Sunnyvale Real Estate Blog

2008-05-13T16:09:00.000-07:00

Any Thoughts?

Your Silicon Valley & Sunnyvale Real Estate Professional
Mark Thomason
http://www.thomasonteam.com/
408.850.3085

2008-05-13T12:25:00.000-07:00

Home Value Trends in Cupertino

First Quarter: January-March 2008

According to Zillow's latest Home Value Report, home values in Cupertino increased 7.0% in the first quarter of 2008, compared to the first quarter of 2007. Nationally, single-family home values decreased 7.5% while condo values declined 9.0% during this same period. Use this information to help keep your clients informed.

The Market is picking up and I see a great summer for Real Estate over the next several months.

Cheers,

Mark

Your Silicon Valley & Sunnyvale Real Estate Professional
Mark Thomason
http://www.thomasonteam.com/
408.850.3085

2008-05-11T07:38:00.000-07:00

Greener Choices with the U.S. Postal Service

Did you know that the wood and paper industry plants 1.7 million new trees every day—over 650 million each year, more than making up for all the products made of wood? In fact, since 1987 U.S. forests have increased by 12 million acres to 755 million nationwide—about the same as 100 years ago.

RecycleThe Environmental Protection Agency recognizes all mail as recyclable mixed paper waste, so don’t forget to add yours to the recycle bin when you’re done with it. And many shipping materials, like that cardboard box your shoes came in, can be recycled in your local recycling program.

ReuseSpeaking of that box your shoes came in, isn’t it the perfect size for sending your niece’s birthday gift? You can also shred old direct mail and reuse it as packing material to hold that gift in place.

Not only can you recycle the mail you receive, but you can also share your magazines and catalogs with family and friends, or donate them to hospitals, clinics, and doctors’ offices for the waiting room, to retirement communities, and to schools for use in art projects.

ReduceWhen you move, make sure to update your address. This ensures that you receive the mail you want and reduces waste.

---Source: USPS http://www.usps.com/.

Cheers,
Mark

Your Silicon Valley & Sunnyvale Real Estate Professional

Mark Thomason

RE/MAX Real Estate Services

408.850.3085

2008-05-10T06:25:00.000-07:00

How much does it cost to install solar panels on your home?

Installed cost will run from $10/watt to $13watt for what is called a 'on grid system' meaning you are hooked to an electric meter now. (30 to 40 thousand dollars) A standard 3-Kwh system costs between $25,000 and $40,000 installed, before rebates and incentives. About 50 percent of the system's total price is the panels; 30 percent to 35 percent of the cost is an inverter (for the 'on grid system' which turns the direct-current electricity 'DC' the panels produce into the alternating current 'AC' that you can use), a forward- and reverse-running meter, mounting hardware, conduit, and wire; the remaining 15 percent to 20 percent is labor, permit fees, and taxes. Maintenance costs are extra.

If you want an 'off grid system' you'll have to add nearly a third or more the system cost for batteries inverters etc.

Interested in finding out more about solar and how it can help increase your home value while decreasing your monthly PGE bill? Contact me today.

Cheers,

Mark

Your Silicon Valley & Sunnyvale Real Estate Professional
Mark Thomason
RE/MAX Real Estate Services
408.850.3085

2008-05-09T10:12:00.000-07:00

NEW LISTING
Don't miss this beautiful 12 years new Saratoga home for under $1M! Top Cupertino Schools: Blue Hills Elem, Kennedy Middle, Monta Vista High. This is the best home currently listed under a $1.1M in all of Saratoga. I look forward to your visit this weekend.
Pride of Ownership in this Beautiful 12 year new Saratoga home in a quite setting that enjoys the top Cupertino Schools: Blue Hills Elementary, Kennedy Middle School, and Monta Vista High School. This home has soaring ceilings, a large wall of windows facing mature trees to the backyard, and has been meticulously maintained in like new condition. Best Home listed in Saratoga Under $1.1M!
Hands down the best home under $1.1M in Saratoga with Monte Vista High, Kennedy Middle and Blue Hills Elementary. Open Houses on Sat. 5/10 from 11:30-3:00 and Sunday from 1:00-4:00
More photos and information on this property: http://www.kenyoncourt.com
18228 KENYON CT Saratoga, CA 95070

Your Silicon Valley & Sunnyvale Real Estate Professional
Mark Thomason
http://www.thomasonteam.com/
408.850.3085

2008-05-08T05:32:00.000-07:00

Retailers Offering Rebate Check Deals

Lowe's Cos. is offering its most loyal customers $10 off their next $50 purchase or $25 off their next $200 purchase when they turn their checks into its "project starter" cards.

