After steep declines following the housing bust, prices on the national level appear to be leveling off. The median price for an existing home sold in June was $183,700 — up 1 percent from a year ago, according to the National Association of Realtors.

But that figure masks wide variations in prices from one metro area to the next. Home prices were still falling in most metro areas in the first quarter, the latest local data available from the Federal Housing Finance Agency and included in the latest Adversity Index from Moody’s and msnbc.com. Prices had hit bottom in just 71 of the 384 metro areas covered by the data.

Prices in Merced, Calif., the hardest hit metro, have fallen 62 percent since they peaked in the first quarter of 2006, according to the FHFA. Home prices in metro markets in Florida, Arizona and Nevada have taken big hits, too. Of the 25 metro areas with the biggest price declines, 12 are in California, nine are in Florida, and one each in Nevada and Arizona.

Some of those hard-hit markets may have hit bottom. Prices have begun rising modestly in Merced and Fresno, Calif., and in Florida markets like Naples, Punta Gorda, Fort Lauderdale and Melbourne.
Conversely, much of the Midwest and other areas that avoided the housing bubble have seen only mild price declines or gradual recovery. Roughly half of all metro areas in the country have suffered home price drops of 10 percent or less.

Those regions largely avoided the run-up because homes were relatively affordable and didn’t require buyers to take on outsized mortgages. They were also less prone to the invasion of home-flipping investors who descended on the hottest markets in California, Florida, Nevada and Arizona during the boom.

The housing market got a boost in the spring, buoyed by a government tax credit and persistently low interest rates. Home buyers in many parts of the country also were encouraged by signs that the economy appeared to getting back on track. Sales of existing homes posted solid gains in the first quarter and rose 8 percent in April, the last month the tax credit was available.

Since then, home sales have stalled, dropping 5 percent in June. Sales of new homes remain mired at near-record lows. After the first tax credit, sales shot up, and then they just collapsed in November. The same thing happened with this one. Sales shot up, and now they’re going to collapse again. The only question is how deep the drop will be.
Low mortgage rates also haven’t been enough to entice jittery home buyers worried about losing their job. Recent volatility in the stock market hasn’t helped either.

Consumer confidence has taken a hit from all this turmoil in the markets. After slow improvement in the economy in the first half of the year, forecasters have begun paring back their expectations for the second half. As of May, the latest data available, five more states had moved out of recession into recovery, according to the Adversity Index. That put three-fourths of the states in recovery; in the remaining 12 states, the recession was moderating. None remained in full-blown recession.
On a local level, the economy was expanding in two of the 384 metropolitan areas tracked by the index. Of the remainder, 290 were in recovery and 92 were experiencing a moderating recession. None was in full recession as of May.

But more recent economic data point to signs of renewed weakness in the economy. After a strong start in the first quarter, job gains have slowed. As long as the job market remains weak, the housing market will have a tough time getting back on its feet. Market watchers expect prices to drop by another 5 percent nationally before recovering next year and gradually trending higher over the next few years.
The housing market isn’t expected to get back on track until 2013. If you consider that housing market began to collapse in late 2005, that nearly eight years.

That forecast is based in part on the large number foreclosed homes that have yet to be listed on the market. This so-called “shadow” inventory is expected to weigh heavily on prices. That means the biggest price drops may be felt in areas that have already sustained the heaviest damage.

The places that have already fallen so much are at more risk of price declines because of the effect of home foreclosures, especially Florida and Nevada where mortgage credit conditions are really pretty poor. We’re going to see more foreclosures — even with the government’s effort to modify loans and stem this problem.

So far, that government effort has produced relatively few permanent loan modifications; in many cases, foreclosures have been delayed but not avoided. As a result, some three years after the housing bust, the foreclosure rate continues to rise in three out of four metro areas, according to the latest data from RealtyTrac, which collects foreclosure date for the 206 biggest metro areas.

Foreclosure rates are highest in the same states that saw the biggest price declines: California, Florida, Nevada and Arizona. Sales of these “distressed” properties have put pressure on homebuilders to cut prices. Though new home sales bumped up in June from the lowest levels on record, those sales came at a cost. You might be able to keep the sales pace up a bit from that all-time low level. But if you’re offering a lot of incentives to do it, the profit margins are coming down.

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Refinancing applications fell 2.9 percent, and the mortgage market index that reflects total loan demand also fell 2.9 percent. Average 30-year mortgage rates edged up 0.01 percentage point to 4.69 percent, but were near the record low of 4.61 percent set in March 2009, based on MBA records dating back to 1990.

