Encouraging Debt

Most of us don't talk about money, finances, credit, debt....Young people especially go into the real world blind about these issues. They have had it easy or difficult growing up financially. Some kids use their parents credit cards or are even issued one. Some don't have anything above the necessities. Then some "EARN" an allowance and are taught to spend conservatively. I think all of us have a responsibility to steer them in the right direction.

It is necessary to establish credit. Choose, for example a reputable credit card company. Often this can be obtained through the credit union or bank where an account has been active. Carefully read all of the disclosure. Pay close attention to the interest, grace periods and penalties. Most importantly, spend the way you always have and absolutely no more. Charge one or two of the usual expenses and be sure to pay the bill on time. This creates the needed credit and good score to buy bigger things.

Credit is a good thing in some ways. But as we all know it is more often a problem. One problem is people lose control of spending. I think there's something psychological that makes it easier to sign a piece of paper than to write a check or whip out the cash. One is your money, the other doesn't seem to be. The worst part of being up to your eyeballs in debt is that it snowballs quickly and usually hopelessly. There are debt reduction programs and free consultation services and unfortunately bancruptcy. But it's easier not to get there. Another problem is bad credit on the report that's incorrect. Amazingly this happens very often and consumers aren't usually aware of it until they apply for something. It pays to check about once a year. If something is in error it's usually not difficult to get it corrected.

I had a young man (19) come to see me yesterday. He said he wanted to buy a house and no one would pay attention to him. What a sad statement. He has belonged to his credit union for years. He has rented a house for a year and paid the utilities. He's a certified mechanic who took first place in the state. He has worked in the same field for several years. That's more stability than I've seen in some forty year old people. John went to the credit union and spoke to someone in the mortgage department. I'm fairly confident it went well and I will find him a good property and a good deal because I know him and I'm proud of him. I think he was hesitant to talk to me because his mom and I are best friends. I wish the other people had treated him with the respect this young man deserves.

Suzie is a certified residential appraiser, licensed real estate broker and an expert author with twenty years experience in the business. Other professionals in the field have contributed as well. http://www.freewebs.com/realestatenews

Hermosa Beach was the biggest gainer and Malibu the biggest loser in high-priced ZIP Codes last year. San Marino shows a 7.2% decline in its median home price.

Last year brought a dose of real estate reality to San Marino, which alone among Los Angeles County's wealthy areas had managed to avoid the housing bust. The San Gabriel Valley town endured a 7.2% decline in its median home price, erasing gains of the previous two years.

The National Assn. of Realtors is the largest campaign contributor to members of Congress from California in recent years, according to a watchdog study that depicts the nation as a sort of United States of Special Interests.

More than 40 states signed onto a proposed $25-billion deal with major mortgage servicers over faulty foreclosure practices. New York, Nevada and Delaware joined California in holding out for better terms.

More than 40 states signed onto a proposed $25-billion settlement with major mortgage servicers over faulty foreclosure procedures, but California, New York and other key states were still not among them.

California has until Monday to share in a multi-state deal with banks to obtain mortgage relief and reforms. Atty. Gen. Kamala Harris, who walked away from talks last year, says the door remains open.

With a Monday deadline at hand, California officials have resumed direct talks with the Obama administration about joining a multibillion-dollar, multi-state mortgage settlement with the nation's largest banks, a source said Sunday.

The talk show host pays $12 million for the 4,088-square-foot house with four bedrooms and four bathrooms. The ocean-view home sits on 1.26 bluff-top acres with beach access.

In one of the more talked-about transactions in town, actors Brad Pitt and Angelina Jolie have sold their Malibu beach house to daytime host and comedian Ellen De Generes for $12 million.

The four-bedroom, five-bathroom house built in 1920 for industrialist James Wigmore lists for $2,875,000.

A decorative cast stone entrance opens to this restored Spanish Colonial Revival-style house in Pasadena's South Orange Grove area. Built in 1920 for industrialist James Wigmore, the house retains such original details as coffered wood ceilings and arched doorways.

They don't believe they can sell their property for what it's worth, so they're spending money on making their homes more comfortable.

Do you fit any of these descriptions?

A biennial research report by the National Assn. of Realtors indicates that a handful of real estate agents and brokers and their clients either don't know the law or don't care to follow it.

When it comes to lawsuits, real estate agents and brokers tangle mostly among themselves.

The president aims to help about 3.5 million people with good credit who are unable to refinance at historically low rates because their homes are worth less than their mortgages.

 

The White House hopes to help millions of homeowners lower their monthly mortgage bill with a $5 billion to $10 billion plan to set up a streamlined refinancing program for people who are current on their payments.