Home Depot Inc. is encouraging customers to spend their refund checks on energy-efficient products, with promotions on florescent light bulbs and Energy Star appliances.

Safeway Inc. announced a plan to give a 10 percent discount on groceries to Club Card members who cash their rebate checks at the store beginning May 14.

Cheers,

Mark

Your Silicon Valley & Sunnyvale Real Estate Professional
Mark Thomason
RE/MAX Real Estate Services
408.850.3085

2008-05-06T10:22:00.000-07:00

Sunnyvale, CA Home Prices Remain Strong

The question I hear everyday is what’s going to happen with home prices in Santa Clara County?
The buyers I’m speaking with wanted to know when home prices were going to drop in Sunnyvale. My response: “I don’t see home prices significantly dropping in Sunnyvale because the demand for housing in this area is too high.”

Isn’t it odd with so many regions of the U.S. facing a glut of inventory included many communities in the Santa Clara County (San Jose: Alum Rock, Berryessa, North Valley, etc.) that the City of Sunnyvale is the exception, not the rule?

I was curious to find some data to back up my statement, and I found it. See below for the details. Since the year 2000 on a quarter-by-quarter basis, the City of Sunnyvale never saw its inventory rise above 245 single family homes. Even at that time, the Average Days on Market was 23 days, averaging 48 homes sold per month. At the peak of the market, Q2 of 2005, the numbers were: Total Inventory - 113, Average Days on Market – 13, with approximately 100+ homes selling per month. Granted, we could go back further and probably find a time when home values did drop; the period after the 1989 Loma Prieta earthquake, or maybe the late 1960’s when the aerospace industry left the valley. Rather, let’s look at the current facts which could cause home prices to drop:

Lack of Demand – Not likely for three reason’s:
1) Limited land mean’s limited places to build.
2) Local population continues to increase.
3) The local job market and economy continue full steam ahead.

We are seeing limited Access to Credit – Yes, we’re seeing some impact due to tight credit right now but this should change in the next qtr.

Now is the time act if you want to own a home in Sunnyvale, California. I project once we’re in the summer buying season we may be looking at multiple offers all over again.

Cheers,

Mark

Your Silicon Valley & Sunnyvale Real Estate Professional
Mark Thomason
RE/MAX Real Estate Services
408.850.3085

2008-05-03T18:35:00.000-07:00

Top 10 Things Not to Do to Decorate Your Home to Sell

1. Put in Expensive New CarpetIf your carpet is dirty and dated, it is a good idea to pull it up. But don't replace it with the best money can buy. Find a modest quality carpet at a modest price and get it put in. Whatever you choose will make the home look cleaner and better cared for and you can save thousands of dollars over pricey carpet. The buyers will probably replace it, anyway, with what they want.

2. Install Top-of-the-Line Appliances in Your KitchenThere's no doubt about it! New appliances are a good selling point. But don't buy gourmet cook-style top-of-the-line appliances. If your stove and dishwasher are dated, get new ones. Many home buyers want to use their own appliances, especially refrigerators. And the features that are important to you might not be to them. Remember, you're doing only what you have to do to sell the home.

3. Retile Your Bathroom with Carrera MarbleThe point here is that the bathroom should look clean and fresh. It doesn't have to look like a bathroom in a 5-star hotel if you have a modest home. Maybe you'll get the result you need by simply removing old dirty caulk around the tub and replacing it with fresh caulk. Or do a good cleaning with the proper cleanser to get the tile sparkling.

4. Put in a Swimming PoolYou may have a wonderful back yard that would be the perfect place for a swimming pool--and you've dreamed of having one since you bought the house. But the expense can be prohibitive, installation can take forever, and many buyers just don't want to be bothered with pool maintenance. Instead, spend several hundred dollars with some colorful landscaping. Clean up the weeds and trim the trees. Plant some sod in the bare spots. You'll get your money back with a happy buyer.

