Deadline Newsroom FAQ 92208

When you have questions needing answers that really hit home, contact the Deadline Newsroom. This installment: ID-theft/credit monitoring; solar contractors; disclosing defects.

by Broderick Perkins
© 2008 DeadlineNews.Com


Unauthorized use of this story is a copyright violation -- a federal crime.



Deadline Newsroom - Q: I'm concerned about identity theft. Should I buy a credit monitoring service?

A: Only if you are too busy to take no-cost steps to do it yourself. Everyone should be concerned about identity theft, which happens when someone pilfers your personal information to masquerade as you to make purchases, withdraw cash or open accounts in your name.

Credit monitoring services help you quickly spot evidence of ID-theft by keeping tabs on your credit report for suspicious activity. The services charge you $50 to $100 a year, but Consumer Reports calls the services "overrated, oversold, and overpriced."

That's because federal law allows you to do-it-yourself by getting your credit report from each major credit reporting agency -- Equifax, Experian and TransUnion -- every year. That means, if you spread out the freebie access and obtain one report from a different agency every four months, you've effectively set up your own credit monitoring service. The federally sanctioned freebie is at AnnualCreditReport.com. Avoid similar-sounding Web sites.

Also, under a recent class-action settlement anyone with a credit card account from January 1987 to May 2008 is eligible for free credit monitoring benefits and other related services from TransUnion.

A recent data loss case also resulted in free credit report monitoring services for certain Bank of New York Mellon customers.

Even without free credit monitoring services, consumers who want to keep closer tabs on their information than what's provided by a free credit report every four months can turn to online banking, investment and financial account services that permit daily looks at activity on their accounts. Check with your financial institution for details.



Q: How can I find a competent contractor to install solar panels on my home?

A: Start with local, regional, state and then federal solar incentive programs offering tax and cash back incentives. They typically point to qualifying contractors or contractors affiliated and approved by the programs. In California, designated solar contractors are licensed by the Contractors State Licensing Board, specifically to perform solar energy work and other building or construction work necessary to install an active solar system. A California database; a national database of state incentive programs; and the federal U.S. Energy Department all also offer reference resources.

Q: My real estate agent says I have to disclose defects in my home for sale. But won't that turn off prospective buyers?

A: Maybe, but if you don't, your eventual buyer could sue you for not disclosing known defects that could affect the value or salability of your home. It's the law. Competent real estate professionals have a saying about uncertainty over what to disclose -- "If you can't figure it out, don't leave it out. Disclose. Disclose. Disclose." You can't and you don't have to disclose information you aren't aware of, but it behooves you to disclose to potential buyers everything from access via easements to zoo noise. You local real estate association or agent can give you all the disclosure requirements for your area.

Got questions? Send them to news@deadlinenews.com. We'll do our best to get you the most relevant answer.
© 2008 DeadlineNews.Com

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Broderick Perkins, an award-winning consumer journalist of 30 years, is publisher and executive editor of San Jose, CA-based DeadlineNews Group -- DeadlineNews.Com, a real estate news and consulting service and Web site and the new Deadline Newsroom, DeadlineNews.Com's news back shop. In both cases, it's news that really hits home!

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Deadline Newsroom FAQ 9108

When you have questions needing answers that really hit home, contact the Deadline Newsroom. This installment: home buying timing; getting the best mortgage; home ownership costs.

by Broderick Perkins
© 2008 DeadlineNews.Com

Unauthorized use of this story is a copyright violation -- a federal crime

Deadline Newsroom - Q: The market is flat, prices are falling in some communities. Should I buy a home now or wait?

A: Don't base your home purchase decision solely on market conditions.

It can be profitable if you can buy low and sell high, but home buying is more than an investment. There's also the tangible aspect of a roof over your head. Buy a home right now to live in for a decade or more and not only will you stop dropping rent into a black hole, chances are you'll also enjoy some appreciation and numerous tax benefits along the way. Buy a home in a soft market and expect to flip it for a profit in six months to a year and you could lose your shirt. And there are a lot of potential outcomes in between.

Home buying is a very personal decision. Buy a home based on your financial ability, lifestyle needs and personal goals. Check your credit, shop around to see what's available and what you can or cannot afford and get professional help from mortgage and real estate experts to help you make a sound decision.

It's not always a good time to for you, as an individual, to buy. You have to decide when it's a good time for you to buy.

Q: Money is tight. Underwriting terms are tough. How can I be sure I have the best mortgage I can get?

A: Three tips.

1) Examine your credit report. You need to know how creditworthy you are before the lender discovers how creditworthy you aren't. You may have some credit cleaning up to do. The better your credit and the higher your credit score the better your position to negotiate for the lowest mortgage cost and the best terms. Your report, one from each of the big three credit reporting agencies -- that's three reports each year -- is available from AnnualCreditReport.com.

2) Shop around. Shop lenders, brokers, credit unions, your bank or financial company, as well as federal, state and local government home loan programs. Compare all the numbers of every loan program you consider. Use the Federal Deposit Insurance Corporation's (FDIC) "Mortgage Shopping Worksheet" to conveniently make that comparison.

3) Get independent, professional help, counseling and education from a mortgage or home buying counselor who has no stake in your mortgage or home purchase. You want to both educate yourself about the home loan process and get assistance in determining which mortgage best fits your financial status, lifestyle and home owning goals. ACORN.org; NeighborWorks, your local housing or social services department and other recognized agencies can get your steered in the right direction.

