HEALTHY CREDIT SEMINARS

Northwest Indiana Schedule

The Healthy Credit seminars are presented to the public free of charge in an effort to educate consumers on how to access, interpret and correct their credit reports. Because of the recent changes in the lending guidelines of the mortgage lenders, having a good credit score could mean the difference between getting approved and being denied a loan to purchase or refinance a home.

A 2004 PIRG report indicated that 79% of ALL credit reports contain errors of some type and that 25% are serious enough that the borrower is denied the loan. Do you know what’s on your report?

Identity Theft is the nation’s fastest growing white-collar crime and affected 8.4 million consumers in 2007 alone. The average amount of fraud was $5,720 PER VICTIM and totaled 49.3 BILLION dollars. This hot topic will also be covered!

The seminars have been very well received and the speakers have been invited back to continue to lecture on a regular basis, as well as appearing on “Your Credit, Your Life, Your Home” on WIMS Radio AM 1420.

The Healthy Credit seminars are brought to you in cooperation with our preferred real estate agent partners and sponsored by Mortgage Professional Group, Inc. of Valparaiso. Please note that without them, we would be unable to present this program at no charge to the attendees. Unlike many seminars, neither we nor our partners or sponsors will be asking you to purchase any products or services.

Schedule of Events:

None Scheduled Yet Due To Winter Break

These seminars, which usually last between 45 and 60 minutes, are designed to help you understand your credit report and manage it after life changing events such as divorce, bankruptcy, illness / injury and identity theft. It will also cover how to keep the credit reporting agencies from selling the consumer’s information to other marketers who may not have their best interest in mind.

Attendees are encouraged, but not required, to bring a copy of their current credit profile to the program. This may be downloaded once a year at www.annualcreditreport.com . Attendees will be given important information to take home to share with family and friends. A question and answer period will follow.

We can provide this program to your church, school, civic group or other organization free of charge. If you are interested or would like more information, please call 219-695-0369 or email us here .

Credit Management Resources

If you would like more information on managing credit, you may access our free reports under the “Resources” section on the left of your screen.

You may also find valuable information on the following sites:

www.annualcreditreport.com or call 877-322-8228 to get a FREE copy of your credit reports. This is the official site that is monitored by the government. You are NOT required to sign up for credit monitoring to get a free report every 12 months.

www.optoutprescreen.com or call 888-567-8688 to opt-out of firm offers of credit and insurance. This is one way to help prevent unsolicited offers of credit and possibly decrease your chances of identity theft.

Federal Trade Commission The official government site to educate consumers about the laws and regulations of their financial transactions. Go here to file a complaint if you have become a victim of identity theft or to learn your rights under the Fair Credit Reporting Act.

Indiana’s Credit Freeze Law This link to the Indiana Attorney General’s website explains the program. Click here to download sample forms to send in to freeze your credit file.

The 3 Credit Reporting Agencies have websites that contain information related to your credit and ID Theft, as well as other information such as how to dispute items and government regulations. The sites are as follows:

Experian …………… Equifax …………… Trans Union

What They’re Saying About Us

(What I liked best was) all the extra info I didn’t already know – things to avoid & things to do with my credit. M.S. Crown Point, IN

It was very helpful and informative after my divorce. D.L. Valparaiso, IN

Job well done – very helpful and learned a lot. C.M. Valparaiso, IN

Scott, I very much enjoyed your seminar and I learned a LOT! I love learning new things….. you have a terrific background in finance and are very, very knowledgeable of your field. M.M. Valparaiso, IN

You are very knowledgeable and easy going. I feel comfortable asking questions. S.G. Lake Station, IN

Thanks Scott, it was great. J.S. Merrillville, IN

10 myths

Outside Resources

In the past, I have been asked to make recommendations for books or other products that I use. Although I have a fairly large library, I have never explored many of the topics my clients are asking about.

In an effort to provide a little guidance, I have put together a list of resources for my readers. The first set, housed on Amazon.com are books and videos that I personally have personally read or watched and endorse. They are among the most regarded books in my library.

This is What I Recommend

The following links are to resources that I have not yet tried. They appear to be some of the most popular books and videos, and, in keeping with my strong beliefs that you cannot be too educated, I believe that if you pick up one small bit of information from these materials, they will pay for themselves.

I can make no guarantees of the information they contain. Please check them out before you purchase.

Powerful Personalized Mortgage Acceleration System – They claim that this will help you pay off your mortgage up to 13 years sooner than scheduled and help save thousands of dollars in mortgage interest.

