Foreclosures, Short Sales Not Dead!

"FORECLOSURE ACTIVITY INCREASES 3 PERCENT IN APRIL TO 18-MONTH HIGH DRIVEN BY RISING BANK REPOSSESSIONS!"

A recent report released by RealtyTrac, the nations leading source for comprehensive housing data,  shows foreclosure filing are up 3 for the previous month and up 9% from a year ago! CLICK HERE TO READ REPORT!

Don't freak out! There are a lot of other indicators involved.

I personally believe this has to do with the auction schedule that was occurring the previous 24 months and banks putting holds on many properties and now following through with the foreclosure process.  As well, many homeowners loans were adjusting the past 24 months, home owners couldn't get used to the adjustment and allowed their homes to get to the foreclosure point.

The interesting thing is a total of 51,773 US properties started the foreclosure process for the first time in April 2015, which is down 3 percent from the previous month and down 5 percent from a year ago.  There are many statistics you can read in the report above.

Nonetheless, short sales and foreclosures are not dead! Banks are still working with people whose loans are adjusting and are just to much to meet the demand of the household finances.  The great thing is consumers have choices now! IF you have equity in your home and have a decent credit score, I can help you get your home refinanced into a better more affordable loan.  If the issue is no equity and loan adjusting to a payment that is too much for the household, banks will still work with you on a short sale and save your credit from a foreclosure.  

Call me today and let's figure it out whatever your situation! 661-702-4767

Is the Housing Market BACK?

Is the Housing Market Back? Ask Lowes & Home Depot!

 A recent Bloomberg Business article reports that both Lowes & Home Depot experienced fourth quarter profits that beat revenue projections by the most in six quarters. So what does that mean to the housing market?

Consumer Confidence

Lowe’s Chief Executive Officer Robert Niblock said,

“Consumers are feeling better about their jobs, their wages and certainly feeling better about the value of their home, they are re-engaging in projects that they have put off.”

Sales to professional contractors have increased significantly as well, and were a driving factor in the quarter. Home Depot’s Chief Financial Officer Carol Tome calls this a “sign of health. If they are putting more items in their basket, it means they have work coming at them.”

Home Values Rising

In a quarterly consumer survey conducted by Lowe’s since 2007, the percentage of respondents who said that the value of their home is rising increased to its highest value ever, at 50%. Whether Americans are finally adding that man-cave they’ve always wanted, or renovating a master suite, an increased confidence in the value of one’s home often sparks homeowners to invest in big-ticket projects. The National Association of Realtors (NAR) reports that the median price of an existing home (for all housing types) rose year-over-year for the 35^th consecutive month. Not all who are renovating are planning on staying in their home. The Demand Institute reports that “nearly half of American households plan to move at some point in the future.” For those who are planning on listing their home this spring, spending the time and money needed to update that 1950’s bathroom or kitchen can fetch higher prices in today’s market.

Bottom Line

Meeting with a local real estate professional can give you insight into the small (or big) improvements your home could use to draw the highest price and return on investment this spring.

5 Reasons to Use A Real Estate Professional

5 Reasons To Use a Real Estate Professional

Paperwork
They help with all the disclosures and paperwork necessary in today's heavily regulated environment.

Experience
They are well educated in and experienced with the entire sale process.

Negotiations
They act as a 'buffer' in negotiations with all parties throughout the transaction.

Pricing
They help you understand today's real estate values when setting the price of a listing or an offer to purchase.

Understanding Current Market Conditions
They simply & effectively explain today's real estate headlines and decipher what they mean to you.

5 Reasons to Hire a Real Estate Agent

Whether you are buying or selling a home, it can be quite an adventurous journey. You need an experienced Real Estate Professional to lead you to your ultimate goal. In this world of instant gratification and internet searches, many sellers think that they can For Sale by Owner or FSBO. The 5 Reasons You NEED a Real Estate Professional in your corner haven’t changed, but have rather been strengthened due to the projections of higher mortgage interest rates & home prices as the market continues to recover. 

1. What do you do with all this paperwork?

Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true Real Estate Professional is an expert in their market and can guide you through the stacks of paperwork necessary to make your dream a reality.

2. Ok, so you found your dream house, now what?

According to the Orlando Regional REALTOR Association, there are over 230 possible actions that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, who knows what these actions are to make sure that you acquire your dream?