Q: What costs are included with home ownership?

A: Home ownership costs begin with financing costs -- your down payment, mortgage points, fees, commissions and other costs associated with writing your mortgage, as well as title and escrow costs and fees. See the HUD 1 Settlement Sheet to learn about mortgage and title and escrow fees.

You lender may also require that you have sufficient savings or financial holdings intact after you sign for your mortgage. The lender wants to make sure you aren't stretched too thin after you buy a home. The next costs are in your regularly monthly mortgage payment which likely will consist of a payment against the principal and interest on you loan. You can include in your monthly payment (and should if have a difficult time budgeting) or pay on your own homeowners insurance and property taxes.

Additional costs are associated with the upkeep of your home -- maintenance, repairs, landscaping, home improvements, alterations and additions.

Got questions? Send them to news@deadlinenews.com. We'll do our best to get you the most relevant answer.

© 2008 DeadlineNews.Com

Advertise on DeadlineNews.Com

Get news that really hits home for your Web site or blog from DeadlineNews.Com.
Broderick Perkins, an award-winning consumer journalist of 30 years, is publisher and executive editor of San Jose, CA-based DeadlineNews Group -- DeadlineNews.Com, a real estate news and consulting service and Web site and the new Deadline Newsroom, DeadlineNews.Com's news back shop. In both cases, it's where all the news really hits home.

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Deadline Newsroom FAQ 81808

When you have questions needing answers that really hit home, contact the Deadline Newsroom. This installment: home equity use; home improvement cost-vs-value; mortgage insurance tax deduction.

by Broderick Perkins
© 2008 DeadlineNews.Com

Unauthorized use of this story is a copyright violation -- a federal crime

Deadline Newsroom - Q: My home equity has grown substantially in the past decade. Now home prices are falling. So is my equity. Should I use it before it evaporates?

A: Financial experts are divided on how you should or shouldn't use your home equity -- the difference between your mortgage balance and the value of your home. But dwindling equity alone isn't a sound reason to tap the till. For one thing, your equity is likely to rise from the ashes. Since the Great Depression, home value declines have never been as great as the home value appreciation that immediately preceded the declines.

Conservative financial planners say never, ever use your home's equity. They say pay off your mortgage so you can retire on a fixed income without a mortgage payment.

If you must use it, the experts agree, use it as a sound reinvestment -- home improvements, college education, business start-ups, a second home and other financial moves that provide an equal or better return on your money than the cost of the loan. Avoid cars, vacations, techno gizmos and other stuff that doesn't give you a return on your money. Emergencies are another consideration and home equity is a better alternative than plastic. Again, the financial conservatives would prefer that you to sock away an emergency savings fund as part of a sound financial plan to protects your home equity.

However, even if you avoid equity use, taking out a home equity line of credit (HELOC) as an emergency backup, could make sense -- at least until you've got that emergency savings pot. HELOCs, like credit cards, come with a revolving line of credit, but nothing is due if you don't use it. Using home equity to consolidate higher interest rate plastic from banks and retailers also can be a good use of your home equity, with a caveat. You must pay off the debt, close the credit card accounts and not backslide.

Q: I understand certain home improvements can help me shore up, even increase the value of my home. How is that possible in a market with falling prices?

A: Homeowners who perform improvements that bring their home up to par with other homes in the neighborhood -- or make them slightly above par -- can protect home value even in a down market because the right improvements increase your home's value. How much the improvement affects home value depends upon a host of factors -- the condition of the rest of the house, the value and condition of nearby similar homes, the local economy's impact on property values, and more.

Hanley Wood's annual Cost Vs. Value report generally says jobs that generate the most value are kitchen and bath remodels, however, the long-time report has yet to include improvements like solar panel arrays which can ultimately pay for themselves, with or without a cost-vs-value return. However, give they pay for themselves, the value derived from the work is invaluable. A home with a solar panel array, compared to an identical home, sans the array, will likely bring in a higher cost.

Q: I'm told I can continue to deduct my mortgage insurance from my income for tax purposes.

A: You can if you qualify. Effective January 1, 2008, the "Mortgage Forgiveness Debt Relief Act of 2007," act extended federal tax relief for homeowners who pay mortgage insurance, from one year, 2007, to four years, until 2010. The extension allows eligible home owners a tax deduction (which reduces your taxable income) on the cost of their government or private mortgage insurance premiums paid in any year from 2007 to 2010. Qualified borrowers are families with an adjusted gross income of $100,000 or less. Families with incomes up to $109,000 are eligible for a partial deduction. See your tax professional for more details.

Got questions? Send them to news@deadlinenews.com. We'll do our best to get you the most relevant answer.
© 2008 DeadlineNews.Com

Advertise on DeadlineNews.Com

Get news that really hits home for your Web site or blog from DeadlineNews.Com.
Broderick Perkins, an award-winning consumer journalist of 30 years, is publisher and executive editor of San Jose, CA-based DeadlineNews Group -- DeadlineNews.Com, a real estate news and consulting service and Web site and the new Deadline Newsroom, DeadlineNews.Com's news back shop. In both cases, it's where all the news really hits home.

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