Kerry Porter

HOUSING MARKET IN DELICATE STATE

The news has been increasingly unanimous lately on foreclosure triggers. Loan modification programs in Palmdale, CA. are struggling to keep people in their homes. Unemployment is causing others and once-solvent homeowners to fall behind with their payments. Even auxiliary components, like ACORN, are imploding into themselves with disorder. By and large, loan modification efforts are not translating into sustainable, affordable home loans for those who are at risk of foreclosure. Blame seemingly cascades back and forth between unwilling banks and unsalvageable homeowners, while the state and federal governments attempt to bridge the two sides. Effects in areas of high unemployment are gaining momentum. Many rural towns, like Palmdale, CA., are simply isolated from quick solutions, like new business moving into town to hire, or workers or non-profit agencies that assist those in danger of foreclosure. While ACORN has been on the receiving end of jokes for the past year, other agencies have remained in the trenches(NACA.com), slugging it out for troubled homeowners. Meanwhile, other third-party hucksters have surfaced in the form of refinancing scams, creating situations where people not only are not receiving help, they are also being pick pocketed very, very slowly by white-collared criminals. One of this summer’s nagging questions has been, “Has housing hit bottom?” Certainly, a lot of homes in Palmdale, CA. changed hands this summer, but then again, there were a lot of homes available at lower than usual prices, made even more affordable by low interest rates. And to top it off, August came in lighter than expected, and the $8,000 tax credit is for all intents and purposes off the table by now(Last day is November 30,2009). Home prices should remain low, and properties available via foreclosure are likely to increase in the coming months. For those of you that are experiencing, or know someone who is experiencing foreclosure and need help, please visit NACA for help. They are touring the country right now with events where the major lenders are there with them, and they are offering loan modifications on the spot!

Many more Palmdale, CA home buyers are going with FHA financing than in past years and the FHA loan fundings are growing. At this point the number one question that I get these days from buyers is “Should I use FHA for my Palmdale, CA mortgage loan?”. The answer is not standard for every buyer in every situation but hopefully by explaining what the FHA loan program can do, you can better see if it is a good way or possibly the ONLY way for you to finance your new home. Here are some of the benefits of getting a FHA backed Palmdale, CA mortgage loan: · FHA loans require as little as 3.5% down payment. · FHA guidelines will allow for a credit score as low as 620. · FHA guidelines will allow a home buyer that had a Bankruptcy 2 years ago. · FHA will allow for some or ALL of the down payment money to be gifted by a family member. · FHA can be used for up to a 4 unit building as long as you will be living in one of the units. These flexible guidelines and the $8000 government tax credit are helping renters that thought they would not be able to buy with today’s more strict lending standards. When shopping for your Palmdale, CA Mortgage Loan, we will make sure to explore all options including FHA to help you make the most informed decision on your new home purchase.

Raising you credit score is not as difficult as you may think. It's a well known fact that, people with higher credit scores can easily obtain lower interest rates on mortgages, insurance and credit cards. If your credit score falls under 620 just getting loans and credit cards with reasonable terms is difficult.
According to statistics, there are more than 30 million people in the United States that have credit scores under 620 and if you’re probably wondering what you can do to raise credit score, here are five simple tips that you can use to raise credit score:

1. Pay Your Bills On Time

Your payment history makes up 35% of your total credit score. Your recent payment history will carry much more weight than what happened five years ago.
Missing just one months payment on anything can knock 50 to 100 points off of your credit score.
#1. Paying your bills on time is a single best way to start rebuilding your credit rating and raise credit score for you.
#2. Get a copy of your credit report from the major credit bureaus

Each consumer is entitled to at least one FREE report a year from each of the credit bureau - Experian, Trans Union and Equifax. Obtaining a copy of your credit report is a good idea because if there is something on your report that is incorrect, you will raise credit score once it is removed. Make sure you contact the bureau immediately to remove any incorrect information. It's important to know that each service will give you a different credit score.

2. Pay Down Your Debt

Your credit card issuer reports your outstanding balance once a month to the credit bureaus. It doesn't matter whether you pay off that balance a few days later or whether you carry it from month to month. Credit bureaus don’t distinguish between those who carry a balance on their cards and those who don’t. So by charging less you can raise credit score even if you pay off your credit cards every month. In addition, lenders prefer to see a lot of of room between the amount of debt on your credit cards and your total credit limits. So the more debt you pay off, the wider that gap and the better your credit score.

3. No Need To Close Old Accounts

In the past people were told to close old accounts they weren’t using. But with today's current scoring methods that could actually hurt your credit score. Closing old or paid off credit accounts lowers the total credit available to you and makes any balances you have appear larger in credit score calculations. Closing your oldest accounts can actually shorten the length of your credit history and to a lender it makes you less credit worthy. If you are trying to minimize identity theft and it's worth the peace of mind for you to close your old or paid off accounts, the good news is it will only lower you score a minimal amount. But just by keeping those old accounts open you can raise credit score for you.

4. Avoid Bankruptcy At All Costs

Bankruptcy is the single worst thing that can absolutely destroy your credit score. It will lower your credit score by a minimum of 200 points and it is also very difficult to recover from.
Once your credit score falls below 620, any loan you get will be far more expensive. Bear in mind that a bankruptcy on your credit record can be retained for up to 10 years.
The reality of a bankruptcy is it will limit you to high-interest lenders that will squeeze out high interest rate payments from you for years.
It is better to get credit counseling to help you with your bills and avoid bankruptcy at all costs. By getting credit counseling instead of declaring bankruptcy you can raise credit score over a much shorter period of time.

Did you know that if you pay off an old account that is in collections, it will damage your credit even more? You see, when it went into collections the first time it lowered your score. But over time your score would eventually go back up. But, if you pay any money toward that account, even if it's only a dollar, it makes the account current again. So it will knock your credit score again. So that makes two hits on your score for just one account. Does that mean I suggest never paying the debt off? No, not at all. If you do have the money to pay it off, tell the collection agency you will do it under the condition that all negative remarks about the account will be removed from your credit report. And get this in writing!! If you don't get it in writing they will probably leave it on there. It is your job to get it in writing and then double check your credit report to make sure they removed it. Keep in mind credit reports can take up to 30 days to get updated. I can't stress how important it is to get it in writing. Collection agencies will stop at nothing to get money from you. They don't always play by the rules. So you must stay on top of things and get everything in writing. And then check your credit report to make sure. Once you take care of this problem, you are now ready to pursue the purchase of your dream home or refinance!