3. Are you a good negotiator?

So maybe you’re not convinced that you need an agent to sell your home. However, after looking at the list of parties that you need to be prepared to negotiate with, you’ll realize the value in selecting a Real Estate Professional. From the buyer (who wants the best deal possible), to the home inspection companies, to the appraiser, there are at least 11 different people that you will have to be knowledgeable with and answer to, during the process.

4. What is the home you’re buying/selling really worth?

It is important for your home to be priced correctly from the start to attract the right buyers and shorten the time that it’s on the market. You need someone who is not emotionally connected to your home to give you the truth as to your home’s value. According to theNational Association of REALTORS, “the typical FSBO home sold for $184,000 compared to $230,000 among agent-assisted home sales.” Get the most out of your transaction by hiring a professional. 

5. Do you know what’s really going on in the market?

There is so much information out there on the news and the internet about home sales, prices, mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to in order to competitively price your home correctly at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a low-ball offer? Dave Ramsey, the financial guru advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Hiring an agent who has their finger on the pulse of the market will make your buying/selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

Bottom Line:

You wouldn’t replace the engine in your car without a trusted mechanic. Why would you make one of your most important financial decisions of your life without hiring a Real Estate Professional?

Happy Thanksgiving...From My Family To Yours

Three Questions You Must Ask If You Are Going To Buy A Home

If you are thinking about purchasing a home right now, you are surely getting a lot of advice. Though your friends and family have your best interests at heart, they may not be fully aware of your needs and what is currently happening in real estate. Let’s look at whether or not now is actually a good time for you to buy a home. There are three questions you should ask before purchasing in today’s market: 

1. Why am I buying a home in the first place?

This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with finances. A study by the Joint Center for Housing Studies at Harvard University reveals that the four major reasons people buy a home have nothing to do with money:

• A good place to raise children and for them to get a good education
• A place where you and your family feel safe
• More space for you and your family
• Control of the space

What non-financial benefits will you and your family derive from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.

2. Where are home values headed?

When looking at future housing values, Home Price Expectation Survey provides a fair assessment. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number. Here is what the experts projected in the latest survey:

• Home values will appreciate by 4% in 2015.
• The cumulative appreciation will be 19.5% by 2018.
• Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of over 11.2% by 2018.

3. Where are mortgage interest rates headed?

A buyer must be concerned about more than just prices. The ‘long term cost’ of a home can be dramatically impacted by an increase in mortgage rates. The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac have all projected that mortgage interest rates will increase by approximately one full percentage over the next twelve months.

Bottom Line

Only you and your family can know for certain the right time to purchase a home. Answering these questions will help you make that decision. 

Five Demands To Make On Your Real Estate Agent

As a real estate agent, here are 5 demands you should make on the real estate agent you choose to represent you in the sale of your home

Are you thinking of selling your house? Are you dreading having to deal with strangers walking through the house? Are you concerned about getting the paperwork correct? Hiring a professional real estate agent can take away most of the challenges of selling. A great agent is always worth more than the commission they charge just like a great doctor or great accountant.

You want to deal with one of the best agents in your marketplace. To do this, you must be able to distinguish the average agent from the great one.

Here are the top 5 demands to make of your Real Estate Agent when selling your house:

1. Tell the truth about the price

Too many agents just take the listing at any price and then try to the ‘work the seller’ for a price correction later. Demand that the agent prove to you that they have a belief in the price they are suggesting. Make them show you their plan to sell the house at that price – TWICE! Every house in today’s market must be sold two times – first to a buyer and then to the bank.

---

The second sale may be more difficult than the first. The residential appraisal process has gotten tougher. A recent survey showed that there was a challenge with the appraisal on 24% of all residential real estate transactions. It has become more difficult to get the banks to agree on the contract price. A red flag should be raised if your agent is not discussing this with you at the time of the listing.

2. Understand the timetable with which your family is dealing

You will be moving your family to a new home. Whether the move revolves around the start of a new school year or the start of a new job, you will be trying to put the move to a plan.

This can be very emotionally draining. Demand from your agent an appreciation for the timetables you are setting. You agent cannot pick the exact date of your move, but they should exert any influence they can, to make it work.

3. Remove as many of the challenges as possible

It is imperative that your agent knows how to handle the challenges that will arise. An agent’s ability to negotiate is critical in this market.

