The Phoenix Real Estate Advisor

 There are many “scams” that are surfacing in the face of hard times.  Many of these are actually “resurfacing” and worth mentioning again.  Please be careful to whom you give your personal information.  Also, please be aware of these and similar scams that happen frequently to people who have just lost a loved one, debt collection calls, false bank charges, etc.

A few days after the funeral, a “collection agency” calls and says your deceased mother or dad owed $500 and it’s up to you to pay the bill.  This scam takes advantage of people who are still in grief. Elderly people are often targeted. When threatened with legal action, they may rush to settle.  Another goal of the con artist is to obtain bank account and Social Security numbers.  Unless you are a cosigner, you are not responsible for the deceased’s debt and you should not pay, whether or not it’s a legitimate bill.

Police say con artists are ramping up their old false winnings game. In difficult times, people are eager to win at something.  Some will send thousands of dollars to “pay taxes in advance” to receive lottery winnings. After getting the money, the con man disappears. 

One type of improper “bill collection” may be initiated by legitimate companies. It involves accounts that are settled for one reason or another. But five or six years later, the company sells a list of old debts to a collection agency for pennies on the dollar.  In one case, a cardholder’s brother asked to borrow his card so he could use it “just to check into a hotel.” The brother charged $3,000, moved to another city and couldn’t be found. The card company settled for $1,500.  Six years later, a collection agency came after the former cardholder for the balance. In spite of the threats, he insisted the account was settled. He never heard from the collector again. 

Other cases involve smaller amounts of money. A collector called to say a woman owed $55 in bank charges on an account that had been closed for several years. He said he could ruin her credit by reporting that she had a bounced check and never paid for it, which wasn’t true.  Though some people would be bullied into sending money, this woman was not.  

The AARP Foundation offers advice about fraud. If you are in the least bit unsure about the legitimacy of anything financial, Call 1-800-646-2283 for information.

Times have really changed, and this economy and real estate market bring many challenges to many of you.  You or someone you know may need help.  You, or someone you know may feel overwhelmed and not sure of what to do next.  Maybe you know someone who is on the verge of not being able to meet their mortgage obligations.  Perhaps they aren’t aware that there is help available to them. They may be afraid that they may lose their home - but it is important that they look for help sooner than later. 

I have intensive training in the distressed property area.  In fact I have earned the CDPE Real Estate Designation.  The CDPE (Certified Distressed Property Expert) agent is well versed in helping homeowners who may be in danger of defaulting on their mortgage, or who have defaulted on their mortgage find the help they need.  In some cases, enabling them to stay in their home.  Some cases require a “short sale” which is where the bank will approve a sale for less than what is owed on the property.  This situation is much easier on the credit score than a foreclosure but is a very complicated process.  As a CDPE agent, I am very well versed in the process and what it takes to work with the bank on a short sale.

Please, if you know of anyone that is in this situation, have them contact me.  They may be surprised to learn that there are programs available that may help them:

1. stay in their home
2. avoid forclosure
3. save their credit score

Please pass along my contact information and ensure them that any information they share with me will be held in the strictest confidence.   Time is of the essence!  Waiting too long to take action could lead to a foreclosure which is the worst possible consequence of a hardship.

Lynn Otlewski, CDPE

623.238.3875

lynn@valleyreadvisor.com

In this troubled times we’re all thinking about how to protect or improve our credit scores. Every day more and more things we buy are based on our credit score. Even insurance premiums are now based partially on our credit score. I’ve asked a guest writer, Kimberly Hooker, to submit tips and articles about how we can help protect our valuable credit score.

Often times in life there are many things that come up that prevent us from reaching our goals.  One reason might be that while it is important it is not essential (or so we think).  Unfortunately, credit is sometimes one of those issues.  Regardless of the reason why you haven’t signed up for our service yet you can still work toward your goal of repairing your credit.
 
So, Credit Repair Tip #1 : 
Pay all of your bills on time.  This is very important as 35% of your FICO score is based on making on-time payments.  I’ve said it many times, “beg, borrow or steal but never make a 30 day late payment!”.  While this might be a tad dramatic it is sound advice!
 
If you still have questions or would like more information about your creidt score and how we can help, call or email us today at 480-219-0078 or kim@envisionitcreditrepair.com.
 
Sincerely,
 
Kimberlie Hooker
Resolution Resource Group
1225 W. Main Street Suite 101-613
Mesa,AZ  85201
480-219-0078

http://www.resolutionresourcegroup.net

 If you plan on buying a new home, there are some things you can do to keep your credit looking as good as possible.

- Check your credit report. Find out if there have been changes to your account limits, and make sure there aren’t any errors. Look for any negatives on your report-many negative items should be removed after seven or 10 years.
- Don’t get close to card limits. About 30% of your FICO is based on the ratio of the amount that is owed on active cards to your available credit. But utilization on individual cards is important too; getting close to the limit on one card will also reflect negatively on your score. Pay down balances as much as possible.
- Keep accounts active. Accounts get closed when there hasn’t been activity on them for a while. Make small purchases on cards a couple of times a year-then pay them off right away-to keep accounts active and your available credit up.
- Pay bills on time. This should an easy one, but could prove challenging for people who could lose their jobs in the months ahead. Be proactive, and contact the credit card company as soon as possible if you’re having problems paying your bill. Payment history counts for about 35% of your credit score.
- Don’t apply for new cards. Store cards are tempting when they offer discounts at the register, but don’t bite. Applying for that card will have a negative effect on your score in the short term.

We’ve heard a lot fromm people that “Investors” is what started this housing crisis. Most of us that work with short sales and foreclosure know this to not be true. We’ve understood that the vast majority are people like me and you that simply can not afford their home. Here’s an article from AZ Central that speaks to this subject: 

A group that works with people who “walk away” from homes instead of fighting to keep them out of foreclosure has released its first data. Almost 30 percent of the homeowners who contacted it from Arizona have other mailing addresses or own other homes, according to Carlsbad, Calif. You Walk Away. . That signals they are most likely investors. The figures, which have been compiled since the beginning of the year, show almost 50 percent of the people who are “walking away” in Florida are investors.  The top state for residents who contacted the firm is California. Then it was Florida, Nevada and Arizona at no.4. Those four states have much in common - the biggest speculator-driven home price run ups in 2004-05, and the fastest rising foreclosure rates now.

The firm tracking the trend says the figures show the majority of people considering walking away are primary homeowners, so the trend isn’t being fueled by speculators. However, the data is only from the beginning of the year. Some housing analysts believe speculators were the first to ”walk away” in Arizona when foreclosures started to really climb last summer. http://www.azcentral.com/members/Blog/CatherineReagor/26985

This means that 66% of the homes are owned by people that need help because they’ve gotten in over their head either by risky loans or loss of employement. This is why I’ve formed the group www.PhoenixHomeRescue.org, call us if you have questions 623.271.4234.