5. Paint Your Child's Bedroom to Match the BedspreadHome buyers are looking for their new home, not yours. Keep the walls neutral and buy inexpensive bedding or window treatments to show off the room they'll live in. If your daughter's favorite colors are lavender and pink, do not paint the walls for her. The buyers will just look at them and think of all the work they'll need to do as soon as they move in.

6. Install Expensive Custom DraperiesMore and more, fussy, heavy, floral window treatments are out. If you must put something on the windows, choose simple side panels or cut-to-measure blinds on all the windows. The look will be uniform throughout the home and the buyer will see a clean pallet to decorate to their own taste when they move in. Keep it simple and see the offers come in.

7. Paint the Outside a Color to Make Your House Really Stand OutIt's true, you do want your home to stand out on the block. But it should attract buyers by how well it fits into the neighborhood, not by how it sticks out like a sore thumb. The exterior might need freshing up and perhaps a good power wash might do the trick. Then consider re-painting the front door, since that's the first thing a buyer will see. If you must paint the house, choose a color that is in harmony with the neighbors.

8. Cut Down All the Trees So People Can See the HouseIf your home is set in the middle of a jungle of weeds, bushes, and trees so that no one can see it, by all means, trim everything back. But mature trees on a property are worth their weight in dollars. Professional tree-trimming is costly, but it's better to get it done so that potential buyers can see what they're buying.

9. Put in Custom Garage OrganizersWho wouldn't love to have a fully-organized garage space, with tools hanging neatly against the wall and the floor clean of oil spills? Dreamy! But not worth spending money on. Get everything in order, put stuff in storage boxes that you can take with you, clean the floor, get rid of junk.

10. Fill in Empty Walls With Family Portraits and Your Child's ArtworkYou have an empty wall in the living room and lots of great family photos, framed and ready to hang. But don't! In fact, you should remove as many family photos as you possible can. For one thing, you don't want a lot of strangers looking at pictures of your adorable kids. In addition, home buyers should be able to visualize their own family pictures on the walls, not yours. Get rid of them!

Your Silicon Valley & Sunnyvale Real Estate Professional
Mark Thomason
RE/MAX Real Estate Services
408.850.3085

2008-04-30T11:03:00.000-07:00

Gas Price Watch

With soaring gas prices at the pump it's always great to know where the best bargains are. Here are several tools that will help you find the cheapest gas prices in the Bay Area.

GasPriceWatch.com All areas
San Jose Gas Prices
Find The Best Gas Prices In The East Bay
Gas Prices in San Francisco

Cheers,

Mark

Your Silicon Valley & Sunnyvale Real Estate Professional
Mark Thomason
RE/MAX Real Estate Services
408.850.3085

2008-04-30T09:00:00.000-07:00

Heads Up for my Valued Clients,

Interest rates are set in two primary ways. With the Fed meeting today and tomorrow, remember that short term rates (credit cards, ARM’s, HELOC’s) are highly influenced by the Federal Reserve. And the Fed keeps a close eye on inflation: if the Fed fears that prices are rising too fast, it will raise rates to slow the economy. But longer term rates, like 30-yr mortgages, are set in the open market. They are partly a bet on how well the Fed will control inflation but also reflect supply and demand. Basically, if there are lots of people with money to lend, and not so many who want to (or are able to) borrow it, rates go down. Rising commodity prices, however, are complicating the Fed’s job – it cost me $40 to fill up my car yesterday on my way to buy rice!

Call me for current market…

Cheers,

Mark

Your Silicon Valley & Sunnyvale Real Estate Professional
Mark Thomason
RE/MAX Real Estate Services
408.850.3085

2008-04-29T13:41:00.000-07:00

"Set the stage"

Hire a staging expert. Staging is to the interior of a home what curb appeal is to the exterior -- nipping and tucking, furnishing and accessorizing, buffing and polishing until the place looks like a model home, without appearing too clinical. The new look will pay for itself in terms of sales speed or a higher sales price.

