SayEducate

The topic of Identity Theft continues to surface regularly on the news, around the workplace water cooler, and in homes where consumers are trying to figure out the best way to respond when their social security numbers have been stolen, credit cards opened up in their names, and other unauthorized activity taken place. I.D. Theft isn’t merely an inconvenience, it is a problem that can cause much misery for the afflicted consumer.

If you suspect or know that you have been victimized, there are some steps you can take to defend yourself. Thanks to recommendations made by the Federal Trade Commission (FTC), there are four steps you can take to win your battle against identity theft:

1 Review your credit reports, have alerts placed in your files. You are entitled to receive one free copy annually of your credit report from the three major credit reporting bureaus. If you suspect that your identity has been stolen, then obtain copies from TransUnion, Equifax, and Experian. If you instruct one company to place a fraud alert in your file, they are required to inform the other two that an alert has been placed. Visit AnnualCreditReport to obtain your free credit reports.

2. Close tampered or fake accounts. Any credit accounts you opened should be closed as well as accounts not opened by you, but in your name. You’ll need to contact the fraud departments of each business and there are steps on the FTC site instructing you how to do this.

3. File a complaint with the FTC. By notifying the FTC of I.D. Theft, you can help this agency track theft trends which are shared with law enforcement people across the country.

4. File a police report. Notify your local police or the police in the locality where the theft took place. Some locales may be hesitant to take your report, while others may be required to do so under state law. In some states, notifying the state police is the best approach.

Once that you have identified that you are a victim of I.D. theft, taking immediate action is necessary. The longer that you wait, the worse the problem can become.

Further Reading And Resources

Credit Management Center

Defend: Recover From Identity Theft

Free Credit Reports

I had good laugh recently when I came across an article written by a real estate agent who insisted that condos are a “great buy” and that they hold their value in a down market. Tell that to the thousands of Florida condominium owners who can’t get rid of their properties without taking a major loss!

True, in some markets condominium sales are still strong, particularly in downtown markets that are poised for explosive growth. Our nearby capital city, Raleigh, is one area that comes to mind. In Raleigh, new buildings are going up or being converted and the condos are selling at a brisk pace.

For many other areas of the country, it is truly a buyer’s market. Overbuilding, a tight economy, mortgage problems, and hesitant consumers are some of the reasons why condos aren’t selling. Or, if they are, they’re selling at a deep discount.

If you are in a position to buy a condo right now, you could come across a good find. However, even in similar desirable neighborhoods there are some things you should know before choosing a particular condo:

The HOA — An HOA or Home Owner’s Association consists of a group of people who also live in the same condo development and are responsible for overseeing its care. Each HOA has a rule book which you should be familiar with before buying. For example, you may enjoy growing tomatoes on your balcony, but the HOA could forbid this practice. After paying $320,000 for a two-bedroom, two-bath unit with a great view, is this something that you can accept?

Fees — You’ll be paying a monthly fee to the HOA for keeping common areas in order, removing trash, shoveling snow, etc. This fee can add $80 to more than $500 to your expenses each month. You may get “a deal” when buying your condo, but that excellent buy can evaporate once you figure in association fees.

Property Taxes — Thinking that property taxes can’t possibly be all that high, many condo owners are stunned to learn just how expensive their taxes are and how easily they can move up when the city raises taxes.

Insurance — Your HOA fee will cover some of the insurance costs for the building, but you’ll be responsible for insuring your unit and everything in it. Talk with your insurance agent in advance to learn how much you can expect to pay for homeowner’s insurance.

Once all of the related expenses have been determined, you are in a better position to negotiate price. If the market is slow, then you have additional leverage to ask the seller to lower his price. Compare recent sale prices with the unit you are considering to come up with a fair offer.

Finally, there isn’t anything better than a top location to determine if your condo is worth buying. Check out the neighborhood, walk around the condo building, and hang out in the unit you are interested in buying to get a feeling for noise levels, lighting, the ambiance, and more.

With the market in your favor you can choose to be selective and take your time: unloading an unwanted condo can be difficult to do, especially in a tough market.

If you recently lost your home to foreclosure, how long do you think it’ll take before you can become a homeowner again? 5 years? 7 years? Maybe even 10 years?

Many consumers believe that once they have lost a home to foreclosure, they won’t have the opportunity to purchase another home for many years. Thinking that their credit is trashed and that a foreclosure will be on their credit report for 7 or 10 years, perhaps longer, some people are under the impression that homeownership is off limits.

True, a foreclosure will be on your credit record for beyond the seven year period that most bankruptcies are listed. Yet, having a history of a foreclosure doesn’t have to stop you from buying another home. Moreover, you could find yourself in another home a few months post foreclosure.

Most conventional lenders will not consider lending you money for a home quickly, for the simple reason that if you lost a home recently, then you could lose your home again. But there are factors which might be taken into consideration by the lender:

• You lost the home due to divorce, an illness, loss of job, or some other valid reason.

• You have the cash on hand to put at least 20% down on the home you want to purchase.

• You are willing to pay a higher interest rate, perhaps as much as 2% over the current rate offered to their best borrowers. Along with the bigger down payment and possibly including some points, a lender may decide that you are a risk worth taking.

Loans and loan rates are always determined based on risk factors. If a lender believes that you are worth the risk and you can put down a large amount of cash, then you could be considered for a loan.

Granted, you’ll pay tens of thousands of dollars more interest payments with a higher risk loan, but you can always refinance later especially as your credit improves and a lower rate is offered to you.

Home ownership post foreclosure isn’t a given, but it isn’t impossible either. You must demonstrate to a lender that you are worth the risk and hope that they can see past the problems which caused you to lose your home in the first place.

Resources

Bank Home Equity Program

Credit Management Center

Home Equity Calculators