Damon Gettier Broker/Owner ABR, ABRM, GRI

How you can never be late on a payment, never go over your limit....and have your credit score drop!

Impossible you say?!?!? This is what is happening every day in America! For decades we have heard about how much debt the average consumer is in. For years we have listened to financial gurus tell us to pay off our revolving debt....well....now you might just have to!

With the credit crunch going on in America today it is imperative for the consumer to realize what is happening to their credit scores that is absolutely out of their control. Your credit scores are determined by mathematical algorithms developed by FICA. Those algorithms take into account the ratio of credit used to credit limit (you need to stay less than 50% if at all possible).

Here is the issue, credit card companies are raising interest rates and lowering credit limits! No problem you say, you only use 50% of the credit limit anyway....well....if you have $5000 on a card with a $10,000 limit, than you are at 50%, not too bad. But, if your credit card company lowers your limit to $6000 you are now at 83% and your credit score just dropped! Now to get your credit score back you need to drop your balance to $3000. The more cards you have the worst it can affect you!

I would highly recommend that anyone who is carrying a balance on their credit card start paying down the principal as soon as possible. I would not do it to the detriment of cash on hand for emergencies but I would definitely start addressing the problem to protect your credit scores.

Damon

Great local moving company for Roanoke, Salem, Vinton, Bedford, Botetourt, Franklin and Smith Mountain Lake!

A lot of people have asked me lately why I bother to blog about a certain restaurant, a painter or a moving company....the answer is somewhat self serving and relatively simple.....I blog about people who make me look good!

When I can recommend a restaurant like Awful Arthurs at Towers (tell them Damon sent you), a painter like Daniel Wimmer or a moving company like Heritage Moving, that takes care of my clients and customers the way that I want them taken care of, well, than I want to send them business! They do what they do well, but what they also do, is make me look good by taking care of you!

There are a ton of moving companies out there. Some moving companies hire temporary labor....kind of scary when you think about it. I don't care whether you are moving from Roanoke to Botetourt or from Salem to Smith Mountain Lake, you want someone moving you who has experience in moving. There are a couple of moving companies that pride themselves on using college kids or kids straight out of high school. While I admire any student who is willing to sweat and work, I don't want them to practice moving with my 55" LCD!

Heritage Moving has years of experience. They have been in Roanoke Virginia for over 17 years, they are licensed and insured and they can move you from Roanoke, Botetourt, Bedford, Salem or Smith Mountain Lake to anywhere in the US. Heritage is one of many moving companies that can also handle storage....short term or long term. These guys are good at what they do because it is all that they do. These are not part time movers, they do this for a living and their wives and children depend on them being good at what they do.

No job is too big (they do work for Carilion Clinic and for some of the local Colleges) or too small. They are honest and only expect to be paid for the work that they do. I highly suggest you call Mike or Leslie 540-562-1824 or check out their website at HeritageMoving.com.

If you or a friend or family member have need for a moving company in the Roanoke Valley, please be sure and call Heritage Moving....mention this blog and you will get 10% off!!

I hear this in the Roanoke Virginia market every single week. Buyers call up and say that they want to look at short sales. I am assuming that this is because they have heard from a friend, family member, the news media or someone online that Short Sales are such a good deal!

I would like to clarify some things about a Short Sale in the Roanoke area:

1. A Short Sale in the Roanoke Area is when a seller owes more on his or her home than it is worth and is in a situation where they have to sell.
2. The seller of a short sale is still responsible for the difference between the sales price and the amount owed plus the cost of the sale.
3. A Short Sale is not a get out of jail free card for the seller. The seller's credit score will be impacted, just not nearly as much as a foreclosure.
4. A Short Sale is a very emotional event for a seller. (many sellers look on a short sale as a failure on their part, others look on it as a mini-foreclosure)
5. Most Short Sales take MUCH LONGER To close than a traditional sale. (Rate locks can and will expire, it can take as long as 9 months to close a short sale)
6. You must have two different approvals on a Short Sale Transaction. A) The seller must accept your offer B) the Lender must ALSO accept your offer (the lender is the one who drags their feet traditionally)
7. Sometimes a Short Sale will be foreclosed on while waiting for lender approval. (That is the risk of buying a Short Sale, there is nothing you can do about the lost time or loss of a rate lock)
8. Short Sales can be closed by competent REALTORS working with willing buyers, sellers and lenders. It happens everyday as long as ALL parties work toward one common goal.
   
9. In the Roanoke Area, a Short Sale is typically a failure of common sense lending (there are multiple culprits for this) or poor credit decisions by some sellers. The property values in the Roanoke Area have not dropped appreciably over the last 3-4 years. (Smith Mountain Lake being the exception).

If you are interested in buying a Short Sale in the Roanoke Area, I would suggest speaking with a lender that can give you an idea of the financial risks you will take if you cannot lock a loan for several months. I would also highly suggest that you use a REALTOR (me!!) who will put language in the contract that will allow you to cancel the contract and receive a full refund of your earnest money deposit at ANY time for ANY reason up until the time that the lender approves the Short Sale. I would also encourage you to use language in the contract that PROHIBITS the seller from submitting any offer to the lender other than your accepted offer.

If you have any questions, please feel free to contact me at any time! I have mortgage lenders, title reps and CPA's on standby....if I don't know the answer to your questions...I will get them ASAP!

You must have two different approvals on a Short Sale transaction.

I would like to give the credit for this video to:

Matt Stigliano

San Antonio, TX

RERockStar.com

The 1st Time Home Buyer Tax Credit has been extended! Great News for Roanoke Virginia Home Buyers. The first time Home Buyer Tax Credit has not only been extended but it has been expanded. The old tax credit only applied to first time home buyers. The definition of first time home buyer was defined as someone who had not owned a home in the past three years. There were income limits that did not affect most of the first time home buyers in the Roanoke Virginia area but those income limits have been raised with this new extension.

The new tax credit has been extended till April 30, 2009. This extension is somewhat different than the current tax credit in that you must have a ratified contract by April 30, 2010 and you must close that loan by June 30, 2010.

The expansion of the tax credit is a $6,500 tax credit for anyone buying a home, even existing home owners with a few caveats......

1) They must have lived in their previous home for 5 of the last 8 years. (I have no idea why)

2) The new purchase must be the buyers new primary residence.

3) There are income limits that apply but they are greatly expanded and will not affect most Roanoke area residents.

I do have a CPA available to answer any questions you, your family or friends might have so please don't hestitate to call.

Damon