Remember: If you have an agent who was weak negotiating with you on the parts of the listing contract that were most important to them and their family  (commission, length, etc.), don’t expect them to turn into Super hero when they are negotiating for you and your family with your buyer.

4. Help with the relocation

If you haven’t yet picked your new home, make sure the agent is capable and willing to help you. The coordination of the move is crucial. You don’t want to be without a roof over your head the night of the closing. Likewise, you don’t want to end up paying two housing expenses (whether it is rent or mortgage). You should, in most cases, be able to close on your current home and immediately move into your new residence.

5. Get the house SOLD!

There is a reason you are putting yourself and your family through the process of moving.

You are moving on with your life in some way. The reason is important or you wouldn't be dealing with the headaches and challenges that come along with selling. Do not allow your agent to forget these motivations. Constantly remind them that selling the house is why you hired them. Make sure that they don’t worry about your feelings more than they worry about your family. If they discover something needs to be done to attain your goal (i.e. price correction, repair, removing clutter), insist they have the courage to inform you.

Good agents know how to deliver good news. Great agents know how to deliver tough news. In today’s market, YOU NEED A GREAT AGENT! If you are interested in selling call me today so we can discuss you being represented by a great agent-ME!

Reason #7 Buyers May Dislike A Home

Some home buyers have a love-hate relationships with the properties they see. They either fall madly in love with a place, finding no faults, or are totally disgusted, even outraged that I would dare show them something so terrible. 

Sometimes, underlying a buyer’s rejection reaction are their own irrational expectations or other psychological quirks. But other times, there are hidden issues that can cause a gut reaction of hate toward a particular home.

Here is reason #7 a buyer may dislike your home:

7.The wants and needs of hidden stakeholders.

Have you ever watched House Hunters International? I crack up every single time a family moving from Minnetonka to Dubai decides not to buy a given home because it lacks room for their friends and family when they come to visit. “How often do they think people are going to make that trip after all?! And can’t they grab a hotel room when they do?” I have heard they are really nice there! I always wonder (often aloud, to the puzzlement of my dog).

While this particular example is comical (and possibly scripted for TV), the reality is that many real-life buyers consider the wants and needs of people their agents will never meet as they decided whether to love or hate a particular home. For instance, over the years I've had multiple buyer clients refuse homes with stairs to enter because of aging parents who might only get to the place once or twice a year. I've also seen buyers make decisions about homes they intend to live in for a very long time on the basis of children that don’t yet exist, roommates and tenants they might never have, dogs that they are going to get 'someday', and expected age-related mobility concerns for their future selves, decades down the line.

In the end, it is very important that buyers agent help buyers to see past the issues we have been talking about for the last week.  Maybe these issues aren't really all that important.

Reason #3 A Buyer May Dislike A Home

Some home buyers have a love-hate relationships with the properties they see. They either fall madly in love with a place, finding no faults, or are totally disgusted, even outraged that I would dare show them something so terrible. 

Sometimes, underlying a buyer’s rejection reaction are their own irrational expectations or other psychological quirks. But other times, there are hidden issues that can cause a gut reaction of hate toward a particular home.

Here is the 3rd reason I have seen buyers dislike homes:

3. Failure to Optimize.

“That’s a shame.” “What a waste.” “Too bad they did that.” “Why would they tear that down/choose that finish/put that in?!” 

Buyers hate little more than to move into a home and spend their precious remaining dollars ripping out nearly new upgrades—especially when they feel like they paid a premium for the home having been remodeled in the first place.

Well, there’s at least one thing they hate more: a home that they came to see because of its perfect location or mid-century modern/Victorian/Craftsman architecture that’s been built or remodeled in a way that totally eliminates the advantages of the features they came to see it for. A home with a gorgeous view with few windows (trust me, they exist) is one case in point. Another is the Craftsman bungalow that has been all modernized inside, built-ins removed and natural wood ripped out.

Identity Theft and Data Breach Update

Target’s data breach last fall compromised not only the credit/debit card information of 40 million
customers, but more importantly the personally identifying data of 70 million people. Similar
breaches recently occurred at Michael’s Crafts, Neiman Marcus, eBay, PF Chang’s, universities,
and even at the federal government. A new report from the National Consumers League indicates
that breaches are now more likely to result in actual fraud: nearly 1-in-3 breaches in 2013, up from
1-in-9 in 2010.

