That's right. Contrary to his normal habit of picking your pocket, Uncle Sam has a gift for you if you buy or refinance a home in 2007. A new law makes mortgage insurance premiums deductible on the tax return you file in 2008. For some people this means that getting mortgage insurance could be a better choice than using a piggyback loan to cover the downpayment.
According to an article on Seattlepi.com, "… lenders consider you a riskier borrower if you make a down payment of less than 20 percent." Until now, homebuyers have had the choice of paying for that risk by taking a piggyback loan or buying mortgage insurance. Since mortgage insurance has been a non-deductible expense, most people took the loan. That got them into the house, but also left them with a higher total loan and less equity.
As one of its final acts, the 109th Congress passed a bill that creates the deduction for mortgage insurance, and the President signed the billed into law. This new legislation is hailed by The Mortgage Insurance Companies of America (MICA), a trade association. MICA Executive Vice President Suzanne Hutchinson said, "We are pleased that policymakers have recognized mortgage insurance as a cost of finance just like mortgage interest. Mortgage insurance plays a crucial role in maintaining the stability and continued health of the mortgage finance system. In today’s climate of steadily rising interest rates and slowing home price appreciation, an insured loan is often the most borrower-friendly alternative."
There are some restrictions but they won't block many homeowners from taking the deduction. The limitations include:
• You can only take the deduction for mortgages that are closed in 2007. This means that only new loans or loans refinanced in 2007 qualify.
• There are income limits. You can get the full deduction if your adjusted gross income is $100,000 or less, and you must itemize to get the deduction.
• This is for one year only. If Congress wants to extend the deduction beyond 2007, it will have to pass further legislation.
Of course, you should always talk to your tax/financial advisor before making a decision that affects your tax liability, including the choice of a piggyback loan vs. private mortgage insurance.
The bottom line, according to the Seattlepi.com article is this: "Don't get a piggyback loan without taking a serious look at mortgage insurance, because mortgage insurance is likely to be cheaper in the long run, and it might even cost less in the short run."
Cheaper in the long run and might cost less in the short run – now that's a Happy New Year. Thanks to your Uncle Sam, 2007 is looking like a good year to buy a home.
Links:
http://seattlepi.nwsource.com/business/296168_real16.html
http://www.micanews.com/press/press_releases/pr.cfv?ID=106
Thursday, December 28, 2006
Wednesday, December 20, 2006
A 401(k) – It's Not Just For Retirement
When you're young and have decades of work ahead, it's natural to put off retirement planning. "I'll save later," you say. Problem is, "later" gets here sooner than you expect.
This year some large companies began a new policy – each employee is automatically signed up for the company 401(k) plan upon hiring, with 3% of their pay being set aside in an investment account. Employees can opt-out, but if they do not take the time to say "No," they are in.
The government took a look at the practice and said, "It's OK," or words to that effect. As reported on the website of Cooley Godward Kronish LLP, "The IRS recently ruled that a 401(k) plan may require mandatory 401(k) contributions to be withheld from eligible employees' compensation, if the employer gives appropriate notice to its employees and the employees have an opportunity to 'elect out' of the mandatory contributions."
Now employees will have help saving for retirement in the most painless way possible. Money is deducted before taxes so they never see it. Even better, contributions grow tax free until withdrawal. Many companies have a policy of matching employee contributions, so a 401(k) can be the best way to save for the future.
Suppose that future – the near future – includes buying a home? A 401(k) can help there, too. The IRS says, "… depending on the rules for your 401(k) plan, you may be able to borrow money from your 401(k) plan to purchase your first home. Your plan administrator should have written information about your particular plan that explains when you can borrow funds from your 401(k) plan…." You will need to talk to the administrator about how your plan works. If a loan is possible, you pay interest on the loan, but since the interest goes back into your account, you actually pay it to yourself. The money you borrow is not taxable, either, provided you pay back the loan.
With easy investment and help buying that first home, an automatic 401(k) account could be the best decision you don't make all year!
Now this is important: Always talk to your tax/financial advisor before taking a loan from your 401(k), or before making any change in your retirement planning. This article is not intended to give any legal, financial, or tax advice, and does not cover all possible restrictions or regulations related to 401(k) plans or other investments. Always speak with your investment and/or tax advisor before making any decision based on information in this, or any other, source.
Michael Trust
http://www.MichaelTrustRealty.com
This year some large companies began a new policy – each employee is automatically signed up for the company 401(k) plan upon hiring, with 3% of their pay being set aside in an investment account. Employees can opt-out, but if they do not take the time to say "No," they are in.
The government took a look at the practice and said, "It's OK," or words to that effect. As reported on the website of Cooley Godward Kronish LLP, "The IRS recently ruled that a 401(k) plan may require mandatory 401(k) contributions to be withheld from eligible employees' compensation, if the employer gives appropriate notice to its employees and the employees have an opportunity to 'elect out' of the mandatory contributions."
Now employees will have help saving for retirement in the most painless way possible. Money is deducted before taxes so they never see it. Even better, contributions grow tax free until withdrawal. Many companies have a policy of matching employee contributions, so a 401(k) can be the best way to save for the future.