Cheers,

Mark

Your Silicon Valley & Sunnyvale Real Estate Professional
Mark Thomason
RE/MAX Real Estate Services
408.850.3085

2008-04-28T16:54:00.000-07:00

Economic Stimulus Payment On The Way
The U.S. government began distributing economic stimulus checks today, several days ahead of schedule. Tax filers who qualify and who opted for direct deposit may receive their checks as early as this week. Review your finances before spending your stimulus check. Consider using this money to pay off any high-rate loans, such as credit card debt. Or begin building an emergency fund. April is Financial Literacy Month, so take this opportunity to learn more about your personal finances.

Cheers,

Mark

Your Silicon Valley & Sunnyvale Real Estate Professional
Mark Thomason
RE/MAX Real Estate Services
408.850.3085

2008-04-28T10:49:00.000-07:00

Happy Monday:

This is a good article I wanted to share with you from The Wall Street Journal about credit scores, their current relevance, and what you can do to get yours the highest possible.

http://online.wsj.com/article/SB120882316731333133.html

Cheers,

Mark

Your Silicon Valley & Sunnyvale Real Estate Professional
Mark Thomason
RE/MAX Real Estate Services
408.850.3085

2008-03-17T11:41:00.000-07:00

Great House Value Tool!
If you want to see more data about the homes SOLD around your home or a home you're looking to purchase. This Real Estate Tool will allow you to make your own comparison on the features of the home that matters to you.

http://www.svhousevalues.com

This tool is absolutely free with no hidden obligations or sales ads.

Enjoy,
Mark Thomason
408.850.3085
RE/MAX Real Estate Services

2008-02-05T09:43:00.000-08:00

Good News is Pending but, seemingly on its way!
Some of you may have heard this already, but I thought it was worth repeating.
According to statistics presented by Charles McMillan, the 2008 President-elect of NAR at the CAR Board of Director’s meeting in Indian Wells, California, the changes in loan limits and easing of some guidelines will:
1) There will be approximately 210,000 fewer foreclosures
2) Buyers will save $3000 - $5000 in mortgage interest every year on average
3) There will be over 500,000 refi’s over the next year, reducing the number of foreclosures
4) The increase in activity and sales will reduce the time on market for property by 1-5 months.
5) The median sales prices will increase by 2-3% over the next year.
6) The increase in loan amounts will add $44 billion in economic impact.
7) The long run impact is an easing of loan and credit restrictions across the board
Among the possibilities of what this means is when the loan limits increase more buyers will be coming out to take advantage of the historically low rates. There will be fewer short sells and distress sales because owners will be able to refinance out of their bad loans to FHA loans due to easier credit standards. So, buyers & homeowners need to get pre-approved to be ahead of the game, I will help you & your referrals in any way I can...Feel free to contact me with any questions.

Mark Thomason
408.850.3085
Silicon Valley & Sunnyvale Real Estate Professional
Re/Max Real Estate Services

2008-02-01T10:20:00.000-08:00

The Downtown Sunnyvale Real Estate Project is making great progress...

Here's the latest information as shown on the City of Sunnyvale website:

The City of Sunnyvale has only one redevelopment project, the 184-acre Central Core Revelopment Project Area. The goal of the project is to rebuild Downtown Sunnyvale as a traditional downtown, a vibrant pedestrian-friendly central place for shopping, working, living and entertainment. The current focus is on the large block bounded by Mathilda, Washington, Sunnyvale and Iowa Avenues, commonly known as the Town Center Mall.
Web Cam
View a live construction Web cam on Sand Hill's Web site.

Weekly Update
January 17, 2008
Vapor extraction and soil treatment process began last week, using the newly-installed soil gas collection system and monitoring wells.

Work on street level retail buildings and parking structures on the west side of the project continues.

Demolition of the fourth building in Town and Country was completed last week.

