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Frank Shamoo's Blog

By Frank & Jennifer Shamoo | Agent in Costa Mesa, CA
  • Running a Credit Check Helps Secure Your Financial Future...

    Posted Under: Home Buying in Costa Mesa, Financing in Costa Mesa, Property Q&A in Costa Mesa  |  July 11, 2013 10:35 AM  |  323 views  |  No comments
    Running a Credit Check Helps Secure Your Financial Future...

    Whether you think you may be a victim of identity theft or not, take the time to obtain your credit report to look for any inconsistencies that could be impacting your credit rating and costing you money.

    Perhaps you have seen ads from the credit bureaus pop up on your computer screen or television encouraging you to run a credit check. You know it is a good idea but never seem to make the time to do it. Whether you think you may be a victim of identity theft or not, take the time to run your credit report to look for any inconsistencies that could be impacting your credit rating and costing you money.
    Potential Fraud

    It is possible that someone has opened an account and begun accruing debt in your name. Often times, people are blissfully unaware that they have been victimized until they apply for a new loan or line of credit and are rejected by a potential creditor. You are the best person to recognize, as well as report, any unauthorized activity. You are entitled to at least one free credit report from each of the three national credit bureaus once every 12 months. Take advantage of this opportunity to help protect your financial health.

    Closed and Inactive Accounts

    Many people assume that closing those old, inactive credit accounts you no longer use is a good way to clean up your credit report and look more attractive to potential lenders. In fact, lenders like to see a long credit history with a low percentage of your available credit being used. Closing accounts may shorten your credit history and increase the percentage of available credit you are using. This may have a negative impact on your credit score. When you obtain your credit report, carefully weigh the impact of closing out those old accounts.

    If you do worry about a number of open accounts and choose to close one or more, contact the credit issuer directly and cancel the account. Your account does not close automatically due to lack of use. Request a confirmation letter that the account has been closed out and keep a copy in your files.
    Inaccurate Information

    If you find any kind of inaccurate information on your credit report, contact the creditor or the proper credit reporting agency to open a dispute. Steps will be taken to investigate the matter and, if the creditor cannot verify the information, it will be corrected or the incorrect item will be removed from the report.

    Your best protection is your own vigilance. A few minutes spent today to obtain your credit report may help secure your financial future.
  • Buying A Home With Past Credit Problems

    Posted Under: Home Buying in Orange, Foreclosure in Orange, Property Q&A in Orange  |  May 24, 2013 12:19 PM  |  358 views  |  No comments

    Buying a home can be both exciting and stressful but, for those with past credit problems, the process may also seem intimidating.  The good news is that many lenders have adapted to the idea that many hopeful homeowners simply need a second chance, which means that past credit problems no longer have to define your future.

    Credit Blemishes

    When life unexpectedly takes a turn for the worst, it's not always possible to come out without a few bumps and bruises.  Every day, people are faced with late or missed credit card payments, mortgage foreclosures, bankruptcy proceedings, auto repossessions and even civil judgments that will affect their credit reports for years to come.  Whether it's from a job loss, injury or just a simple case of temporary hardship, credit blemishes are often a part of life.  The good news is that they no longer have to prevent you from becoming a homeowner.

    Give Yourself A Little Credit

    After experiencing a credit problem, most lenders will want to see an attempt to rebuild your credit through a steady payment history with a new account.  This can be accomplished by applying for a credit card and maintaining a responsible use of the account.  If you aren't approved for an unsecured card, you can always apply for a secured credit card.  Either will rebuild your credit over time and will help to show lenders that you’re past credit problems are just that - in the past.

    Clean Up Your Credit Report

    Before applying for a home loan, make sure that you check your credit report from each of the three major credit reporting agencies.  Every 12 months, consumers can request a free copy of their credit report from Experian, Equifax and Transunion.  If anything is incorrect or found to be inaccurate, filing a dispute with the credit reporting agency can help to get the information corrected before speaking with a lender.

    When you apply for a home loan, the lender will access your credit report for the purpose of determining your creditworthiness.  In an effort to ensure that you have the best possible chance at being approved for the loan at the best possible interest rates, making sure that your credit report is accurate is a must.

    Save Up For A Down Payment

    Some homebuyers often qualify for a mortgage with down payments as low as five percent (three percent for FHA loans), but those with past credit problems may be required to shell out up to 35 percent or more for a down payment on their new home.  A buyer who pays a larger down payment obviously has more vested interests in the home and may, thereby, be less likely to default on a loan.  If you have past credit problems, check with your lender about specific down payment requirements and start saving!

