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Ten Cities To Go From Renting To Buying

In these metro areas, now is a good time to make the jump to homeownership.

In Pictures: 10 Cities To Go From Renting To Buying

The U.S. government has pushed hard to make homeowners out of one-third of Americans who still rent their homes. It introduced and later extended a tax credit for first-time home buyers, and has kept federal interest rates at their lowest levels since the 1940s.

Market conditions are such that now is a particularly good time for some renters to take the hint.

In Depth: 10 Cities To Go From Renting To Buying

 

In Portland, San Francisco, Minneapolis and Washington, D.C., the premium to buy--the spread between what you'd spend on renting and what you'd pay each month for a mortgage--is far narrower now than its 15-year average. And economists predict a significant home-price hike in five years. So upgrading will cost much less than usual, and home buyers are likely to get a good return on their investment.

Note that buying isn't necessarily cheaper than renting in these metro areas. In fact, it often remains a more expensive proposition. But for those determined to own, that investment is a better one now than it normally is.

Take San Francisco. To live here has always required a hefty bump in monthly costs from renting; it's normally an incredible 296% more expensive to buy than lease a home, and the city's residents know this. That's why 42% of them stick to renting. Even though in the third quarter of 2009 the premium was still in the triple digits--233%--it had shrunk by 63 percentage points from the above 15-year average. As with the other cities we've highlighted, you're not getting nearly as good a deal by renting as you might have just a few years ago.

"Rents are falling, but not nearly as rapidly as home prices," says Ron Witten, founder of Dallas-based Witten Advisors, an apartment market consulting firm. "Part of the reason is a shift away from home ownership toward renting," he says, in part because mortgages have become harder for many to obtain.

If you want help securing the best mortgage possible...contact: Atkins & Associates~540-286-2323   www.atkinsandassociates.net

We're here to help & WE CARE!!!!

 

The Dangerous and Deadly

OK, take this quick quiz:

Just a few years ago when Melody Brooke applied for credit in anticipation of co-signing a loan for one of her adult children, she was told she had such good credit that she could buy a jet.

Today, she couldn’t buy a toy truck. The combination of a weak economy, which forced her to close her private counseling practice and caused her husband to lose a lucrative contract, has taken her family from a six-figure income to barely any income at all. To add to the constant barrage of debt collectors calling them, her husband hasn’t been able to obtain a job. “He’s only gotten two interviews and one offer,” says Brooke, who lives in the Dallas area with her husband. “But when they ran our credit, they told him they couldn’t hire him.”

The current financial crisis has brought about many economic anomalies, including throwing a whole new subset of the population on the radar of debt collectors – upper-middle class and affluent consumers like Brooke.

No More Easy Street

“We are seeing people who’ve never been down this road before” says Phill Hudson, a partner for the law firm of Arnstein & Lehr, with offices in Chicago, Ill., Milwaukee, WI., and throughout Florida. “Most people in this situation haven’t focused on what they’re facing, and the first thing we tell them is don’t ignore it and don’t become paralyzed.”

“Most people are in shock and they’re entering a world they’ve never dreamt of,” says Robert Markoff, president of the National Association of Retail Collection Attorneys, based in Washington, D.C. “The first thing consumers must do is talk to whoever is calling you.” Financial experts agree that speaking to debt collectors, especially in the early stages of delinquency, can go a long way in assisting a consumer’s cause.

According to Cena Valladolid, chief operating officer with Consumer Credit Counseling of Southern Nevada (CCCS), a non-profit organization that offers budget education, debt counseling, and elimination programs to consumers, talking to creditors can afford you an opportunity to become educated on special programs and repayment terms.

Part of honestly assessing your situation is looking at your assets that possibly can be sold such as a vacation home, timeshares, recreational vehicle, or non-essential vehicle. Also examine your savings, says Brooke. While she didn’t have anything with equity to sell, she used what small savings she had to settle three loans with a bank willing to work with what she could offer.

Don’t Panic

Perhaps just as bad as ignoring debt is getting into further trouble when trying to eliminate it. Sending all of your money to one creditor won’t make your problems go away, and can get you in deeper with other lenders. “People have a tendency to send the creditor who is making the most noise all of their money,” says Hudson, “but consumers need to make arrangements with all of their creditors.”