How to Market REOS - For Realtors: How to market to asset managers and get maximum market exposure for your REOs.

Guaranteed Foreclosure Solutions - Step By Step Guide For Homeowners To Quickly Stop Their Foreclosure.

31 Days To Profits In Probate Real Estate – Discover How You Can Make Thousands of Dollars Each and Every Month Investing in Probate Real Estate with LITTLE or NONE of Your Own Money.

Foreclosure Defense Secrets - This Program Is A Necessity For Any Homeowner Facing Foreclosure Or Even Just Behind On Their Mortgage.

Real Estate With No Credit Checks – Invest in Real Estate with no credit checks and only $1-$10 Down.

Get Paid to Buy Houses - How to buy your first property within 10 days of reading this report.

Tax Lien Investing Secrets - Online Course – How To Invest In Tax Lien Certificates And Tax Deeds.

Build Massive Wealth With Foreclosures - Step By Step Formula For Building Massive Wealth Through Real Estate Foreclosures.

Foreclosure Profits NOW - Put money in your pocket in 30 days.

Be a “Deed Grabber” - Discover How to Make Thousands Of Dollars With Tax Sale Properties…Without Attending Auctions or Buying Tax Liens!

How To Sell Your Home In 21 Days Or Less – With Or Without A Realtor - The Secret To Selling Your Home In Just 3 Weeks Or Less In A Down Market. Easy Step-by-Step Real Estate Program Is The Perfect Solution For Hard-To-Sell Homes. Used By Both Realtors And ForSaleByOwner Home Sellers.

Build A Fortune With Real Estate Foreclosures And Short Sales - Real Estate Foreclosure Short Sale Course Reveals From Beginning To End How To Short Sale A Property.

Quick Cash Real Estate System Package - What 2008 Sub-prime Mess? 2008 Is Creating The Biggest Opportunities For Real Estate Investors In Our Life Time. Learn The Strategies!

Some of these items may be affiliate links which means I may make a couple bucks (if that’s OK with you).

Mortgage Industry Links

Privacy

The information you might need to provide at the time of your application is provided here in a convenient checklist. You should be aware that you and your spouse (or other co-borrower(s)) must provide all requested information.

Purchase Contract And Property Information

• Complete copy of the purchase & sales contract signed by both buyers and sellers
• Contact information for access to the property
• Plans and specifications (new construction only)
• Evidence of septic pumping and county certification (FHA and VA loans only)
• Copy of current well test and county certification (FHA and VA loans only)

Refinance Information

• Copy of current mortgage statement
• Insurance agents name and contact information
• Copy of “Note” from the purchase or previous refinance of the property

Personal Information

• Social Security Number
• Age
• Years of Schooling
• Marital Status
• Number and age of dependents
• Current address and telephone number
• Address for past two years (if more than one)
• Current housing expenses (rent, mortgage, insurance and taxes)
• Name and address of landlord/mortgage holder (past two years only)

Employment History And Income

• Two years of employment history
• Recent 30 day’s worth of paystubs and 2 years of W-2 forms and tax returns
• If self employed, complete personal and corporate tax returns with current profit and loss statement
• Records of dividends and interest received
• Proof of other income (award letters for social security, retirement, pension or military retirement)

Assets

• Current 2 months’ statements for bank and money market accounts
• Current statements for stocks, bonds, mutual funds, and other investments
• Vested interest in retirement funds
• Face amount and cash value of life insurance
• Information on any cars you own
• Information on any real estate you own
• Value of any significant personal property you own

Liabilities And Debts

• Itemized list of all current debts: loans, credit cards, child support payments, 401k loans and any other bills (that DO NOT appear on your credit report)
• Written explanation of any past credit problems
• Written explanation of all inquiries on your credit report during the last 6 months
• Full details of bankruptcy during the last 7 years, if applicable
• Cancelled checks to show on-time rental payments (renters only)

Additional Items Needed

• Copy of divorce decree, which should include property settlement statement and order of child support
• Complete bankruptcy papers, discharge notice and any other supporting documentation (if bankruptcy occurred in last 7 years)
• Original certificate of eligibility (VA loans only)
• Copy of DD214 or Statement of Service (VA loans only)

To view this form in a printable file, click here.

Interest RAtes

Current State of Mortgage Financing…What’s Going On?

Anyone watching or reading the financial news over the last few weeks has seen a lot of angst and consternation over the state of the mortgage industry. In fact, one of the larger lenders in the US, American Home Mortgage, was forced to shut down operations recently. But why? What is happening, what does all this mean to you and most importantly… what should you be doing do right now to make sure you are protected?

