In Flanders' Fields

As a young boy growing up in Canada, Remembrance Day (Veteran's Day here in the US) was always a big event. Every year on the 11th day of the 11th month at 11:00 a.m. Canadians observe two minutes of silence as we remember those who made the ultimate sacrifice in defense of our freedoms. As young Cub Scouts we had the assignment to attend services at the local Canadian Legion or VFW and participate in the ceremonies and the laying of wreaths. It was a very solemn experience. I remember many WWI and WWII veterans dressed in their uniforms paying respects to their fallen comrades as wreaths were placed on the cenotaph.

November 11th always seemed to be a cold and dreary day. We young Cub Scouts would shiver and try to stay warm. Because we were in uniform we were not always dressed well for the weather. Standing in the cold rain or even snow was not a pleasant experience for me, but even at that young age I thought my discomfort was a small price to pay for others who had sacrificed so much more.

In grade school every child was required to memorize the poem written by Colonel John McCrae entitled "In Flanders' Fields" The poem is very simple, yet captures the magnitude and responsibility associated with the sacrifice made by so very many.

In Flanders' Fields

In Flanders' Fields the poppies blow
Between the crosses, row on row,
That mark our place; and in the sky
The larks, still bravely singing, fly
Scarce heard amid the guns below.
We are the dead. Short days ago
We lived, felt dawn, saw sunset glow,
Loved, and were loved, and now we lie
In Flanders' Fields.

Take up our quarrel with the foe:
To you from failing hands we throw
The torch; be yours to hold it high.
If ye break faith with us who die
We shall not sleep, though poppies grow
In Flanders' Fields.

Lest We Forget Lest We Forget

Every year I wear my poppy and refresh the poem in my mind. As I do so, I gain new respect and appreciation for sacrifices made on my behalf so I can enjoy my freedom. A wise person noted that "freedom is never free." I always do my best to remember that.

Thanks for helping me better serve our Real Estate Community.

Credit: How to Repair and Improve It

There’s a lot of talk these days about credit scores and the need to get and keep good credit. I have noticed that many people are uncertain of how to obtain accurate credit ratings for themselves and how to repair or improve their credit ratings. There seems to be a lot of mystery involved with this. Here is some information I obtained from some of the lenders I work with that might help demystify this process.

How do I find out what my credit score is?

There are some sources who actually charge people to view their credit report. You should never have to pay for this nor should you waste time using sites that provide only partial information. Here are some good sites.

http://www.myfico.com/

www.annualcreditreport.com/cra/index.jsp

www.ftc.gov/bcp/menus/consumer/credit/reports.shtm

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm

http://www.facredco.com/

How do I repair and improve my credit scores?

Here are a few tips:

Late Payments- If you are at least 30 days late on any revolving or installment accounts (credit card, car loan) you are reported and it impacts your score negatively. You will continue to be reported for each additional 30 days that you are late (60, 90, or even 120 days late is shown). Get back on schedule and eliminate the late pays. This is an easy first step.

Maxed Out Credit - If your credit is “maxed out” it will have a negative impact on your score. Many people are unaware of this, and they use one card for everything. This can be bad because your score is based on a ratio of debt outstanding to credit available. If you have cards that you do not use, or that have no balance, it can be helpful to keep these accounts open and unused. This can actually help your credit scores.

It’s important to show long-standing accounts. Creditors like to see accounts have been open for long periods of time with no trouble (no late payments). It’s better to keep a credit card or account that you have had for a number of years open with no balance, rather than closing it outright.

Installment Loans - Creditors like to see that you have had installment loans that have been paid off on time. This includes car loans, student loans, etc.

Mortgage Loans - The biggest plus that you can have on your credit report is a timely mortgage. The most important “trade-line” on the credit report is the mortgage. A mortgage account that has been open for a long period of time with no late payments will boost the scores. You should NEVER be reported 30 days late on a mortgage if at all possible. It is MUCH BETTER to be late on any other type of account, if you have no possible options, then to be reported late on a mortgage. A mortgage loan that shows late payments, in some cases, will damage credit scores, but can also prevent you from refinancing a home or even getting approved for a new loan.

How long does it take to repair bad credit?

The following statute of limitations has been provided by the Fair Credit Reporting Act (FCRA)

Bankruptcies:
10 years from the date of entry of the order for relief

Suits / Judgments:
7 years from date of entry or expiration of applicable statute of limitations, whichever is longer

Tax Liens – Paid:
7 years from date of payment

Tax Liens – Unpaid:
No limitation

Credit Inquiries- The number of times that your credit is checked will impact your scores. This typically is a small impact, perhaps a few points on your overall score, and it’s not a big deal for borrowers that have excellent credit, but it can be a bad thing if your credit scores are in the mid-to-low 600’s and you drop down a couple of points. Most of the time your score will recover those few points in the following weeks or months as you continue with on-time payments and the inquiries stop.

If you have any questions about your credit and would like some additional information, please give me a call. I would be happy to put you in touch with a good lender who can give you some helpful counsel and advice on what you can do to repair or improve your credit.

Thanks for helping me better serve our Real Estate Community.

Good Debt – Bad Debt – Be Careful

When our children were young my wife would take them down to the local hardware store just before Christmas to help them shop for a little gift for each family member. This was a big event for the kids. With their mother's help they would each purchase some small item, wrap it when they returned home, and put it under the Christmas tree. For the kids this was high drama and they would get so excited because they had the chance to think and plan and then make what was for them a really big purchase. My son Doug was about 5 years old at the time that he bought me a little plastic tool about the size of a matchbook. It had a small razor blade that slid out so you could open parcels or cut string. He was so excited and would chatter on about his carefully wrapped gift, never telling me what it was, but he would always warn, "Be careful, Daddy." It was his way of telling me that I would have to be very careful when I opened it up. That was good advice.

I am not a financial guru but I have always thought it wise to be careful when borrowing money for important things like homes, automobiles and education. I also thought it was a good idea for lending institutions to lend money when people had a job, credit and some cash on hand for equity. Clearly borrowers and lenders strayed off this tried and true path over the last few years and decided to take a walk on the wild side. We are now paying the price for those decisions. Bad debt is a huge issue in today's world.

Debt carefully managed can help build wealth for the future. The cost of living in today's world requires a certain amount of debt. I believe there is good debt and bad debt. My personal opinion is that good debt falls into three categories – home loans, auto loans and education loans. Anything else should be very carefully examined to ensure the loan is wise. I have found few if any loans in the "other" category that are wise. Even good debt can fall into the unwise category very quickly if you buy too much home, purchase a vehicle too expensive for your budget, or pile up an excessive amount of student debt. I know many people who live in homes that comfortably fit their income, who don't drive the latest and greatest but still get around quite fine. I also know lots of people who have graduated university with very little debt. Some have even managed to graduate with no debt. And these are people who did not have someone else pay for their education.

When our clients are considering a home purchase we refer them to lenders who provide good information about loan options and programs that work best for them. We trust these lenders to provide counsel and advice that will help our clients make wise decisions. Since a home loan is most likely the largest debt you will ever incur in your life, you want to make sure you do your homework and choose a loan that best suits your circumstances. Anyway, the short version is; be very careful before you get into debt. If interest is going to be your companion 24/7, make sure you are in control. Remember Dougie's advice – Be careful!

Thanks for helping me better serve our Real Estate Community.