I recently read a very interesting article on how the way consumer credit scores are calculated will be changing in the next year.  The Fair Isaac Corp – creator of the FICO scorehas unveiled a new scoring model for determining your credit score dubbed FICO 08.  Currently FICO scores range from 300 to 850 and are based on consumers’ credit histories.  This score “in theory” should reveal the risk associated with lending a person money and their chances of default.  The lower the score, the more chance for a default.   A Good credit scoreis anything over 700 and a low score can severely restrict a person from buying a house, car, renting, turning on utilities, credit cards, and even getting into a good college.

The Fair Isaac Corp explained that the new method is more forgiving on minor slip-ups and will more accurately predict a borrower’s risk of defaulting on loans.  FICO 08 will still take into consideration the same factors of a person’s financial history including indebtedness, length of credit history, and number of open lines of credit, the main difference is the weight these factors will carry.

YOUR FICO SCORE MIGHT GO UP IF…

You maintain various lines of credit, such as credit cards, or car / home loans.  This demonstrates your ability to successfully manage different types of loans.  YOU WILL BE LESS PENALIZED IF YOU ARE DELINQUENT IN ONE ACCOUNT, BUT ARE IN GOOD STANDING ON THE OTHERS!

YOUR FICO SCORE MIGHT GO DOWN IF…

You have many delinquent accounts.  This has always had a negative affect on your credit, but more so after the change.

NO MORE PIGGYBACKING

This is a popular method of adding people with poor credit to those with good credit to increase their credit score.  Currently by being added as an authorized user to a person with a good credit account can dramatically increase your score…THIS WILL NOT HAVE AN AFFECT ONCE THE CHANGE OCCURES.  Parents can still co-sign for their kids, it just will have no affect on the kids credit score anymore!

In today’s declining real estate market here in Arizona, and as families go through the Foreclosure or Short Sale process, credit concerns are more important than ever.  Being proactive in monitoring and maintaining your credit report is crucial to your future, and we at www.CodySperber.com recommend using www.annualcreditreport.com to monitor your credit report every 12 months.  If you need actual credit repair, I recommend using www.GenesisCreditGroup.com.  Genesis is a local credit repair company that specializes in helping homeowners that have gone through a foreclosure or a short sale fix their credit withing 6-12 months.  I have sent many of my clients to them and they are all happy with the service.  If you are falling behind on your mortgage payments and would like to talk with a local Arizona Foreclosure Expert, please feel free to call me anytime at 480-861-8732.  Also, if you are looking to Sell Your Arizona House Fast, remember, I PAY CASH FOR HOUSES.

 Arizona’s April Foreclosure Rate Skyrockets!!!

In April, one in every 519 American households received either a default notice, bank repossession or auction sale notice, according to RealtyTrac’s U.S. Foreclosure Market Report. With foreclosure filings up 65 percent from a year ago, CodySperber.com takes a look at which ten states had the highest foreclosure rates.
 

Top 10 State Foreclosure Fillings In April 2008

1. Nevada – One In Every 246 Housholds Recieved A Foreclosure Notice
2. California – One In Every 204 Housholds Recieved A Foreclosure Notice
3. Arizona – One In Every 224 Housholds Recieved A Foreclosure Notice
4. Florida – One In Every 242 Housholds Recieved A Foreclosure Notice
5. Colorado – One In Every 349 Housholds Recieved A Foreclosure Notice
6. Maryland – One In Every 380 Housholds Recieved A Foreclosure Notice
7. Georgia – One In Every 422 Housholds Recieved A Foreclosure Notice
8. Ohio – One In Every 432 Housholds Recieved A Foreclosure Notice
9. Michigan – One In Every 440 Housholds Recieved A Foreclosure Notice
10. Massachusetts – One In Every 539 Housholds Recieved A Foreclosure Notice

Arizona Foreclosure activity in April increased 26 percent from the previous month and 181 percent from April 2007, helping to bump the state’s foreclosure rate up to third highest among the states. Foreclosure filings were reported on 11,620 Arizona properties in March, one in every 224 total households. (Source: RealtyTrac.)