Rock-bottom borrowing costs are helping borrowers with pristine credit to buy and those who still have equity in their homes to refinance. But high unemployment and foreclosures remain major hurdles, and worries that prices could dip further are also keeping many potential buyers on the sidelines. The April 30 expiration of homebuyer tax credits has also sapped summer purchasing activity. Buyers had raced to get in under the gun for the tax incentives this spring, and demand for loans to buy homes has fallen in nine out of the 10 weeks since the credit expired.

Refinancings accounted for 78.7 percent of all applications last week, the same as the prior week. Talk has surfaced of a double-dip in U.S. housing, though most economists doubt a second leg down would be nearly as severe as the first. It’s sort of a self-fulfilling prophecy, but if there’s going to be a double-dip you might as well stay on the sidelines as opposed to coming in to buy. With as much turmoil as there is around loans that need to be modified, short sales, foreclosures – all of those signs really indicate to buyers and investors that there will be better prices come tomorrow.

Prices have toppled about 30 percent, on average, from their peaks four years ago, according to Standard & Poor’s/Case-Shiller indexes. Most estimates are for additional single-digit declines. If there’s one part of the economy that might suffer some sort of a double-dip it might come out of the housing market. Housing economists look for the autumn months to tell the story once the ripple effects of the expired tax incentives are in the past.
There’s been an awful lot of demand shifted forward by the first-time homebuyers credit.

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Not only does poor lighting on walkways and entryways compromise safety and security in your home, it also hurts the overall look of your house. Installing low-voltage fixtures for pathways is a pleasant and welcoming feature to guests. Compact florescent bulbs can last up to 10 times longer than incandescent ones and can give your home a soft, cozy feel.

If your front door doesn’t look good, it’s going to reflect on the rest of the house. Fix it up with new weather stripping and sand or refinish the paint or repaint all together. Don’t forget the details. You can polish any hardware on the door and frame the door with matching pottery or planters. If you’re in the market for a new door, an Energy Star-approved door comes with a $1,500 tax credit.

If your shrubs are overgrown and spilling onto the walkway or driveway, it can give the whole property an unkept look. Use simple hand-operated edge clippers or an electric model for the shrubs can keep them in line. An electric trimmer can work wonders for the edges of walkways.

Brownish grass with a lot of weeds can be an eyesore, even if the house itself is beautiful. It costs as little as $10 to test your soil, and find out exactly what nutrients your lawn needs. Next, buy the kind of grass that will grow best in your area. Remember to water in the mornings and when you cut your lawn, make sure not to take off more than a third of the grass height at a time.

Nothing makes a home look weathered quicker than peeling, fading, cracking or flaking paint. To fix it, you need to asses the damage. If it’s just a little dirt and mildew, a good pressure washing can blast that out. But if the problem’s more serious, it’s time to get out the brushes and rollers. Behr Premium Plus Flat and Semigloss paint which costs less than $25 per gallon is an excellent choice. It’s mildew resistant and is designed to last for nearly a decade.

Damaged decks – those with cracks, missing boards, and loose nails, screws or bolts – not only look bad, but can also be dangerous. Take the fight to the deck with your own set of tools to hammer down loose nails and tighten loose screws. If you can replace one or two boards without too much trouble, that may be the end of your deck dealings. But if the damage requires a more aggressive strategy, you may want to think about replacing the entire deck with a new one.

If your windows are cracked, have rotted frames or other visible damage it could be costing you big time in wasted energy. Caulking or installing new weather stripping can eliminate drafts. If the frames are rotted, you’ll likely have to install brand new windows from the outside, which can be costly. The best windows are clad wood and fiberglass windows that help block cold air and rain. The ones that are Energy Star approved earn you a $1,500 tax credit.

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As an loan originator, AMC works closely with both wholesale and retail mortgage lenders.

• Banks offer loan packages such as fixed-rate mortgages (FRMs) and adjustable-rate mortgages (ARMs) in addition to VA and FHA loans.

• Savings and Loans Associations focus on one- to four-family residential mortgages, multifamily mortgages and commercial mortgages.

Since 1986, the 30 Year Bi-Weekly Arm ( Adjustable Rate Mortgage) has proved to be a popular choice outperforming fixed rate monthly mortgages.

• Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are congressionally chartered, shareholder-owned companies that buys mortgages from lenders and resells them as securities on the secondary mortgage market. The maximum loan amount for both Fannie Mae and Freddie Mac is $322,700.

• FHA Loans (Federal Housing Administration) have some advantages over conventional loans. Since FHA loans are insured by the government, they generally have more lenient qualification requirements, lower down-payment requirements, and they are assumable loans.

