Take Advantage of First-Time Homebuyer Credit Now

Bills.com offers 8 tips to help first-time home buyers before they take on mortgage debt (http://www.bills.com)

San Mateo, Calif. (Vocus) October 21, 2009 -- With the 2009 first-time homebuyer tax credit of $8,000 expiring Dec. 1, would-be buyers must act now to claim the credit and possibly lower their mortgage debt (http://www.bills.com/mortgage/). Free online consumer portal Bills.com has eight tips to help home buyers make their purchase a reality.

Some are speculating that the first-time home buyer tax credit will be extended, perhaps by another year, but Congress has not yet taken action. However, the U.S. House of Representatives last week did pass a bill that would extend the credit for another year for U.S. service members who served at least three months of qualified overseas duty during 2009.

"The entire home-buying process can take weeks or months," said Ethan Ewing, president of Bills.com. "Buyers must take into consideration the mortgage (http://www.bills.com/mortgage/) approval process, the home appraisal, the home inspection, all required paperwork and seller requirements. Therefore, home buyers who hope to take advantage of this credit need to find a home to purchase now."

The 2009 American Recovery and Reinvestment Act provides tax credits of up to $8,000 for Americans who buy their first home this year. The definition of "first-time" buyers includes people who have never owned a home and those who have not owned a home for several years.

Ewing offered eight tips to help buyers open the door to a home of their own:

1. Double-check credit. The mortgage industry meltdown means the best deals go to buyers with spotless credit. People with damaged credit (http://www.bills.com/credit-score/) might not be able to get a home loan at all, or may face high interest rates. "Before starting house-hunting in earnest, check your credit report to be sure it does not show any incorrect information. If it has an error, dispute it immediately and make copies of evidence regarding the error to discuss with your mortgage lender," Ewing said.

2. Talk to lenders. Ask friends and relatives for references to reliable mortgage lenders. Be sure the lender you choose has all appropriate state licenses. Check rates and offers from several mortgage professionals. Credit scores do not decline if multiple similar credit report requests are submitted within a close time period (usually a few weeks), so it pays to shop around.

3. Home prices are still low. Home prices have increased slightly since the beginning of 2009, but they are still about 13 percent lower than they were a year ago. That means now is an excellent time for a home investment for those who are financially prepared.

4. Interest rates are still great. Mortgage interest rates have dropped again this fall, to about 5 percent annually for a 30-year fixed-rate mortgage.

5. Savings are required. A down payment is essential today. Ideally, buyers will put down 20 percent of the purchase price. If not, ask the mortgage lender about options before getting too far into the process.

6. Know all costs of ownership. The principal and interest on a mortgage payment are only the beginning. Escrow payments – money set aside by the mortgage holder to pay insurance and taxes – and private mortgage insurance, if it is required, can add a few hundred dollars or more per month to a mortgage payment. In addition, home owners must pay for repairs and maintenance. A rule of thumb is to budget 1 percent of the home's purchase price per year for upkeep.

7. Buyer beware. Some seeming bargains on homes today are "fixer-uppers" or homes sold "as is" because of foreclosure. Invest in a home inspection (typically costing about $400) before agreeing to purchase any home. The inspection will highlight any faults in the home and help estimate the cost to remedy those problems.

8. Be wary of "short sales." A short sale is a home sale where the owner must sell the home for less than is owed on the current mortgage. Because the bank must approve any such sale, a "short-sale" home may have a sales and negotiation process that is too lengthy to be completed before the tax-credit deadline. Additionally, short sales are usually "as is," which may carry more risk than makes sense for many first-time buyers. Instead, look for a good value in a conventional home sale.

"Home ownership remains a good investment and a big part of the American dream. If you are able, you may be able to save thousands on your piece of that dream by buying this year -- but you must act quickly," said Ewing.

About Bills.com (http://www.bills.com)

Based in San Mateo, Calif., Bills.com (http://www.bills.com) is a free one-stop portal where consumers can educate themselves about complex personal finance issues and comparison shop for products and services including credit cards, debt consolidation (http://www.bills.com/debt-consolidation/), insurance, mortgages and other loans. Bills.com holds the No. 273 spot on the Inc. 500 list for 2009.

Bills.com and its sister companies, Freedom Debt Relief and Freedom Tax Relief, are wholly owned subsidiaries of Freedom Financial Network, LLC. The company has served more than 50,000 customers nationwide since 2002 while managing more than $1 billion in consumer debt. Its RSS feed is available here (http://www.bills.com/news_releases/).

PPI an Antidote to Mortgage Arrears Says Burgesses

Figures released by the Council of Mortgage Lenders, detailing an alarming growth in the number of homeowners falling into mortgage arrears, has prompted Payment Protection Insurance lobbyist Sara-Ann Burgess to urge homeowners to purchase cover that pays a monthly income should they lose their jobs.

Braintree, Essex (PRWEB) November 22, 2008 -- Figures released by the Council of Mortgage Lenders, detailing an alarming growth in the number of homeowners falling into mortgage arrears, has prompted Payment Protection Insurance (http://www.britishinsurance.com) lobbyist Sara-Ann Burgess to urge homeowners to purchase cover that pays a monthly income should they lose their jobs.

"There's a clear correlation between the increasing number of job losses and mortgage arrears, so it makes sense to buy a policy that will ensure continuity of income to meet monthly bills. PPI provides a valuable financial safety net for people whose income is interrupted through accident, sickness or unemployment."