Suppose that future – the near future – includes buying a home? A 401(k) can help there, too. The IRS says, "… depending on the rules for your 401(k) plan, you may be able to borrow money from your 401(k) plan to purchase your first home. Your plan administrator should have written information about your particular plan that explains when you can borrow funds from your 401(k) plan…." You will need to talk to the administrator about how your plan works. If a loan is possible, you pay interest on the loan, but since the interest goes back into your account, you actually pay it to yourself. The money you borrow is not taxable, either, provided you pay back the loan.
With easy investment and help buying that first home, an automatic 401(k) account could be the best decision you don't make all year!
Now this is important: Always talk to your tax/financial advisor before taking a loan from your 401(k), or before making any change in your retirement planning. This article is not intended to give any legal, financial, or tax advice, and does not cover all possible restrictions or regulations related to 401(k) plans or other investments. Always speak with your investment and/or tax advisor before making any decision based on information in this, or any other, source.
Michael Trust
http://www.MichaelTrustRealty.com
Monday, December 18, 2006
Joeann Fossland, Web Women Giving Circle Founder Interviews with Michael Trust on the Coachadelic Whistle-Stop Blog Tour
Joeann Fossland, Web Women Giving Circle founder, stopped by today for an interview with me. Here's what Joeann had to say.
Michael: Hello, Joeann, thank you for stopping by today. I appreciate your time as I know you are on the Coachadelic Whistle-Stop Blog Tour and have other blogs to visit. Let me get started...
Michael: What is the connection between the real estate business and the business of philanthropy?
Joeann: Real estate is a business of creating and building relationships. It involves an interaction of professionals and consumers and we are involved in the fundamental need of human shelter. We service that industry with help in areas of financing, building, and numerous aspects of home and property ownership. In some areas of the world there are large populations who are displaced by war and natural disaster, people who are looking for shelter from the elements. We are trying to help people meet very basic needs of shelter.
Michael: What are some of the other things that CARE provides to people and where do they work?
Joeann: CARE reaches many areas of the world that are places of unrest, where other non-governmental agencies are reluctant to work. They are working to empower people to take care of themselves with microdevelopment projects. They provide education for both children and adults, and they provide food in areas where there are shortages and famine.
Michael: Will you explain CARE's focus on women in their humanitarian outreach?
Joeann: Michael, I know that you understand the role of women in the economy. Your recently wrote an excellent blog post that pointed out that women are targets in the subprime loan market. Women are pillars of the economy worldwide. When we remove the need for a woman to walk five miles for a day's supply of water, we are giving her time to spend with her children and time to accomplish other tasks that can help her earn a living and support her family. When we empower women with time and tools to take care of their families we are supporting whole cultures.
Michael: How can we support the Web Women Giving Circle in the efforts to help CARE?
Joeann: We offer a choice in ways to help. We invite people to make a direct donation to CARE. Their contributions are tax deductible and they can make that donation online. We also have an affiliate relationship with Amazon. All purchases made through our link receive a credit for purchases that is donated 100% to CARE.
We have some wonderful incentives for real estate agents, who can purchase valuable premiums for as little as $20 and receive valuable products in return. Point2Agent, a leading provider of web marketing services for real estate agents, offers discounts of $110 - $220 as part of the Premium Package. They have extended this offer for all upgrades from their free service as well as to ALL THEIR EXISTING CUSTOMERS. The real estate industry is blessed with generous and benevolent souls who are helping make a difference in so many lives.
Michael: Hello, Joeann, thank you for stopping by today. I appreciate your time as I know you are on the Coachadelic Whistle-Stop Blog Tour and have other blogs to visit. Let me get started...
Michael: What is the connection between the real estate business and the business of philanthropy?
Joeann: Real estate is a business of creating and building relationships. It involves an interaction of professionals and consumers and we are involved in the fundamental need of human shelter. We service that industry with help in areas of financing, building, and numerous aspects of home and property ownership. In some areas of the world there are large populations who are displaced by war and natural disaster, people who are looking for shelter from the elements. We are trying to help people meet very basic needs of shelter.
Michael: What are some of the other things that CARE provides to people and where do they work?
Joeann: CARE reaches many areas of the world that are places of unrest, where other non-governmental agencies are reluctant to work. They are working to empower people to take care of themselves with microdevelopment projects. They provide education for both children and adults, and they provide food in areas where there are shortages and famine.
Michael: Will you explain CARE's focus on women in their humanitarian outreach?
Joeann: Michael, I know that you understand the role of women in the economy. Your recently wrote an excellent blog post that pointed out that women are targets in the subprime loan market. Women are pillars of the economy worldwide. When we remove the need for a woman to walk five miles for a day's supply of water, we are giving her time to spend with her children and time to accomplish other tasks that can help her earn a living and support her family. When we empower women with time and tools to take care of their families we are supporting whole cultures.
Michael: How can we support the Web Women Giving Circle in the efforts to help CARE?
Joeann: We offer a choice in ways to help. We invite people to make a direct donation to CARE. Their contributions are tax deductible and they can make that donation online. We also have an affiliate relationship with Amazon. All purchases made through our link receive a credit for purchases that is donated 100% to CARE.
We have some wonderful incentives for real estate agents, who can purchase valuable premiums for as little as $20 and receive valuable products in return. Point2Agent, a leading provider of web marketing services for real estate agents, offers discounts of $110 - $220 as part of the Premium Package. They have extended this offer for all upgrades from their free service as well as to ALL THEIR EXISTING CUSTOMERS. The real estate industry is blessed with generous and benevolent souls who are helping make a difference in so many lives.