The maximum loan amount for an FHA loan (single-family) ranges depending on the county where you live. You can contact a AMC mortgage specialist for these maximum amounts for your specific county. Government loans make up 20 percent of residential mortgages in the U.S.

• VA Loans(Veterans Affairs) carry many of the same advantages as an FHA home loans. However, to qualify for these loans, you must be a qualifying veteran, the unmarried widow of a veteran, a Public Health Service Officer, or an active-duty serviceman. The maximum loan amount for a VA-guaranteed loan is $240,000. No down payment is required for most VA loans.

• Jumbo Loans are conventional loans that are too large for government agencies. Currently, any loan over $322,700 is classified a Jumbo loan. AMC Mortgage Jumbo loans have higher interest rates than conforming loans – typically 0.5 percent to 1 percent higher. Jumbo loans also may have higher down-payment requirements.

Financial contracts can be very confusing. Before signing yourself to a major long term commitment have an attorney, familiar with financing and taxes, examine and explain the details (where the Devil is). A good tax finance attorney can save you many times his fee over the years, not to mention possible legal problems.

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You may be considering refinancing as part of debt consolidation or a student loan consolidation.

Refinancing can be a good idea for homeowners who:

• want to get out of a high interest rate loan to take advantage of lower rates. This is a good idea only if they intend to stay in the house long enough to make the additional fees worthwhile
• have an adjustable-rate mortgage (ARM) and want a fixed-rate loan to have the certainty of knowing exactly what the mortgage payment will be for the life of the loan
• want to convert to an ARM with a lower interest rate or more protective features (such as a better rate and payment caps) than the ARM they currently have
• want to build up equity more quickly by converting to a loan with a shorter term
• want to draw on the equity built up in their house to get cash for a major purchase or for their children’s education

Financial contracts can be very confusing. Before signing yourself to a major long term commitment have an attorney, familiar with financing and taxes, examine and explain the details (where the Devil is). A good tax finance attorney can save you many times his fee over the years, not to mention possible legal problems.

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A home equity loan will generally allow you to borrow more money than with any other form of credit, and offer better terms than with other types of loans.

Home equity credit lines often come with variable interest rates (a few offer fixed rates). A credit line may come with attractive low introductory rates. You may find that some home equity credit lines have large one-time upfront fees, others have closing costs and some have continuing costs, such as annual fees.

Home equity lines of credit require that you use your home as collateral. This can put your home at risk if you are late or cannot make your monthly payments.

Once approved for an equity line of credit, you will most likely be able to borrow up to your credit limit whenever you want. Typically, you will use special checks to draw on your line. Under some plans, borrowers can use a credit card or other means to draw on the line.

The federal Truth in Lending Act requires lenders to disclose the important terms and costs of their home equity plans, including the APR, miscellaneous charges, the payment terms, and information about any variable-rate feature. And in general, neither the lender nor anyone else may charge a fee until after you have received this information.

You usually get these disclosures when you receive an application form, and you will get additional disclosures before the plan is opened.

If any term (other than a variable-rate feature) changes before the plan is opened, the lender must return all fees if you decide not to enter into the plan because of the change.

The days of having a home mortgage loan, a personal loan, a car loan, a savings account, a checking account and outstanding balancees on credit cards are becoming a thing of the past.

Financially, it makes sense to consolidate your various personal loans into one. The interest savings can then be used to pay down your debt principal.

A home equity debt consolidation loan only works if you’re financially disciplined. This means you don’t run up debts again such as credit cards. If you do, you could end up with more debt than you can manage. Since your home is used to secure the home equity loan, failure to make payments could lead to foreclosure of your home.

You generally have the right to cancel the deal for any reason — and without penalty — within three days after signing the loan papers. The lender must return any money you’ve paid to date.

Negotiate with more than one lender. Make lenders compete for your business by letting them know that you’re shopping for the best deal. Ask each lender to lower the points, fees or the interest rate, and to meet — or beat — the terms of the other lenders.

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At present, roughly 80,000 personal bankruptcy petitions are being filed each month in the U.S. Of the various personal bankruptcy plans available Chapters 7 and 13 are the most common. Businesses most often petition under Chapters 7 and 11.

Bankruptcy can be a complicated process and mistakes could cost a petitioner the protection of the automatic stay or prevent the petition from being approved.

All personal bankruptcy petitioners are required to complete a U.S. Trustee approved Credit Counseling Briefing. Make sure that your bankruptcy lawyer files the Credit Counseling certificate with your bankruptcy petition.

This is important because bankruptcy petitions filed without a Credit Counseling certificate may be dismissed, allowing creditors the opportunity to take action, such as moving forward with foreclosure or repossession.

