Credit Cards

The Right Way to Manage Your Credit Cards

While one in seven Americans has at least 10 credit cards, the average is four, according to a report from Experian. Usage on credit cards has dropped dramatically in the last two years as financially constrained consumers have reduced spending and begun paying off debt. The national average interest rate on credit cards as of November 2009 is 12.64%, which has declined 0.45% from six months earlier.

As a member of the Top 5 in Real Estate Network®, I know that mortgage-seeking clients are always asking for advice on how they can improve their credit profile, such as the number of credit cards they should have. According to the credit experts at ApprovalGuard.com, however, it’s not just the number of credit cards you have, but how you use and manage those cards.

Here are some critical tips for managing your credit cards in order to maximize your credit profile:


1. Use your credit cards regularly, but in small amounts, never exceeding 30% of your entire credit line. For example, if your card limit is $4,000, set a self-imposed limit to keep your balance at $1,200.

2. Even if you pay your bills on time, coming close to your full balance each month affects your credit score negatively. Regularly maxing out your card limit is a bad habit in the eyes of credit-rating firms. It’s better to spread your credit charges out over two or three cards, keeping each balance at or below 30% of your total credit line.

3. Don’t get rid of old cards even if they have higher interest rates than ones you may get on newer cards. Credit rating firms like to see a well-established history, so utilize your old cards every so often for small purchases.

4. On the flip side, avoid getting new cards, if possible. When you add a new credit card, your credit score will likely suffer a temporary drop until you have established a payment history with that card.

Well-managed credit cards will assist you in establishing a stronger credit profile and better credit scores that can potentially lead to lower interest rates and terms when applying for home loans. For more information on shoring up your credit profile, please e-mail us at micahstovall@gmail.com or steve@stevestovall.com. Feel free to pass this important article along to your friends, colleagues and family. All of us can use some guidance in managing our credit in today’s economic environment.

Please to not hesitate to call us at 714-343-9294 or 714-393-5377 when listing your next Fountain Valley home for sale.

New Listing 16692 Ross Lane

16692 Ross Lane H.B. ,Ca. 92647
N/Warner W/Magnolia


Beautiful H.B. Home

3 spacious bedrooms...Master Suite and Bath
Cove lighting and Ceiling Fan in Master Suite
2 Remodeled Baths
Mirrored Wardrobe Doors in all Bedrooms
Beautiful Stone Faced Exterior Trim
Gourmet Kitchen w/Stainles Steel Appliances & Convection Oven
Formal Dining Room
Dual Pane Windows T/O
Scraped Ceilings
6 Panel Doors
Formal Livingroom w/Custom Bay Window & Surround Sound Speakers
Wood Burning/Gas Fireplace in Familyroom with French Slider to Backyard
Custom Leaded Glass entry door
ADP Alarm System
Private Backyard with covered patio, lush green turf & planters & Block Wall Fencing.
1480 Sq.Ft. per accessor
6246 Sq.Ft. Lot

Asking just $579,900. If you are interested in seeing this home or you are thinking about listing your home for sale do not hesitate to contact us. 714-343-9294 or 714-378-3438. You can also email us at micahstovall@gmail.com or steve@stevestovall.com Check out our website at www.steveandmicah.com

How HAFA Can Help Finacially Challenged Homeowners

How HAFA Can Help Financially Challenged Homeowners

This past November, the Treasury Department released guidelines for its new Home Affordable Foreclosure Alternatives Program (HAFA), designed to help homeowners who are unable to retain their home under the Home Affordable Modification Program (HAMP). Under HAFA, homeowners may be able to avoid foreclosure by completing a short sale or a deed-in-lieu of foreclosure (DIL). If you or someone you know is having trouble making mortgage payments, understanding this new government program is essential.