    Creative Financing Options

    If you've exhausted all of your conventional efforts and are still turning up empty, don't give up just yet.  Alternative financing is an option that many homebuyers use to purchase a home.  Your REALTOR® can provide you with details regarding any lease purchase and/or owner financing properties, which may require no credit check, no bank qualifying, a low down payment and competitive interest rate options.

  • COOL-DOWN TRICKS FOR THE HOT SUMMER MONTHS

    Posted Under: Home Buying in Laguna Beach, Home Selling in Laguna Beach, Property Q&A in Laguna Beach  |  May 21, 2013 1:44 PM  |  353 views  |  No comments

    Hi Everyone,

    Are you ready for summer in your new home?  We all know that summer brings to mind relaxation, vacation, and rest-but we also know that it can get hot!  I thought you might like to have a few tips on keeping cool in the upcoming summer, so that you can enjoy life to the fullest in your beautiful new house.

    Remember, if you have any real estate questions on your mind, I hope you'll remember to call me at 949-295-6491 or visit my Web site www.ShamooTeam.com !  I'd be happy to answer any questions you may have!

     COOL-DOWN TRICKS FOR THE HOT SUMMER MONTHS

    Spin it: Ceiling fans are an excellent way to keep everyone cool, and they're beautiful as well.  But did you know that they can also help you save on your energy bill?  By circulating cool air throughout your home, you won't need to keep the thermostat set as low as you would without the help of one, two or more well-placed fans.

    Green is good: There's no debating how refreshing a large patch of shade can be on a hot summer day…so why not invest in some shade of your own?  Planting trees is an excellent way to ensure shade and to keep your house cool in the warmer months.  Already have some?  Make the most of the summer foliage by relaxing beneath a large tree and sipping some cool lemonade.

    Clear as a bell: Window manufacturing and supply companies now offer an invisible way to keep you cool: by installing a transparent coating to windows that effectively blocks heat.  Adding this type of treatment to your sunniest windows is a smart and easy way to save a few dollars on your energy bill.

    Program and relax: If you have a programmable thermostat but haven't gotten around to figuring out how to use it, now's the time.  Setting your thermostat to regulate the temperature of your house and maintaining an average temperature can save you a lot of money.  Can't find the instructions?  Most manufacturers provide free, downloadable guides via the Internet.

    Block it out:  Room-darkening blinds can reflect a great deal of sun and heat, so keep them closed during the morning and afternoon hours to keep things cool inside!

  • 6 Ways to Give a Home a Budget-Friendly Makeover

    Posted Under: Home Selling in Newport Beach, Property Q&A in Newport Beach, Home Ownership in Newport Beach  |  November 14, 2012 11:43 AM  |  356 views  |  No comments

    Just the sound of “home makeover” is enough to make some people cringe. The idea of spending lots of time and money painting the house, shopping for new furniture, and replacing the carpet is not something many people want to do during their free time.

    But not every home makeover has to be so exhausting. In fact, there are many small alterations and additions you can make to your home that have big results for very little money and effort. If your home is in need of a new look, but you don’t want to spend an arm and a leg to do it, then try these six simple ways to give your home a makeover for cheap.

    1. Paint the furniture.

    An easy way to shake up a room is to paint your furniture. Go bold with a red accent piece or lighten up the room with a white finish. You can also skip the paint altogether and opt for a simple stain. The color options are endless and the cost for this project is fairly cheap.

    2. Add indoor plants.

    It’s amazing how much a simple plant or two can dress up a room and add an unexpected pop of color. Not only do real indoor plants purify the air inside your house, but they also bring a remarkable amount of life to any room. Aim for low maintenance plants that have a variety of colors and textures and can be displayed in unique ways, like inside a non-working fireplace.

    3. Accessorize

    A cheap and easy way to spice up a dull room is to accessorize with colorful pieces, such as throw pillows for the couch, bold frames, or an eye-catching mirror. To keep it affordable, use the items you’ve already got or restore them with a new coat of paint or embellishments. You can also find cheap accessories at antique shops, flea markets, and thrift stores.

    4. Create an accent wall.

    An accent wall can take any room from blah to beautiful in a matter of hours. Whether you paint one wall in a contrasting color or use whimsical wall decals, an accent wall can make your home appear bigger and brighter than before.

    5. Rearrange the furniture.

    Before you go buy new furniture or start knocking down walls, try rearranging your furniture first. Move your bed to another wall, reposition your couches, and switch up your artwork. With the right rearrangements, your room will feel and look brand new to you and your guests. Best of all, this makeover will cost you nothing, except for maybe an achy back after moving heavy furniture.