Project fencing on the east side of the project will be changed slightly in the next week, affect the drive aisles and a small number of parking spots near Macy's.
Previous Updates

January 14, 2008

Town Center Redevelopment Project Soil
Vapor Removal Ready to Begin

The two soil vapor extraction systems, designed to remove the soil vapor contamination under the parking lot and parking structure in the eastern portion of the Town Center redevelopment project, will begin operation within the next two weeks. Extensive sound insulation has been designed into the construction to minimize noise. For the next several months, the extraction equipment will most likely operate 24-hours a day to remove as much vapor as possible. Both systems have been approved by the Regional Water Quality Control Board and have received permits from the Bay Area Air Quality Management District. Noise will be monitored and regulated to ensure compliance with the City’s noise control rules.
If you have any questions, contact the Sunnyvale Department of Public Works:
Mark Rogge: (408) 730-7415, TDD (408) 730-7501
Sand Hill (Developer) – 24-Hour Noise Disturbance Coordinator: (408) 554-2946

Additional Information
GroundWaterFacts.inSunnyvale.com
Community Updates
Sunnyvale Town Center Fact Sheet (PDF)
Downtown Update August 9, 2007 (PDF)
Downtown Update June 25, 2007 (PDF)
Public Outreach
Monthly Public Meetings to discuss demolition mitigation measures and construction schedule are held the last Wednesday of each month at 9 a.m. and 5:30 p.m. Meetings are held at 2502 Town Center (Trailer at corner of Iowa & Mathilda).
January 30, 2008
February 27, 2008

Your Silicon Valley & Sunnyvale Real Estate Professional
Mark Thomason
RE/MAX Real Estate Services
408.850.3085

2008-01-29T21:12:00.000-08:00

Looking for a Real Estate Deal?
Here are some links to Bank Owned Properties (REO), Foreclosures and more...

Just remember...Contact me when you find the property you are considering and I can find out all the details of that property and negotiate the best possible price for you.

REO ASSET LINKS - FREE SERVICES
bankofamerica.reo.com
countrywide.com
downeysavings.com
reo.com
resales.usda.gov
1800fremont.com
homesteps.com
mortgagecontent.net

FREE TRIAL SERVICES
foreclosures.com
realestateforeclosures.net
foreclosurestogo.com
hudhouses.com
buybankhomes.com

FREE MEMBERSHIP
foreclosurestore.com
postforeclosure.com

PAID SERVICES
realtystore.com
seizedrealestate.com

Silicon Valley & Sunnyvale Real Estate Professional
Mark Thomason - 408.850.3085

2008-01-29T10:00:00.000-08:00

Home purchasing advantages are on there way...

People are talking and wanting to know how the President’s stimulous package is going to affect our real estate market. The proposal which is being quickly pushed through Congress definitely has consequences for the prices of property.
It will positively affect the availability of FHA loans, we are likely to see the FHA loan limit increase to $700K. This will open up down payment options for buyers to as low as 1.5%. Currently the minimum down payment is at least 10% for most loans. FHA loans are more liberal and this will open the door to thousands of buyers to jump back into the real estate market.
And, the package encourages the directors of Fannie Mae and Freddie Mac (the main purchasers of conforming loans – those under $417K) to increase their loan limits to 125% of the median home price in their given area. Again, this increase will essentially give buyers about a 1% reduction in interest rates saving thousands per year in mortgage interest.
Help does apprear to be on it's way.

2008-01-24T15:20:00.000-08:00

The Real Estate market has put on the brakes but not stopped.
For all of 2007, existing home prices fell 1.8% and represented the first nationwide decline in houses since the Realtors started tracking this data over 40 years ago. However, we have experienced historic gains of over 100% in the past several years in many parts of the country, so 1.8% year over year decline is not so bad. If the stock market doubled in the past three years and the market then declined 1.8% - would it make headlines? We are seeing a buyer’s real estate market along with mortgage rates at three year lows.
Also of note, there are rumors that the conforming limit may be raised from $417K to $625,500 as it already exists in Hawaii, Alaska, Guam and Virgin Islands. It’s just a rumor but if it were to happen this would be a sensational opportunity for all our Jumbo clients as essentially it would represent a 1% reduction in interest rates. Let's all hope this conforming limit does get raised.

2008-01-22T17:44:00.000-08:00

What the Fed Cut means to our Mortgage Rates?

On days like this, I think it’s important to go back to the ol’ mortgage primer and figure out exactly what all this news means to you, to your mortgage, to your home equity line and to your home’s financial future. I’ve said it before, and I’ll say it again: the 30-year fixed is not tied to short-term treasuries.
Fixed mortgage rates are tied to long-term bond yields that move based on the outlook for the economy and inflation. And guess what? The long-term outlook for the economy isn’t exactly rosy right now.