California created one of the first data-breach notification laws, and requires consumer notification
if email or internet passwords have been breached, and if that data breach affects more than 500
people. There were 167 breaches reported in California last year, up 20% from 2011.
Initial protection begins with requesting a free credit report each year from the three credit bureaus,
viaannualcreditreport.com. However, credit fraud makes up less than 20% of all identity fraud.
True identity theft 1.) may involve your name, address, SSN, driver’s license, medical identity, character
or criminal issues, 2.) is costly and time-consuming to resolve, (on average 55-130 hours, and
$1000-$5000 per incident), and 3.) may even require help of an attorney in another state.

Be sure to check your credit a few times a year!

New Listings In SCV!

Click here to see the new listings in SCV!

Receiving Gift Money To Buy Real Estate?

       

If you are receiving gift money to purchase real estate it is very important that you consult with your loan officer how to deposit that money, every penny is tracked during the loan process.

 "Show me the Gift Money!"

Underwriters track gift money as well as bank deposits and/or money transfers in bank accounts during the loan approval process. The origin of the gift money and the transfer-ability of the funds from the donor's account to the buyer's account is reviewed by an Underwriter in great detail. It is imperative that you contact your lender when depositing monies into your account during the home buying process.  Why you may ask?...well, any money that appears in a buyer's bank account that is not from an employee's pay check or pension; social security; foster care, etc., raises questions as to where the money came from. The buyer needs instructions from the Loan Officer before receiving any gift money from anyone as a specific procedure must be followed.

                             "Transferring Money!"

Sometimes a buyer transfers money numerous times creating a time-consuming cross-referencing of bank accounts showing the money leaving one account and being transferred into another. This often leaves a buyer frustrated as to the detailed involvement of what they consider non-problematic. When the buyer is asked for an on-line bank printout there can be no gap from the date on the last print-out or last bank statement. The amount of money transferred from the donor's account to the buyer's account must exactly match the amount that was transferred. Sometimes when trying to track the transferring from one bank account to another its revealed that a bank account is missing on the application - creating a revision to the application.

       "Cash Deposits!"

Occasionally buyers don't have auto-depositing of their payroll check. When a buyer deposits their payroll check "Less Cash" the amount will be less than the amount shown on their check stub - which raises a red flag. Since the amounts don't match, a letter of explanation may be required from the buyer. The best way to remedy this is to deposit the entire check and then withdraw the cash they need. Of course a buyer who receives a check shouldn't cash it and then try to deposit the cash in their bank account. A cash deposit in any bank account is not able to be documented and will not be considered as sufficient funds to close escrow. So if you have a garage sale use the cash to buy groceries etc.

Credit Myth #4 - I Have To Pay Off My Balance In Full To Keep Scores High

re on hootsuiteShare on facebookShare on twitterShare on emailMore Sharing Services

Sadly, this mistaken belief causes some consumers to make
unnecessary payments with the little money they already have.
The truth of the matter is credit bureaus have no way of knowing
whether you pay your balance in full each month or whether you make
monthly payments.

If you have the financial resources to do so, pay off your balance
each month but only to save money in the interest! But to increase
your score you need to focus on your utilization rate or in fact, it will
decrease your score by lowering and paying off your balances in full.

I should note that I have heard of cases where smaller balances and
recent activity on a credit card have boosted a person’s score enough
to give them a better interest rate on a loan.

That said, the increase is minimal. Generally speaking, always
keeping a balance is unnecessary and lenders might prefer a
zero balance. But remember…do this only if you trying to avoid
paying the monthly interest on your account and only if you are
maintaining the same pay patterns every month.

The optimal percentage to pay your outstanding credit card bills
down to is 30% if possible.

WARNING- Some lenders have been known to lower your credit
limit or even close your account after you pay off your card.

So be very cautious when paying off your accounts on a monthly
basis to save on the monthly interest fees it may not be worth it!

Many people avoid purchasing a home due to credit repair issues.  This week I am going to display some great blogs written by my friend Robert Montoya who has personally helped many of my clients repair their credit issues so they can purchase a home.  If you need help, contact Robert, 818-298-6894. 

Credit Myth #3 - Close Some Lines Of Credit

Q:If I close some of my credit card accounts, I will have a better credit score.

A: Credit experts generally agree that once you have opened accounts
you should keep them open. The reason is that as soon as you close them
then you are shutting down the continuation of building credit history.

