Top 10 Myths About Credit Scores Debunked

RISMEDIA, May 7, 2009-With many Americans considering a home purchase or refinance, seeking a new job, purchasing a new car, or striving to pay off credit card debt, 2009 might be the year of the credit score, said Bills.com president Ethan Ewing.

“Many Americans hold mistaken beliefs about credit scores,” cautioned Ewing, who heads the free online consumer portal at Bills.com. “Misinformation on television and in hearsay from friends and neighbors only compounds the problem.”

Here are the top 10 commonly held myths surrounding credit scores:

Myth #1: A credit score is a credit report. The credit report is a detailed listing of all debts and payments, going back throughout an individual’s entire payment history, Ewing explained. For each entry, it shows the creditor’s name, amount owed, the highest balance owed, the available credit, whether the account is open or closed (and who closed it), the number of late payments and whether the account is in default. A credit score is a number between 300 and 850 that is based on complex formulas incorporating all the data in the credit report.

Myth #2: Those who are not in default do not need to check their credit report. Everyone should check his or her credit report at least once a year (quarterly is not a bad idea in today’s market) to be sure the report contains no erroneous information. Visit www.annualcreditreport.com for a free, no-obligation copy of the report.

Myth #3: Checking a credit report damages credit. Reviewing your own credit information has no effect on a credit score, Ewing said. Neither does a credit report review by a prospective landlord or employer.

Myth #4: Everyone has one credit score. Credit score calculations are compiled using data from three different credit scoring agencies (Equifax, Experian and TransUnion). The resulting scores might vary slightly among the three agencies if they have slightly different information, but they will be similar.

Myth #5: Married couples share a credit score. If all of a couple’s accounts are joint, their scores will likely be similar, but each individual maintains a unique credit record and credit score. On the flip side, after a divorce, ex-spouses need to follow protocol to have creditors remove either party from a joint account.

Myth #6: Shopping for a loan destroys credit. It is true that “hard inquiries” - examinations of a credit score in preparation for extending credit can have a small negative impact on credit. However, credit bureaus take into account that consumers might inquire about a loan from multiple mortgage companies or auto lenders. “If multiple inquiries are received from the same type of lender within a 14-day period, the credit scoring companies do not count each inquiry against the borrower,” Ewing explained. But credit card account inquiries to open new accounts are counted individually.

Myth #7: To improve a score, close unused accounts. An important component of a credit score is available credit, or the unused credit that has been offered (on a credit card, for instance) but not used. Closing unused cards removes those available balances from the equation and can actually lower a credit score. Today, some banks are automatically lowering limits or closing accounts to reduce their own credit exposure. Individuals whose debt load is manageable should not experience an extreme effect on their scores.

Myth #8: To boost credit quickly, just pay off bills. Credit scores reflect performance over time. Scores will not change overnight.

Myth #9: For a fee, vendors can fix a bad score. Again, credit scores show historic behavior. Be cautious about companies that claim to “fix” or “repair” credit. “You yourself can remove inaccurate information,” Ewing said. “Beyond that, be aware that some companies send credit scorers a deluge of letters asking that they verify - and in the process, remove all past negative information. If and when truthful information is verified, however, it will quickly return to the credit report.”

Myth #10: Never get help - it is too hard on credit. It is true that credit counseling, debt settlement and bankruptcy all can cause significant black marks on a credit report. “If you are in real trouble, however, you can and should seek help,” Ewing urged. “Which option you choose will depend on the severity of your situation. Credit counseling can help to manage bills, and lower interest rates and monthly payments to creditors. Debt settlement firms can negotiate to lower the principal amount of your debts, typically providing a faster path to debt freedom than credit counseling. Bankruptcy, an even more serious alternative, should be discussed with a bankruptcy attorney.”

“Credit is important, but knowing the truth about credit might be even more important,” Ewing concluded. “Before taking action that might hurt or help your score, check your facts to be sure your actions will help your financial picture.”

For more information, visit www.bills.com.

Condo.com to Host First Online Condo Auction

RISMEDIA, May 6, 2009-Condo.com, one of the world’s largest condominium marketplaces, announced that it has partnered with Elad National Properties, Cornerstone Marketing and Auction Management Solutions to auction 40 condominium units at The Enclave at Briarcliff in Atlanta Georgia. The auction will be held on May 16th, 2009 and live bids can be placed online or in person with reserves marked 30% below the previous asking price.

“We are very excited to be able to offer this amazing opportunity to buyers from around the world” said Richard Swerdlow, CEO of Condo.com. “We are committed to making the best deals available to everyone who visits Condo.com. Allowing users to bid on these condo units from the comfort of their home, in real-time online, insures that buyers located anywhere with an Internet connection can take advantage of this event.”

For more information, visit www.condo.com.