Today’s rate cut does affect short-term adjustable rate mortgages, but not really as much as you might think. Why? Because this rate cut was already priced into the market, maybe not three quarter's point, but definitely a half-point. So if you are facing a reset on your ARM, you’re in much better shape today than you were just six months ago.
For example, if your rate adjusts Feb. 1st, and your ARM is pegged to the 1-year treasury, than your reset is going to be to 5.25 percent as opposed to the 7.5 percent that it would have been in August. That’s going to make the payment much more manageable.
So does this cut stem the foreclosure crisis? Maybe a bit on the margins, but not really, and here’s why: the bulk of the folks facing foreclosure because they can't make their monthly payments have no equity in their homes and no money to put down on a refinance.
While rates might be lower, this is a market where lenders and investors are much more aware of risk and will gravitate toward borrowers that represent less risk. So many folks will still find themselves in trouble. For people who are having trouble paying the initial rate on the loan, forget it. No help there.
As for those looking to buy a home, that is, get a new mortgage, while ARM rates may be lower, the mortgage landscape is still a far far different tundra than it was just a year ago. You can’t do a stated income loan anymore, and you can’t do 100 percent financing. Tighter standards don’t change with a rate cut.
And I want to add my two cents here about a home equity line of credit. Yes, the rates are lower now, but I really don’t think that means we should all start using our homes as ATM’s again, which is what got us all in trouble in the first place. This is a time to pay off debt, not to gather more. The housing market is still in trouble.
The statement from the Federal Reserve this morning: “incoming information indicates a deepening of the housing contraction as well as some softening in labor markets.” We all know the price correction in housing is still underway with home prices across the nation (yes, I know, some markets worse than others) expected to fall further, so this is no time to put your home in more hoc. Just my two cents, which I’m putting in the bank as we speak.

2007-12-19T16:05:00.000-08:00

Largest Home Pricing Declines are California, Nevada & Florida Top the List!

The latest report is out and this is not good news for the home owners...In turn it's a great sign for the home buyer looking to take the plunge into home ownership.

Please check out the complete article and the whole list...Hawaii is leading the pack as having the largest gain in property pricing. Click here to read the article

2007-12-06T14:33:00.000-08:00

Mortgage Interest Rates Have Hit a 26-month Low!

This would be a good time for all those who have adjustable rate mortgages to get that refinance completed! I do expect these rates to hold until at least early January 2008.

Click here for a detailed article on this subject

Mark Thomason
RE/MAX Real Estate Services
408.850.3085

2007-11-18T20:06:00.000-08:00

Five Ways to Survive the Housing Slump

Expert advice for would-be sellers and buyers.
By Daniel McGinn | Newsweek

The National Association of Realtors has just launched a new ad campaign touting why buying a house "is a decision you shouldn't postpone any longer" and reminding buyers that "the value of a home nearly doubles every 10 years." But real-estate agents' forecasts have a history of being ridiculously optimistic. At the other extreme, housing bears like John Talbott say homeowners' current woes have only just begun. Here's his advice for would-be buyers and sellers right now:

What was your house worth in 1997?
When John Talbott figures how far prices have to fall, he figures they'll return to 1997 levels, since that was the year in which many of the aggressive lending practices—like interest-only mortgages—really began to take off.

Take a hard look at your mortgage.
"There are very few good deals left in the world for consumers, and fixed-rate, 30-year housing debt is one of them," Talbott says, particularly if homeowners set aside money to pay it off faster than the lender requires.

Follow the bailout talk.
Talbott says most people with adjustable-rate mortgages would be better off with a fixed-rate mortgage, but that makes two assumptions: that they can afford the larger payment on a fixed-rate loan, and they believe the government isn't going to offer some sort of bailout plan for borrowers who've gotten in over their heads with mortgage debt. People in mortgage trouble who are thinking about refinancing would be wise to watch headlines about bailout proposals, he says.

