Happy 4th of July!

As we (here in the USA) approach the Independence Day holiday, we'd like to wish you and your friends and family a safe 4th of July holiday weekend.  We're taking a break from our traditional posting here for the holiday, and will resume our posts on Monday. 

As we all remember why we celebrate this holiday, don't get so caught up in cookouts and fireworks that you forget what our Independence really means, and all the men and women who are out there fighting for us so we can celebrate our freedom with our families. Our prayers are with the men and women in our Armed Forces as we celebrate this Independence Day holiday.

Be safe if you're traveling, and we will return with our regular posts on Monday.

Your Comments Welcomed

We'd love to hear your comments about whether you think the economy will improve in the second half of the year?

And we'd also like to know what, if anything, you are doing to weather the current economy… or have you not been affected at all?

Don't worry, your privacy is assured, as email addresses are NEVER published here. Just use the "comment" link below to tell us how you're fairing in this economy.  We'd love to hear from you.

Real Estate News - July 2008

Our July 2008  Newsletter is now up…

From the right Nav Menu, Find "PAGES AND NEWSLETTERS" and Select "July 2008 below "Our Monthly Newsletters".  

Election 08: How Might Your Tax Bill Change?

In our last report on the Election 08 thread, we touched on how the two likely candidates might affect the real estate industry. Perhaps an even more widespread question among a majority of folks would be, "What will they do to my tax bill?"

John McCain and Barack Obama have starkly different philosophies about tax policy - how to raise the revenue needed to support government programs, spur growth and ensure economic fairness.

According to a report released recently by a nonpartisan policy group in Washington, D.C., the common assumptions most people make about the plans of McCain, the presumptive Republican nominee, and Obama, the Democrats' pick, are not wildly off-base.

McCain: The average taxpayer in every income group would see a lower tax bill, but high-income taxpayers would benefit more than everyone else.

Obama: High-income taxpayers would pay more in taxes, while everyone else's tax bill would be reduced. Those who benefit the most - in terms of reducing their taxes as a percentage of after-tax income - are in the lowest income groups.

This one report estimates that over 10 years, McCain's tax proposals could increase the national debt by as much as $4.5 trillion with interest, while Obama's could add as much as $3.3 trillion.

What do you think? Which candidate do you think will have the most jarring effect on our overall tax situation? We'd love to hear your comments. Just use the "comment" link below to sound off and tell us what you think. As the election draws nearer, we'll continue to post more questions here about the two candidates, and welcome your input and feedback.

Buying A House With A Low Credit Score

If your credit problem isn't too serious, you may still be able to get a traditional loan. First, you should correct any errors on your credit report, and challenge any entries you think shouldn't be there. This is your legal right. If you can get it changed, then once those changes are reflected in your credit score, you may be able to apply again and get a loan for that home.

You also can go only to lenders who hold their own loans "in house." This means they don't sell them into the secondary market, which means the loans don't have to meet certain requirements. A bank which holds its own loans can make their own rules (to an extent). Ask around to see if some of your local banks or credit unions keep mortgage loans in their own portfolio. Few do these days, but some still do. It pays to ask.

A more creative way to overcome bad credit is to buy a house with another person. This isn't only for married couples. Any two people can buy a home together, and the lender will look at both credit histories. It might be tricky to buy a house with a friend, but it can be better for both compared to renting. For example, you might have a down payment, and your friend could have good credit. You could agree to sell the home five years later to recover your down payment and each of your respective shares of the equity that is built up from appreciation and the paying down of the loan.

Seller financing is another way to buy when you can't get a loan because of bad credit. Some homes have sold without credit checks and even with nothing down by sellers who financed the purchase. Their motivation is usually to get a higher price and/or to sell a problem property, but this doesn't rule out a good opportunity for you. When sellers don't offer terms, find out if they own their houses free and clear. If so, you could make an offer that involves payments to the owner rather than getting a loan from the bank.