This particular real estate scam is not new. In fact, it was a couple of years ago it was talked about quite a lot on the news. It goes something like this; the bad guy scours the MLS to find a very nice property.  They scrape the listing for pictures and information then go to websites like Craigslist.org and HotPads.com to post the information they pulled from property that is for sale on the MLS and post it as a rental property in the area.

With these types of scams, the “landlord” makes some kind of excuse for being unavailable; traveling, already moved, etc., as well as being unreachable by phone; overseas, on a cruise, etc. So they are only available by email. which is a huge RED FLAG!

After several exchanges, the victims are instructed to send a deposit and first month’s rent (that’s a lot of money for most of these homes) and once received they will instruct the person to set up a time with the realtor to see the inside of the home and get the keys. The problem is that the realtor has the property listed with the real owner and can only inform the victim that they have been scammed out of a lot of money.

So, how do you protect yourself? Just follow the following rules and you should be able to detect the bad guys from those that are legitimate.

• Don’t respond to a listing that does not have a local phone number and address.
• Insist on meeting the landlord or property management company in person or look up the property on MLS and call the listing Realtor.
• Never send money to anyone via the mail or hand over money in person without a signed contract in hand.
• Stay away from properties that are renting way below market value. (Check with a Realtor as they can help you determine this) and remember: If it’s too good to be true, it most likely is.

Pass this information along to everyone you know. This way we can make as many people as possible aware of this scam and put a stop to it.

Then credit is pulled and they are shocked to find late pays on loans they have never heard of that are in their name. Most tend to be student loans that parents have co-signed and defaulted on but I’ve seen car and credit cards in the kids names that the children have either never known about or thought they were being paid by parents on time and in good standing.

Even the parents have been shocked a time or two because they thought the debt was rolled into a bankruptcy or debt reduction plan. The truth is many student loans cannot be included in bankruptcy procedures and most debts will revert to the other name holder at some point.

What this means for the person or persons trying to purchase their first home is that they can’t qualify due to debt ratios, late pays or default and can put them back for years financially. While this is normally seen in families, I have also seen it in past roommates and friends that have tried to help or helped and have gotten burned.

It’s extremely important that if you need a cosigner or have been asked to co-sign any type of loan, be aware of the downfalls to your own credit that can take place if you or the other party ever defaults. Starting from zero is a lot easier than starting in the negative and could take years to recover. No one wants this to happen so make these choices carefully.

Yet the reality is Nashville is doing well comparatively. There has been a rumbling as of late that more and more transactions are for retail residential properties and not distressed properties that have been the dominate transaction for awhile now. The reason this is good news is it means people are now looking beyond the “deal” to get homes they want to live in right away. It also means that sellers have a chance against the glut of distressed sellers and foreclosed properties.

While there are still a lot of bank owned properties and homes that have agreements for short sales, the banks are so far behind on many of these transactions that buyers tire of waiting and turn to buying homes that are ready to be bought and moved into quickly. This is unfortunate for the properties that are sitting on the market and wasting away. In fact, more and more homes that have gone through the process of foreclosure have to go through mold remediation before selling because they have sat without proper air ventilation. This is a cautionary tale for those waiting on these types of homes to buy.

So while there are plenty of supposed “deals” on the market, it looks like sellers are once again viable options for buyers who are ready to purchase and move in quicker than later in the Nashville, Tennessee area.

Statistics show that in 80 percent of America’s largest cities it is cheaper to own a home than buy. The study was conducted by comparing the monthly cost of renting a home versus owning. Cities most affected by this trend include Phoenix, Las Vegas, and Fresno, California. If you live in these areas, or close to these areas check out the housing market in your area. You may be paying a fortune to rent a home when you could reasonably buy your first home. Keep in mind, this trend could be because of lowered property values, so you want to be sure you’re getting the best deal for your money. Check out the housing market in your area and decide if buying a home is right for you.

A standard rule of thumb tells homebuyers that the type of house they can afford costs between 20-25 percent of their annual income. However, if you have been saving up a sizeable down payment, and have minimal debt, you can afford up to four times this percentage. Mortgage lenders consider the percentage of your monthly income that will go to your mortgage payment, and the percentage of your monthly income that will go to other debt obligations. Mortgage lenders typically like to keep under 28 percent of your monthly income going towards your home mortgage, and as little as 36 percent of your monthly income going towards other debt obligations. Speaking with your trusted mortgage lender will give you a better understanding of the type of home you can afford with your current income.

Renovation loans are perfect for the homebuyer that has found their dream home, but their dream home needs a little bit of work. These loans are also available for current homeowners who have been living in their homes, but just need to complete some updates or renovations on their home. Additionally, many renovation loans are granted to homeowners that want to increase the value of their rental property before putting it on the market to be rented or sold. Speak with your lending officer, because the amount of money granted is typically based on the increased value of the home AFTER the renovations are made. If you are considering purchasing a home that needs work, or need to update your current home renovation loans can be very helpful.

If you are close to retirement age, and are considering purchasing a home, think about several factors that will affect your choice. Do you already own a home? If so, it’s important to make the necessary steps to sell your home at a price you are comfortable with. Retirees often use their free time to take up traveling, and if you are planning to do so, consider purchasing a smaller home, or one that won’t need a lot of maintenance. Planning on having a lot of family visit you? Then view homes that are more appropriate and spacious for overnight guests. There are many home lending options for retirees, and it is possible to find a great deal on a perfect home today, so talk to your mortgage lender about your options, and start looking for your new home.

Houses open up at all times of the year, and you could be approved for a loan right around the holiday season. While the holidays may have you scrambling around to finish your Christmas shopping, cook, clean, and visit with friends and family you should not turn down your dream home because you feel you are too stressed. On the other hand, speak with your mortgage lender to be sure you are taking the necessary time to make a sound decision when buying a home. Because the holidays may have you under more stress than usual, don’t make a rash decision because you have too much on your plate. The holidays will come and go every year, but your perfect home many not be available, and at the right price, for very long. Don’t miss a great opportunity this holiday season. If the right home for you is available, speak with your mortgage lender about making your dream a reality.

Don’t jump into purchasing a home. If you do, you could wind up paying for a mortgage that you can’t afford, or you may even find yourself unhappy with the home you purchased. Instead, take the time to save up a sizeable down payment, and shop around to multiple homes before making a hasty decision. There are many different types of loans specific to the area you live in, and your financial situation. Take the time to do the research, and talk with a qualified lending officer before jumping into any sort of mortgage or home buying commitment. In doing so, you are more likely to make a responsible decision, and find a beautiful home that you will be happy in for many years.

For some homeowners, it makes more sense to remodel their homes. Avoiding extra closing costs, lender fees and other home buying expenses saves many existing homeowners money. If you’re already paying off a mortgage at a moderate interest rate, decide if it’s reasonably cost effective to adjust your mortgage to buy a new house, or if it’s more cost conscious for you to stay in your home. On the other hand, if your family is growing and you need more space in your home, talk with your mortgage lender about your best options for upgrading your home. Outweigh the costs of moving and buying a new home, to remodeling and make the best decision for you.