Negative Equity Rates Falling

Thursday, October 2nd, 2014

Zillow’s most recent report states that the percentage of homes with negative equity in metro Denver fell to 9.7 percent in the second quarter of 2014, a substantial drop from the second quarter of 2013, when the negative equity rate in the area was 15.3 percent.

  • Metro Denver’s negative equity rate has fallen 70 percent since its peak in 2011.
  • The Zillow Negative Equity forecast predicts that the negative equity rate among all homeowners with a mortgage in metro Denver will fall at least 8.8 percent by the second quarter of 2015.
  • The Zillow report also shows that nationally, millennial homeowners held 19.6 percent of all underwater mortgages while Generation X held 18.7 percent and baby boomers held 10.9 percent.

Take a look at our listed homes. Contact us if you have any questions about buying or selling real estate.

Alaris Properties, LLC

Foreclosure versus Short Sale

Tuesday, October 11th, 2011

In these difficult economic times, I am commonly asked whether it would be better to have a short sale or a foreclosure on ones credit report. The answer is complicated and has lot of moving parts.  A short sale shows up on your credit report as a “derogatory report”; however, it will usually show up on your report as “short sale” or “settled for less then the full balance”. Of course, this will reflect negatively on your credit report. If you have not had any late pays prior to the short sale, your score will likely drop somewhere between 75 and 120 points. Each person’s credit score will vary depending on several factors, such as how much credit you have, how much of your credit facility you are currently using, and how long you have had certain types of credit.  You will unlikely be able to obtain a home loan for a couple years. As a general rule, if one has a foreclosure on a credit report, then the waiting period is up to 7 years. The period may be reduced to 3 years if you fit into one of the extenuating circumstances. You should speak with a mortgage broker to see which of the extenuating circumstances may help you reduce the hold period to 3 years. In fact, my best is advice is to speak with more than one mortgage lender so that you may educate yourself about various lender requirements. Please know that different lenders may vary their interpretation of the underwriting requirements, and private lenders may adopt their own underwriting requirements.

Steps To Get and Keep a Good Credit Score

Friday, September 23rd, 2011

Pay your bills on time- Pay your bills on time, every time! One way to make sure your payments are on time is to set up automatic payments on the creditor’s website or from your banking institution. Make sure that you have enough funds to clear the account, otherwise the account will show late. Also, don’t just pay the minimum balance if you can afford to pay more. This helps you to pay off the balance sooner, and help you credit rating along the way.  

Don’t get close to your credit limit- Credit scoring models look at how close you are to being “maxed out”, because the formulas predict that people using too much of their available credit may have future troubles repaying their debt. If you use too much of your available credit, you could hurt your scores. Always make sure to have your credit cards paid down under 30% of the available credit.

Surprising tips to raise your credit score

Wednesday, September 14th, 2011

Here are powerful tips to raise your credit score

 We recently read an article on MSN.com that outlined tips to increase your credit score.  As you all know, we believe that knowledge is power, and that is why we live by our motto:  “Knowledge is Key.” 

In the article, “Credit score tips that don’t make sense,” http://money.msn.com/credit-rating/article.aspx?post=f6a9da26-d789-40a5-b178-e16ce186ac82, we noticed that Stacy Johnson commented on an article by Jason Steele.  In summary, Jason said the following:

  1. Your scores improve when you have lots of loans;
  2. More credit cards can mean better scores;
  3. You need to pay your credit card balance every day;
  4. Don’t cancel your credit cards; and,
  5. Shop fast when it comes to mortgage loans.

 We decided to run this article by our resident credit expert, Sarah Kahley-Rufo with A+ Credit Consulting.  We have found Sarah to have an incredible depth and breadth of knowledge.  Here is what Sarah had to say about the article:

Reverse Mortgages – The First of the Five Most Important Loan Program

Friday, September 9th, 2011

What are some of the best loan programs available today?

Remember that Knowledge is Key – and we want you to know about all the various loan programs available to you. We want you to choose the loan program that will best serve your long-term needs. 