Thursday, December 14, 2006
Study Shows Women Are Targeted for Subprime Lending
A colleague sent me the link to an interesting study, which was published by Consumer Federation of America, http://www.consumerfed.org/ entitled, “Women are Prime Targets for Subprime Lending:
Women are Disproportionately Represented in High-Cost Mortgage Market”.
The full study is here: http://www.consumerfed.org/pdfs/WomenPrimeTargetsStudy120606.pdf
As professionals in the real estate industry, we know, home buyers without sufficient income, poor or no credit history must often resort to subprime loans. With the growing subprime loan market, which has matured from “…5 percent [of all loans issued] in 1994 to 20 percent in 2004”, mortgage applicants who do not qualify for prime rate loans, will often qualify for subprime rates as they are considered a risk.
The Consumer Federation of America, study goes on to state that, “Women are more likely to receive subprime mortgages than men…”, however, “These gender disparities exist across mortgage product lines. Women with the highest incomes have the highest disparities relative to men with similar incomes than women at lower income levels.”
One of many interesting observations of this study, and I encourage my readers to read this in greater detail, is that, “Although lenders attribute subprime lending to borrower credit risk, in general women and men have similar credit profiles. On average, women have slightly higher credit scores than men. Credit-rating company Experian reports that women have slightly higher credit scores than men (682 compared to 675) and have similar credit usage rates (about 24 percent each).”
In 2005, the study found that even though the prime mortgage rate averaged 5.87 percent, one third of women, in their quest for homeownership, signed mortgage papers with interest rates over 7.66 percent as compared with twenty-five percent of men.
Interestingly, 26 percent of all mortgages issued in 2005 were subprime loans.
The subprime gender gap has become is ever more important as women become more active in the mortgage market. A home buying explosion of single, career-minded women during the recent housing boom, prompted by marrying later, divorce, rising rent costs, being head of households and viewing homeownership as an investment in her future, has increased “…the share of single women home buyers [which] has doubled from about one in ten 15 years ago to about one in five homebuyers in 2003. More than half (53 percent) of women headed households are homeowners up from just below half (48 percent) in the early 1980s. The number of single women homeowners grew by four million between 1994 and 2002 from 13.9 million to 17.5 million.”
Additionally, automated underwriting processes have helped women to obtain mortgages (subprime or otherwise) as these processes place them in a lesser non-discriminatory pool of applicants when previous mortgage applications might have been rejected by largely male loan officers. These “…automated underwriting [methods] used more objective formulas that are less likely to take gender-related factors into account.”
The study goes onto say that, “Over the life of the mortgage, subprime borrowers can pay between $85,000 thousand to $186,000 more in interest than average borrowers. The prevalence of subprime loans among women borrowers diminishes their ability to fully utilize homeownership as a pathway to build wealth.”
Historically, many barriers for female homeownership have existed for decades. “Women heads of households with one child have one-fifth the wealth ($10,320) of women-headed households. Women with two children are worth about a tenth ($5,720) of all women, and women with three children earn even less ($3,150).” Before 1968’s Fair Housing Act, single women were considered poor credit risks. “Until 1974, when the Equal Credit Opportunity Act became law, most women needed a co-signer to become mortgage borrowers, married women often could not obtain credit in their own names, single women couldn’t get loans because they were thought to be somehow less reliable than other applicants, and, divorced or widowed women found it extremely difficult to obtain credit because their previous credit history was obtained in their husbands’ names and was not taken into consideration when they sought credit in their own names.” It has only been about 15 years since the Federal Housing Administration permitted women to use child support payments as income to qualify for a mortgage. And still today, older women are often targeted by predatory mortgagors through home improvement scams, which can eat through home equity and life savings.
The study also reveals interesting data regarding women borrowers within the Latino and African American communities. For example, “African American women were 8.5 percent more likely to receive high-cost subprime loans than African American men; Latino women were 19.3 percent more likely to receive high cost subprime loans than Latino men; and white women were 30.8 percent more likely to receive high-cost subprime mortgages than white men. African American women were more than four and a half times as likely to receive high-cost subprime purchase mortgages as white men and Latino women were more than two and a half times as likely to receive high-cost subprime mortgages as white men.”
Conclusions:
“CFA’s HMDA (Federal Home Mortgage Disclosure Act) analysis suggests there is significant gender disparity in the pricing of mortgages between borrowers by gender, race and income. However, it should not be assumed that the gender disparities CFA found are solely attributable to higher risk factors. Freddie Mac found that one in five subprime borrowers could have qualified for a prime rate mortgage. Last year’s Federal Reserve analysis and the recent Center for Responsible Lending study provide strong indication that pricing in the subprime market is not simply a function of risk.”
“Unlawful discrimination, the prevalence of predatory lending and opportunistic pricing, differences in borrower knowledge, the existence of broad pricing discretion by loan brokers and loan officers, and the lack of consumer-friendly support systems may also account for at least some of the variation in pricing patterns.”
