Top Five Reasons to Pull Your Credit Annually

Have you heard about www.annualcreditreport.com? This is the website you may go to where you may pull your credit report from each of the three main credit bureaus, Experian, Trans Union and Equifax. This is a simple process, and you may pull your credit report from each bureau for free once a year. This will not include your credit scores, but for a small charge for each bureau, you may order that too if you are getting ready to make a major purchase that will involve financing, and you need to see where you are at.

Why should you pull your credit report each year?

-To check for any errors in reporting the information on your accounts, such as incorrect high credit limits, or erroneously reported late payments
-To check for cross over information to your report for someone who has the same or similar name
-To check for identity theft
-To make sure old information is dropped off, such as closed accounts more than 7 years old or accounts that were discharged through bankruptcy are not still being reported past due
-To make sure accounts you have paid off are reported with zero balance

Why should you do this yourself instead of letting a lender do it for you?

When you exercise this annual right you have, it will not result in an Inquiry that is reported on your credit profile. Although many sources say a mortgage inquiry will not affect your credit scores, I’ve seen time and time again that this is wrong. If you have several inquiries, but no new mortgage is reported as a result of them, your credit scores may drop.

If you make this a regular process each year, you’ll head off what could be a stressful nightmare if you wait until you are in the middle of qualifying for financing to find out there is a problem you need to take care of. Pull your own credit, and the report contains all the necessary instructions and contact information should you find it is necessary to dispute information reported in your credit profile.

If you need to call the bureaus, prepare to be patient as it will take time to work through their systems. But, you can do it yourself, and you do not need to pay anyone to do it for you. Once you get through to the credit bureaus, most minor errors can be resolved easily. Some errors will need to be disputed with you providing the supporting documentation to prove your case in order to have changes made. These are usually handled by mail.

If you have not seen your credit in over a year, go to http://www.annualcreditreport.com/ and see what information is being reported about you.

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - http://www.quality4loans.com/

Distressed Homeowners, More Help Is On The Way

Do you own a home, one you have been struggling with making the payments on? Have you given up hope of keeping your home, and stopped making your mortgage payments? Is it your wish to be able to stay in your home, if only the payments on it were more affordable?

Homeowners there are rays of sunshine in all the gloom in the housing market. A streamlined approach is being rolled out to help distressed homeowners wanting to stay in their homes. By December 15, 2008, servicers of loans sold to Fannie Mae and Freddie Mac - this is roughly 58% of ALL the outstanding mortgages in the housing market, Folks! - will be working harder than ever to help struggling homeowners most at risk of losing their homes through foreclosure. These are the homeowners who have missed 3 or more consecutive monthly mortgage payments. If this is you, call your lender and find out if a Note Modification is available to you - even if you have tried this before.

Citi announced they have a separate program in place to aid their own struggling homeowners, a program that is at least as aggressive as the one Fannie Mae and Freddie Mac will be following. So, if you are making your mortgage payments to Citi, and are falling behind, call them to see if a Note Modification is available to you - even if you have this tried before.

These Note Modification plans are designed to quickly find a solution to get your mortgage payments to roughly 38% of your gross monthly income (before taxes; after business expenses if you are self-employed). You do not need to pay anyone to do this for you. You can and should do it yourself. Banks and Mortgage Companies are looking at several reasonable avenues to help accomplish stemming the foreclosures by making mortgage payments affordable for those who qualify.

This does not mean qualifying by traditional means! It means reducing interest rates, fixing interest rates, lengthening loan terms, forgiving principal and/or interest. They are looking for ways that you may sustainably continue to live in your home by making the payments affordable. They expect you to have low credit scores with the financial hardship you are experiencing.

Folks - are you picking up on the common threads here? There may be several options available to help you and Stay in touch with your lender, no matter what your circumstances are - struggling, starting to fall behind or way behind. If you don't contact them, you may miss out on an opportunity that would help you to stay in your home. Isn't that the best solution for everyone?

Have questions? Go to Frequently Asked Questions on this topic.



See you out there!



Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

Distressed Homeowners Frequently Asked Questions

In conjunction with the Blog Post "Distressed Homeowners, More Help Is On The Way", here are some questions and answers:

Q. Can I apply even if I'm not 3 months or more behind on my mortgage payments?
A. Not for this program, but there may be other options available to you. Call your lender to see what options are available to you.

Q. Should I stop making my payments so I'll be approved for a Note Modification?
A. If you intentionally default on your mortgage, the lenders will not approve your request for assistance.

Q. What is a Note Modification?
A. A Note Modification is a change of the original terms of your mortgage loan. It could be a change from adjustable rate to fixed rate, a change in the length of your home loan, a change of the interest rate, a reduction in the amount owed on your mortgage loan, etc. with the intent to make your loan more affordable.

Q. I've already contacted my lender for help, and was turned down. Why should I try again?
A. Things have been pretty chaotic in the mortgage industry with the quickly escalating rate of foreclosures, closures and mergers of banks/lenders, changes to regulations, etc. It has taken some of the banks/lenders some time to figure out what works and what doesn't, what is required and what isn't. Make the assumption there may be a new alternative available to you, and call your lender to find out if you qualify for this new Note Modification program, or any other alternative they may now have for you.

Q. Will someone call or write me to let me know I will qualify for these Note Modification programs?
A. Some Banks/Lenders are trying to be proactive, but it will take some time to contact all the borrowers at risk of foreclosure. Be proactive, and call your lender - don't wait for them to call or write to you.

