Unpaid Medical bills can effect your FICO and not in a good way

Can an unpaid medical bill cost you more than the bill itself - even the purchase of a new home? You bet it can.

In a recent article in USA Today they share the story of a couple who had a $200 medical bill sent to collections. Though they ultimately paid the bill off, the result on their credit report was a lowering of their score by 100 points! This meant they needed to pay additional discount points to secure their home loan costing them $2,500.

(to read the full article click here http://yourlife.usatoday.com/health/story/2012-03-05/Medical-bills-can-wreck-credit-even-when-paid-off/53367464/1) It is worth the read.

This article was of particular interest to me since I had recently attended a workshop specifically on credit scores. In it they shared real life stories of folks who had, for example, a $75 medical billing error. They refused to pay and it was ultimately sent to collections which they ignored since they did not owe it. This decision ended up costing them thousands because of the effect on their FICO credit score - lower score often equals loan denial or higher interest charged. They ultimately had the error corrected, but it took longer to remove the collection from their credit report.

So what is a consumer to do? Protect your credit score at all cost. Yes, even if it means paying something you don't feel you owe especially when it comes to a medical bill. In the complexities of medical billing and insurance there are bound to be errors. Keep meticulous track of all your bills, statements and EOBs (explanation of benefits). Remember that doctor's and hospitals really aren't about taking money they aren't owed (though it may feel that way). I know, I worked as a medical biller for awhile. If you find an error, bring it up immediately DO NOT ignore it. Send copies of documents proving your point. If it does not resolve quickly and they are threatening with collections (something that is often an automated letter) call and speak to a real person to make a note in your file. If that doesn't work - pay it - then continue your fight. Does that seem unfair? Yes, but you have to ask if a $75 bill is worth not being able to buy your new home. For most folks it isn't.

For more insights on how to help your FICO score, please contact me. karen@karensherrill-homes.com

Real Esate "March"ing right along

New Enewsletter – click here…. February 2012  Newsletter

Welcome to March. The last few days are what my family likes to call “San Diego Days”….gorgeous!  I hope you were able to get outside and enjoy before it changes……we do live in Houston after all. 

In addition to the weather, the Real Estate market is also warming up.  It’s as if the area has breathed a sigh of relief with buyers beginning to relax and, more importantly, buy.  In talking with others, and in surveys done by the National Association of Realtors,  the sense is that 2012 will be a good year in Real Estate.  Mortgage rates remain relatively low which continues to make buying now a great option.  If my recent transactions are any indication – families are relocating to the Clear Lake area for jobs which is good news for everyone.

If you know someone who is ready to list their home I am offering something new to further enhance my services to my clients

·         Free six month home warranty as an extra layer of protection during your listing period

·         Marketinsight allows you to view pertinent information surrounding their property, such as web traffic, appointments and feedback, comparable nearby properties, and much more.

Likewise, if you or someone you know, is looking to buy I would love to assist them.  I have connections with some great lenders who can even close in as few as two weeks if needed.  I can also set up a personalized Client Gateway to help them choose properties and a Marketinsight to help them see what is happening in a particular neighborhood.

As always, I appreciate any referrals you send me.  You know I will give them personalized and professional care.

One other reminder……Daylight savings time is this weekend.  Don’t forget to “spring ahead” – a nice way to say you’re losing an hour of sleep. Yay!

2012 Starts Strong according to HAR

The Houston housing market held to positive territory as 2012 began, with January marking the eighth consecutive month of increased home sales. The year also opened with a continued decline in active property listings and growth in pending sales—a combination that signals a healthy market with a balanced supply of housing inventory, and that puts Houston on enviable footing compared to many other markets around the U.S. that are slowly recovering from the housing downturn.
January sales of single-family homes climbed 9.2 percent versus one year earlier, according to the latest monthly data prepared by the Houston Association of REALTORS® (HAR). All segments of the housing market grew except the luxury segment—those homes priced from $500,000 and above—whose decline flattened the overall average price.

"The January report shows continued strength in the Houston housing market that we began seeing in the latter part of 2011, and it gives us cause for optimism as we look ahead to the typically active spring and summer buying months," said Wayne A. Stroman, HAR chairman and CEO of Stroman Realty. "We have also seen more jobs being filled locally and you generally don't experience a strong real estate market without healthy employment."

January's single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 0.9 percent year-over-year to $139,900. The average price of $194,765 was statistically unchanged from January 2011.

Foreclosure property sales reported in the Multiple Listing Service (MLS) increased 22.0 percent year-over-year in January. Foreclosures comprised 27.8 percent of all property sales, which is higher than the 2011 average of 21.0 percent. The median price of foreclosures in January was flat at $82,550.

January sales of all property types in Houston totaled 3,632, up 4.8 percent compared to January 2011. Total dollar volume for properties sold during the month rose 5.9 percent to $683 million versus $645 million one year earlier.