“There is general agreement among experts who follow homeownership trends that, over the years, HMDA reporting has helped to transform the home loan market. The new pricing data now reported under HMDA can help to make the pricing of subprime loans more transparent for consumers and increase these market efficiencies, which ultimately benefits all borrowers. Regulators, lenders, consumer and community advocates, the news media are encouraged to undertake their own research and analysis to examine local markets using HMDA data.”
This study shows why it’s important to have a Realtor® and mortgage broker who truly understands your individual needs, and who take the time to look out for your interests and not their own; and, who has the experience and knowledge to provide you with appropriate guidance when making such an important purchase and finance decision – possibly the most important one you will ever make. At Michael Trust Realty, our hallmark is looking out for our clients’ best interests – always, all of the time, and unconditionally. We have no problem advising a client to walk away from a deal that doesn’t make sense. Perhaps that’s why our referral rate is so high. We’d be pleased to assist you with your buying or selling in the Los Angeles area and/or with referrals to trusted mortgage professionals.
.
Women are Disproportionately Represented in High-Cost Mortgage Market”.
The full study is here: http://www.consumerfed.org/pdfs/WomenPrimeTargetsStudy120606.pdf
As professionals in the real estate industry, we know, home buyers without sufficient income, poor or no credit history must often resort to subprime loans. With the growing subprime loan market, which has matured from “…5 percent [of all loans issued] in 1994 to 20 percent in 2004”, mortgage applicants who do not qualify for prime rate loans, will often qualify for subprime rates as they are considered a risk.
The Consumer Federation of America, study goes on to state that, “Women are more likely to receive subprime mortgages than men…”, however, “These gender disparities exist across mortgage product lines. Women with the highest incomes have the highest disparities relative to men with similar incomes than women at lower income levels.”
One of many interesting observations of this study, and I encourage my readers to read this in greater detail, is that, “Although lenders attribute subprime lending to borrower credit risk, in general women and men have similar credit profiles. On average, women have slightly higher credit scores than men. Credit-rating company Experian reports that women have slightly higher credit scores than men (682 compared to 675) and have similar credit usage rates (about 24 percent each).”
In 2005, the study found that even though the prime mortgage rate averaged 5.87 percent, one third of women, in their quest for homeownership, signed mortgage papers with interest rates over 7.66 percent as compared with twenty-five percent of men.
Interestingly, 26 percent of all mortgages issued in 2005 were subprime loans.
The subprime gender gap has become is ever more important as women become more active in the mortgage market. A home buying explosion of single, career-minded women during the recent housing boom, prompted by marrying later, divorce, rising rent costs, being head of households and viewing homeownership as an investment in her future, has increased “…the share of single women home buyers [which] has doubled from about one in ten 15 years ago to about one in five homebuyers in 2003. More than half (53 percent) of women headed households are homeowners up from just below half (48 percent) in the early 1980s. The number of single women homeowners grew by four million between 1994 and 2002 from 13.9 million to 17.5 million.”
Additionally, automated underwriting processes have helped women to obtain mortgages (subprime or otherwise) as these processes place them in a lesser non-discriminatory pool of applicants when previous mortgage applications might have been rejected by largely male loan officers. These “…automated underwriting [methods] used more objective formulas that are less likely to take gender-related factors into account.”
The study goes onto say that, “Over the life of the mortgage, subprime borrowers can pay between $85,000 thousand to $186,000 more in interest than average borrowers. The prevalence of subprime loans among women borrowers diminishes their ability to fully utilize homeownership as a pathway to build wealth.”
Historically, many barriers for female homeownership have existed for decades. “Women heads of households with one child have one-fifth the wealth ($10,320) of women-headed households. Women with two children are worth about a tenth ($5,720) of all women, and women with three children earn even less ($3,150).” Before 1968’s Fair Housing Act, single women were considered poor credit risks. “Until 1974, when the Equal Credit Opportunity Act became law, most women needed a co-signer to become mortgage borrowers, married women often could not obtain credit in their own names, single women couldn’t get loans because they were thought to be somehow less reliable than other applicants, and, divorced or widowed women found it extremely difficult to obtain credit because their previous credit history was obtained in their husbands’ names and was not taken into consideration when they sought credit in their own names.” It has only been about 15 years since the Federal Housing Administration permitted women to use child support payments as income to qualify for a mortgage. And still today, older women are often targeted by predatory mortgagors through home improvement scams, which can eat through home equity and life savings.
The study also reveals interesting data regarding women borrowers within the Latino and African American communities. For example, “African American women were 8.5 percent more likely to receive high-cost subprime loans than African American men; Latino women were 19.3 percent more likely to receive high cost subprime loans than Latino men; and white women were 30.8 percent more likely to receive high-cost subprime mortgages than white men. African American women were more than four and a half times as likely to receive high-cost subprime purchase mortgages as white men and Latino women were more than two and a half times as likely to receive high-cost subprime mortgages as white men.”
Conclusions:
“CFA’s HMDA (Federal Home Mortgage Disclosure Act) analysis suggests there is significant gender disparity in the pricing of mortgages between borrowers by gender, race and income. However, it should not be assumed that the gender disparities CFA found are solely attributable to higher risk factors. Freddie Mac found that one in five subprime borrowers could have qualified for a prime rate mortgage. Last year’s Federal Reserve analysis and the recent Center for Responsible Lending study provide strong indication that pricing in the subprime market is not simply a function of risk.”
