The bad news is that as the lending market tightens, the minimum credit score for mortgage loans keeps rising right along with everything else. But don’t despair. If you are looking for a mortgage loan, Leah says that each circumstance is different and each situation needs to be evaluated on its own merits. There’s nothing cut and dried about the lending market.

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If you or someone you know is having trouble meeting their monthly mortgage payment, please don’t ignore the problem. Get on the phone with your lender and ask for advice. Being proactive at this point is critical, as is speaking honestly and openly to the correct person.

If the problem has gone on too long and you think you’ll be facing foreclosure there are a few items you’ll need to gather ahead of time. According to Realtor Magazine, you’ll need your loan number and payment history.  You’ll need to put down on paper what you owe and to whom, including credit cards and car payments. You’ll need to verify your income, probably with your last two income tax statements and W2s. You’ll need to write a hardship letter explaining your situation. 

If you want more information, you can email me for a copy of Realtor magazine’s “Learn How to Avoid Foreclosue and Keep your Home”.

Seeking professional help to navigate through this situation is not a sign of weakness, but good sense. For the average person, the laws governing these situations are extremely complex, as is the terminology. Don’t rely on someone’s brother-in-law for advice unless he’s a pro.   

• 1. Paint. There’s nothing like fresh paint to instantly update your home. Proper preparation is the key. Take everything out of the room, clean walls, floors and ceiling thoroughly, fix any blemishes in the walls, and use quality paint. Don’t be afraid of color but avoid bold, jarring colors. Buyers will be thinking how hard it will be to change them. Evaluate each item before you put it back into the room. If you can live without it, go ahead and pack it or give it away. If it is necessary to your day to day life, clean it well before returning it to the room. De-cluttering is very important. It’s one of the top agents’ complaints.
• 2. If there are hardwood floors under the carpet, show them off. Have a professional come in and sand a refinish. It makes a big difference in a buyer’s perception of the house. It will also help remove pet and smoking odors. Offensive odors are a major buyer complaint.
• 3. Depersonalize your space. Some buyers cannot see a home as theirs with your wedding portrait hanging in their living room. Also, be sure to eliminate the schedules and drawings on the refrigerator. Pack them for safety.
• 4. Update the lighting fixtures in the kitchen and baths, then the living areas. This can bring a 1970’s house right into the 21^st century. In the bath, update the vanity with new faucets.
• 5. Remove old, heavy or dark drapes to showcase the views. Clear, clean light wins buyers over in this climate.
• 6. Spruce up the yard. You can totally renovate the interior of your home, but many buyers won’t even see it unless the curb appeal is there. Driving up to a house with excellent curb appeal is so exciting to a buyer that they can’t wait to see what other surprises you have in store for them. Half the battle is won at that point.

These simple fixes won’t break the bank and other than the floors, faucets and lighting, most are easily accomplished. It makes a big difference when a house is clean, well lit and welcoming to a potential buyer.  

10 Tax Changes for the Next Tax Year –  2008 from Realtor magazine*

1. More Money For Gas.  Just in time as the prices at the pump rise, the standard business mileage rate increases to 50.5 cents
2. More Money For Retirement.  You will be able to contribute $5,000 to your IRA in 2008, $6,000 if you’re over 50.
3. No Breaks for Sales Tax.  The provision that allowed you to deduct state sales tax expired at the end of 2007.
4. More Tax Breaks for Retirement Savings. Married taxpayers with an annual income of up to $85,000 filing jointly will be able to deduct IRA contributions: individuals with an income of up to $53,000 can take the deduction.
5. Higher Standard Deduction.  If you’re one of the two thirds of taxpayers who don’t itemize, you’ll be able to deduct $10,900 as a married couple filing jointly in 2008. Singles can deduct $5,450.
6. No Tax on SOME Capital Gains.  Joint filers with a taxable income not exceeding $65,100 and single filers whose income does not exceed $32,550 don’t have to pay tax on any capital gains they realize in 2008; the rate for other taxpayers remains15%.
7. More Time to Sell a House When You Lose a Spouse.  Taxpayers who lose a spouse now have up to two years after that death to take the maximum exclusion of $500,000 in gain on the sale of the principal residence. The other requirements for the exclusion must have been met before the death.
8. Less Money Back for Some Hybrid Cars.  While it can still save you money, thetax credit has been phased out on many popular models. Check out the 2008 Model Year Hybrid List at http://www.irs.gov/ before you buy.
9. Tougher Taxes for Kids.  Children 18 and under or full time students up to 24 years old will pay taxes on their investment income over $17,000 at their parents’ tax rate. Note that this rate does not apply to wages a child earns.
10. Higher Cutoffs for Social Security.  The maximum amount of earningssubject to Social Security tax increases to $102,000 in 2008.

A lecturer, when explaining stress management to an audience, raised a glass of water and asked, “How heavy is this glass of water?” Answers called out ranged from 20g to 500g. The lecturer replied, “The absolute weight doesn’t matter. It depends on how long you try to hold it.”

“If I hold it a minute, that’s not a problem. If I hold it for an hour, I’ll have an ache in my arm. If I hold it for a day, you’ll have to call an ambulance. In each case, it’s the same weight, but the longer I hold it, the heavier it becomes.”

He continued, “And that’s the way it is with stress management. If we carry our burdens all the time, sooner or later, as the burden becomes increasingly heavy, we won’t be able to carry on. As with the glass of water, you have to put it down for a while and rest before holding it again. When we’re refreshed, we can carry on with the burden.”

“So, before you return home tonight, put the burden of work down. Don’t carry it home. You can pick it up tomorrow. Whatever burdens you are carrying now, let them down for a moment if you can. Relax. Pick them up later after you have rested.” Don’t worry they will be just where you left them. Life is short, take some time to enjoy it.

The lecturer then shared some ways of dealing with life:

• Accept that some days you’re the pigeon and some you’re the statue
• Always keep your words soft and sweet in case you have to eat them
• Read stuff that’ll make you look good if you die in the middle of it
• Drive carefully, it’s not only cars that can be recalled by their maker
• If you can’t be kind, at least have the decency to be vague
• If you lend someone $20 and never see them again, it was a bargain
• It may just be that your sole purpose in life is simply to serve as a warning to others
• Never buy a car you can’t push
• Never put both feet in your mouth at the same time because you won’t have a leg to stand on
• Nobody cares if you can’t dance well, just get up and dance
• Since the early worm gets eaten by the bird, sleep late
• The second mouse gets the cheese
• When everything’s coming your way, you’re in the wrong lane
• Birthdays are good for you, the more you have the longer you live
• You may be only one person in the world, but you may also be the world to one person
• Some mistakes are too much fun to only make once
• We can learn a lot from crayons. Some are sharp, some are pretty and some are dull. Some have weird names and all are different colors, but they all have to live in the same box. And they do it well.
• A truly happy person is one who can enjoy a detour.

I wish I knew who the clever person was who said all that, but I confess that I am a person who lives with stress. That makes me one of 300 million in this country alone. The trick is how you live with it that will not only let you live long, but also enjoy the ride.

So I’m backing the gym with my trainer trying to get healthy, back to eating the Dr. Ann way and trying to keep balance in my life. One way to do that is to thank the people who have made an important contribution to my life. So I thank each and every one of you who have touched my life in large or small ways because I am a better person for it. Thank you.

Equifax: 800-525-6285
Experian: 888-397-3742
Trans Union: 800-680-7289
Also, alert the social security fraud line.
SSA Fraud Line: 800-269-0271