Q. I lost my job, and I earn less than I did before. Will I still qualify? What if I am still out of work?
A. Banks/lenders are working with current incomes and the current home values when considering Note Modifications. If your income is less than it was before, your mortgage payments have increased beyond what you can afford, you need to call your lender to see what options they have for you. If you cannot prove you have steady income to pay the mortgage, chances are your request may be denied, but if you have the means to pay something with reasonable modifications based on income you can prove you make, there may be help available. Even if you aren't yet 3+ months behind on your mortgage, call your lender.

Folks - are you picking up on the common threads here? There are options available for many struggling homeowners and Stay in touch with your lender, no matter what your circumstances are - struggling, starting to fall behind, or way behind. If you don't contact them, you may miss out on an opportunity that would help you to stay in your home. Isn't that the best solution for everyone?

See you out there!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

To Be Or Not To Be...Higher USDA Incomes for Jackson County Oregon?

It looks like the proposed revisions for the USDA Guaranteed Rural Housing program may go in to effect January 20, 2009 for their programs. If so, Southern Oregon home buyers looking to purchase a qualified property outside of the Medford and Central Point city limits will fall in to only two income categories vs. the many we have been using.

For example, presently the income limits for qualifying USDA Guaranteed Rural Housing Home Buyers in Ashland, Talent, Phoenix, Jacksonville, White City, Eagle Point, Shady Cove, Trail, Gold Hill and the surrounding rural areas would be qualified using the following income chart:

Medford, OR MSA GUARANTEED HOUSING PROGRAM INCOME LIMITS
STATE: OREGON ------------------- A D J U S T E D I N C O M E L I M I T S -----
1 PERSON 2 PERSON 3 PERSON 4 PERSON 5 PERSON 6 PERSON 7 PERSON 8 PERSON*

MOD.INC-GUAR.LOAN

49550 56600 63700 70750 76400 82050 87750 93400

Come January 20, 2009, if no changes are made to the proposed policy, any qualified borrower(s) with 1-4 person household will be qualified up to $70,750 annual income. Familes of 5+ will be qualified using $93,400 annual income.

This will help a LOT more Southern Oregon home buyers to buy a home on this great 30 year fixed rate mortgage program! Plus, it is a much needed solution to offset the loss of the CashAdvantage Oregon Bond program as well as the loss of most down payment assistance sources in our area here in Jackson County, Oregon.

If you wish to find out if you are qualified for this great program so you may BUY instead of RENT your home, contact us today at (541)608-6003 or go online at Quality4Loans .

See you at the closing table!

Karen Cooper - Mortgage Consultant - Southern Oregon Housing Resources

In order to help stimulate sluggishness in the high cost real estate markets, Fannie Mae and Freddie Mac had increased their loan limits for the second ½ of 2007 and for 2008 to $729,750. Based on declining values, they are adjusting these limits downward accordingly.

The new maximum conforming loan limit for the continental U.S. will be $625,500 for 2009

Here in Southern Oregon, this loan limit will cover most of our properties, as our medians are well below this limit. But, our neighbors to the South in the high-cost markets of California may still find these loan limits restrictive.

With the relocation of these California folks to the Rogue Valley, their buyers may find their financing choices will be a bit more expensive and can be pretty limited with the mass exodus of investors from the Jumbo Loan market.

Options are still available to you. For more information on financing alternatives for your Oregon/California purchase, like a great portfolio fixed program for Oregon buyers/ homeowners in need of a loan up to $600,000 that is usually priced only 1/2 % higher than conforming loans to $417,000 AND has options available that may take you up to 90% (with self-insured mortgage insurance!) or to higher loan amounts, contact us at (541)608-6003 (Oregon) or (661)478-7564 (California).

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

To Be Or Not To Be...Higher USDA Income Limits for Jackson County Oregon?

It looks like the proposed revisions for the USDA Guaranteed Rural Housing program may go in to effect January 20, 2009 for their programs. If so, Southern Oregon home buyers looking to purchase a qualified property outside of the Medford and Central Point city limits will fall in to only two income categories vs. the many we have been using.

For example, presently the income limits for qualifying USDA Guaranteed Rural Housing Home Buyers in Ashland, Talent, Phoenix, Jacksonville, White City, Eagle Point, Shady Cove, Trail, Gold Hill and the surrounding rural areas would be qualified using the following income chart:

Medford, OR MSA GUARANTEED HOUSING PROGRAM INCOME LIMITS
STATE: OREGON ------------------- A D J U S T E D I N C O M E L I M I T S -----
1 PERSON 2 PERSON 3 PERSON 4 PERSON 5 PERSON 6 PERSON 7 PERSON 8 PERSON*

MOD.INC-GUAR.LOAN 49550 56600 63700 70750 76400 82050 87750 93400

Come January 20, 2009, if no changes are made to the proposed policy, any qualified borrower(s) with 1-4 person household will be qualified up to $70,750 annual income. Familes of 5+ will be qualified using $93,400 annual income.

This will help a LOT more Southern Oregon home buyers to buy a home on this great 30 year fixed rate mortgage program that doesn't have PMI! Plus, it is a much needed solution to offset the loss of the CashAdvantage Oregon Bond program, as well as the loss of most down payment assistance sources in our area here in Jackson County, Oregon.

If you wish to find out if you are qualified for this great program so you may BUY instead of RENT your home, contact us today at (541)608-6003 or go online at Quality4Loans .

See you at the closing table!

Karen Cooper - Mortgage Consultant - Southern Oregon Housing Resources