“Unlawful discrimination, the prevalence of predatory lending and opportunistic pricing, differences in borrower knowledge, the existence of broad pricing discretion by loan brokers and loan officers, and the lack of consumer-friendly support systems may also account for at least some of the variation in pricing patterns.”
“There is general agreement among experts who follow homeownership trends that, over the years, HMDA reporting has helped to transform the home loan market. The new pricing data now reported under HMDA can help to make the pricing of subprime loans more transparent for consumers and increase these market efficiencies, which ultimately benefits all borrowers. Regulators, lenders, consumer and community advocates, the news media are encouraged to undertake their own research and analysis to examine local markets using HMDA data.”
This study shows why it’s important to have a Realtor® and mortgage broker who truly understands your individual needs, and who take the time to look out for your interests and not their own; and, who has the experience and knowledge to provide you with appropriate guidance when making such an important purchase and finance decision – possibly the most important one you will ever make. At Michael Trust Realty, our hallmark is looking out for our clients’ best interests – always, all of the time, and unconditionally. We have no problem advising a client to walk away from a deal that doesn’t make sense. Perhaps that’s why our referral rate is so high. We’d be pleased to assist you with your buying or selling in the Los Angeles area and/or with referrals to trusted mortgage professionals.
.
How Tech Savvy is Your Realtor?
What a difference a few years make. It used to be that if you wanted to buy a house you would buy the Sunday paper – on Saturday, of course – and spend hours with the real estate section. Then you would spend more hours calling about houses, days driving around trying to find them, making appointments to see a few, and finally actually finding that house you loved.
Today, the first place a lot of people go is the Internet. Buyers can see hundreds of homes for sale on their Realtor's web site, and watch video tours of home interiors, all without leaving the comfort of their own living room. Sellers can show their homes to more potential buyers – local and out of town - than they could reach by any Sunday paper.
The top Realtors today know that using technology is key to giving customized, personal service in a high-speed world. A good web site is a must, of course, so buyers can see what's available, and sellers can learn about the Realtor's® services. But the real value of using technology shows throughout the process. Want to see a home that's just come on the market? Your Realtor can call to make an appointment no matter where he is thanks to cell technology. Is your spouse away and you want to share a home you just saw? Take a picture with that compact digital camera, download the photo, and email it anywhere in the world. Need to exchange paperwork? The offer, contract, inspection report, and many others can be emailed or faxed for instant delivery.
This increasing use of technology in real estate is improving the speed and accuracy of many aspects of the business. But there is one characteristic of a great Realtor® that technology will not change – the commitment to personal service. Computers and cell phones can simplify our lives and work. So, yes, it's important for your Realtor to be tech savvy. But it's even more important to always put extraordinary service first, because the human connection is still the most important part of any successful real estate deal.
Today, the first place a lot of people go is the Internet. Buyers can see hundreds of homes for sale on their Realtor's web site, and watch video tours of home interiors, all without leaving the comfort of their own living room. Sellers can show their homes to more potential buyers – local and out of town - than they could reach by any Sunday paper.
The top Realtors today know that using technology is key to giving customized, personal service in a high-speed world. A good web site is a must, of course, so buyers can see what's available, and sellers can learn about the Realtor's® services. But the real value of using technology shows throughout the process. Want to see a home that's just come on the market? Your Realtor can call to make an appointment no matter where he is thanks to cell technology. Is your spouse away and you want to share a home you just saw? Take a picture with that compact digital camera, download the photo, and email it anywhere in the world. Need to exchange paperwork? The offer, contract, inspection report, and many others can be emailed or faxed for instant delivery.
This increasing use of technology in real estate is improving the speed and accuracy of many aspects of the business. But there is one characteristic of a great Realtor® that technology will not change – the commitment to personal service. Computers and cell phones can simplify our lives and work. So, yes, it's important for your Realtor to be tech savvy. But it's even more important to always put extraordinary service first, because the human connection is still the most important part of any successful real estate deal.
Wednesday, December 13, 2006
We're On Joeann Fossland's Coachadelic Whistle-Stop Tour December 19th! Join Us Here!
Joeann Fossland, Web Women Giving Circle founder, will visit our blog as part of her Coachadelic Whistle-Stop Blog Tour on December 19, 2006 to talk about her work with CARE and humanitarian outreach during the holilday season. Fossland is a personal and business coach and national speaker in the real estate industry.
Monday, December 11, 2006
Monthly Newsletter - December 2006
For the Month of December 2006 --- Vol. 1, Issue 13
The holiday shopping season is in full swing...but if you can't stand the crowds and prefer to shoponline - you'll want to know about this website, full of "secret savings" offered by many popular retailers on their most sought after gift items. And if a new cell phone or PDA is on your gift list or wish list this year, there's a danger lurking about that you need to be aware of. Your private informationcould be at risk if you fail to take one simple action with your old cell phone or PDA. And just in time for the holidays, another new identity theft scam is on the loose...and this one is fooling even those most savvy, so don't miss learning about this alarming new way that criminals are seeking to steal from you.
As always, please feel free to forward this issue to friends, family members or coworkers...or let me know if they'd like to enjoy their own free subscription. If you need any personal assistance at this time, simply call or email - always glad to hear from you!
