Advantage CCS is supporting the Independent Foreclosure Review
April 23, 2012
Did you experience a foreclosure between January 1, 2009 and December 31, 2010? Advantage Credit Counseling Service is pleased to announce our support and involvement in the Independent Foreclosure Review. This is a legitimate program mandated by The Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency.
Twenty-seven major mortgage services are offering eligible borrowers a free and impartial foreclosure review by an independent consultant to identify those who may have been financially injured due to errors, misrepresentations or other deficiencies in their foreclosure process. If the review finds that financial injury occurred, customers may receive compensation or other remedy.
Some of the participating mortgage companies include: Bank of America, Chase, Countrywide, GMAC Mortgage, HSBC, PNC Mortgage and Wells Fargo Bank, N.A. to name just a few.
Homeowners who were part of a foreclosure action between January 1, 2009 and December 31, 2010 may qualify for this review. For more information, contact the Independent Foreclosure Review directly at 888-952-9105 or visit www.independentforeclosurereview.com. You can also download the Request for Review Form from the website. A list of Frequently Asked Questions and Answers is also available on the same website.
The Request for Review Form must be submitted online or postmarked and sent to the Independent Foreclosure Review Administrator by July 31, 2012. If you think that you may be eligible for a review, then you should take action now to make sure you are considered.
Bank of America has chosen to provide financial support to nationally recognized nonprofits who are approved intermediaries and who are experienced at one-on-one foreclosure mitigation for individuals and families who need assistance. The purpose of the Bank of America financial support is for nonprofits to leverage their networks as well as marketing outreach efforts to reach and assist as many eligible customers as possible, regardless of who is the customer’s participating servicer.
Advantage Credit Counseling Service’s certified housing counselors are available to help answer questions regarding the Independent Foreclosure Review and, if needed, to assist with completing the Request for Review Form. The dedicated toll-free number for a certified housing counselor is 866-224-0064. Call Advantage CCS today to find out more information about the Independent Foreclosure Review or for questions regarding housing counseling.
What’s the difference between a short sale and a foreclosure?
April 4, 2012
Whether a homeowner wants to do a short sale or even a foreclosure, there are a lot of differences that most are going to want to know about before deciding on one. While it may seem easy to just walk away and let the bank take the home, this may not be the best choice. To help understand the differences, let’s take a look at what the differences are and how it can affect things later on down the road.
What is a short sale?
With a short sale, the bank will agree upon a price tag that the homeowner can sell the home for. This price tag will likely be less than what the mortgage is for. Once the home is sold for this amount, the bank will call it even and the homeowner can walk away without having to owe any debts.
Using this scenario, let’s say that the home is only worth $100,000, but the mortgage note is for $150,000. The bank may tell the homeowner that they can sell the home for $100,000 and the $50,000 difference will be waived, allowing the homeowner to walk away free and clear.
What is a foreclosure?
A foreclosure is a lot different than a short sale since the homeowner will allow the bank to take ownership of the house. After a certain amount of payments have been missed, the lender will force the homeowner from the home, taking over the deed. Once the redemption period is over, the bank can then turn around and sell the home on the market. If the bank doesn’t successfully receive the amount owed on the balance of the mortgage, they can come after the homeowner to claim a deficiency judgment. While a deficiency judgment can expire over time, each state has its own laws and time periods.
Affects on the Credit Report
Since most homeowners are going to need a place to stay after this type of situation; most people often wonder how it will affect a credit score. With a short sale, the average credit score can drop 50 to 150 points. On the report, it will often state things such as “paid in full for less than agreed amount” or something such as “settled for less.”
With a foreclosure on the other hand, a credit score can drop as much as 200 points, and this will remain on the credit report for more than seven years, making it hard to get a new loan or even a new job if a company checks the credit report.
Each situation will have different affects on a credit score, different deficiencies and even tax repercussions. While it’s best to note that a short sale is always the way to go, sometimes the bank just may not agree upon a price to successfully sell. If planning to go the short sale route, always make sure that a qualified expert is hired so that there’s a better chance at closing the deal.
Advantage Credit Counseling Service offers a variety of housing counseling services. Let us help you with: Foreclosure Prevention Counseling, Pre-Purchase Counseling, and Reverse Mortgage Counseling. To set up an appointment with a certified housing counselor at AdvantageCCS, call (888) 511-2227. We are here to help!
Image: renjith krishnan / FreeDigitalPhotos.net
Ways to Save Money While Saving the Environment
February 15, 2012
Green living is all around us today, from sustainable buildings to Eco-friendly cars and so on. Everyone is worried about the environment and looking for new ways to protect it. Sometimes “going green” can mean spending more money on products and services than we’d like to.
There are ways to save money while helping out the environment. You just have to be a little savvy and shop around. You can still do your part to save the Earth while saving money for yourself. We’ll show you some ways to be environmentally friendly on a budget.
Go Green:
Use a low-flow shower head – You’ll have to spend some money up front to purchase a low-flow shower head but you’ll see those savings coming back to you when you get your first water and energy bill. They reduce the amount of water you use to get clean and also reduce energy consumption. Low-flow shower heads usually run from about $12.99 upwards to $45.00.
Replace light bulbs – Use energy efficient light bulbs instead of the regular ones. They are reasonably priced with the average cost of around $1.50 per bulb. Compact Fluorescent Light bulbs (CFLs) draw less electricity and can last about seven years. You’ll see the savings in your utility bills.
Don’t buy bottled water – Bottled water costs between $1 and $3 and can add up to a few hundred dollars a year. Try a filter for your water faucet and a re-useable water bottle instead. There are also water purifier pitchers to keep in your refrigerator like the Brita water pitcher.
