit, and make sure you get all your documentation in on time.

ARMs Borrowers: If your ARM is scheduled to reset in the next 2-18 months, you need to schedule an appointment with a mortgage professional right away. Whether your ARM is subprime, Alt-A, or even if you have a pre-payment penalty, don't let a default or foreclosure situation sneak up on you. Did you know that your monthly payments can increase anywhere from 30% to 100% once your loan resets? At the very least, give yourself the peace of mind of knowing what your adjusted payment will be.

Borrowers with less-than-perfect credit: Each week it seems lenders are shedding more and more mortgage products. Many lenders have stopped offering No-Doc loans and are reducing all forms of Stated-Income loans. While it might be challenging, borrowers with credit issues need to see a loan expert. Often they have credit repair resources and other strategies to help you reach your financial goals.

Finally, there's an important concept to embrace: all markets, while cyclical in nature, are self-correcting, be it credit, real estate, stocks, or bonds. For the last 6 or 7 years, real estate was booming and riding high. The correction we're experiencing now – while it seems harsh and could get much worse – is, in a sense, "natural" and directly related to the extremely loose guidelines and perhaps overzealous lending and leveraging during the boom cycle.

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Square Footage

Wed, 12 Nov 2008 01:55:00 GMT

Generally, only finished, heated space counts, such as the main finished floors, a finished basement, and/or a finished attic. A finished garage that is attached to and part of the residence may be included in this calculation as well. Square footage is generally computed by multiplying the length and width dimensions of a finished area.

However, there is still no one measurement standard accepted by real estate agents and appraisers. Some believe all dwellings (except condo units) should be measured from exterior dimensions. First floor taken from actual exterior measurements and second level dwellings sometimes have to be measured from interior measurements, and then add the width of all exterior walls. The exterior methodology is the "standard" per "ANSI" and the "American Measurement Standard." The "ANSI" method is the only formal measurement standard available today, yet most agents and appraisers do not follow its guidelines for the measurement of stairs.

Category-Wiki

Thu, 06 Nov 2008 19:26:00 GMT

Popular Categories

Financing
- Sponsored by Citi Checking
Real Estate Scams
Local Real Estate
International Real Estate

Insurance
- Sponsored by State Farm
Home Types and Styles
Real Estate Investing

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Is Real Estate still a people business?

Thu, 06 Nov 2008 00:43:00 GMT

The Internet has made it easier to find information and to find properties for sale. The problem is... what to do with that information.

Here are some of the things that the Internet has made easier for buyers, sellers, and those in need of a mortgage.

Buyers

Pro: You can now find pretty much every possible property listed for sale across the country and view them from the comfort of your own home.

Con: If you set up a showing of the property directly with the listing agent, you risk a dual agency relationship. Dual Agency is when an agent (broker) represents the seller and the buyer. Since it is actually impossible to get the seller the highest price possible and the buyer the lowest price possible, they then actually need to represent neither party's best interest, and become a "neutral". Bottom line, a conflict of interest.

Solution: Find a local real estate agent to assist you with buying or building before you begin your search. You can continue to do your searches online and when you do find one you want to see, contact your agent who should be looking out for your best interests! If that property doesn't end up being the one... you are not back to square one... just keep looking with the assistance of your local real estate professional. Plus, local agents may know of new listings that are coming to market and get you in to see them before they are listed for sale! Plus, the seller or builder usually pays the commission of your agent, even though he or she represents you... so no cost to have someone look out for your best interests! Most agents are able to set you up to receive new or changed listings automatically.

Sellers

Pro: You can search lots of information about selling your house. Things to do, things not to do.

Con: Many articles are general in nature... what will work in one market, may not work or even apply in yours.

Solution: Find a local real estate agent that specializes in selling homes in your area first. They know the market conditions and what is expected. They can search recent sales and help you determine what the market may be willing to pay for your home. They can keep an eye on the market activity and keep you posted on changes. No one knows a local market better than a local real estate agent!

Mortgages (for purchase, refinance, or home equity loans)

Pro: You can learn the difference between a fixed rate and an adjustable rate. You can research the different types of ARMs if you wish. You can even fill out a few forms on some sites and quotes back.

Con: If you fill out a form to get quotes, you usually get 4 to 12 people calling you until they know you have gone with one of them... the sales tactics are typically high pressure since they all want you to choose them before you talk to anyone else. You may not be getting quotes on the same product, you could have 4 to 9 credit pulls on your credit report and your personal information is now "out there".

Solution: There are some sites that allow you to submit your information and remain 100% anonymous. You can receive local bids on your request and see all of the bid details, research the lenders that are submitting the bids by viewing their websites, and you contact them when you are ready.

Summary

Real Estate is and always has been a people business. Local real estate professionals to help you buy or build… local real estate professionals to help you sell… and local mortgage loan officers to assist you with your mortgage needs.

