The JDavis Report

Building Credit, Part II

thejdavisreport — Wed, 09 Sep 2009 00:01:51 +0000

Here are several ways you can begin to build a good credit history:


	1	Open a checking account or a savings account or both. These do not begin your credit file but may be checked as evidence that you have money and know how to manage it. Cancelled checks can be used to show that you pay utilities or rent bills regularly, a sign of reliability.
	2	Apply for a department store credit card. Repaying credit card bills on time is a plus in credit histories.
	3	Ask whether you may deposit funds with a financial institution to serve as collateral for a credit card; some institutions will issue a credit card with a credit limit usually no greater than the amount on deposit.
	4	If you’re new in town, write for a summary of any credit record kept by a credit bureau in your former town. (Ask the bank or department store in your old hometown for the name of the agency it reports to.)
	5	If you don’t qualify on the basis of your own credit standing, offer to have someone cosign your application.
	6	If you’re turned down, find out why and try to resolve any misunderstandings.

Building Credit, Part I

thejdavisreport — Mon, 07 Sep 2009 19:17:41 +0000

A Good Record

The best way to maintain your credit standing is to repay all debts on time. But there may be complications. To protect your credit rating, you should learn how to correct mistakes and resolve misunderstandings.

When there’s a problem, first try to deal directly with the creditor. Credit laws can help you settle your complaints without a hassle.

On your first attempt to get credit, you may face a common frustration: sometimes it seems you have to already have credit to get credit. Some creditors will look only at your salary and job and the other financial information that you put on the application. But most also want to know about your track record in handling credit, namely, how reliably you’ve repaid past debts. They turn to the records kept by credit bureaus or credit-reporting agencies, whose business is to collect, store, and report information about borrowers that is routinely supplied by many lenders. These records include the amount of credit you have received and how faithfully you’ve repaid

Bringing the Dream within reach in 2009

thejdavisreport — Sun, 06 Sep 2009 06:31:58 +0000

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.

Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer’s income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

Short Sales

thejdavisreport — Wed, 02 Sep 2009 01:19:24 +0000

Attention Homeowners!!!
Behind In Your Mortgage & Facing Possible Foreclosure
Well, A Short Sale Maybe An Option Prior To Foreclosure

What Is A Short Sale?
A short sale occurs in the pre-foreclosure process. Once a homeowner has received a Notice of Default (NOD), he/she has a specified amount of time to cure the default or the lender will start proceedings to foreclose on the mortgage. It allows you to sell your home even if you don’t have equity. A Short Sale is a great solution for many homeowners because it allows them to get out from under the debt, walk away with head held high, and save credit scores from incredible damage of a “foreclosure” rating.

Foreclosures on the rise…. again

thejdavisreport — Fri, 24 Apr 2009 21:04:22 +0000

The moratoriums put in place by the banks and asked for by the Obama administration are now expiring. As a result of this, banks are beginning to continue with business as usual. J.P Morgan Chase & Co., Wells Fargo & Co., Fannie Mae and Freddie Mac all say they have increased foreclosure activity in recent weeks. They have begun to determine which troubled borrowers are candidates for help, and are now moving the rest through the foreclosure process. Foreclosure related filings increased by nearly 6% in February from the month earlier, and were up almost 30% from February 2008, according to RealtyTrac. Due to this foreclosure increase, home prices are sure to fall; along with their values. Banks say that if there is any borrower contact, they will hold off on the foreclosure process until they have exhausted every effort to assist that borrower. As tempting as it may be, if you’re in trouble, don’t avoid communicating with your lender.

The Banks: friend or foe

thejdavisreport — Mon, 20 Apr 2009 22:49:59 +0000

Are the banks really lending as promised to the people? Data recently released from the Treasury Department shows the biggest recipients of taxpayer aid only made or refinanced 23% less in new loans in February, as compared to October 2008. I’m sorry, but that seems to be going in the wrong direction. The Obama administration is trying to defuse any backlash arising from the banking bailout. I don’t know about you, but the days of keeping cash in your mattress, shoebox or safe at home may be returning. Many of the new loans are people refinancing existing loans. Banks are quick to say that there is little demand from consumers and business. well, when you look at how stringent the requirements have become, there is no wondering. Of the banks shown to being doing a large portion of lending overall are Bank of America and Wells Fargo for the average consumer and State Street for the well to do. Keep you eyes open and your hand on your wallet, we’re in for a long ride.