Return the record of the suppression of the main pageOPEN HOUSECredit card;
Purchase of foreclosure;
Car loan February 23, 2008
ETTHIS is a hurried transcript.
This copy may not be in final form and may be updated.
NGUYEN: That's some good information because we have some major states playing in March 4.
Today is a big day.
Holmes: of course, we will talk more about these things with our Bill Schneider, who is part of the best political team on TV.
He explained this morning in Austin, Texas how complicated the Lone Star election was.
Next hour, he will be connecting with us in the newsroom.
NGUYEN: it's coming next hour, Patti LaBelle.
She has a new movie and she is showing it in public.
Holmes: So, we'll see you at the top of the hour, but start opening the door now with Geri Willis.
CNN news anchor gerri willis: Hello, this is Gerri Willis, the show open house that saves you money.
With foreclosure flooding the market, you'll find out if you can bargain by buying one.
Then decorate, the return is great
Time, we will show you how to maximize your family value.
But first, Congressman Carol Maloney has proposed a bill to crack down on credit card companies, which she calls unfair practices.
Some say credit card companies, rather than consumer spending habits, are the culprit.
Ed Mierzwinski is a direct consumer-oriented project in the United States. S.
PIRG and he will join us again from Washington.
Nice to meet you, Ed.
Ed mierzwinski, American consumer rights advocateS.
Willis: Do you think the bill by Congressman Maloney is correct at the right time?
MIERZWINSKI: of course, all consumer groups support the Bill of Rights for credit card holders.
This is a bill that we can pass this year. This is not everything I want, but everything is important.
This is a very difficult thing.
I heard a compromise, ed.
Ed sounds like a compromise. Is that right?
No, this is a step forward, not a compromise.
When I come up with my bill, and when I'm in Congress, it's going to be a bill that's different from this bill, but it's a committee that we have to pass, many people on this committee will not vote with consumers.
This is the problem we have to solve here.
Willis: OK, now I know you're interested in the issue of universal default.
Can this bill account for this?
MIERZWINSKI: This bill addresses universal default by: universal default is when you have a perfect record with your credit card company, but they claim that your credit score is down, or you pay someone else late and they raise your interest rate from 8% or 12% to 27% or 36%.
The bill says that from the balance that the consumer has already owed, you can't do that.
So, you can do this in future purchases, but the real gotcha fee for the bank to the consumer is to be able to recover the product they have already purchased and change the interest rate.
If you owe the bank $1,000 at a rate of 8% and they raise your rate to 36%, then you may have bought a TV for that $ 8%, all of a sudden, the price of the TV is four times that of the original.
It's not right.
Willis: That's right.
You know, let's talk about overall defaults, credit card defaults.
Like foreclosures, they are rising sharply.
I know people are really worried about the 30% rate, and as you just described, some people have found this on their credit card bills.
Is this the fault of the credit card company or the fault of the consumer?
MIERZWINSKI: Credit card companies use credit cards as their cash cow.
I should say that banks have credit card departments that they use as cash cows, which is the most profitable sector for them, so they have reached out and they give it to people who have never had credit, those who are not eligible for credit, Sirply's college students are at the university, which is the only standard for companies to issue cards to them, and they hope that parents will pay if students are in arrears with their tuition fees.
Now, the credit card companies are back because they provide too much credit.
But we think what they do to consumers is obviously unfair.
They are trying to squeeze consumers through many unfair practices, and perhaps unfairly increase default.
Willis: Let's talk about this credit crisis?
You brought it up.
How long will it last?
MIERZWINSKI: Well, it could be the credit crunch that banks have made a very stupid set of bets on mortgages and some hedge funds, complicated things that even banks don't understand are a big problem for the economy, and while the Fed is trying to cut interest rates to remove the trauma, it could last another year.
I don't think credit card companies will cut their consumer interest rates, in fact some companies will increase their consumer interest rates.
Willis: Yes, we will definitely see that, of course, people will want to protect themselves in this regard, and obviously you want to see how much debt you have on your credit card.
Ed, thank you so much for helping us today and we appreciate it.
MIERZWINSKI: Thank you.
Willis: from credit and debt to mortgage collapse, to health and retirement, your money is the top priority for us, here on CNN, it's time to take charge of your money
From Monday to Friday at 12: 00, we are broadcasting "financial security watch" for you every day"m. to 1:00 p. m.
The East And here are the good parts.
You can call every day to answer your questions.
We hope you will join us.
On an Open House: buy foreclosure, big deal or mistake?
We will break it down.
Then the decoration gets the best return.
We will tell you what upgrades will make you a lot of money.
We 've talked a lot about the right mortgage, but what about getting the right loan on your car?
You need to know what to deal. (
Willis: The mortgage crisis has caused losses to homeowners.
But with foreclosures flooding the market, people lose their homes and some want to bargain by buying them. (Start Video)(voice over)
Antonio Quinta was the first
Time buyer, but his view is that the new home is not your ordinary property but the property of the owner of the property.
In short, he bought foreclosure.
Antonio quitar, buy foreclosure: I 've heard from the news that there's a lot of foreclosure and I think I might get a better price.
Willis: with foreclosure flooding the market, they are also trying to get back to the market and enter a variety of listing services for real estate agents.
Once you see "sell as is" you know it's REO.
The real foreclosure is once REO or the bank or anyone they sign up for the title and then enter the Multiple Listing Service.
Willis: Antonio found the home online.
QUENTAL: The house is a colony.
