Struggling homeowners worry about credit score

Aye aye aye. It's a sign of the times. Over the last year and a half, the mortgage market has undergone more changes than in any comparable period since the Great Depression of the 1930s. The current housing market malaise has some homeowners up in arms. With the threat of losing their house on their shoulders, the idea of burning their credit is unnerving.

Just how do Morgage Lates, Short Sales, Foreclosures and Bankruptcies affect your credit?

Vince Wirthman of 1st Western Home Loans in Berkeley gave me the following information:

Mortgage Late Payments:

1. Credit score can drop 100 - 180 points.

2. Other credit interest rates could be affected (credit cards, equity lines).

3. No new mortgage for 12 - 24 months, depending on the circumstances.

Short Sale (Preforeclosure sale):
1. Credit score can drop 180 - 250 points.
2. Other credit interest rates could be affected.
3. No new mortgage for a minimum of 2 years, depending on the circumstances.

Foreclosure:

1. Credit score can drop 180 - 250 points.
2. Other credit interest rates could be affected.
3. No new mortgage for 3 - 7 years, depending on the circumstances.

4. Will need a minimum of 680 credit score and 10% down on next purchase.

Bankruptcy:

1. Credit score can drop 200 - 300 points.
2. Other credit interest rates could be affected.
3. No new mortgage for 2 - 4 years, depending on the circumstances and type of bankruptcy.

Vince can be reached at (510) 527-2840.

Are you being greenwashed?

Everywhere you turn, it's green this, green that. I feel like my skin is turning green! But just how green are the products you are using?

I recently met with Becky Hatt, an Interior Designer with HAUS, an interior design and architecture firm which specializes in green building. "Companies are starting to capitalize on all of the hype surrounding the green movement," said Becky, "just how green are some of the products these companies are producing and what are their environmental practices? Perhaps the material is green, but was child labor used to manufacture it?"

"Bamboo, which is probably the most popular green material on the market, is readily available and is completely renewable. Just be sure the manufacturer didn't chop down another forest to grow their bamboo."

The industry has coined this "greenwashing."

When I sat down with Becky, she showed me some of the newest green options available in flooring, many of which are completely affordable. You can hear what Becky had to say by clicking below:

Becky has these tips on how you can avoid becoming greenwashed:

1. Look for wood floors with FSC (Forest Stewardship Council) Certification.

2. Bamboo is not the only solution: there is an amazing array of wood materials from sustainable sources.

3. Working with a professional who can really assess your needs, whether it is a designer or one of the great local environmental building centers, can help you achieve a great, sustainable solution.

You can reach Becky at:

Becky Hatt
haus
architecture + interiors
http://www.haus-design.us/

A call you will have to make

You have the keys to your new house. The power is turned on, everything is moved in. Still haven't turned on your phone? Perhaps you shouldn't...

I don't think it will be long before landlines become a part of the landfills.

Today, 14% of American adults are using their cell phone as their primary phone line, no landline required. And with the onset of VOIP, voice over internet, routing calls over the internet couldn't be easier. In fact, 1:7 adults use VOIP as their primary landline supplement or replacement.

Vonage, AT&T, and Verizon all have plans available at around $25/mo, and TMobile has even introduced their version of VOIP for around $10/mo, but only if you are a subscriber.

So the pricing is reasonable, but what are the cons?

Well, as you know, cell phone reception in many parts of the East Bay is...well...non-existent. I can't tell you how many times I am on the 80 fwy @ Gilman, and for a split second, my phone cuts out. Thanks, AT&T.

VOIP requires electricity; if the power goes out, you have no phone service. In addition, it also requires a broadband connection. If your connection isn't great, then neither will the clarity of your calls.

I have VOIP at my house. It is pretty cool, but if I haven't retrieved the messages on my VM, then I can't fax. This is annoying when you are running a business from home. On the flip side, not only can I access these same messages remotely, but I receive an email when there is a message. Love it!

So before killing your landline, check cell phone reception in your 'hood and investigate your broadband. Is it worth the change? That is a call you will have to make.

Are you in a house-hunting, email coma?

I am checking email. I am holding my breath. My heart rate goes up. My brain begins to whirl as I try to file the enormous amounts of email I have in my inbox: Who should I respond to now? Who can wait? Which should I delete? Another viagra email? Who should I call? How did I miss THIS email? Aargh.

I was talking with a client about this. Turns out she is the same way. Turns out there is a name for it.

Email Apnea.

Yes, you read it correctly.

So I googled it. And sure enough, it exists.

Email Apnea has been defined as "a temporary absence or suspension of breathing, or shallow breathing, while doing email."

It seems there is this woman, Linda Stone, who has been researching this. She says that email apnea can lead to all sorts of health-related issues, such as obesity and diabetes. Huh? She coined the phrase "continuous partial attention." Linda says, "We pay continuous partial attention in an effort NOT TO MISS ANYTHING. It is an always-on, anywhere, anytime, any place behavior that involves an artificial sense of constant crisis. We are always in high alert when we pay continuous partial attention. This artificial sense of constant crisis is more typical of continuous partial attention than it is of multi-tasking."

Fascinating.

So this same client who I was talking with is constantly looking for the best house out there. She is twittering, craigslisting, googling, zillowing...all in an effort to find the best deal out there. The process has been grueling for her. She is so afraid of missing the opportunity that she has tuned into the search 24hour/day. She found a house and wanted to put in an offer, then backed out for fear of finding a better one. She filed this house under the "check back" folder. Huh?

You get my point.

Sounds like we all need a little breather.

Woah, Nelly. That is some growth.

Hold on, everyone. The headline in the paper this morning says "East Bay population continues to grow." 2.5 million. Yessiree, 2.5 million peeps living in the good ol' East Bay.

2007: 22,805 new people joined our culturally rich, food-savvy, have-you-changed-out-your-flourescent-lightbulbs-yet community. That is enough people to fill the city of El Cerrito alone.

This is an increase of 0.93% from 2006.

Here's the kicker: the growth didn't come from the kiddies. Last year there were 29,289 fewer East Bay kids between the ages of 5 and 13 than there were in 2002.

The median age in Alameda County rose to 37.1 in 2007, up from 36.8 in 2006, and in Contra Costa County, the median age was 37.9 last year, up from 37.8 in 2006 and 36.4 in 2000.

So what does this tell me? Looks like a few people are going to be needing homes this year.