According to figures released today, the CML reports the number of households at the end of September 08 with more than three months of mortgage arrears was 168,000. In June 08, the figure was 155,600, whilst in March it tallied 142,000.

It's widely-recognised that the economic downturn, slow income growth and increases in food and fuel costs have taken their toll and the CML predicts the number of households in arrears by the end of the year will far exceed its previous forecast of 170.000.

Sara-Ann continues: "168,000 households in arrears by Q3 this year equates to around 613* households per day unable to meet their loan repayment. This figure is staggering and frightening. Whilst I realise PPI may not be suitable for all, I do wonder how many homeowners could have given themselves some financial breathing space with a policy that pays their bills for up to a year."

PPI cover is sold per £100 of benefit and purchasers can opt for unemployment or accident and sickness cover, or all three. One of a few to continue offering employment cover only is independent firm, British Insurance (http://www.britishinsurance.com). It charges £3.40 per £100 for unemployment, £3.90 per £100 for accident, sickness and unemployment and £1.90 per £100 for accident and sickness.

The CML paints a bleak picture and is asking members to avoid repossession at all costs and suggests the Government concentrates on providing more assistance in next week's pre-Budget report. It concedes that lenders cannot change the causes of financial difficulty, ie unemployment, and is aware the arrears situation will get worse before it gets better.

"It's all very well calling for lenders to be more sympathetic to homeowners' dilemmas and lobbying the Government to do more," says Sara-Ann, "but monthly bills still won't get paid and debts will continue to rise. I believe the only immediate practical solution is PPI. A small monthly outlay could pay rich dividends over the course of a year if the unexpected was to occur."

Repossession statistics stand at 11,300 for the end of September. In June 08, the figure was 10,100 and it March it stood at 8,800. Sara-Ann concludes: "To the end of September, some 41** homes were repossessed daily. And this doesn't take into account properties that have repossession orders hanging over them.

"More has to be done by the lenders and Government to prevent this happening, but also insurers have a duty of care to ensure their cover is accessible and affordable to all and consumers need to be aware of the options open to them."

Families Seek 'Bad Credit' Loans to Save Their Homes

Struggling families weighed down by mortgage debt worries are turning to 'bad credit loans' to bail them out and save their homes. Growing numbers of homeowners with poor credit are seeking unsecured loans online to help solve their mortgage debt problems, reports Credit Problems No Problem (www.creditproblemsnoproblem.co.uk).

Newton Abbot, Devon, UK (PRWEB) November 6, 2008 -- Struggling families weighed down by mortgage debt worries are turning to 'bad credit loans' to bail them out and save their homes.

Growing numbers of homeowners with poor credit are seeking unsecured loans online to help solve their mortgage debt problems, reports Credit Problems No Problem (www.creditproblemsnoproblem.co.uk).

"We are getting increasing numbers of calls from people who need money to pay their mortgage loans," said a spokesman for Credit Problems No Problem, which specialises in loans for borrowers with bad credit.

"Families can't afford to pay their mortgage bills. They desperately need cash but they have money problems."

Falling house prices and the return of negative equity are making life a misery for households with bad credit listings such as County Court Judgements (CCJs) and defaults.

Negative equity is returning to the UK housing market with a vengeance, leaving families stuck with large mortgage debt worries and homes they are unable to sell unless they incur big losses.

Some families forced by negative equity to abandon their house move plans are making do with essential home improvements instead.

"They need unsecured loans to cover the cost of necessary home improvements but may have CCJs or defaults against their name," said the spokesman for Credit Problems No Problem.

"Bad credit need not be a problem though. We can help you to get money - even if you think you're credit blacklisted."

Credit Problems No Problem is hearing from increasing numbers of people caught in the negative equity trap.

One self-employed couple aged in their 20s invested £155,000 in a starter home that is now worth £10,000 less than they paid for it.

Twelve months ago a similar property three doors away from them sold for £175,000.

"They face the fact that their home has lost £30,000 in a year and house prices are still falling. Some £10,000 of their hard-earned money has gone and they are now in negative equity."

Credit Problems No Problem is helping people such as these as they search for 'poor credit loans', 'bad credit loans' or 'CCJ loans'.

Credit Problems No Problem holds a Consumer Credit Licence issued by the Office of Fair Trading. The company is also covered by the Financial Ombudsman.

Credit Problems No Problem is also registered with the Information Commissioner's Office for Data Protection.

For rapid help, phone 0800 412 5634 or visit www.creditproblemsnoproblem.co.uk

Notes For Editors

www.creditproblemsnoproblem.co.uk

Credit Problems No Problem Ltd

TBC House

Cavalier Road

Newton Abbot

TQ12 6TZ

United Kingdom

Tel: 0800 412 5634

Credit Problems No Problem was formed in 2003, bringing together a team of specialists that together offers 26 years of expertise to help applicants gain the unsecured loans they need.

From its UK head office in Devon, Credit Problems No Problem operates across Britain, sourcing loans for people with bad credit.

Credit Problems No Problem holds a Consumer Credit Licence issued by the Office of Fair Trading. The company is also covered by the Financial Ombudsman.

Credit Problems No Problem is also registered with the Information Commissioner's Office for Data Protection.

No fuss service - guaranteed.

November 2008