“It is obvious to us that the number of homeowners that need a REAL SOLUTION to stop foreclosure is rising and the housing market is still declining”

CodySperber.com has the resources and team in place to handle any housing / financial situation. We Are Arizona Short Sale Experts! Our team of specialists are highly educated on Arizona’s foreclosure laws as well as the Foreclosure Process. Arizona Short Sales (http://www.codysperber.com/whatisashortsale.php) are our specialty and we offer a no-hassle, quick close without Realtors and the fees associated with a traditional sale. We pay cash for houses fast in the Phoenix – Metro market. We buy both nice and ugly homes and we can close within 3 days, sometimes faster or slower, depending on your financial needs. We are Arizona’s #1 “Cash For Houses” homebuyer dedicated to helping families in their time of need.

http://www.CodySperber.com/

Be Optimistic but Realistic ~ You can dream all day long that your home is worth a certain amount. Happy dreams make for fabulous mental visions of grandeur. It’s good to be optimistic. But in today’s housing market, visions of grandeur can be a huge drawback and cost you lots of money.

Most Important ~ Hire a real estate professional. You don’t need to know everything about buying and selling real estate if your hire a professional. Real estate agents have all the necessary tools at their disposal and can give you up-to-date information regarding recent sales and statistics, your competition, and information about the housing market in general. A real estate agent will market your property to other real estate agents as well as to the public on the MLS and other internet sites. A real estate agent can also help you evaluate buyer offers, and then, finally, help you close the sale.

Price Your Home to Sell ~ The key to selling your home is pricing. Listen to your real estate professional. Be smart and realistic if you want to sell your home. If you price your home too high, it probably will sell for less than a similar one that was initially priced lower than yours. 

You don’t know the price of your home until you sell. Unlike the stock market where you can find out the share price of any stock or stock fund you own in a matter of minutes, the value of your home is worth what a buyer is willing to pay for it. You can’t look it up on the NYSE. It’s not listed there. Click Here for New York Stock Exchange.  What you can do though is Contact Me and I will give you my expert opinion on the value of your home and the homes in your neighborhood!

Accept the Market. When your real estate agent brings an offer to you, take the necessary time to think it over. Don’t think you are rushed to make a snap decision on your biggest investment. Don’t put yourself through the three phases of selling that is costing everyone mega bucks… 1) denial; 2) anger, and then 3) acceptance. Acceptance should be Number 1 on your list instead of months of trying to sell your home in a fast-changing market. Your home may not be worth today what it was worth yesterday.

Please do not hesitate to give me a call at 480-861-8732 to discuss a strategic plan to sell your home quickly and for the most money possible!

Realtors account for almost 95% of all the real estate sales in the United States.  Therefore, if anyone thinks it’s a good idea to go around agents just to save on a commission is making a huge business blunder. 

Professional real estate people understand the power of leverage, whether it be leverage of money or leverage of time…both of which are extremely valuable depending on the individual.  I know personally my time is too valuable to try and research each and every deal in my area.  By building a team of super agents I can now focus my time and energy on making more money and not on chasing a contract.  In this business you will need help if you expect to make serious money.  As an investor, you don’t want a reputation of being a tight wad, instead, take care of your team and they will reward you with great deals and the best service for life!

Just a random thought!

Cody Sperber

http://www.codysperber.com/

Hello and welcome to Cody Sperber’s Arizona Real Estate Brain Dump.  Buying, Selling, and Investing in real estate is a fun and exciting adventure but at times can seem a little overwhelming without the appropriate education!  Use this platform to feed your hungry real estate appetite, learn about the current Arizona real estate market, research specific subdivisions, and laugh a little with good friends.  It is my goal to make this Arizona Real Estate Blog your #1 Source for Arizona Real Estate Information. So if you have any special requests for info on ANY East Valley or Phoenix-Metro Subdivision, just ask away as a comment to this post, and I will be sure to write an article on this Blog addressing Your Residential Real Estate Info Needs.