If that phrase doesn't excite you - you are like millions of Americans who enjoy the convenience of shopping online. Doing your buying online is a great way to shop for anything from gadgets or the latest fashions to a quick gift for a friend...or maybe you plan to do all your holiday shopping online this year to avoid the crowds! Yet many "shop-a-holics" claim that by spending all the time scouring the stores, they are sure to get the best deals. But what if you could buy online, knowing that you got a good deal on the item...without having to invest hours of your valuable time pounding the streets, or surfing all over the internet to ensure the lowest price?
Well, wish no more.
Check out http://www.secretprices.com/, loaded with special coupons and discounts for many
popular online stores, such as Amazon, Brookstone and Sharper Image. Ever buy at Office Depot, Gap or Circuit City? The website is loaded with savings for all these companies - most of which are discounts on any purchase you make, not just for one particular item they are trying to get rid of. It's like having a personal "cyber shopper" that goes out and does the bargain shopping for you - it saves you time and money too.
Log onto the site, and click the link for "Coupon Center". If you see a particular vendor you are looking for, IN THIS ISSUE... SHOP 'TIL YOU DROP!
http://www.mmgweekly.com/m/index.htm?SID=941e1aaaba585b952b62c14a3a175a61
just click the business name, and you'll be led to a special page of their discounts. If you want to view them all -hit the link for "Latest Coupon Codes" to see a list of all the savings. You may also want to hit "Expiring Coupon Codes" to see if there are any discounts expiring soon that you'd like to take advantage of.
And don't miss hitting the link for "Latest Deals". Here you will find a wide range of special deals being offered on a wide range of products -printers for 50% off, cordless phones for 75% off...it's worth a few minutes to prowl around and see what you might be interested in! "Expiring Deals" have some hot specials too - again, worth a few minutes of browsing.
You can shop by category, with everything from books to jewelry to event tickets to clothing. Just pick the category and you can select the product from a variety of stores, compare the prices, read customer reviews, and then save even more with secret coupons and deals. And, best of all....it is safe, secure, and advertisement free. While on the site you will not be bothered by annoying pop-ups, flashing advertisement banners, or spyware.
So you don't have to shop 'til you drop - saving online is now easier than ever. And let's face it, itfeels good to save money on your purchases, and saving a few bucks here and there adds up. Getting a good deal will not only save you money in the long run - but will make you feel better about purchasing the product in the first place. Know anyone else who shops? Of course you do - so feel free to pass on this article, and help them save money too!
THE AGONY OF DELETE Just when you thought your personal data like passwords and bank information was safe because you deleted it from your cell or PDA...turns out that hackers can still steal the information. Believe it or not, your private data can easily be hijacked from your trashed or turned in device, even when you've deleted everything. That could cause some major headaches for a lot of innocent people. But the good news is that you can protect yourself.
With the advancement of PDA's and cell phones, these devices have become mini computers and contain loads of valuable and private information. Individuals store information in their cell phones like passwords, bank account numbers, appointments, contact information, even social security numbers.
And for most individuals, cell phones and PDA's are used for about 1.5 years and then replaced, usually by upgrading to a newer model. Old cell phones and PDA's are sold on EBay, tossed in the trash, or sent off to a cell phone recycling center. Of course, before turning it in or trashing it, most wisely delete the information.
But in reality, the information is not completely deleted...it remains on the device.
The part that is deleted is the pathway for the information to be displayed. Much like with a computer - when a file is deleted the operating system never erases the data, it only deletes the pointers to where the data is located. Hackers have the advanced software available that can resurrect erased data from a cell phone or PDA, even if you have already "deleted" the information.
In fact, the data can be recovered in 85% of cell phones and PDA's! So hackers are buying old cell phones, extracting this valuable information, and passing it along to identity thieves.
But, there is a solution and it only requires a few additional steps to ensure that the data ispermanently deleted and hacker-free.
Simply start by hitting this link http://www.wirelessrecycling.com/, click on the "Cell Phone Data Eraser", select the cell phone manufacturer, model, and click on the download instructions icon. Follow the instructions and all of the data will be completely and permanently removed. Can't find the make and model? No worries - just contact the manufacturer of the cell phone or PDA, and ask for instructions on how to permanently delete all information from the device.
http://www.mmgweekly.com/m/index.htm?SID=941e1aaaba585b952b62c14a3a175a61
With just a few clicks of the mouse you can rest assured that when you sell or trash that old model, hackers and identity thieves will not be able to track where you have been, what your account numbers are, read confidential emails, or view photos or videos of your loved ones. And be sure to forward this important information on to everyone you know. Most likely they have cell phones or PDA's and may be looking to upgrade. Knowing this valuable bit of information will keep them safe,so pass it on!
SCAMMERS ARE 'VISHING' YOU WOULDN’T READ THIS ARTICLE... It appears the only ones who love the holiday season more than children are criminals. You may be familiar with the term Phishing - where scammers send you emails in an attempt to acquire sensitive information like credit card details and passwords by masquerading as a trustworthy person or business. And much like Phishing, Vishing is the latest identity-theft ploy. Beware - this one is extra tricky. Instead of using email, scammers use voice over internet protocol (VoIP), which allows people to make calls using an Internet connection instead of a regular phone line. The con calls their target with an automated phone message, which informs them that their account has had fraudulent charges placed on it. The account owner is then lured into dialing a fake 800 number in order to resolve the charges, where a recorded voice prompts them to confirm an account or credit card number using the phone's touch pad. This is where the problem starts, and criminals are handed free access to your account and credit cards...talk about "The Nightmare before Christmas". So how can you be sure that you will not fall victim to this scam?