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Results of 2008 Q3 Homeowner Confidence Survey

Mon, 03 Nov 2008 23:24:00 GMT

There’s no doubt we’ve been deluged with depressing economic and housing news over the past few months. Every day is a new headline, every channel has a new pundit and the recession debate has shifted from “if” to “how long.”

Given this, when fielding our Q3 Homeowner Confidence Survey earlier this month, we expected the results to be markedly different than last quarter, when 62% of homeowners thought their home’s value had increased or stayed the same (despite 77% of homes losing value). The Q3 Survey, fielded October 7-9, 2008 (the worst week in stock market history, by the way), asked homeowners their perception of their home’s value over the past year, and what they think will happen to their home’s value in the coming months.

The results are kind of baffling. While the perception gap did narrow, still half of U.S. homeowners do not think their home’s value has declined over the past year. Specifically:

    * 32% think their home’s value increased in the past 12 months
    * 17% think their home’s value held steady
    * 51% think their home’s value declined

In reality, three-quarters (74%) of U.S. homes lost value in the past 12 months, according to Zillow’s Q3 data.

The following chart breaks down responses by region, and you can see that homeowners in different areas of the country hold a more (or less) realistic view. In the West, where the most homes are losing value (85% of homes in the West declined over the past year), homeowners are more realistic — with 65% of homeowners saying the value of their own homes has declined. In the Northeast, the perception gap is widest.

(Click graphic to see larger view)

Meanwhile, optimism continues into the future for a good chunk of homeowners:

    * 21% believe their home’s value will increase in the coming 6 months
    * 40% believe their home’s value will stay the same
    * 40% believe their home’s value will decrease

(Click graphic to see larger view)

Is this optimism (or denial) necessarily a bad thing? Maybe not, if you plan to stay in your home for the next several years and aren’t making financial decisions today based on presumed equity. It’s sort of like the way I’m avoiding looking at my 401k statements — doesn’t affect me today, so why get depressed. But for sellers, an unrealistic view of your home’s value today can only hurt — you, when your home sits on the market for months, and the local market at large, with a continued and growing glut of inventory that’s just not selling.

This article was adapted from this Zillow Blog post by Zillow Vice President of Communications Amy Bohutinsky.

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Glossary - Real Estate Terms

Sat, 25 Oct 2008 00:34:00 GMT

- A -

Acre
Adjustable Rate Mortgage (ARM)
Amortization
Appraisal
Appraiser
Assessment
Assumable Mortgage

- B -

Balloon Mortgage
Bathrooms
Bedroom
Binder
Borrower
Breach of Contract
Bridge Loan
Building Code
Buyer Listing Service (BLS)

- C -

Cap
Caveat Emptor
Certificate of Title
Closing
COFI
Collateral
Commission
Comparables (comps)
Comparative Market Analysis (CMA)
Credit Report

- D -

Deed
Default
Delinquency
Discount Point
Down Payment

- E -

Easement
Encumbrance
Equity
Escrow Amount

- F -

Fair Housing Act
Fair Market Value
Fannie Mae
Federal Housing Administration (FHA)
FICO
Fixed-Rate Mortgage
Flood Insurance
Forbearance Agreement
Foreclosure
Foreclosure Adjournments
Foreclosure Auction
Freddie Mac
Fully Amortized Loan

- G -

Ginnie Mae
Good Faith Estimate

- H -

Half-Bath
Home Inspection
Home Warranty
HUD
HUD-1 Statement
HVAC

- I -

IDX
ILD
Index
Inflation
Interest
Interest Rate

- J -

- K -

- L -

Leaseback
Lease Purchase
Lender
Letter of Intent
Lien
Lis Pendens (lawsuit pending)
Listings
Loan
Loan Application

- M -

Make Me Move price
Manufactured Home
Margin
Median Price
Mortgage
Mortgage Banker
Mortgage Broker
Mortgage Insurance
Multi-Family Home
Multiple Listing Service (MLS)

- N -

- O -

- P -

Par Rate
Plat
Points
Pre-Approval

- Q -

- R -

Real Estate
Real Estate Agent
Real Estate Broker
Real Estate Brokerage

- S -

- T -

- U -

Uniform Standards of Professional Appraisal Practice (USPAP)

- V -

- W -

Wiki

- X -

- Y -

- Z -

Zestimate
Zillow
Zindex

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Featured-Articles-Wiki

Wed, 22 Oct 2008 00:39:00 GMT

Hot topic: Is this the time to rent or own your own home?