Condo.com to Host First Online Condo Auction

RISMEDIA, May 6, 2009-Condo.com, one of the world’s largest condominium marketplaces, announced that it has partnered with Elad National Properties, Cornerstone Marketing and Auction Management Solutions to auction 40 condominium units at The Enclave at Briarcliff in Atlanta Georgia. The auction will be held on May 16th, 2009 and live bids can be placed online or in person with reserves marked 30% below the previous asking price.

“We are very excited to be able to offer this amazing opportunity to buyers from around the world” said Richard Swerdlow, CEO of Condo.com. “We are committed to making the best deals available to everyone who visits Condo.com. Allowing users to bid on these condo units from the comfort of their home, in real-time online, insures that buyers located anywhere with an Internet connection can take advantage of this event.”

For more information, visit www.condo.com.

Upward Bound - Housing Affordability Conditions Cause for Rise in Pending Home Sales

RISMEDIA, May 5, 2009-Pending home sales rose with many first-time buyers taking advantage of historically good housing affordability conditions, according to the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, increased 3.2% to 84.6 from a level of 82.0 in February, and is 1.1% higher than March 2008 when it was 83.7. Lawrence Yun, NAR chief economist, said it should take a few months for the market to gain momentum. ”This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit, which increases buying power even more in areas where special programs allow buyers to use it as a downpayment,” he said. “We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around.”

NAR’s Housing Affordability Index (HAI) remained near record highs. The affordability index was 166.7 in March - down from an upwardly revised record of 174.4 in February due to higher home prices in March. The index remains 30.8 percentage points higher than a year ago. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income; tracking began in 1970.

The Pending Home Sales Index in the South rose 8.5% to 93.2 in March and is 7.7% above a year ago. In the West the index increased 3.9% to 93.1 and is 1.7% higher than March 2008. The index in the Northeast fell 5.7% to 59.5 in March and is 24.1% below a year ago. In the Midwest the index slipped 1.0% to 82.3 but is 8.2% higher than March 2008.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said the increase in buying power is quite remarkable. “Compared to a year ago, the typical family can pay much less in mortgage costs for the same home, or buy a better home without necessarily increasing their monthly payment,” he said. “For buyers who’ve been on the sidelines and have good jobs, the market has never looked more favorable. Homeownership has always offered immediate benefits and long-term value, but the advantages in today’s market are unique.”

A median-income family, earning $61,100, could afford a home costing $291,600 in March with a 20% downpayment, assuming 25% of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80% of that amount. The affordable price was notably higher than the median existing single-family home price in March, which was $174,900.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. The index is based on a large national sample, typically representing about 20% of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

For more information, visit www.realtor.org.

Wallpaper Makes a Comeback- Feed Your Inspiration with Today’s Top Styles

By Mary Beth Breckenridge Print Article

RISMEDIA, May 4, 2009-(MCT)-After years on the decorative outs, wallcoverings are back in style. They’ve shed their dowdy association with teddy bears and tiny country prints and re-emerged in fresh, attention-getting forms.

Wallpaper’s return has followed a decline in the popularity of faux finishes, noted Stacy Senior Allan, marketing director for wallpaper maker Thibaut Inc. Maybe one too many badly sponged walls convinced us to leave the wall decorating to the experts.

But like faux finishes, wallpaper adds a dimension that a plain coat of paint can’t, Allan noted. Especially in rooms without a lot of soft surfaces - dining rooms and bathrooms, for example - wallpaper adds softness and a layering effect, she said.

We talked to some leaders in the industry to find out the latest trends in wallpaper, and here’s what’s hot:

Tradition with a twist
Ages-old motifs are still around, but in oversized forms and surprising colors. ”Everything has gone large-scale,” said Paula Berberian, creative services manager for Brewster Wallcovering Co. Familiar designs such as damask and Jacobean prints are being blown up into bold proportions and rendered in unexpected hues or metallics.

The result is a less stuffy look that can work even in modern settings. It can be busy, though, so Lilly Sosic of the Brunschwig & Fils showroom in Beachwood’s Ohio Design Centre said wallpapers with oversized graphics might be best for areas where people don’t spend a lot of time - a powder room, for instance, or a foyer.

Or cover just one wall, suggested Gina Shaw, vice president of product development for York Wallcoverings. Not only is creating a feature wall a returning trend among designers, but it’s also a less costly way to bring interest to a room, noted her colleague at York, director of marketing LeRue Brown.

Sophisticated finishes
Texture adds a third dimension to many of today’s wallpapers. Thibaut’s Allan said improvements in manufacturing technology allow wallpaper to have raised textures and embellishments that weren’t possible earlier.

As a result, many of the new wallpapers enhance rather than dominate a room. ”Wallpaper used to be really ‘pay attention to me,”’ she said. Now it tends to play a supporting yet glamorous role.

Sand and tiny bead accents are popular, as are bits of bling such as crystals and pearls. Metallics are big, too, but don’t be scared away by bad memories of disco-era Mylar. Metallics now are more subtle, often used just for accents.