The priorities start with the essentials first, says Markoff. “It’s clear that you will need to provide shelter and food for yourself and your family,” says Markoff. “If you don’t have anything left, then you cannot work out plans.”

Markoff also advises consumers against falling into the trap of believing that if a payment plan cannot be worked out, an unsecured creditor can take their home or other property. “Generally, we don’t usually see a company taking property,” he says. If the problem seems overwhelming, he says, law firms that specialize in debt management and bankruptcy may be able to help consumers work with creditors.

“We eventually act as more than lawyers,” says Hudson of the services his firm offers. “We know the banks and lenders and the ins and outs of what they’re doing and accepting,” says Hudson. “Our clients may not always be happy about the options, but if we can get past the initial hurdle, we can help them move forward.”

Seek Extra Help

In addition to seeking paid counsel, there are also non-profit financial counseling alternatives. Services such as those offered by CCCS provide assistance with setting up budgets to accommodate precarious financial positions, and negotiating with creditors.

“Many creditors will reduce or eliminate penalties and interest,” says Valladolid. “We hope to put people in a situation to eventually help maintain or rebuild their credit.”

But, debtor beware. Valladolid cautions against companies that promise to help you immediately increase your credit score or rebuild your credit, or companies that offer to settle debts for very low amounts. “Anytime there is a public financial crisis with long-stretching arms, it always leaves room for scams,” says Valladolid. “I’ve heard of companies say they can eliminate debts up to 80 percent and settle them… we’ve never seen that here at CCCS.”

Additionally, Valladolid says legitimate non-profit credit counseling agencies will not charge a fee for their services. “We don’t charge because there’s nothing we do that the consumer cannot do for themselves for free, including negotiating settlements,” he says.

Markoff also cautions against companies that ask for fees in return for negotiating payment arrangements and settlements. “I see consumers daily who come to me saying they’ve sent all of their money to a company, and when they get sued they realize the company didn’t help them,” says Markoff.

When Should Bankruptcy Be Considered?

Before you consider bankruptcy as an option, speak with an attorney or credit counselor, says Markoff, as it might give you a different perspective. “If there’s a judgment entered, it doesn’t mean a person needs to file bankruptcy,” says Markoff. “It’s a black mark on the credit, but the credit reports are already not looking good.”

Chatz says speaking to an expert in bankruptcy is a must. “There are different types of bankruptcy that are best for different people,” he explains. “And people need to realize that you cannot file bankruptcy on government debts such as IRS debts or student loans, as well as on child support debt.”

Markoff says if a bankruptcy isn’t right for you, more often than not, creditors will usually just sit on a judgment until the consumer’s situation improves, at which time, the consumer can then make arrangements for payments or settle the account.

“The most important thing to do is to not panic and focus on the future,” says Chatz. “Accept it and work through it. Things will turn around, they always do.”

For Brooke, she and her husband are still both seeking employment, as well as trying to take destiny into their own hands by starting another business. “We are launching an Internet business that uses his technical skill and the model I developed as a counselor and an author, but who knows how long that will take to go to fruition,” says Brooke. In the meantime, they move forward with credit lessons learned.

Contact Atkins & Associates for more help or information: billye@atkinsandassociates.net     or

540-286-2323    www.atkinsandassociates.net  

Our lives do not just seem better when we are happy -- they actually become better, according to a 2005 analysis of hundreds of psychological studies. Happy people tend to have longer, more loving marriages... are healthier... live an average of seven to nine years longer than chronically unhappy people... and have more successful careers. According to one study, happy college graduates had annual salaries $25,000 higher than unhappy graduates 16 years after graduation.

While an endless procession of self-help gurus have claimed to know the path to happiness, psychological studies generally have failed to confirm that proposed happiness strategies actually work.

One notable exception: Research conducted in the past decade appears to indicate that we can become happier by feeling more gratitude.

What is "gratitude"?
In simple terms, gratitude is our affirmation of a benefit that we have received and our recognition that this benefit has come to us from outside of ourselves.

It has been said that becoming more grateful will make us happier. How do we know that it isn’t the other way around -- happiness creates gratitude?
Our research suggests that increases in happiness do not lead to increases in gratitude, but that increases in gratitude do in fact increase happiness. A study was designed to test this. Participants were divided into two groups, each of which were initially equally happy. Members of one of these groups were asked to write in a journal the things that they were grateful for, which made them more conscious of and grateful for the good fortune that came their way. At the end of the study, the journal-keeping group was 25% happier than members of the group that did not keep gratitude journals.