Upon filing a petition an “Automatic Stay or Order for Relief” is issued by the Bankruptcy Court that prohibits creditors from any collection efforts. The process puts a stop to phone calls, foreclosure, repossession, lawsuits, wage garnishments and harassment.

Chapter 7 bankruptcy is fairly straightforward in its application – “liquidating” assets and “discharging” debts. Before being granted a Chapter 7 petition, the petitioner must pass a “Means” test for income.

Chapter 13 is more complicated. Bankruptcy Trustees formulate a “repayment schedule” (usually of 3-5 years) during which time creditors are not permitted by law to attempt collection or file lawsuits against the petitioner. At the end of the time period (if all payments have been made according to schedule) unsecured debt may be discharged.

Unlike Chapter 7, Chapter 13 doesn’t liquidate assets and immediately discharge unsecured debts. Instead, Chapter 13 is intended to help people facing financial difficulty keep their property while gradually catching up on past due balances.

In addition to making payments as agreed to when filing bankruptcy under the Chapter 13 plan, Chapter 13 bankruptcy petitioners must complete a U.S. Trustee approved financial management course (often called Debtor Education) before a discharge may be granted.

In order to qualify for Chapter 13 bankruptcy, a debtor must:

• Have a regular source of income from which to make pre-determined payments
• Have enough disposable income to make regular payments after covering current necessary living expenses
• Fall within pre-set limits for secured and unsecured debts. The limits are updated periodically and a local bankruptcy attorney can tell you the exact current limits for secured debts.

For those who do not qualify for Chapter 13 bankruptcy, Chapter 7 may still be an option.

Whether to file bankruptcy or let your home go to foreclosure can be a very difficult decision and will depend on your specific situation, your income, your total debt and your other expenses. Many times, you can file bankruptcy and lose your home in foreclosure anyway. Discuss with a bankruptcy lawyer whether a bankruptcy could actually save your home.

A Bankruptcy Attorney can provide the legal expertise, knowledge and information to help you decide which form of bankruptcy protection is best for you.

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Since the lenders money is secured by a mortgage, the interest rate will be lower than the rates of most other consumer debt. Credit cards, for instance, are unsecured loans and typically have much higher interest rates.

Since the interest rate is lower and because you have one payment instead of many, the amount of your monthly bill will be significantly less.

The average citizen in the U.S. pays 11 different creditors every month. With a consolidated loan, you only have one creditor and one check to write each month; which makes controlling your finances much easier.

The process of consolidating your debts is very simple and straightforward. You simply contact several lenders and tell them that you’re interested in a consolidation loan.

Negotiate with at least four lenders. Make them compete for your business by letting them know that you’re shopping for the best deal. Ask each lender to lower the points, fees or the interest rate. And ask each to meet — or beat — the terms of the other lenders.

Financial contracts can be very confusing. Before signing yourself to a major long term commitment; have an attorney, familiar with financing and taxes, examine and explain the details (where the Devil is). A good tax finance attorney can save you many times his fee over the years, not to mention possible legal problems.

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It can take years to pay off credit card amounts by making just the minimum monthly payments. Throw in a car loan, student loans, a mortgage – and the dollar amounts can start to look frightening very quickly.

It can get a lot worse for people who are forced to borrow money after losing a job, are hit with health problems or have a marriage fail.

So-called “problem debtors” have it bad, according to numbers compiled by the nonprofit credit counseling agency Myvesta. Their clients in financial crisis had unsecured credit card debt of $77,036, up from $52,201. Mortgage debt jumped from an average of $168,129 to $207,958 last year.

The people in crisis carried an average of 11.3 credit cards, up from 8.1 a year ago. Cash flow was a negative $2,468 a month.

Steps to Getting a Bad Credit Loan

Face it, sometimes even bad credit loans will not be available to people with critically damaged credit.

Not everyone has an exceptional credit history and a high credit rating. For those with less-than-perfect FICO scores, there are still some options available. It can be difficult, but it is possible.

First go directly to your bank or credit union and get their in-house assistance. Every bank and lending company have financial officers that will answer your questions, help with your application and determine your credit score. Your FICO score is basically a reflection of how responsible a debt payer you are.

Lenders will evaluate your credit history by reviewing your “credit report”. This is one of the main factors in the decision whether to give you a loan or not. Having a bad credit score does not imply that you are a financial failure, but defaulting on payments is a sure way to make it onto a “blacklist”.

You may have a bad credit score if you have either made late payments, skipped out on bills, declared bankruptcy, been repossessed, foreclosed, etc. Well, forget about the past, focus on the present and get to work changing your credit rating.