Closing them will never help your score, and it might actually hurt your
score by lowering you overall utilization rate and shortening the average
age of your active accounts, which is one of the reasons why some not
knowing this have had a declining credit score.

Keep them open and pay your cable bill with it once a month. Then pay it in full every month to avoid interest charges. Or you can keep a small balance on it for a month or 2 then pay it off in full. The fact is that the credit bureaus do not know when you have paid off your credit card in full every month or not. They simply are more interested on your payment patterns regarding the reporting of late payments starting at 30 days since there is no grace period after this time frame.

Many people avoid purchasing a home due to credit repair issues.  This week I am going to display some great blogs written by my friend Robert Montoya who has personally helped many of my clients repair their credit issues so they can purchase a home.  If you need help, contact Robert, 818-298-6894. 

Past Short Sale? Oh No! Fannie Mae Is Changing Things Again!

If you had a short sale in the past 2 plus years and thought you were going to be able to purchase a home now that you have saved a new 20% down payment, Fannie Mae is changing things on us again.  You will be  forced to fund your loan with an FHA loan instead of a conventional 20% down loan.   The added costs will include: 1) 1.75% funding fee at close of escrow    2) A monthly mortgage insurance premium of 1.35%. Based on a purchase price of $350k (280k loan amount, 20% down) you will be required to pay: 1) $4900 up front MI fee 2) $315 per month until they can re-fi into a conventional loan. Fannie Mae has announced that on August 16, 2014, they will be changing the waiting period associated with the purchase of a any home after a short sale (or a deed in lieu of foreclosure), from a minimum of 2 years to 4 years! If you fit this criteria and have been on the fence about purchasing a home and want to get it done you must get your loan application in and a D/U approval prior to the August 15th deadline! You don't have to have a home picked out or be in escrow but you must apply for the D/U approval which can take a few days to get. To beat the deadline they don't have to have a home picked out OR be in escrow; they simply must apply for the “DU” (which can take up to 3-5 days as everyone will be rushing to beat the deadline). Want to get this started call me today! Search for homes: www.WendysHomeValues.com

Credit Myth #2

Q:If I succeed in deleting a negative item, it will just come right back
on my credit report.

A:The credit bureaus have cleverly spread this myth through the news
media and government agencies. In truth, the credit bureaus will often
temporarily delete a negative listing if they haven’t heard from the
credit grantor after approximately thirty days.

If the credit grantor reports late, say after six weeks, and then verifies
the negative listing, the credit bureau will often reinsert the negative
listing on the credit report.

This is often known as a “soft delete.” Usually, though, the creditor
simply fails to respond and the negative listing is permanently deleted.

If the item is verified by the credit grantor, either before thirty days or
after, the account may still be challenged at some future time for
removal. If this rare action occurs you can have it removed it again by
re-disputing that item. The New Laws FACTA (Fair and Accurate Credit Transaction Act)
along side the Fair Credit Reporting Act makes it much more difficlut for this
to occur. Don’t let this change your mind about improving your credit with
credit correction services.

Many people avoid purchasing a home due to credit repair issues.  This week I am going to display some great blogs written by my friend Robert Montoya who has personally helped many of my clients repair their credit issues so they can purchase a home.  If you need help, contact Robert, 818-298-6894. 

Credit Myth #1

Here is a series of some of the most common Credit Myths that are floating around out there and clear the air on them.

There is much to discover and hope you get alot out of it. So Enjoy this Series!

Q: When I pay off a past-due account, such as a chargeoff or a collection account, it will show “paid” and will no longer be negative.

A: It is quite difficult to restore your credit without somehow satisfying your outstanding debts. However, the act of paying off a debt, in some cases, can actually hurt your credit. Negative credit is allowed to stay on the credit report for a maximum of seven years, except for bankruptcy which may remain on the credit report for ten years.

This seven year clock begins ticking on “the date of last activity” or, in other words, when the last action took place on the account. By paying an outstanding, delinquent debt you will change the account status to “paid collection,” “paid was late,” or “paid was charged off”– which will still stand out as a very negative listing. Furthermore, you will create a new date of last activity on the day you settle the account.

The seven year clock will reset and begin all over again. When you have outstanding debt, it is almost always prudent to seek professional help so that you may settle your debts without further damaging your credit. (Our firm will provide a debt settlement program in the near future.)

