The Federal Tax Credits Blog

Archive for August, 2009

The information sent to the credit bureaus is then utilized to create a numerical score. Credit scores are like grades ranging from 300 to 850. If a person has higher “grade”, he/she will get a better credit rating.

Good credit scores even help in getting reputed job offers, loans for autos, medical, and housing purposes.

Bankruptcy and Credit Report Filing for bankruptcy puts a negative mark on that person’s credit report. Once entered, this bankruptcy information will stay on the credit report for up to 10 years. Therefore, it is important that a person should be aware of this before filing for bankruptcy and find out all alternatives for addressing a debt situation before taking the extreme step.

Filing for bankruptcy is a significant decision that could have a negative impact on a person and his credit report for years to come. This would certainly create a very difficult situation when a person is trying to erase bad credit. Instead, Credit Restoration is a great option available for people who are experiencing severe debt problems. The status of a bankrupt person appears as “filed,” in his credit report which means the person is no longer liable for the debts incurred.

Life after bankruptcy filing proves to be very difficult since it’s virtually impossible to obtain credit, for a home, or get insurance in the near future. How Foreclosure Affects Your Credit Score A big question that arises in the mind of any person on the verge of foreclosure, is the effect of the foreclosure on his credit scores.

Yes, there is an adverse effect as some foreclosure victims have realized that there is a huge drop in their credit score after foreclosure and they cannot borrow money for several years. credit report of a person is based on their entire record of using credit and the entire picture will be considered in assigning a score. If a person has, paid off his loans on time, then foreclosure may not have a huge impact on the credit report. It may cause a slight drop in the overall credit score because plenty of positives cover up one negative mark.

About the Author

David L. Skinner is the President/CEO of Capital Credit Improvement Group, Inc. David has over fifteen years of consumer credit related and other relevant industry experience. He has held a number of executive posts in banks and finance companies, most recently as Senior Vice President of Credit and Operations with the largest centrally operated mortgage brokerage in the United States. In those positions, David has been on the front lines of writing, analyzing, and interpreting credit policy.

Guelph Area Event Calendar

To submit: editor@guelphmercury.com

Question: How much can u afford calculator says im buying more than i can afford?

Im closing on my house in 2 weeks, and i just did one of those “how much can you afford” calculators but im not sure its right. Here are the details.

Take home pay is 4,000 per month. (i pay taxes at end of the year usually less than 400$ for the year)

30 year fixed @ 4% interest (yeah pretty low, right?)
100% financed 95% First mortgage 5% silent second
Purchase price 219k
PITI & MI = $1,350 per month
no car payment
no credit card payment
no debt of any kind

I thought i was doing pretty good, but this website says the max i can afford is 180k even at that low interest rate. Strange because lender said i qualify for over 300k+ but I felt i didnt want to get over my head so i picked a less expensive place. What do you think?

Answer: You should be using your gross income when calculating what you can afford, and add the taxes & insurance to the payment- however, the banks are pretty strict these days, so if you are ready to close in two weeks, the underwriter has already qualified you based on their criteria so it should be fine… also keep in mind you will now be getting a large tax deduction for mortgage interest and property taxes so you should end up getting more back at the end of the year, or better yet- adjust your W-4 now to get more back each pay period and very little at the end of the year!
Congratulations on your new home- it sounds like you are very responsible and have worked hard to keep your credit great!

Business leaders reflect on year past and year to come

As 2009 comes to an end, the Statesman Journal invited area businesspeople to examine this year and look at what may lie ahead. Here are their responses:

2009 1st Time Home Buyer Tax Credit

Open World Travel Company offers Vietnam visa arrangement for free if travelers book service on the company website.

Most visitors to Vietnam need a visa to enter the country. Visas are exempted for the citizens of the countries, which have signed a bilateral or unilateral visa exemption agreement with Vietnam, tourist visa may be valid for 15 to 30 days.

Visa exemption:
Vietnamese people that hold foreign passports and foreigners who are their husbands, wives and children are exempt from visa requirements to enter Vietnam and are allowed to stay for not more than 90 days. In order to be granted visa exemption certificates at Vietnamese representative offices abroad, overseas Vietnamese need conditions:

Foreign-issued permanent residence certificate (PRC) with the validity of at least six months since the date of entrance.

