Landlords Dance The FICO Fandango

Fair Isaac Corporation is the creator of the FICOcredit score that is used today by most lenders toevaluate consumer credit risk. FICO scores rangefrom a poor credit low of 500 to a best credit ratingof 850.

The higher the FICO score the lower the interest ratesoffered by most lenders. For example here is a lookat how FICO scores might affect a $150,000 30-year,fixed rate loan:

Score Interest Payment

720-850 5.64% $865

700-719 5.77% $877

675-699 6.30% $929

620-674 7.45% $1,044

560-619 8.53% $1,157

500-559 9.29% $1,238

Rates change frequently, but you can check the dailyaverage at myfico.com.

Fair Isaac has extended its FICO score to cover anexpanded population base. This expanded FICO coveragewill tap into non-traditional sources of consumer datato assess the credit risk of adults who have minimalor no credit history on file - such as recent immigrants, people with low incomes, recent widows and divorcees, and young people.

The company has tapped into non conventional ways ofestablishing credit scores. People pay rent, theypay catalog companies when they order something,they pay back payday loans -- there are various wayspeople show financial responsibility and Fair Isaacwill now be gathering that information to help determine FICO scores.

An estimated 160 million Americans have documentedcredit histories adequate for calculating classicFICO credit scores. An estimated 50 million consumers do not. Now that will change.

For real estate investors and landlords this means that we should be able to find a few more credit worthy buyers and renters than in the past.

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About The Author
Mark Walters is an investor and author. You can find hispublished material at http://www.CashFlowInstitute.comhttp://cfiblog.blogspot.com/

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.

The Standard & Poor's/Case-Shiller index of 20 large U.S. cities fell 1.3% in November from October as foreclosures continue to drag down the housing market.

Three straight months of home-price declines in the biggest U.S. cities showed that foreclosures remain a significant drag on a housing market that is entering its fifth year of deterioration.

L.A. Clipper Chris Paul may be quick down the court, but he moves pretty fast when it comes to buying multimillion-dollar real estate too.