HELP! I'm upside down in my mortgage!

The truth is, many people are right now!  For most of us who bought homes in Jacksonville, North Carolina between 2000-2008, we saw mortgage interest rates in the neighborhood of 6%, 7%, and even 8%!  With interest rates starting out that high, it's hard to pay down on the principle amount of the loan within the first few years of paying it back.  Lump that in with sheisty lending practice and the worst economic recession this country has seen in almost 50 years, of course many of us would be upside down in our mortgages.

Fortunately the real estate market in Jacksonville, North Carolina has mainly been fueled and fed by the military community and VA backed loans.  Which means, for the most part, we've remained stable.  Statistically speaking, in a good real estate market, you will find 3%-9% of the market will be foreclosure homes for sale.  As of today, the market in Onslow County, North Carolina is 6.7% foreclosures.  
With that said, there is an increase of short sales in the market place as well.  Short sales, by definition, are homes that are being sold for less than what the seller owes on it, because the sale price of the home will not cover the liens or the cost of selling.  Not everyone qualifies for a short sale, and it is ultimately up to the lender to decide if it's in their best interest to accept it.  Short sale is a better option than foreclosure, because it doesn't stay on your credit report as delinquency, foreclosure, or bankruptcy.  Instead, it's reported as "paid in full or less than agreed."   And with concentrated effort on credit repair afterward, a short seller can be back in good standing within two years.  Another benefit of short selling is that personnel with security clearances won't suffer with a short sale on their credit report, as opposed to a foreclosure, which would disqualify that person from a security clearance.
Short Sales definitely have a benefit to both sellers and buyers, and there is a time consuming and an intense paperwork route that has to be navigated.  For more information, contact a REALTOR® who specializes in Short Sales and Foreclosures.

Amanda Parmer has devoted extra time pursuing education to better navigate the ever-changing world of short sales and foreclosures and has earned the SFR and CDPE (Short Sales and Foreclosures Resource and Certified Distressed Property Expert) designations to better serve clients, offer sellers a better alternative to foreclosure, and help educate the general public about our housing market.  

Getting Your Finances In Order

A crucial step in starting your search for a new home is having a clear idea of your financial situation. One of the first things your Realtor will recommend is that you get in touch with a reliable mortgage broker.  By getting a handle on your income, expenses and debts, you'll have a much better idea of what you can afford and how much you'll need to borrow.  

For lenders to verify this information, though, they're going to need to look at your financial records. It is also important to remember that you should include records for each person who will be an owner of the house. So before you even visit the bank, make sure you'll be able to provide copies of these important documents:

• Paycheck Stubs
  Remember that lenders are most interested in your average income. Not only will they want to see this month's paycheck, but also how much you've been making for the past two years. Steady employment is also more attractive to lenders, so if you've been hopping from job to job, be prepared to discuss the reasons why.  Being in Jacksonville, North Carolina, most of the homebuyers are military personnel.  So, they would be asked to provide their leave and earnings statement (LES) and proof of contract (to show that you have time left in the service.)
• Bank Statements
  In order to qualify you for a loan, most lenders will also ask you for copies of your bank statements. Ideally, they'd like to see a steady history of verified income--or at the very least, that you're not bouncing checks every month.
• Tax Records
  It's always a good idea to save copies of your tax returns, especially if you're self-employed. If you own your own business, it's important to note that lenders generally consider your income as the amount you paid taxes on--not the gross income of the business.
• Dividends & Investments
  Lenders will usually consider long-term investment dividends, as well as your investment portfolio, when evaluating your income.  However, they are not usually necessary.
• Alimony/Child Support
  If you receive steady payments as part of a divorce settlement or for child support, you can also include this as part of your gross income. Just remember that lenders will want to see a copy of your divorce/court settlement verifying the amount of the payments.  As well as the converse- if you are supposed to pay alimony or child support, they will need to know about that.
• Credit Report
  Virtually every lender will want to see a copy of your credit report as part of the loan application process. The report lists all of your long-term debts, as well as your payment history. In general, they will require you to pay for the credit report (approximately $50), but if you have a recent copy, they may accept that instead.  It's usually best to let the lender to the footwork due to how it reflects on the credit report.