 Over the next few weeks, we will publish guest blogs written by Christian Durland on:

1. Reverse Mortgages
2. Colorado Housing and Finance Authority or “CHFA” loans
3. FHA 203k Loans
4. USDA Rural Development Loans, and
5. VA Loans

 In the first of the series, we will discuss reverse mortgages because we want you to make the most of the equity you have in your home.  Today, there are more options for retired individuals and couples than ever.  Whether you are looking to pay off bills, would just like additional income to enjoy retirement, or even purchase a new home, a reverse mortgage could be the answer.

Credit Scores and Reports — Knowledge is Key!

Tuesday, August 16th, 2011

Your credit report shows information about how you have used credit, such as how much credit you have, how much of your available credit you are using, whether you have made your payments on time, and whether anyone has sent a loan you owe to a debt collector.A credit score is a number that is used to predict how likely you are to pay back a loan. Your credit score starts with information about you from your credit report. A mathematical prediction formula is applied to this information about you from your credit report. That prediction formula, which is called a scoring model, creates a number which is your credit score. You have numerous credit scores.

Credit scores are used by companies to make decisions such as whether to approve a mortgage at a certain rate or issue a credit card. Different lenders use different scoring formulas so your score can vary from lender to lender. A higher credit score makes it easier to qualify for a loan and means a better interest rate. Most scores range from 300-850. Anything over 720 is considered A+ credit. Do you know your score?

Buying a House? Don’t Buy a Car – or Did You Already Buy One?

Wednesday, August 3rd, 2011

When an individual’s income starts growing and they manage to set aside some savings, they commonly experience what may be considered an innate instinct of modern civilized mankind: the desire to spend money. Since North Americans have a special love affair with the automobile, this becomes a high priority item on the shopping list. Later, other things will be added and one of those will probably be a house.

However, by the time home ownership has become more than a distant and hopeful dream, you may have already bought the car. It happens all the time, sometimes just before you contact a lender to get pre-qualified for a mortgage.

As part of the interview, you may tell the loan officer your price target. They will ask about your income, your savings and your debts, and then give you their opinion. Often you may hear, “If only you didn’t have this car payment, you would certainly qualify for a home loan to buy that house.” The remainder of this article explains the reasons for this.

IRS to give Tax Lien holders a Break!

Wednesday, May 18th, 2011

Up until now a tax lien, paid or unpaid could haunt your credit report for a long time. Depending on what state you live in, a paid tax lien could stay on your report for 7-10 years and an unpaid lien could stay on indefinitely.  The IRS announced in February they’re about to give those with tax liabilities a break.

The first action the IRS has taken is raising the lien threshold from $5,000-$10,000.  According to IRS Commissioner Doug Shultman, “Raising the lien threshold keeps pace with inflation and makes sense for the tax system.  These changes mean tens of thousands of people won’t be burdened by liens; and this step will take place without significantly increasing the financial risk to the government”.

Do’s & Don’ts During The Loan Process

Wednesday, April 27th, 2011

When you fill out a credit application, your mortgage broker will run a credit report for the underwriter. Each lender and each loan program has different guidelines they must follow. You should not do anything that will have an adverse affect on your credit score while your loan is in process. I know it’s tempting… If you’re moving into a new home, you might be thinking about purchasing new appliances or furniture, but this is really not the right time to go shopping with your credit cards. We sometimes see clients buy a new car in the middle of qualifying for a mortgage loan. This can cause problems. You’ll want to remain in a stable position until the loan closes and give your lender the opportunity to help you lock in the best interest rate possible. Before you make any purchases with credit, please speak with your mortgage broker so that you will know what impact your decisions could have.

What You Don’t Know About Credit Could Hurt You

Tuesday, March 22nd, 2011

Here are 5 major factors that could hurt your score:

  • 35% of the score depends on payment history, taking into account late payments. (One late pay could cost you 75 to 100 points). It is important to pay your bills on time.
  • 30% depends on how much debt you have. Your score may be lower if you owe more than one-third of your available credit. (Always keep your revolving credit paid under 30% of the available credit, anything over that will drag your score down).
  • 15% depends on credit history. The longer your credit history is better. Hint: DO NOT close your oldest account or try to open multiple accounts at the same time, or your score is likely to drop.
  • 10% considers how you handle a variety of debt, from student loans to mortgages to credit cards. (Don’t focus on just one type of credit, meaning installment or revolving. Try to have at least 2 revolving credit cards and one installment loan, like a student, auto or home loan).