"Who do I trust? Me, that's who!" - Advice from Hollywood's most notorious criminal, Tony Montana.
Remember...creditors, government agencies, and companies you do business with already have your personal information and will not contact you to verify it.
Never respond to a cold call requesting personal information. In the same sense that you wouldn't send your credit card information via email, don't be so willing to punch it into a touch tone phone.
Don't trust your caller ID. Creating a fake display name is easy with Internet-based technology, and scammers now have the ability to make it seem like they are calling from a legitimate organization.
This just goes to show that as technology improves, so do the criminal's means of taking advantageof you. Be careful this holiday season, keep track of your purchases, and help protect your friendsand family by educating them about Vishing!
The material contained in this newsletter has been prepared by an independent third-party provider. The material provided is for informational and educational purposes only and should not be construed as investment, financial, real estate and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors.
We are sending you the Views You Can Use - MMG Monthly newsletter because we are committed to keeping you updated on news, financial events and hot topics that may impact or interest you.
And as your Trusted Advisors, we always look forward to hearing from you. If you or someone you know is in need of our services at this time...or even if you just have a quick question or would like to touch base...please feel free to give us a call or email today!
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Michael Trust 18075 Ventura Boulevard Suite 221 Encino, CA 91316-3517
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Thursday, December 07, 2006
It's Common Sense, You Get What You Pay For
One subject that always comes up when I talk with a new client about listing their home for sale, the commission rate. Homeowners are bombarded with information on ways to save money selling a house. And one target is always the agent's commission. Discount brokers and agents who provide limited service can promise smaller commissions. Sell-it-yourself plans promise no commissions. How is a seller supposed to know what to do?
Go back to basics and common sense. If you buy a television and choose a no-name cheap brand, do you expect it to have a great picture and last a long time? Or do you know that you are getting lesser quality? Most people recognize that you still get what you pay for.
It's the same with choosing a professional Realtor® and a full-service commission. You want to sell your house quickly and for the best possible price. The more qualified buyers who see your house, the more likely you are to do just that. And finding those buyers – not just lookers – takes experience, market knowledge, and investment in a Realtor®.
The Realtor® does so much more than put a sign out front and put your house on a web site. An experienced professional will qualify buyers so you only have people in your house who can buy and who are seriously looking to buy, help you negotiate the best deal, handle the piles of paperwork that today's real estate transactions require, make sure all the details are covered, and be available to answer your questions. Remember that you may buy or sell a home a few times in your life, but professional Realtors® do it many times a year. The right one can save you time, money, and a lot of headaches.
One of the things we're seeing in the current buyer's market is an increase in the number of people who choose a full-service Realtor® after having gone the do-it-yourself or discount route. When there are no showings and no offers, it doesn't take long for them to recognize the value of an experienced professional.
And here's the bottom line…when you walk away from the settlement table and the money in your pocket is what you want and need, you know the commission is worth it.
Go back to basics and common sense. If you buy a television and choose a no-name cheap brand, do you expect it to have a great picture and last a long time? Or do you know that you are getting lesser quality? Most people recognize that you still get what you pay for.
It's the same with choosing a professional Realtor® and a full-service commission. You want to sell your house quickly and for the best possible price. The more qualified buyers who see your house, the more likely you are to do just that. And finding those buyers – not just lookers – takes experience, market knowledge, and investment in a Realtor®.
The Realtor® does so much more than put a sign out front and put your house on a web site. An experienced professional will qualify buyers so you only have people in your house who can buy and who are seriously looking to buy, help you negotiate the best deal, handle the piles of paperwork that today's real estate transactions require, make sure all the details are covered, and be available to answer your questions. Remember that you may buy or sell a home a few times in your life, but professional Realtors® do it many times a year. The right one can save you time, money, and a lot of headaches.
One of the things we're seeing in the current buyer's market is an increase in the number of people who choose a full-service Realtor® after having gone the do-it-yourself or discount route. When there are no showings and no offers, it doesn't take long for them to recognize the value of an experienced professional.
And here's the bottom line…when you walk away from the settlement table and the money in your pocket is what you want and need, you know the commission is worth it.
Monday, December 04, 2006
Blanche Evans, Realty Times Article about being "Zillowed"
I thought this was a very interesting article. This article is by Blanche Evans from Realty Times can be found at http://realtytimes.com/rtapages/20060831_zillowed.htm.
Picture of San Fernando Valley on a Sunday Afternoon
Los Angeles Views Along Mulholland Drive
I took these photos one Sunday afternoon along Mulholland Drive.
Mulholland Drive is notable because it separates the ‘city side’ from the ‘valley’ side of LA. This road runs along the back side of Bel Air (yes, as in the ‘Fresh Prince of Bel Air”) from Hollywood almost reaching the Pacific Ocean.
Mulholland traverses through many of LA and Beverly Hills’ most exclusive neighborhoods.