If you have any questions about how your credit should look or what you need to prepare for prior to purchasing a home, I would be more than happy to help or refer you to a reputable mortgage broker!  I'm never too busy for any of your referrals!

Do you know the danger of Identity Theft?

Identity theft is a growing problem in the United States. Do not be a victim of this crime! Here are a few ways to protect yourself:

Credit Reports
Check your credit report! If you discover anything suspicious, especially in the form of a credit card you don't have or debt that does not belong to you. 

You are entitled one free credit report every year from each of the three nationwide credit bureaus, Equifax, Experian, and Transunion.

To get your free credit reports, go here or call (877) 322-8228. (HINT: To monitor your credit year-round, request a report from a different bureau every 4 months)

Security Freeze
A security freeze prevents credit bureaus from releasing any information about you to new creditors without your approval, which can stop identity thieves from obtaining credit in your name. For details, visit this website. All North Carolinians can get security freezes online. 

Social Security Number
Your social security number is a helpful tool for crooks who are trying to take out credit in your name. Protect it! Don't carry your social security card in your wallet. Do not print it on your checks. Do not give it out unless it is absolutely necessary. Always ask why it is needed, who will have access to it, and how it will be kept confidential. 

Shred
Your records often contain confidential information. Shred or erase hard drives from old copiers, printers, and computers that might hold private information. Clear all date from old cell phones to ensue that your private information can't be recovered. Shred outdated tax records, credit card applications, old financial statements, insurance forms, etc.

Finances
Watch billing cycles for missing bills, which can be an indication of ID theft or other financial fraud. Review monthly statements. If you discover incorrect charges, notify the company and dispute the charges. Reduce the private information on your checks and limit the number of credit card you carry. 

Notify your credit card company in advance when you travel, especially out of country. Photocopy credit cards (front and back) and keep the copies in a safe place in case a card is lost or stolen. Review your Social Security Earnings and Benefits Statement for errors. Call (800) 772-1213 to order a statement.

Passwords
Carry PINs and passwords in your head, not in your wallet or purse. Do not share PINs  or passwords with anyone, even close friends or relatives. Don't over-use the same PINs and passwords. Create different ones for different accounts. Passwords should have at least eight characters. Use letters, number and symbols (#%$). (HINT: Avoid consecutive numbers, family names, birthdates, SSN, phone numbers, etc.)

Online
Use public wi-fi hotspots for casual web surfing ONLY. Only access email, financial information, or enter private information on a secure wireless system. Make sure your home wireless router is encrypted and password-protected. Create a long, complex password to deter hackers from breaking in. Confirm that your computer is protected by an active firewall. Keep your operating system, spyware and virus protection up to date. 

Shop with online merchants that you trust. Do not click on pop-up messages or ads offering prices too good to be true. Never enter private data like your SSN or a credit card account number online unless you are on a secured website. Look for https (instead of http) in the web address and a "lock" icon somewhere on the screen. When you place an online order, print out your order confirmation. Keep receipts and copies of communications about your order, along with a description of the product and its price. Read refund and privacy policies.

When selling items online, watch out for (real-looking) fake checks and money orders. Be wary of overpayments and endorsed checks. Never wire "excess" payments back to the buyer or to someone else. Pay for online purchases by credit card. 

Email
Beware of emails that ask you to confirm your personal information or account number, or to transfer money. Avoid clicking on anything in an email, even it appears to come from a trusted source like your bank or a friend.  Forward spam emails to spam@uce.gov. Never send your SSN or financial account information by email unless they are encrypted. (HINT: Emails that say you have won money, can make a lot of money, or please for help are usually scams).

Mail
Stop pre-approved credit card offers by calling (888) 5-OPT-OUT or visit this website. Place outgoing mail containing private information into a locked mailbox. Avoid leaving your incoming mail in an unlocked mailbox. Consider getting a locking mailbox. Don't send money to cover taxes or fees on a prize, lottery or sweepstakes winning. It is a scam.