Eco chic
The world is wearing its Earth obsession on its walls. That means grass and leaf designs are popular, as is grass cloth, a classic look that’s making a comeback. It’s made of reeds, bamboo and other natural grasses, Berberian said, so it fits right in with people’s desire to decorate with renewable materials.

Spa blues and greens are strong from a color standpoint, as are other Earth-inspired shades. Brown remains popular, often paired with brighter colors.

’60s flashbacks
It’s a mod, mod world, at least for the people who missed the ’60s. The bold geometrics, pop art and bright colors that exemplified that groovy decade are in big demand among younger consumers, and that’s translating to wallpaper design.

Because many of the fans of ’60s design are young enough to be decorating dorm rooms or first apartments - or even their tween or teen bedrooms - the look is strong in lower-priced, repositionable decals. The peel-and-stick decals use an adhesive like the one used in Post-it notes, so they leave no residue when they’re removed.

Handcrafting
The renewed interest for handmade goods is apparent in wallpapers, too. Shaw thinks it’s an effect of the uncertain economy, an appreciation for things that are crafted thoughtfully and made to last.

Handmade wallpaper can be pricey, but more mass-produced wallcoverings have the look and feel of hand crafting. Berberian said many have raised inks, which give the illusion of hand-printing. Asian-inspired designs and line drawings or other simple motifs are common, too.

Such wallcoverings often include layered colors and small mistakes that make them appear handcrafted, Allan said.

Global influences
Our well-traveled society has shrunk the planet and brought the colors and designs of other cultures to Western walls. African countries and India are particularly strong influences in wallcovering design and in home decor in general, Berberian said.

You’ll see that in paisleys and ikat designs, elongated geometric patterns originally used in fabrics that have the appearance of having been stretched. Animal prints are strong, too, and you can even find wallpaper that resembles faux reptile skins so closely they almost look and feel real.

© 2009, Akron Beacon Journal (Akron, Ohio).
Distributed by McClatchy-Tribune Information Services.

7 Tips to Negotiate Your Way to a Mortgage Loan Modification

By Caleb Groos Print Article

RISMEDIA, May 2, 2009-For some small business owners, trouble on the home front (as in home mortgage front) threatens already precarious business conditions. Home mortgages that once seemed a good source of money for the business now could result in the need to layoff workers or even close. Homeowners with trouble making mortgage payments often hear that their best bet is to contact their lender about a loan modification, but they should be well prepared when they do so.

Whether the problem making mortgage payments is short term or long term, the best option for homeowners often is to contact their lender to try to work out a new payment agreement. Lenders are not obligated to make mortgage modifications, however it is often in their interest to work out a feasible payment plan for the homeowner rather than foreclose and sell the property.

The Obama Administration’s Homeowner Affordability and Stability Plan included refinancing of qualifying mortgages owned or securitized by Fannie Mae or Freddie Mac to a lower fixed interest rate. As reported by the Washington Post, the Obama Administration announced that the program will apply to previously excluded second mortgages.

In part to help those outside this program, the Obama plan also included $75 billion in matching cash to encourage lenders to agree to mortgage modifications.

Here are a few tips to keep in mind when seeking a mortgage loan modification:

1. Don’t fall for any mortgage modification scams (such as advanced fee scams).
2. To learn how to best make your case for a loan modification, contact one of the HUD Approved Foreclosure Avoidance Counselors in your area. They can also inform you about any federal, state or local programs that may assist you.
3. Get an accurate picture of your finances. Your best chance at getting a modification is to demonstrate the ability to repay and a thorough understanding of the costs and income you face going forward.
4. If the problem making payments is short-term, ask your lender about forbearance or postponement of payments for a limited period. Be prepared to demonstrate when you’ll be able to start making payments again.
5. If the problem is long term, and what you need is modification, be prepared to make an offer and demonstrate how you could repay the modified loan. Be sure your lender is up to speed on incentive programs that may be available to help.
6. When negotiating a modification, make sure to understand how it will deal with any fees or penalties that may have accrued. Know what fees are in play and whether the modification will eliminate, reduce or tack them on for repayment.
7. If the lender won’t modify and foreclosure looms, consider asking the creditor to “produce the note,” (particularly when a creditor other than the original lender seeks foreclosure). It’s a stalling tactic, but can sometimes encourage creditors to negotiate.

For more information, visit www.findlaw.com.

HUD Sees Signs of Stabilization

The housing market is looking healthier, but U.S. Housing and Urban Development Secretary Shaun Donovan said Wednesday that it is too early to tell if the recovery has taken hold.

"We do have some early signs, I think, that the market is stabilizing. Since January, what we've seen is both prices and sales volumes moving up and down around a relatively stable number," Donovan said

Donovan said he was optimistic that President Obama’s policies are bolstering the market.

"I think in particular when you get below the national level what you see is that in markets like California that were the hardest hit, that is where the signs (of recovery) are the strongest," he said.