Think about home renovations as an expense, not an investment.
During the boom many homeowners came to believe the money they spent on a new kitchen or bath constituted savings, since improvements would only add fuel to their home's soaring value. The bust should help people understand that every dollar homeowners spend on a renovation rarely pays back $1 when they sell the house, Talbott says. Renovations are mostly about comfort and status, not about improving home values, he says.

It may still pay to sell now instead of later.
With home values down, some people may be inclined to hold off listing a home in the hope of a quick recovery. But if Talbott is correct, home prices have only begun to fall, and someone who can sell his home for 5 or 10 percent less than what he thought it was worth during the boom would do very well.

2007-11-07T10:28:00.000-08:00

Mortgage brokers fear 'extinction' if new bill passes

Losing yield spread premiums would destroy revenue model, group says

The National Association of Mortgage Brokers is so concerned that recently proposed legislation would crush its revenue model that it scheduled national teleconferences and prepared sample letters for members to mail to their respective congressmen.

In an e-mail to all NAMB dated Nov. 1, Denise Leonard, the organization's government affairs chairperson, wrote:

"Mortgage brokers are facing extinction. The U.S. House of Representatives is considering a bill that will fundamentally change the way we are paid, outlaw YSP, and legislate underwriting guidelines into law. Additionally, we fear that all subprime lending will cease to exist due to excessive lender liability. …''

NAMB members reported that 500 phone lines were made available for two teleconferences last week -- and all lines were busy. An unknown number of brokers could not get through due to the volume of calls.

The bill, H.R. 3915, is known as the Mortgage Reform and Anti-Predatory Lending Act of 2007 and was recently introduced by House Financial Services Committee Chairman Barney Frank, D-Mass., along with Democratic North Carolina Reps. Brad Miller and Mel Watt.

A mortgage broker is often confused with a mortgage banker. A broker does not actually lend money. A broker acts as a liaison between a consumer who needs financing for a mortgage loan and a lender who has money available to finance the purchase. The broker brings the lender and borrower together.

Mortgage brokers receive a loan fee from either the borrower or the lender, or both. Borrowers may pay brokers an origination fee based on a percentage of the loan amount. In some cases, the broker receives a fee from the lender. Fees paid by the lender to the broker are known as yield spread premiums (YSPs). It is this fee that brokers are concerned about losing.

Mark Thomason - 408.850.3085
Offering Flexible Real Estate Commissions to Save my Clients Thousands!

2007-11-01T09:04:00.000-07:00

How to Raise Your Credit Score 100 Points in 45 Days

1. GET RID OF YOUR COLLECTION ACCOUNTS.

Did you know that paying a collection account can actually reduce your score? Here’s why: credit scoring software reviews credit reports for each account’s date of last activity to determine the impact it will have on the overall credit score. When payment is made on a collection account,collection agencies update credit bureaus to reflect the account status as “Paid Collection”. When this happens, the date of last activity becomes more recent. Since the guideline for credit scoring software is the date of last activity, recent payment on a collection account damages the credit score more severely. This method of credit scoring may seem unfair, but it is something that must be worked around when trying to maximize your score. How is it possible to pay a collection and maximize your score? The best way to handle this credit scoring dilemma is to contact the collection agency and explain that you are willing to pay off the collection account under the condition that the all reporting is withdrawn from credit bureaus. Request a letter from the collector that explicitly states their agreement to delete the account upon receipt/clearance of your payment. Although not all collection agencies will delete reporting, removing all references to a collection account completely will increase your score and is certainly worth the involved effort.

2. GET RID OF YOUR PAST DUE ACCOUNTS.

Within the delinquent accounts on your credit report, there is a column called “Past Due”. Credit score software penalizes you for keeping accounts past due, so Past Dues destroy a credit score. If you see an amount in this column, pay the creditor the past due amount reported.

3. GET RID OF YOUR CHARGEOFFS AND LIENS.

Charge offs and liens do not affect your credit score when older than 24months. Therefore, paying an older charge off or a lien will neither help nor damage your credit score. Charge offs and liens within the past 24months severely damage your credit score. Paying the past due balance, in this case, is very important. In fact, if you have both charged off accounts and collection accounts, but limited funds available, pay the past due balances first, then pay collection agencies that agree to remove all references to credit bureaus second.