Turn off the lights – How often do you leave a room and the lights are still on? If you don’t really need it, switch it off. Many people will keep all the lights on even if they’re not in that room. Teach your children these habits and you’ll notice savings on your next electricity bill. Less energy consumption is better for the environment.
Weather strip or caulk around doors and windows – Use weather stripping or caulk around each of your windows and doors to help save heating and energy costs. Caulk runs about $5 per tube and can be used to help seal drafty windows. It’s a little messier than weather stripping, but more cost efficient.
Grow your own herbs – Grow an herb garden indoors all year round for fresh herbs. There are many do-it-yourself kits out there. You can stop buying dried herbs at the store and save money over time. Also, think about growing fresh vegetables and fruits whenever possible. Produce can be very expensive when purchased at the grocery store.
Going green or helping to save the environment can be overly expensive. Some people think it’s worth the investment, no matter the cost. Even if you haven’t jumped on board the “go green” bandwagon yet, by consuming fewer resources, you’ll end up keeping more cash in your wallet.
We’d like to hear how you’re doing your part to help save the environment. Do you have any environmentally-friendly money saving tips to share with us? We’d love to hear from our blog community. Thank you!
Image: scottchan / FreeDigitalPhotos.net
Does Buying Pre-owned Really Save You Money
December 25, 2011
When thinking of pre-owned products, vehicles often come to mind. They are some of the most marketed products in society. We see television commercials to newspaper ads talking about the greatest used car prices around. While we have all seen these ads, cars aren’t the only pre-owned purchases we make. Below we are going to take a look at three different items that we use daily, which we could potentially save money on if we purchased them pre-owned.
Housing:
If you are looking at buying a home, essentially any home will be new to you, but we are going to dissect in regards to the build year.
In 2009, an average American house consisted of 2,700 square feet with and average mortgage of $200,000. With approximately 125 million homes in the U.S., about 1% consist of new home builds according to Bankrate. That being said, approximately 99% of houses in the U.S. are “pre-owned.”
With $200,000 being the average price for a 2,700sq ft home, let’s look at the costs associated with a new home build with the same square footage.
In the same year, the average price per sq. ft to build was about $90. Multiply that by 2,700 sq. ft, a home is already at $243,000. Now this doesn’t take into consideration the cost of the land, which can often be expensive in its own right.
Needless to say, if you aren’t hell-bent on a new home, you can save a substantial amount of money for a “pre-owned” house. Decision goes to “pre-owned.”
Electronics:
With technology emerging at the rate it is today, once you buy a shiny instrument and get it out of the store, it often becomes obsolete. The quality may still be amazing, but the technology is yesterday’s news. This is often true with computers and tvs, which are often highly marked up. Deals can often arise from this. With many people needing to make room for the newest and best products, they often liquidate their slightly used ones.
If you aren’t one to fret over a minor ding or scrape, you may find solace in acquiring a perfectly functioning electronic device. Decision goes to “pre-owned.”
Textbooks:
This one is for all of our college students, and those who have college students. Text books, much like electronics, become obsolete rather quickly. A book in physics may present a 3 year old theory, only to have that theory disproved a year later, meaning new books will need to be created to reflect the findings. And as you may know, textbooks aren’t cheap, especially new ones. By purchasing a used book, or even 2011’s more popular option of renting books, you can find yourself saving boat loads of cash. Decision goes to “pre=owned.”
You have two or more options with almost every purchase in your life. Buy new, or find quality used goods. Granted this doesn’t work for everyone, or every product; like diapers, but can provide you with comfort all around.
The Pros and Cons of Renting Vs. Buying
October 21, 2011
Renting Vs. Buying
The debate over whether it is best to rent or buy a property has been on-going for decades. Everyone has an opinion, but no one can give a definitive answer as to which is best. Each option has its own pros and cons.
Renting
Pros
No Maintenance
When you own a home, you are responsible for all the upkeep. When you rent, however, you don’t have to worry about things breaking down or the roof leaking. If something goes wrong, you call the landlord.
Mobility
It is easy to get up and move when you rent a property, while Homeowners have to worry about selling their house.
Less Out-of-Pocket Cost
Rental prices, especially for apartments, are often much less than a house payment. Renting can save you thousands or even tens of thousands of dollars!
Cons
Forget About Remodeling or Decorating
Generally speaking, renters aren’t allowed to even paint their units, much less make more extensive changes. You can forget about changing the carpets, putting in new ceiling fans or even changing the blinds.
Someone Else’s Mortgage
If you are renting, you are paying someone else’s mortgage and property taxes. He or she owns the property and can sell it at any time. You are essentially financing their investment.
Buying
Pros
The Mortgage Interest Deduction
Every penny of interest you pay on your mortgage is tax-deductible. This can amount to thousands of dollars of savings, especially in the early years of a loan.
It’s an Investment
When you buy a house, it is yours. You are free to sell it or rent it, as you see fit. Once you pay off the loan, you will never have to make a house payment again. All you will have to worry about is paying property taxes and insurance.
Modifications
You can do anything you want to a property that you own. You can add on rooms, paint, redecorate, remodel the kitchen, or anything else you so desire.
Cons
Maintenance
As the homeowner, you will be responsible for all maintenance. When the plumbing breaks at three in the morning, you are the one who will have to foot the bill. You will have to pay for HVAC work, roof repairs, and a thousand other things that all add up.
Lack of Mobility
You can’t just up and go when you are a homeowner. If you decide you want to move to another city or state, you will have to either sell or rent your house. This can take months.
Market Uncertainty
Eventually, you will probably want to sell your home. It may be worth more or less than it was when you paid for it, but if you don’t have enough equity to cover commissions and closing costs in addition to the principal, you will have to cover the difference out of pocket.
Renting and buying each has its own merits. The one that is best for you will depend on your lifestyle and personal circumstances. Think long and hard before making a commitment!
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