January Monthly Market Comparison

 

The month of January brought Houston's overall housing market positive results when all sales categories are compared to January 2011. Total property sales and total dollar volume rose on a year-over-year basis. The median price rose while the average price was flat.

Month-end pending sales for January totaled 3,164. That is up 6.0 percent from last year and suggests another positive month of sales when the February figures are tallied. The number of available properties, or active listings, at the end of January declined 15.1 percent from January 2011 to 42,067. The inventory of single-family homes dropped to its lowest level since December 2009—5.7 months, compared to 7.2 months one year earlier. That means it would take 5.7 months to sell all the single-family homes on the market based on sales activity over the past year. The figure is significantly better than the national inventory of single-family homes of 7.2 months reported by the National Association of REALTORS® (NAR). These indicators all continue to reflect a balanced real estate marketplace for Houston.

For the rest of the article click here http://www.har.com/mls/dispPressRelease.cfm?MONTH=02&YEAR=12

What is normal for 2012 Real Estate?

 Today I am sitting, working again in my home office. Since Christmas I have been displaced/banished to working on two card tables set up in my bedroom as we hosted different family members for visits. (It is amazing how the birth of a grandchild can bring relatives from far and near).  While I accomplished an amazing amount of work (I don’t think my clients noticed), it was not ideal.  Trying to drift off to slumber in the same room as your desk with its myriad of to-do lists is an accomplishment in itself.  And so after we said a sad goodbye to the last relative yesterday, my wonderful husband helped me move back to the land of desks, pull out keyboards, file drawers and shelving.  Today I am beginning to feel back to normal.

What is normal?  I have often thought that question when asked by a doctor if there was anything unusual I’ve noticed. What if I always had a pain in my head? Wouldn’t that be normal?  Who defines normal anyways?

Since I am a Realtor, I guess the question would be “what is normal in the Real Estate market?”.  In the past few years, the normal has been a sense of everyone holding their breath waiting for the woes of the California and Florida to hit Houston.  Well I think it is time to exhale.  If the past few weeks are any indication, I would said that 2012 looks to be a much better year than 2011.  I have had a number of inquiries from buyers who are moving to Houston from other areas of the country and state for jobs. I see this as good news for not only the Real Estate market but for the job market as well. 

But don’t just take my word. There was also an excellent segment about the current market on the Today show “How to cope with current real estate market” –

Visit msnbc.com for breaking news, world news, and news about the economy

or follow this link http://video.today.msnbc.msn.com/today/46203461#46203461 for some interesting insights on a national level – you can watch the video or read the transcript.  While I’m not sure the word “cope” emits feelings of encouragement, it is worth a listen.

So what will “normal” be in 2012? We can only wait and see.

More Good News for Houston

Remember not that long ago when everyone was freaking out because of area job layoffs and predicting doom and gloom? Today an article in the Chronicle states "The Texas economy is outperforming the nation as a whole mostly on Houston's coattails, alongtime observer of the city's econmy said Thursday. Texas is doing well because Houston is doing well."

If I am not mistaken that sounds like good and encouraging news! Of course it came as no suprise to me. Just go to any shopping mall and the crowds will tell you that people must have a disposable income because they are out buying. The article further says "Another good sign is the recent surge in local sales tax receipts, which have been strong since midsummer and up about 10 percent since then on an annualized basis."

As a Realtor, friends will often ask me "so how does 2012 look for real estate?" People are looking at homes online, you can almost sense people exhaling (after a few years of holding their collective real-estate breath), and with interest rates ridiculously low I am looking forward to 2012 as it looks very promising.

Read the entire Chronicle article here http://www.chron.com/business/economy/article/Houston-driving-Texas-growth-economist-says-2642864.php

Good News in Housing and Jobs

In HAR's recent news release it indicates that housing is beginning a climb up - more sales, slight increase in prices and less inventory. The article also states that "According to the Greater Houston Partnership, as of November 2011, the Houston metropolitan area gained 170,700 net new jobs, recovering 112 percent of the 152,800 jobs lost during the recession".

So let's see, the housing market is improving, jobs are growing and interest rates are at an all time low (by low I mean you can get under 4%) So what was the reason you aren't buying a home?

Read the entire article http://www.har.com/newsroom/

Understanding Comps OR How to Price Your Home

Obviously you want a Realtor to help you price your home, but this article will help you understand the logic behind it all.

It should be noted that most homeowners feel their homes are worth more than they actually are.....its because we place emotional value into the mix. Most buyers don't care how much you spend on your remodeling or recent roof or A/C. It doesn't matter to them that you want 100% return on investment. Buyers want a good value, they want a home that has a good roof, and working A/C and heat and they want a home to look good on the inside requiring minimal work by them. It is a mistake for a homeowner when pricing a home (and I've seen some do this) to take what they paid for the home, estimate equity and then add all improvements they've made to the home to reach the sales price. While your Realtor may agree to list at this price, I can just about guarantee it won't sell for that. Read on what really goes into pricing a home.

http://members.houselogic.com/landing/comp-sales-12012/