Many people avoid purchasing a home due to credit repair issues.  This week I am going to display some great blogs written by my friend Robert Montoya who has personally helped many of my clients repair their credit issues so they can purchase a home.  If you need help, contact Robert, 818-298-6894. 

Boost Your Credit Score With A Few Simple Things

Many people avoid purchasing a home due to credit repair issues.  This week I am going to display some great blogs written by my friend Robert Montoya who has personally helped many of my clients repair their credit issues so they can purchase a home.  If you need help, contact Robert, 818-298-6894. 

Included in your credit report is a credit score developed by the Fair Isaac Company and used by your mortgage company to help in the lending decision. The score is commonly known as FICO Scores, although Trans Union uses the name Emperica and Equifax uses the name Beacon. Each score is a Fair Isaac Company product and uses the same factors. The score may vary from one bureau to another, as some creditors may or may not report to all three credit bureaus, which may lead to variations in the credit score.

Approximately 35% of your score is based on Payment History. Payment History Includes the following:

Payment history on credit card accounts, retail accounts, installment loans, finance company accounts and mortgage loans. Public records, such as bankruptcies, judgments, suits, liens, wage attachments and collection accounts. The number of accounts showing no late payments. A good track record on most of your credit accounts will increase your credit score.

Approximately 30% of your score is based on Amounts Owed:

Owing on your credit accounts does not mean you are a high-risk borrower with a low score. However, owing a great deal of money on many accounts can indicate an individual is overextended and more likely to make some late payments. A large number of accounts with balances, high revolving balances and installment loan payment patterns all are taken into consideration in the score factor.

Approximately 15% of your score is based on the Length of Credit History:

The scoring model considers both the age of your oldest account along with an average age of all your accounts. The length of time credit accounts have been established along with how much time since accounts have been used is also considered.

Approximately 10% of your score is based on Types of Credit Use:

The score considers your mix of various types of accounts: credit cards, retail accounts, installment and auto loans, finance company accounts and mortgage loans. Having one of each is not necessary and opening accounts you do not intend to use is not advisable. The score looks at the types of credit accounts you have, the total number of accounts, and how many of each type of account. For different credit profiles, how many is too many will vary.

There are approximately 34 “reason codes” which are the factors used to determine the score on credit profile. The four top reasons used for the calculation of the credit reasons are listed on the credit report, which explains why the score is not higher. The score reasons are not particularly helpful when the score is already high (for example, 680 or above), because they may be marginal factors with little impact. The score model ranges from 300 to 850. Higher scores indicate low risk. Lower scores indicate higher risk.

As you can see there are many components that make up your FICO Credit scores.

Approximately 10% of your score is based on New Credit:

People tend to have more credit today and to shop for credit more frequently than ever. Research shows that opening several credit accounts in a short period of time represents greater risk. This also extends to requests for credit, which results in inquiries by a lender to receive a copy of your credit report.

The score will look at how many accounts you have by type, how long since accounts have been opened, how many recent inquiries on you report which indicates recent requests for more credit, and re-establishment of good recent credit history if there had been past problems.

A score is a number that tells a lender how likely an individual is to repay a loan, or make credit payments on time. A “scorecard,” or scoring model calculates a mathematical equation that evaluates many types of information from your credit report at that credit bureau. By comparing this information to the patterns in thousands of past credit reports, scoring identifies your level of credit risk.

As you can see there are many components that make up your FICO Credit scores.

California Transitions Assistant Program

Short sale update I received from Bank of America! $5,000 issued through states website if you are completing a short sale! Short Sale Agent Update Distressed California Homeowners May Qualify for California's Keep Your Home California Transition Assistance Program (TAP) If your financially distressed California clients can no longer afford their homes and are pursuing a short sale or a deed in lieu of foreclosure, they may be eligible for financial help with their relocation to alternative housing. The funds come from the Transition Assistance Program (TAP), part of the Keep Your Home California Program. The state of California is providing up to $5,000 in transition assistance to qualified homeowners who can no longer afford to stay in their homes.  You can help by advising your distressed clients that they must:  Apply for the funds through their state's website or by calling 1.888.954.5337.   Maintain their property until their house is sold or returned to the lender via a negotiated deed in lieu of foreclosure. For qualified homeowners, these state funds may be used in addition to any other transition assistance that the homeowner may receive by participating in the Federal Home Affordable Foreclosure Alternatives (HAFA) program or in any other pre-offer short sale program.