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Do's and Don'ts for Managing Debt

Mon, 20 Oct 2008 03:54:00 GMT

Are you managing (or struggling with) a lot of credit card debt? You're not alone. The average American holds over $9,000 in credit card debt. Here are a few tips on how to manage credit card debt:

DON'T Run Up Your Credit Card Balances
Whether you've managed to pay off your credit cards or if you're still trying, avoid running up your credit card balances. Be vigilant about it too. Use your credit cards only in emergencies. For everything else, if you don't have the cash to pay it off in a month or two, you should either save up the cash or avoid buying it altogether (like that weekend getaway to Vegas).

DON'T Borrow from Your 401k
Borrowing from your 401k account to pay off your credit card debt is a bad idea for a couple of reasons. First, you lose out on tax-deferred compounding of your money as well as those tax-deductible contributions. Second, if you leave your job, you'll have to pay back the borrowed amount and if you can't, you'll owe taxes on the money. Plus, you'll have to pay a penalty if you're 59 1/2 years or older.

DO Take Advantage of Your Home Equity
Not all debt is bad. Having mortgage debt is actually a good thing because the interest is usually tax-deductible* and the interest rates are generally lower than those charged by credit card companies.

Your home is one of the biggest assets you have. So why not take advantage of it? You can use your home to pay off debt in a couple of ways: by getting a "cash-out refinance" or by getting a home equity loan to consolidate your debt. If you refinance, you take a loan for more than the balance of your existing mortgage so that you have extra cash to use toward paying off debt. If you get a home equity loan, you take a second loan (on top of your existing mortgage) using your home's equity as collateral and receive cash in return for it.

You still have to be careful to shop around for a reputable lender who will help you make the right decision and get the right loan for your situation.

DON'T Forget to Check Your Credit Report
Regardless of whether you have lots of credit card debt or not, you should always check your credit report as often as you can. There are three credit reporting bureaus: Experian, TransUnion and Equifax. Each of these bureaus collect information on your credit history and each has a score that rates you on your credit-worthiness (how risky you are as a borrower). The information between these three may be different, thus they may score you differently. And you may have to pay a small fee for it (about $15 for one report or about $40 for all three), but it's well worth the cost. And under the Fair and Accurate Credit Transactions Act of 2003, everyone is now able to get a free report from each of the three credit reporting bureaus annually from https://www.annualcreditreport.com. (Beware of sites that promise free reports but then try to sell you related services.)

Knowing if there are discrepancies or inaccuracies can help you get them clarified and may perhaps improve your score, which in turn will help you give you better options on which loans you qualify for. It will also help to protect you against identity theft. If you happen to be a victim, checking your report can help you catch it early and avoid bigger headaches and problems later on.

If you are careful with managing your debt, you can only help yourself in the long run. Being smart about paying off your debt can benefit you by improving your loan options later on.

* Standard disclaimer: It's always a good idea to check with a professional tax consultant before claiming deductions.

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Credit Crisis what you need to know

Wed, 15 Oct 2008 21:39:00 GMT

What is the “meltdown” that I’m reading about in the headlines?
• “This refers to a culmination of factors that has led to massive tightening in credit standards among lenders. This tightening is due to an excessive number of mortgages that are both delinquent and in default. As a result of tighter credit standards and the devaluation of mortgage-backed securities, global investors are shying away from purchasing additional pools of loans, causing over 100 lenders to close and leaving many homebuyers and homeowners unable to locate financing alternatives.”

Why should a home SELLER be concerned about this?
• “The pool of potential buyers will shrink as many find it difficult, if not impossible, to obtain mortgage financing. Experts have speculated that the number of potential buyers will contract anywhere from 15% to 30%. Sellers should also be aware that increased foreclosures can depress community values and result in a glut of local inventories, which could further drive down home prices.”

Why should a home BUYER be concerned about this?
• “Buyers need to get pre-approved before entering the market. While there are a lot of great deals out there, getting credit is becoming tougher and tougher, and it’s taking longer and longer to complete a transaction. What you qualify for today could change tomorrow in this volatile market.”

What types of loans have been most impacted by credit tightening?
• “Subprime and Alt-A have suffered the greatest setback because these borrowers are at greater risk for defaulting. Subprime loans are those loans which have typically been taken by borrowers with poor credit. Alt-A type loans are for borrowers that typically have good or excellent credit but are unable or unwilling to provide documentation for income and/or assets.”

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Lis Pendens (lawsuit pending)

Wed, 15 Oct 2008 20:59:00 GMT

A notice recorded for the purpose of warning all persons that the title or right of possession of certain real property is in litigation. Gives constructive notice of such litigation to the public.

The Lis Pendens can be considered the first legal action taken by the lender in a foreclosure proceeding. It is usually filed after the 3rd or 4th consecutive payment is missed and is recorded on the actual mortgage itself. You can find "Lis Pendens" documents filed at the county and state court levels depending on the location. Many web sites provide this information to subscribers for a fee in most cases.

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