Safeguarding your Identity & Using Social Networking

The popularity of social networking sites such as Facebook, Twitter and LinkedIn is continuing to grow dramatically. Sometimes we forget that hackers are using social networking too to gain access to personal information. Some of the following times from ICSA Labs, which is an independent division of Verizon Business.

1. Be wary of worms, Trojans and botnets that can infect and take control of your computer. Access to sensitive documents and personally identifiable information poses a significant threat to users.

2. If you receive a request to connect from someone you do not know, do not accept it. Trojans are infamous for tricking victims into providing sensitive information and are increasingly surfacing on social networking websites. By taking over a user's contacts or "friend" list, the Trojan sends invitations to the user's friends to try to infect their computers as well. The ZeuS Trojan is one example of malware that is remotely controlled by criminals who infect computers, wait for users to log on and then try to gain access to their bank accounts.

3. Do not share too much personal information. Hackers can easily piece together different bits of information posted to Facebook and other sites and compile a complete profile of an individual's identity, especially using birth date information. With this knowledge, hackers can trick users with targeted information that only a "friend" would know.

4. Be careful where you click. Just because a link came to a user from someone the user knows - a "friend" - does not mean it is safe.

5. Use and frequently update software security programs. Updating security software is the simplest way to protect a computer from malware like worms, viruses, Trojans and clickjacking.

Five Mistakes Home Buyers Make

In reading an article from the Wall Street Journal, I am happy to see a major publication to focus on the home buyer, something most news articles do not address as of late. In summation it reminds home buyers the benefits of working with a real estate agent.

For some areas, it’s easy to figure out comparables in the area to base your asking price, but there is much more to a transaction that putting an offer. Buyers must navigate the lending process, repairs, inspections, closings and more.

Guessing what you can afford can create a real headache. Getting a lenders pre-approval letter before submitting a offer to a seller is critical. It shows you are a qualified buyer ready to purchase.

Buying a home is an emotional process for most home buyers; a realtor assists the buyers in keeping a level head in the buying process.

To read the WSJ article “5 Mistakes Home Buyers Make”

FHA Launches Short Refi Opportunity for "Underwater" Homeowners

Federal Housing Administration (FHA) announced earlier this month a new program “FHA Short Refinance” to help responsible homeowners who owe more on their mortgage than the value of their property. Starting September 7th, 2010 FHA will offer certain “underwater” non-FHA borrows who are current on their existing mortgage and whose lenders agree to write off at least 10% of the unpaid principal balance of the first mortgage, have the opportunity to qualify for a new FHA-insured mortgage.

There are qualifications that must be met. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal to or greater than 500. The property must be the homeowner's primary residence. And the borrower's existing first lien holder must agree to write off at least 10% of their unpaid principal balance, bringing that borrower's combined loan-to-value ratio to no greater than 115%.

To read more on this topic, you can refer to FHA’s published mortgage letter that provides guidance.

Changes to Seller Financing

The Secure and Fair Endorsement for Mortgage Licensing Act (also known as SAFE Act), signed by President Bush in 2008, places minimum licensure requirements on all mortgage loan originators, this includes seller financing. To seller finance a one-to-four family residential transaction involving property other that the seller’s primary residence, the seller must now be a licensed as a residential mortgage loan originator (RMLO).

In the Texas Legislation, there was an exemption allowing sellers of a one-to-four family residence to seller finance up to 5 transactions in a single year without being licensed, but this will expire August 31st 2010.

Source: Anderson Edra, Texas Realtor Magazine, May 2010

Unhappy Seller Sues Condo Auction Buyers

I wrote a post on July 13th about an Auction I attended. In a strange turn of events, the seller is sueing the buyers! Apparently he doesn't agree with the terms of the sale price. This is an article I will continue to follow. Click the following link for the entire Austin Stateman's article.

Unhappy seller sues condo auction buyers

Federal Sales Tax on Home Sales

Recently researching claims that the new Healthcare Law enacted a sales tax on all home sales. Doing abit more digging I found a website that clarified the issue for me.

First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. The tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home.

And the fact is, the first $250,000 in profit on the sale of a primary residence (or $500,000 in the case of a married couple) is excluded from taxable income already. (That exclusion doesn’t apply to vacation homes or rental properties.)

http://www.factcheck.org/2010/04/a-38-percent-sales-tax-on-your-home/

Fannie Mae Website - Short Sales & Foreclosure

I came across a website for consumers that address questions about foreclosure, short sales and ways to stay in your home. It allows you to see if your mortgage is owned by Fannie Mae, contact a housing counselor and provide a financial checklist.

Click here for the Fannie Mae Website