FICO scores are increasingly important in today’s economy.  The reality in the housing market right now is that unless you have nearly perfect credit, it is difficult to get a home loan.  The only way to keep good credit is by paying your bills on time.  On the face of it, that shouldn’t be terribly difficult if you have a job and don’t purchase more than you can afford.  However, if you find yourself in a crisis, your credit score will take a nosedive, very quickly.  The people that already do have homes are getting very little grace from their own banks if they have a family disaster that impacts their finances, whether it might be unexpected medical bills or the loss of a job.

Dire things happen when the government can’t pay their bills.  We are seeing more and more people who work for their local, state and federal governments who are being laid off or furloughed for a extended period of time, putting them in a difficult position.  Without knowing whether their job will continue, or when, they are unable to move on to a new position or career, effectively putting them in job limbo.  All of this is happening at the same time the government at large is arguing about larger government or smaller government and refusing to pay the people they have already hired.  When these
government employees are furloughed, disaster begins to trickle down.  The government can’t pay their employees, so those employees can’t pay their bills.  Lucky for the government – they don’t have a FICO score to maintain.

The bottom line is that nobody is getting a break.  Things we need to buy every day are more expensive than ever and people need their jobs in order to pay their mortgages.  Banks are more skittish than ever because of the recent downturn in the economy and require their note-holders to pay their mortgages on time or face penalties.  When you add the government’s erratic behavior to the mix, the trickle down effect means that no one is getting the help that they need, and there is nothing left in the cupboard for a rainy day.  People are living on fumes.

What’s the solution?  For you and me, it’s to be careful with our jobs and our finances.  For the government, it’s to help the people that really need help without being hypocritical.  It’s time for the government to pay attention to their own FICO score.  We’d all be better off for it.

The bottom line is: If the Federal Government credit rating is slipping, The States credit rating is slipping and your Local cities credit rating has slipped.

Why does the government, creditors and banks expect individuals to have great credit or high FICO scores to get loans??

Podcast: Senior Downsizing during Part 1

Reverse Mortgage loans allowed people at least 62 years old to tap the equity in their homes for cash. The products are known for having high upfront fees, and consumer advocacy groups have warned the complex loans are fertile ground for scams and deceptive marketing.

Times and changed and the reverse mortgage program is behind the times and very risky.  Seniors as well as their siblings are having problems paying the loans back.  The families abilities to meet the obligations of homeownership and reverse mortgages, such as paying property taxes and homeowner’s insurance, has grown difficult because of unpredictable home values and restrictions associated with reverse mortgages.

Reverse mortgage loans and its interest are due when the borrower dies, moves, sells the house or fails to pay property taxes or homeowner’s insurance.  There is a 1 year statute of limitaion for the family member to pay it back from date of death.  This is not happening.  There is also a increased number of short sale transactions on the reverse mortgage fence.    

The reverse mortgage business was about 2.2% of Wells Fargo’s retail mortgage volume and 1.2% of overall mortgage volume.  Met Life Bank will be picking up a line share of this business in the near future.

Probate, trust and Estate Attorney Andrea Van Leesten is going to dig deep and explore ”WILLS”.  If your love one passes, where is the will? who is named? It it legit? Is it on a kitchen napkin or drafted by a professional or non-professional?  Eliminate stress and protect your family assests at time of loss.  E-mail your questions to questions@wetalkrealestate.com.

 Podcast: Exploring Last Wills and testaments with Atty Andrea Van Leesten

Many seniors face very real questions, such as: Should I have a living trust to avoid a probate? How do I protect my family assets and keep my family from fighting over my assets at my demise?

Today’s economy and recovering real estate market have been real game changers when it comes to buying and selling a home. As we adjust to the “new normal,” many Baby Boomers are starting to retire. As a whole, the Boomer generation has always shifted the way the nation stands. The same holds true as they begin to think about ways to retire.

How can you balance your retirement savings with your expected budget for the next 20 or even 30 years? The questions get even stickier when you start to factor in your will and heirs. Nobody likes to think about it, but it’s essential to financial fitness.

We Talk Real Estate will bring clarity and shine light on these topics to help seniors plot their course and navigate these potentially muddy waters. The hosts – Butch Grimes, Victor Jackson and other guests – also welcome questions and will answer them during the show.

The show airs Monday at 6 p.m. (Pacific) at www.wetalkrealestate.com, where podcasts also are available.

June 7 – Probate: Set your will on its course with Butch Grimes and Attorney Andrea Van Leesten, an expert in probate, trusts and conservatorships.

June 14 – Probate II: Part two of this topic, Stop the Family Feuds, and preserve your family assets.

June 21 – Downsize or Rightsize? Do you want to downsize and trade in your bigger home for a place that will suit your lifestyle?

June 28 – Downsize II: Making your next move, smaller house, senior facility, move in with children

We Talk Real Estate is the radio arm of the We Talk Radio Network. The Network offers You-Nique programming with a Niche. The We Talk Real Estate Show is hosted by “Butch” Charles Grimes and Victor Jackson and offers an entertaining and informative experience that motivates listeners to take charge of their financial fitness. Highly seasoned in all aspects of real estate, Grimes served as the State President of the California Association of Real Estate Brokers (CAREB) among his many volunteer efforts. Grimes writes monthly real estate columns, “The Real Estate Insider,” that appears monthly in newspapers across the country and on the Internet. He also regularly appears on TV and in published articles speaking about real estate, given his vast experience. We Talk Real Estate airs online and on KTYM 1460 AM in Los Angeles.