Visa exemption paper (VEP) is granted by Vietnamese appropriate authorities.
Those who expect to stay more than 90 days must apply for visa according to current stipulations before their entrance.

Bilateral visa exemption agreement
Citizens of Thailand, Philippines, Malaysia, Singapore, Indonesia and Laos holding valid ordinary passports are exempt from visa requirements and are allowed to stay for not more than 30 days.
Citizens of China, Bulgaria, Kyrgyzstan, North Korea, and Rumania holding valid ordinary passports for official mission and citizens of 52 countries holding valid diplomatic or official passports are exempt from visa requirements. The duration of staying is stipulated in certain cases. For more information, please visit le website of Ministry of Foreign Affaires.

Unilateral visa exemption
Visa with 30-day validity is exempted for officials from ASEAN secretariat holding different kinds of passports.

Citizens of Sweden, Norway, Denmark, Finland, Japan and South Korea holding different kinds of passports are exempt from visa requirements and are allowed to stay for not more than 15 days.
Others who want to enter Vietnam must be provided with a visa.

Tourist visa is valid in 30 days.

Visa is issued at the Vietnamese diplomatic offices or consulates in foreign countries. Visa is possibly issued at the border gates to those who have written invitations by a Vietnamese competent agencies or tourists in the tours organized by Vietnamese international travel companies.

Application files for visa: the entrance application (printed form); two 4×6 cm photos; passport and fee for the visa issuance.

Visa extension: Served by all international travel companies. Check it out at

http://www.vietnamvisasupport.com/apply.html

Open World Travel Company offers Vietnam visa arrangement for free if travelers book service on the company website.

Project aims to make children safer living in their own homes

PARENTS are being urged to protect their children by taking advantage of a project aimed at reducing the number of home accidents among under-fives in Leeds. (22/06/2010 10:21:39)

Question: Will we have to pay back the New home Buyer Tax Credit if we get married?

My Girlfriend and I are both purchasing under the New Home Buyer Tax Credit this year. What happens if we get married in the next 2 years and both move into mine the larger of the two homes? Will we have to repay the 8000 because she did not stay in the home for 36 months? Also what happens if we get transferred do we both have to repay if we move?

Answer: If you get married and move in together, by definition, one of those houses is no longer a primary residence, triggering the requirement to repay the $8000.

If you move, then neither house qualifies and then both of you must repay the money.

Valley Home Values Plummet in 2009

2009 turned out to be a tough year for home values in the Valley. Merced’s home values dropped the most in the western U.S. since the housing boom, according to a recent report by Forbes.com. There, home values dropped by more than 60 percent since 2006. And Fresno comes in at number nine. In Fresno, values have decreased by nearly 40 percent.

Renovations usually cover up many activities, from structural maintenance to making a new building for good looks and higher standards. Renovations do add up to the value of the home and family. It’s not all about just making it look good, but need to make essential materials available at time, make payments to the suppliers, subcontractors and finally the most important, the quality assurance.

Nowadays, as there is scarcity of the home lands, more people are getting their homes renovated. Before making a decision regarding renovating the home, think of a good renowned contractor to handle this work, you still be the project manager. You need to communicate in detail regarding the parts to be rebuilt and need to find solution to the problems. Incase you are not so good at it, you can rather ask your friends or relatives to help you out. Meanwhile, the renovations are being carried on, you need to make alternate arrangements for your luggage and living as well.

Make sure that you have the legal permit for Home Renovation, if you are handling it individually. Incase you have hired a contractor, look out to confirm that he has gone through all legal formalities and has a valid permit too. Another factor to consider is to know that the company is offering any insurance cover or not? It is necessary to get it insured for the safety of workers and the property as well.

Be careful with the details of the contract, as a contract, documents in detail the parts and areas to be renovated. And lastly, make sure not to violate any of the home association’s rules while considering a Home Renovation.

Retail sales drop in May

Canadians tightened their purse strings for a second month in May, buying fewer building supplies, gardening materials, vehicles and auto parts, government figures showed.