For starters, you’ll probably need to do some “clean-up”. Give yourself at least 6 months to make good prompt payments of all your debts and you will find what a difference it makes in your credit score.

The goal is to have you score climbing consistently higher, setting yourself up for future loans and better interest rates. The more stable you are financially, the more likely lenders are to give you money without a lot of restrictions. It always pays to raise your credit score.

Many people believe that individuals with bad credit will never get a bank loan. But the fact is that people, even with the worst credit, do get approved. There are financial organizations that specialize in bad credit loans. But, they will charge you.

These lenders make loans that other lenders won’t. They are often known as “sub-prime” lenders because they provide loans considered below standards set by common banking practices. Given that these lenders are taking higher risks, financial regulators let them to add higher interest rates than are normally permitted the banks.

Bad Credit Loans from Car Dealers

When you are looking to buy a car with bad or poor credit it doesn’t leave buyers with lots of options. Occasionally their only choice for finding a lender for their new car purchase is through a car dealer loan.

Car dealership loan deals are not as bad as a lot of people may think. However, it is certainly true that they may hide a lot of surprises so if you are in fact planning to use a car dealer loan you should be extra vigilant.

The first thing that you need to watch out for is if the interest rate happens to be fixed. By fixed I mean that it’s clearly stated in your contract and that all of it is written in a way that it wouldn’t allow the car dealership to change it at a later date.

What lots of car dealerships tend to do is approve your car loan application, have you sign the documents, and hand you over the car.

After that later on they just give you a phone call and state that in fact you do not qualify for the loan because you have poor credit (which is something you already knew to begin with) and that you must pay higher interest rates in order to keep the car. If you fall into this situation you should try to either find a loan from another lender or report the scam and fight back.

Another extremely popular scam done by car dealers is to make you look for a cosigner for your loan convincing you that this is the absolutely only way that you can get financing since you have a terrible credit history.

It won’t be difficult to convince you at all. First of all it sounds pretty reasonable and second of all the car dealer will cause you to believe that this will in fact repair your poor credit profile.

Later on you will discover that your name isn’t including in the loan documents and that the loan is in the name of the cosigner only even though you are paying it. Not only is this illegal but it also may lead to serious penalties but it’s not helping your poor credit at all. If a dealership offers such a thing you absolutely must refuse.

If you’re a poor credit consumer and have difficulties in finding a good loan, it’s pretty obvious that you shouldn’t overstretch yourself. What this mean is to buy a reasonably priced vehicle and not to buy into all of the extras like the extended warranties for example.

However, many different car dealers will end up trying to trick you by making you believe that you must buy a warranty that will increase your loan just to qualify.

Since you are in a desperate situation you would end up saying Ok. However, if you for one second think about it, you can plain as day see this is simply a trick to increase your loan costs

Besides higher interest rates, you may be subject to other fees and restrictions. For example, a “point” is a fee charged onto your loan which represents 1% of your loan amount. Individuals with good credit occasionally do not pay any points, while those with bad credit can pay up to 4 or 5 points.

It’s always easier to find a loan if you can “secure” it. With a secured loan, you consign your home, car, or some other tangible asset as “collateral” to guarantee your loan. This reduces the risk and increases the chances of getting your loan. A co-signer will also make it easier to find a lender.

You are searching for a lending company that does business with people with problem credit primarily; and does not refuse bad credit loan applications automatically. These companies will charge individuals higher interest rates, its loan approval rate is much higher.

Online Banks and Payday Loans.

Easily found websites advertise loans to people with bad credit, or with no credit at all. These online banks generally have more competitive interest rates than brick and mortar banks due to their lower operating costs.

Payday loans are available to almost anyone with a job and a bank account.

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Refinancing can be a good idea for homeowners who:

• Want to get out of a high interest rate loan to take advantage of lower rates. This is a good idea only if they intend to stay in the house long enough to make the additional fees worthwhile.
• Have an adjustable-rate mortgage (ARM) and want a fixed-rate loan to have the certainty of knowing exactly what the mortgage payment will be for the life of the loan.
• Want to convert to an ARM with a lower interest rate or more protective features (such as a better rate and payment caps) than the ARM they currently have.
• Want to build up equity more quickly by converting to a loan with a shorter term.
• Want to draw on the equity built up in their house to get cash for a major purchase or for their children’s education.

Financial contracts can be very confusing. Before signing yourself to a major long term commitment have an attorney, familiar with financing and taxes, examine and explain the details (where the Devil is). A good tax finance attorney can save you many times his fee over the years, not to mention possible legal problems.

Go Home from Refinancing.