4. GET RID OF YOUR LATE PAYMENTS.

Contact all creditors that report late payments on your credit and request a good faith adjustment that removes the late payments reported on your account. Be persistent if they refuse to remove the late payments at first, and remind them that you have been a good customer that would deeply appreciate their help. Since most creditors receive calls within a call center, if the representative refuses to make a courtesy adjustment on your account, call back and try again with someone else. Persistence and politeness pays off in this scenario. If you are frustrated, rude, and unclear with your request, you are making it very difficult for them to help you.

5. CHECK YOUR CREDIT LIMIT(S) AND EVENLY DISTRIBUTE THE BALANCES YOU ARE CARRYING.

Make sure creditors report your credit limits to bureaus. When no limit is reported, credit scoring software scores the account as though your current balance is “maxed out”. For example, if you know that you have a$10,000 limit on your credit card, make sure that the limit appears on the credit report. Otherwise, your score will be damaged as severely as if you were carrying a balance of the entire available credit. Credit scoring software likes to see you carry credit card balances as close to zero as possible. If it is difficult for you to pay down your balances, read the following guidelines to maximize your score as much as possible under the circumstances:

• There are different degrees that scoring software can impact your score when carrying credit card balances.

• Balances over 70% of your total credit limit on any card damages your score the most. The next level is 50% of your balance, then 30% of your balance.

• In order to maximize your score without having to pay down your balances, evenly distribute your credit card balances among all of your credit cards, rather than carry a largebalance on one credit card. For example, if you are carrying a $9000 balance on a credit card with a$10000 limit, and you have two other credit cards with a $3000 and$5000 limit, transfer your balances so that you have a$1500 balance on the $3000limit card, a $2500 balance on the $5000 limit card and a $5000 balance on the $10000 limit card. Evenly distributing your balances will maximize your score.

6. DO NOT CLOSE YOUR CREDIT CARDS.

Closing a credit card can hurt your credit score, since doing so effects your debt to available credit ratio. For example, if you owe a total credit card debt of $10,000 and your total credit available is $20,000, you are using 50% of your total credit. If you close a credit card with a $5,000 credit limit, you will reduce your credit available to $15,000 and change your ratio to using 66% of your credit. There are caveats to this rule: if the account was opened within the past two years or if you have over six credit cards. The magic number of credit card accounts to have in order to maximize your score is between 3 and 5 (although having more will not significantly damage your score). For example, if a card was opened within the past two years and you have over six credit cards, you may close that account. If you have more than six department store cards, close the newest accounts. Otherwise, do not close any at all.

7. BECOME AN AUTHORIZED USER.

If you have a short and limited credit history you can ask someone who is a primary account holder to add you to their account as a joint account holder or an authorized user. When added, the primary account holder’s credit card will appear on your credit report. Credit scoring software will treat the added account as though it is your account and you will benefit from the low balance and the long payment history for that account. It is important to remember that being an authorized user is helpful for your credit score only if (1) the person is carrying debt below 10% of the credit limit and (2) has had good payment history on the card for seven years or longer. The longer the history, the better. Being an authorized user is potentially detrimental to your credit score if, for example, the primary card holder carries a high balance onthe card and has had it less than five years.

8. KEEP YOUR OLD CREDIT CARDS ACTIVE.

15% of your credit score is determined by the age of the credit file. Fair Isaac’s credit scoring software assumes people who have had credit for a longer time are at less risk of defaulting on payments. Therefore, even if your old credit cards have horrible interest rates, closing those cards will decrease the average length of time you’ve had credit. Use the old card at least once every six months to avoid the account rating to change to “Inactive”. Keeping the card active is as simple as pumping gas or purchasing groceries every few months, then paying the balance down. An inactive account is ignored by Fair Isaac’s credit scoring software, so you won’t get the benefit of the positive payment history and low balance that card may have. The one thing all credit reports with scores over 800 have in common is a credit card that is twenty years old or older. Hold on to those old cards trust me! Preparing credit is a slow and time consuming process. Full knowledge of your credit profile and how it represents you to creditors and credit bureaus is pivotal to full credit restoration success. Credit bureaus always advise individuals that they have a right to dispute their own credit files, but when the rights of the Credit Bureaus slow you down; you know where to ask for help.

Mark Thomason - 408.850.3085