The views in these photos overlook Encino and Tarzana in the foreground and out over the entire mid/eastern San Fernando Valley in the background.
I grew up facing the other direction - on the other side of the "hill" - in LA "proper".
If you have any questions about LA, please feel free to send a comment/question. I would be pleased to help. I have lived and worked in Los Angeles all of my life.
Thought for the Day - Working With a Realtor® is Needed Even More
In today’s normal, balanced market, working with a Realtor® is needed even more.
The days of “easy” money, “easy” sales, etc. are long gone. Sellers and buyers now need competent representation: Realtors® have the training and experience to protect and fully represent both buyers and sellers; Realtors® take continuing education; and, perhaps most importantly, Realtors® subscribe to a rigid Code of Ethics to ensure that the public is protected.
In the boom times, many people obtained real estate licenses, and really did not have to work that hard to make a good living. In today’s balanced market, much more time and effort is needed to sell a property, and buyers have many more choices. Determining market value, for either buyers or sellers, looking at closing costs, contingencies, types of loans, etc. require a degree of knowledge that an experienced Realtor® can provide. It is important to note that all licensees are not Realtors®. With many unscrupulous or even unlicensed “agents” working in our area, working with a Realtor® is the smart choice.
What Should I Look For When I Purchase A New Home?
By: Nocita http://www.articledashboard.com/profile/Nocita/6313
Good question! It’s a good idea to think about what you should look for when you purchase a new home before you actually sign on the dotted line and pay.
Buying a new home can be a rewarding experience if you do it right.
Just make sure you protect yourself from any surprises down the line. You want to know some of the ways you can?
Well, you may want to consider these tips before purchasing your new home:
1) Make sure you select a reputable builder when you purchase your new home! Do your research on the builder to find out about their past work. You can find out the type of work a builder has previously done by getting the names of the home communities established by the builder. Go to those particular communities and ask some of the homeowners if they have had any problems with that particular builder. You can also ask the homeowners what they like about their home builder.
2) Consider getting a home inspection done on your new home by hiring your own independent home inspector. You can find a certified home inspector via the American Society of Home Inspectors(ASHI) www.ashi.org. If the builder of the new home you’re considering to purchase won’t allow an inspection, then you may want to consider moving on to another home builder that will allow you to do this.
3) Investigate and research any easements that may be on the property you’re considering to purchase. This will save you headaches later on! Make sure the easements don’t affect your enjoyment of your property in the future.
4) Consider having a real estate attorney look over the real estate documents for your new home purchase. Especially your closing purchase documents before you sign them at closing.
5) Purchase title insurance! This will protect you when you purchase your home. Title insurance will provide you with protection if someone challenges you about being the property owner of your new home.
6) You may want to consider not purchasing your first new home in a new community that has been developed. Why should you do this you say? Well, for one thing, it’s a test run and all of the kinks may not be worked out yet. You may get stuck with a lemon! It might be better for you to wait until the builder has developed more communities in order for you to consider making a new home purchase.
7) Find out how long it will take you to travel from your home to work. Can you deal with your commute? If so, that’s great! If not, this may end your quest with that particular builder to purchase a new home with them.
Well, get the idea why it’s so important to think about certain things before you consider a new home purchase? Good, then start looking for your new home now with these tips and information to assist you when you’re in the process of considering making your new home purchase.
http://www.articledashboard.com/
Good question! It’s a good idea to think about what you should look for when you purchase a new home before you actually sign on the dotted line and pay.
Buying a new home can be a rewarding experience if you do it right.
Just make sure you protect yourself from any surprises down the line. You want to know some of the ways you can?
Well, you may want to consider these tips before purchasing your new home:
1) Make sure you select a reputable builder when you purchase your new home! Do your research on the builder to find out about their past work. You can find out the type of work a builder has previously done by getting the names of the home communities established by the builder. Go to those particular communities and ask some of the homeowners if they have had any problems with that particular builder. You can also ask the homeowners what they like about their home builder.
2) Consider getting a home inspection done on your new home by hiring your own independent home inspector. You can find a certified home inspector via the American Society of Home Inspectors(ASHI) www.ashi.org. If the builder of the new home you’re considering to purchase won’t allow an inspection, then you may want to consider moving on to another home builder that will allow you to do this.
3) Investigate and research any easements that may be on the property you’re considering to purchase. This will save you headaches later on! Make sure the easements don’t affect your enjoyment of your property in the future.
4) Consider having a real estate attorney look over the real estate documents for your new home purchase. Especially your closing purchase documents before you sign them at closing.
5) Purchase title insurance! This will protect you when you purchase your home. Title insurance will provide you with protection if someone challenges you about being the property owner of your new home.
6) You may want to consider not purchasing your first new home in a new community that has been developed. Why should you do this you say? Well, for one thing, it’s a test run and all of the kinks may not be worked out yet. You may get stuck with a lemon! It might be better for you to wait until the builder has developed more communities in order for you to consider making a new home purchase.
7) Find out how long it will take you to travel from your home to work. Can you deal with your commute? If so, that’s great! If not, this may end your quest with that particular builder to purchase a new home with them.
Well, get the idea why it’s so important to think about certain things before you consider a new home purchase? Good, then start looking for your new home now with these tips and information to assist you when you’re in the process of considering making your new home purchase.
http://www.articledashboard.com/
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