As a Member of the Top 5 in Real Estate Network(R), I have consulted with many clients faced with a distressed property situation. The good news is HAFA is designed to simplify and streamline the use of short sales and deeds-in-lieu of foreclosure by improving the process. Here’s how:

• Help homeowners who are HAMP eligible but nevertheless unable to keep their home
• Use financial and hardship information already collected in connection with consideration of a loan modification
• Allow borrowers to receive pre-approved short sales terms before listing the property
• Require borrowers to be fully released from future liability for the first mortgage debt and if the subordinate lien holder receives an incentive under HAFA, that debt as well
• Use standard processes, documents, and timeframes/deadlines
• Provide financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to a $1,000 match for investors for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders

To be eligible for HAFA, homeowners must meet the basic eligibility criteria for HAMP:

• The home must be your principal residence
• The first lien must have originated before 2009
• Mortgage delinquent or default is reasonably foreseeable
• The unpaid principal balance cannot exceed $729,750 (higher limits for 2- to 4-unit dwellings).
• The borrower’s total monthly payment exceeds 31% of gross income

Under HAFA, the forgiven debt due to a short sale will not be taxed if the amount of forgiven debt does not exceed the debt that was used to acquire, construct, or rehabilitate a principal residence. Check with your tax advisor. Please also know that while the debt will be forgiven, the short sale will be reported to credit agencies and have some degree of negative impact on your credit. Short sale agreements must be executed and returned no later than December 31, 2012.

If you think that you or someone you know can benefit from the HAFA program, please do not hesitate to get in touch with us. We can be reached by email at micahstovall@gmail.com or steve@stevestovall.com. You can also visit www.realtor.org/shortsales for links to the guidance, many additional FAQs, and more information about short sales. Please remember to pass this important information along to others. In today’s economy, we all know someone who might need help.

Overcoming Common Foreclosure Fears

Overcoming Common Foreclosure Fears

As foreclosure numbers continue to rise, you might be one of the many homeowners worried about losing your home. The truth is, foreclosure can be prevented, however, most homeowners are too confused or afraid to confront their mortgage problems and, therefore, neglect taking the necessary steps to potentially save their homes. As a member of the Top 5 in Real Estate Network®, I have helped put many financially-challenged clients on the path toward avoiding foreclosure. The first and biggest step is always overcoming their fears.

Here are six of the most common foreclosure fears the Consumer Credit Counseling Service (www.cccsinc.org) encounters, along with the steps homeowners can take to overcome them and start taking action to save their homes.

Fear: Homeowners are afraid to let the mortgage company know they are having a problem because they think it will speed up the foreclosure process.

Contacting your lender must be the first step as it gives you a chance to explain why you have fallen behind on your payments and what steps you are taking to get back on track. Most lenders have a financial interest in keeping you in your home and may be willing to alter the terms of your loan or devise a repayment plan.

Fear: Homeowners believe that if their mortgage company has already turned them down for a loan modification, there is no point in contacting a counseling agency.

Many homeowners are turned down for a loan modification because the information they provide to their lender indicates that their expenses exceed their income or that they have not provided accurate documentation and information about their loan. A housing counselor may be able to suggest alternatives that better suit your current financial situation or help you make adjustments that make you a better candidate for a loan modification with your lender.

Fear: Homeowners fear being judged by others for seeking help.

These are challenging financial times. While it may feel like you are the only one struggling, the reality is that many of your friends and neighbors are also finding it difficult to stay afloat.

Fear: Homeowners think it is better to use all of their financial resources before seeking help.

Many homeowners try to ride out the financial storm, using their savings and depleting their retirement accounts before seeking help. By the time they do seek help, they are in an even more desperate financial situation and they have spent the resources that may have given them more options in dealing with their mortgage crisis.

Fear: Homeowners facing foreclosure fear that their situation is hopeless.

While for some, seeking help may mean saving their home, it is inevitable that some homeowners will end up in foreclosure. A certified housing counselor or real estate professional can help homeowners work through the foreclosure and build a new path for long-term financial success.

Fear: Companies claiming they can save your home charge large, up-front fees.

You can receive counseling from a reputable, nonprofit housing counseling agency at no charge. While there are unscrupulous businesses looking to take advantage of homeowners, there are also many HUD-approved housing counseling agencies that offer help for struggling consumers.

Please don’t let fear stand in the way of saving your home. Feel free to e-mail us for guidance on your specific situation and please pass this along to any friends and family members who may also need to confront these fears and get proactive. We would be happy to assist you in listing your Westminster home for sale or helping you find a solution to keep it.

We can be reached at 714-343-9294 or 714-393-5377 or by email at micahstovall@gmail.com or steve@stevestovall.com You can also go to our website at www.steveandmicah.com