Here’s the scoop.

Over the past several years, many loans were made to homeowners with somewhat non-traditional or “non-conforming” situations, be it a poor credit history, inability to document income, or any number of factors that do not fit within the traditional “box” for home loans. These loans are often called “Sub-Prime”, or “Alt-A”, meaning that they were somewhat riskier in nature than A credit, prime, or traditional loans. Another type of “non-conforming” home loan is one where the credit and income might be perfectly fine, but the loan amount is higher than $417K, which is the current maximum loan that can be done using pools of money from mortgage giants Fannie Mae (FNMA) and Freddie Mac (FHLMC). If the loan amount is higher, it can certainly be done – it’s called a “jumbo loan” – but the end money comes from private institutions, not from the large government sponsored entities of Fannie and Freddie.

Most non-conforming loan product rates popped significantly higher recently. Here’s what happened.

The end investor for Subprime or Alt-A loans will charge a premium for taking on a pool of these loans, because they know that traditionally, they might have a higher rate of default and delinquent payments within that risky pool. But lately, default and foreclosure has been on the rise – partly due to the fact that with credit tightening and a soft real estate market, many troubled homeowners are unable to refinance or sell in order to get out of trouble. So now, these end institutions are demanding a much higher “risk premium” for taking on these pools of loans, as they see the rates of default are climbing higher.

But since these institutions are purchasing these pools of loans sometimes months after the borrower has actually closed at a given rate, this increase to the risk premium means that instead of paying $101K for a $100K loan that will bear interest, they may only be willing to pay $95K for that $100K mortgage to account for the risk. Multiply that times thousands upon thousands of loans…and you have millions upon millions of dollars in loss for the company trying to sell the pool at a much lower price than they were expecting. This is called a “liquidity crisis”, and is exactly what happened to American Home Mortgage – there was no mismanagement, but they simply got caught holding too many “hot potato” loans, forced to sell them at massive losses…and eventually they had to make the decision to close the doors and stop the bleeding.

Further, even when a lender is able to take some losses, they may be subject to a “margin call”. This means that as their losses and risk premiums increase, the value of their loan portfolio decreases. As the value decreases, the credit lines that are secured by those portfolios begin to issue margin calls as the value of the asset that they are secured on is now diminished. This is exactly like margin calls in the Stock market. If you have a loan against a Stock that is losing value, you will get a “margin call” and need to pay down the loan, as the underlying Stock is losing too much value to be considered adequate collateral any longer. So for the big lenders, as their portfolio is losing value due to increased risk premiums and losses…the margin calls start coming in, and they are required to pay down their balances. In turn, this means that they have less availability to fund their new loans, which then exacerbates the problem.

In response to seeing this situation play out in the demise of American Home Mortgage, lenders of other non-conforming loan products increased their interest rates dramatically almost overnight to be better prepared – and likely over-prepared – for increased risk premiums down the road. Even though loans above $417K are not presently suffering from increased delinquencies like the Subprime and Alt-A loans are, these rates popped higher as well, because they are being purchased by smaller private entities that can’t afford to take on any margin of risk.

What happens next? The major damage is probably already done, and the present situation will likely settle out over the coming year. Lenders will stop pulling products off the shelf, and the rates on products that have moved so significantly higher now should trend lower down the road as delinquency rates stabilize.

But here are a few important things YOU should do right now:

ONE: Even if you are not presently in the market for a home loan of any type, make sure that your credit standing is as solid as possible. Many people in the market for a home loan didn’t expect they would have a need, and didn’t plan in advance to ensure their credit would qualify them for the best possible financing. With no immediate need for a home loan, time is on your side… why don’t we take a few minutes together and just make sure you are prepared, should a need arise down the road? Call or email me right away.

TWO: If you are in the market for a home loan, or know someone who is – understand that now is the time to be working with a real qualified professional who can keep you informed of changes in the market and get your loan funded quickly. Now is NOT the time to be playing the risky game of trying to scour the entire nation to find someone who promises to save you a paltry amount on costs, or deliver a rate that seems too good to be true.

Your home and your financing are just too important, and times have changed. I am here to help and advise during these volatile times – and would welcome calls from you, your friends, family, neighbors or coworkers.

PR: wait… I: wait… L: wait… LD: wait… I: wait… wait… Rank: wait… Traffic: wait… Price: wait… C: wait…