Why does feeling gratitude make us happier?
Primarily, I believe, it is because gratitude increases our sense of connection to other people. Having strong relationships is the single best predictor of happiness, and our relationships become stronger when we acknowledge the support we receive from those around us. Acknowledging the support we receive from others provides us with confirmation that we have value in other people’s eyes. Gratitude also buffers us from envy, resentment and regret, emotions that inhibit happiness.

Why do people often have trouble being grateful for what they have?
Lots of reasons. Most of us are fortunate to have pretty good lives, so our default reaction might be to take the benefits that come our way for granted. Consumerism and other cultural pressures can foster a sense that we deserve even more than we have. Our desire to see ourselves as self-sufficient makes it difficult to admit that someone else has helped us. And admitting gratitude can create uncomfortable feelings of indebtedness.

Can we consciously choose to become more grateful and thus happier?
Yes, I do believe it is a choice. Chronically unhappy people do not greatly differ from happy people in terms of their life circumstances -- they just approach life with a different set of attitudes. Unhappy people tend to see themselves as victims of their past, and feel entitled or exaggeratedly deserving when good fortune comes their way. Happy people are thankful that good things happen to them -- even though their lives might be no better than those of the unhappy people next door. We cannot always alter the events of our lives, but we can alter our attitudes.

What, specifically, can we do to become more grateful?
Make an effort to speak about your life using words of gratitude even if you do not feel very grateful. Though it seems counter­intuitive, we can become more grateful by forcing ourselves to feign gratefulness that we do not initially feel. Speak in terms of gifts and givers, not regrets and setbacks. Refer to yourself as blessed or fortunate, not deserving or lacking. Say that you live in abundance, not in need. For example, say "I feel so grateful when I can sleep through the night," rather than "Most nights I wake up every few hours."

Keeping a gratitude journal also seems to encourage gratefulness. Every day or every week, write down five or more things for which you are grateful. Be specific -- "I’m grateful for my spouse" is little more than a cliché, but "I’m grateful that my spouse picked up my dry cleaning this afternoon" reminds us that we are grateful to our partner today for a particular reason. Try not to repeat entries -- gratitude journals are most effective when we think of new items each day.

Incidentally, if you are struggling to get to sleep at night, don’t count sheep, count your blessings. Grateful people sleep better and longer than ungrateful people, and wake feeling more refreshed.

What is the secret to being grateful in the face of struggle or tragedy?
The secret is not to wait until tragedy strikes. Become more grateful while your life is running smoothly, so that gratitude becomes an ingrained part of your "psychological immune system." That will make it easier to view difficulties as temporary and surmountable setbacks, or even as opportunities in disguise.

A grateful person mourns the passing of a close friend, but he/she also feels lucky to have known the friend as long as he did, and is glad that he has so many other friends remaining.

Many prayers are expressions of gratitude. So, do religious people have an advantage when it comes to actually feeling gratitude and being happy?
Yes, to some degree. One of the foundations of virtually every religion is that people should give thanks to God and to each other. Religious texts and religious teachings typically provide models of how to be grateful, such as prayers of gratitude and rituals of giving thanks. Spirituality appears to be particularly helpful for maintaining a grateful outlook in the face of suffering and adversity.

During this week before Thanksgiving & throughout the New Year of 2010 focus on being Thankful. Hone in on specific things and people that you are Thankful for having in your life. I am wagering that you will experience much more Happiness throughout your New Year!!!

Is this a “family policy” or a “named-insured-only” policy? Family policies cover all the drivers in the home and anyone they lend their cars to, while “named-insured-only” policies cover only drivers explicitly named on the policy. Family policies cost perhaps 10% to 15% more (or higher, depending on many factors, including the driving records of any of the other drivers), but they are the proper choice if anyone other than the policyholder ever drives the vehicle. Many car owners do not even realize that they have named-insured-only policies, and they lend their vehicles to friends and family members unaware that they might not be covered in the event of an accident.