    6. Organize the clutter.

    Organizing your clutter may not sound like much of a makeover, but it actually makes a huge difference in the overall look and functionality of your home. If you’re like most people, you probably have a drawer or closet full of unorganized junk. By going through your clutter and finding a new home for the things that are actually worth keeping, you can free up this storage space for other important items. This project will cost virtually nothing, except for maybe a few cheap storage bins or baskets.

  • Why Lenders ask if the borrower will repay the debt ...

    Posted Under: Home Buying in Orange County, Property Q&A in Orange County, Credit Score in Orange County  |  November 12, 2012 3:39 PM  |  285 views  |  No comments

    Lenders ask if the borrower will repay the debt. Lenders look at the borrower’s credit history, including the amount of money owed, the frequency of borrowing, the timeliness of bill payment, and a pattern of living within one’s means.

    The credit information compiled by national credit bureaus reveals a borrower’s history of handling credit. A credit bureau is an agency that collects and maintains up-to-date credit and public record information about consumers. A credit bureau may also be called a credit-reporting agency.  In addition to detailed financial information, credit bureaus give lenders a numerical score or a credit summary that projects a borrower’s expected credit performance. Credit bureau scores are based on the statistical relationship between information in a borrower’s credit files and his or her repayment practices. These scores accurately summarize a borrower’s likelihood of repayment. A FICO® score is one example of a credit bureau score. FICO® scores range in value from about 300, which denotes the highest risk, to about 850, which indicates the lowest risk. Another example of a credit bureau score is the MDS bankruptcy score, for which a lower score indicates lower risk. Lenders look for signs of stability such as how long the borrower has lived at the present address, if he or she owns or rents the home, and the length of current employment.Credit files also document the number and nature of recent credit inquiries and information from public records, such as declarations of bankruptcy and unpaid judgments. Because there is such an assortment of information the lender must consider, it is difficult to make an accurate assessment of a borrower’s credit profile.

     

  • Inventory shortage hits first-time buyers in California

    Posted Under: Home Buying in Costa Mesa, Home Selling in Costa Mesa, Property Q&A in Costa Mesa  |  October 18, 2012 7:36 AM  |  247 views  |  No comments
    The inventory of lower-priced homes for sale, which are commonly sought by first-time homebuyers, has dropped by more than 40 percent in California over the past year, according to a new Zillow analysis, which tracks changes in the number of homes listed for sale on Zillow across the country as of Sept. 30, 2012 and compares inventory changes in the bottom, middle and upper tiers of home prices.

    California has the highest annual rate of inventory reductions across all three housing tiers (-37.5 percent), but the inventory in the bottom tier of homes saw the biggest decline (-42.7 percent); with lower-priced homes in the Fresno (-59.7 percent), Sacramento (-55.4 percent), San Francisco (-53.2 percent) and Modesto (-50.5 percent) metros seeing the largest annual reductions. These homes commonly are purchased by first-time homebuyers and, more recently, investors. Nationally, the bottom price tier has experienced an inventory reduction of 15.3 percent over the past year.

    "First-time homebuyers are being squeezed out of the market by falling inventory and the rapid influx of investors looking to buy basic homes to rent out to the growing population of people who have recently been foreclosed upon

    The Shamoo Team
  • Tenant Entitled to a 90-Day Notice to Terminate After Foreclosure

    Posted Under: Home Selling in Orange County, Rental Basics in Orange County, Property Q&A in Orange County  |  October 1, 2012 11:42 AM  |  283 views  |  2 comments
    Effective January 1, 2013...

    A month-to-month tenant in possession of a rental housing unit at the time the property is foreclosed must be given a 90-day written notice to terminate under California law. For a fixed-term residential lease, the tenant can generally remain until the end of the lease term, and all rights and obligations under the lease shall survive foreclosure, including the tenant’s obligation to pay rent. However, the landlord can give a 90-day written notice to terminate a fixed-term lease after foreclosure under any of the following four circumstances: (1) the purchaser or successor-in-interest will occupy the property as a primary residence; (2) the tenant is the borrower or the borrower’s child, spouse, or parent; (3) the lease was not the result of an arms’ length transaction; or (4) the lease requires rent that is substantially below fair market rent (except if under rent control or government subsidy). The purchaser or successor-in-interest bears the burden of proving that one of the four exceptions has been met. This law does not apply if a borrower stays in the property as a tenant, subtenant, or occupant, or if the property is subject to just cause rent control. This law will expire on December 31, 2019. This new California law is similar, but not identical, to the 90-day termination notice requirement under the federal Protecting Tenants at Foreclosure Act (12 U.S.C. § 5201, et seq.) (as extended by the Dodd-Frank Wall Street Reform and Consumer Protection Act), which is set to expire on December 31, 2014.
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