Do I have the right to select my own repair facilities and choose original equipment manufacturer (OEM) parts with this policy? Several insurance companies, including Geico, Nationwide and Progressive, have reworded some auto insurance contracts to limit car owners’ repair options following accidents. Using aftermarket parts -- parts not made by the vehicle’s manufacturer -- in a vehicle could void its warranty.

Example: Your radiator must be replaced following an accident. A year later, your engine seizes up. The dealership likely will refuse to honor your warranty because of the aftermarket radiator.

Does this insurance policy have an appraisal clause? This clause allows the policyholder to seek an appraisal if the insurance company offers less for a totaled vehicle than the policyholder believes it is worth.

Also ask: Does this appraisal clause allow for the appointment of a third participant by a “court of jurisdiction”? This way, if the policyholder’s and insurance company’s appraisers cannot agree on who to select as an umpire, either appraiser may request the appointment of an umpire by a court of jurisdiction to break the deadlock. If the answer to either of these questions is no -- beware. You might be powerless if your insurance company insists that your car is worth less than its Kelley Blue Book or NADA (National Automobile Dealers Association) Guide value.

Does the “Limits of Liability” section of the contract contain the phrase “as defined by us”? This section of your auto insurance policy sets limits on how much the insurer will pay. It might say that the insurer will pay “no more than the prevailing per hour labor rate of repair shops in the region,” or “no more than a competitive estimate of repair costs.”

Unfortunately, some insurers -- including Geico, Nationwide and Progressive -- have begun tacking the phrase “as defined by us” onto the end of these limitation clauses in some contracts, effectively giving the insurance company the right to insist on below-market repair rates. Their policyholders must either take their vehicle to the insurer’s “approved” repair shop, which is willing to do repairs for the lowball rate, or take the vehicle to a better repair shop and pay the difference out of pocket.

HOW TO FIND THE BEST INSURER

Atkins & Associates makes an honest effort to look out for our customers’ interests, while others mostly look out for their own bottom lines. Shrewd ways to tell which are which...

Check the level of customer complaints. Call your state’s department of insurance, and ask which insurers have the lowest rates of customer complaints.

Call us for a quote: 540-286-2323 or complete an "online questionnaire" & we will be happy to serve you.

You may wonder why an Insurance Agent/Mortgage Professional is giving you a recipe for Easy/Delicious Mac & Cheese...

1st Reason...Macaroni & Cheese go very well together, just like Insurance & Mortgages.

2nd Reason...Most people are satisfied once they eat good mac & cheese, but if they eat "perfected" mac & cheese, they are even more satisfied & happy. The correlation here is that Atkins & Associates has worked diligently for over 26 years to "perfect" the Insurance & Mortgage business & we have succeeded immeasurably in that arena! Many products, companies & plans to choose from, tailored to YOUR specific need.

and the  

3rd Reason...Mac & Cheese is a fairly easy dish to prepare. Once again, at Atkins & Associates, we are here to help you, keep you more than satisfied, while all the while...keeping it simple & easy to do business!

Why not give us a call & see how we can $ave you money, while making the experience easy & satisfying? 540-286-2323 ...

Now for the recipe: 

Try this quick and delicious variation on an old favorite when time is short.

RECIPE INGREDIENTS:
	1 pound elbow macaroni
	3 cups milk or half-and-half
	12 to 18 slices American or Cheddar cheese
	12 Ritz crackers
	salt, pepper, and paprika to taste

1. Cook and drain elbow macaroni and let it cool slightly. Meanwhile, heat the oven to 350 degrees and grease a 13- by 9-inch baking pan or a large casserole dish with butter.

2. Now have your child spoon a third of the pasta into the pan, then pour in 1 cup of the half-and-half and cover it all with 4 to 6 slices of American cheese. Add two more layers of pasta, half-and-half, and cheese in the same manner.

3. Next, crush a dozen Ritz crackers in a ziplock plastic bag. Add the salt, pepper, and paprika, shake to mix, then sprinkle the crumbs over the top layer of pasta and cheese.

4. Bake for 30 to 40 minutes or until bubbly. Serves 6 to 8.

Do You Need Car Insurance? How Much Do You Need?

Nearly every state requires you to have auto insurance and most states have set minimum values for different policies. The state can impound your vehicle if you aren’t insured. To find out what your state’s minimums are, check out this website.

“The least you can have,” though, isn’t necessarily all you should have. In New Jersey, for example, you’re required to carry a 15/30/5 liability package. Now, in a bad enough collision, it’s entirely possible that an individual’s medical expenses could exceed $15,000, or a group to have more than $30,000. Not to mention that $5,000 isn’t necessarily a large amount of damage, considering that the average car now costs a little more than $20,000.

And where do you think the lawyers look for money when there’s no more insurance? Yeah, that’s right: you. That’s why many people get more than the minimum required liability policies, particularly if they have a lot of assets that can be seized by said lawyers.

A good rule of thumb is to get liability coverage that is equal to the value of your assets (you know, your house + your car + any money in the bank + investments).

What about insurance for yourself?

Well, you probably don’t need to spend a lot of money on a Personal Injury Protection policy. You should be covered if you have health insurance and some disability insurance through your employer. Just buy the minimum if it’s required.

Uninsured or Underinsured Driver insurance, on the other hand, is worth having. First off, it’s cheap (something like $40 a year for $100,000 worth of coverage). Second of all, it can help cover costs your health insurance won’t pick up. If you’re covering the people you injure for $100,000/$300,000, do the same for yourself.

Collision and comprehensive coverage is worth having if the car you’re driving is worth repairing or replacing. A couple of things here: These policies have a deductible (the amount you have to pay for a repair before coverage kicks in), and they pay you based on the current value of your car (taking into account the fact that it’s depreciated in price over time), not what you paid for it.

As far as the deductible is concerned, you want the highest one you can afford. Why? Because it will significantly lower your premium (i.e. your regular monthly payment). Remember, you’re getting this coverage for major damage to your car, not for every little thing that can go wrong. It’s better to spend $500 out of your own pocket every couple of years on minor repairs than cough up an extra 30 or 40 bucks a month because you don’t want to pay a nickel for anything. Save collision insurance for when the damage is in the thousands, not the hundreds. Remember, if you decide to make a claim for every little thing, your premium will go up.

Also, a handful of states require no-fault insurance. Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah and Puerto all do – though the rules around how these policies work vary by state, the states require you to have an insurance policy that pays out no matter who was at fault in the accident (known as personal injury protection or PIP) and they also limit your ability to sue other drivers. These policies tend to be expensive, so be sure to shop around for the best deal if you live in a no-fault state.

A premium is the price you pay for your insurance coverage, whether or not the benefits are paid. Your premiums will vary, depending on, among other things, how much protection you want to buy, how long your policy will last, the amount of your deductible, your age, your health, and how often you make payments.

If you need to make a claim on your insurance policy, the deductible is the amount of money you will have to pay out of your pocket before the insurance company will begin to pay any benefits. Depending on your policy, your deductible can be either a fixed dollar amount or a percentage of the total cost of your claim. In other words, you could be responsible for paying the first $500.00 of a claim, or you could be responsible for 10% of the total amount of the claim. Deductibles often have an annual limit beyond which you are not required to pay anything, even if you have additional claims.

Coinsurance is the fixed percentage of the covered fees that you are required to pay after your deductible has been subtracted from the amount of money owed on a particular claim. Coinsurance requirements are found mostly, in health insurance policies. So if you have a policy that requires you to pay a $300.00 deductible and a 20% coinsurance, and you have medical bills of, say, $1,300.00, you would be responsible for $300.00 (your deductible), plus 20% of the remaining $1,000.00, or $200.00 (coinsurance). In this example, the claim would cost you a total of $500.00, while the insurance would pay $800.00.

*Compare policies. Always deal with an "independent insurance agent"....one that represents several different companies for your specific risk.

Be sure that your agent "shops around" for you to be certain that you are getting the best policy for your money. Remember, however, that the cheapest policy will not always be the  best one for you.

Don't compare only costs; compare resources and most especially, compare services.

*Ask yourself the following questions:

Have you read every word of the insurance policy that you are buying?

Do you understand the definitions the insurance company uses?

What will your policy specifically cover?

What will your policy specifically not cover?

What will it take to qualify for your benefits?

*Make sure that your agent reviews your policies with you every 2-3 years to make sure that they are still responsive to your needs. ..

Have you made major improvements to your home?

Did your youngest child finish college?

Did you or your spouse become eligible for Social Security benefits?

Have you & your spouse recently divorced?

These kinds of life changes may mean that your insurance coverage should change too.