About 1,400 to 1,500 square feet, completed-
Partial basement, 2-
1/2 bathrooms, three bedrooms.
Willis: The price tag for 240,000.
Does he have a bargain?
QUENTAL: I do think I bought a house for $15,000 to $20,000, less than I would have bought if it weren't foreclosure.
Willis: While foreclosures can be discounted, they often need TLC.
Julie Lenos, Antonio's real estate agent: I have, too, a replacement for almost the entire ceiling.
QUENTAL: The house has been empty since then, I believe it is 2006, so there is a wood on the front door that says 2006.
Since no one lives there, they have to winter the house so the pipes don't burst and now they have to winter the house for inspection.
Clements: there are some REO companies that are very efficient in doing these things, and you get a quick response, which is a very seamless transaction.
However, it's a nightmare to have REO companies that really don't know what they're doing.
Willis: The Antonio case.
Process, until now--
It was easy until now.
Willis: The only fault is the heating system fault where the bank charges the repair fee.
LENOS: most properties are-
That means, you know, what it is.
Willis: this is one of the biggest risks of buying foreclosure, hidden costs and minor fixes.
The risk is worth it for Antonio.
I am very happy.
It feels like, I will have something as big as my own. (END VIDEOTAPE)
Willis: Well, Antonio has made an agreement, but you should pay attention to some traps if you want to buy foreclosure.
Danielle Babu is here to help us, she is the author of the search for foreclosure and she is with us from Irvine, California.
Welcome, Danny. nice to meet you.
Author Danielle Baba Finds Foreclosure: Nice to see you too.
Willis: Well, let's start with Antonio and he bought a REO, but you can also buy it in action.
Which is better?
BABB: What I want to say is the phase of foreclosure or the REO phase.
At your auction. -
It is possible that you will need to bring hard money, in other words, cash for buying a house, or a very large down payment and pre-qualification, and the banking standards for these days are really hard.
Willis: Yes, it might be a bit scary to bring the cash to the auction, and to be exact, you have an unusually large check in your pocket.
Let's talk about where to look for these and how to know that the investment will pay off.
What is the logo?
What are you looking?
What is the research you are going to do?
BABB: Well, I'm looking for a few things when I try to find foreclosure or help others.
First of all, do I look at homes in low crime areas?
This is very important for future resale and to ensure its value.
For example, is the area's job opportunities roughly the same as the national unemployment rate, or is it much higher in Detroit?
The risk there is much greater.
What is the trend in this region?
Has it been following up? -
If the country decreases (INAUDIBLE)
Buying a house is 10%, you see 20%, which is a sign that it may have more risks?
Also, would you like to see wages in the region keep up with inflation?
Are big companies coming in or out?
Will baby boomers move in or out because they will play an important role in the trend for the next 10 to 15 years?
One more thing is whether there are tenants living there, because once someone moves, if 30 to 60 to 90 days before the bank actually takes over the house, during this time, some people move in to earn income.
Willis: Wow, yes, right now, it's a complex issue that you don't want to deal.
Okay, let's drill down.
Where do you want to buy it?
Where can you satisfy the privilege you just said, great place, low rime etc, where will you go?
BABB: I will go to Orange County, California, especially vieviejo, and I will go to Las Vegas, where I know it is hit by the right to cancel the collateral redemption and the low price, but there are a lot of jobs being created there.
I would like to visit Florida but I will be very careful.
I will be away from Miami, but I will look at Tampa, I will look at Palm Beach, I will definitely look at everything in central Texas, Dallas and north, Austin and round rocks, for example.
Willis: Well, you know, everyone is asking me the question of foreclosure and how to buy it.
Where can I send them online?
If you decide this morning, hey, I will be looking for a foreclosure on your property, what good site to go?
B: Yes, realtytrac.
Com is my favorite, it is the partner of my author-my co-
The author and I have already worked with them.
You can get a free three-month offer from drdaniellebabb's website. com.
You can go to realtytrac.
Direct com: r-e-a-l-t-y-t-r-a-c. com.
They have good deals.
You can also go to the county tape recorder office in each county where you are considering purchasing the property.
Willis: Well, you know, this raises a completely different question, and that is, isn't the law on this issue different in every state?
What do you need to know about any legal issues --
Can you join this?
Because it sounds hard and tricky.
Yes, there are some legal issues.
First, each state is either a judicial state or a non-judicial state.
This means that the foreclosure process will go through the courts, the judiciary or not through the courts.
Now, if it passes the court, there's just more checks and balances happening.
For example, there are more checks to make sure that there is no smaller tilt on the properties that do not appear in the title search, just like a mechanical tilt.
Someone went in to fix the House and the owner never paid for it, they recorded the tilt to the property and these things could come back later but they did not become the responsibility of the owner.
Therefore, court proceedings are helpful in some respects.
The downside, of course, is that when you go through the court, it may take longer to actually move into the house.
Okay, you know, I know you think it's important to have a family check.
Can you always enter the house and be checked?
BABB: No, you can't, and that's one of the reasons I don't like the auction, you don't usually have a chance to watch anything else except outside.
Now, if it's owned by the bank, or if it's foreclosed ---
In the state of foreclosure, you can save the owner from foreclosure and even get the best deal, but you have the opportunity to do a full check and you can go back to the bank a second time, say Hey, there's a $20,000 repair charge and we might agree on 150 but now I really want a house for £ 130 because, you know, I'm going to put in £ 20.
Willis: of course, this is the price you pay.
Thank you very much Danny.
Very good information, thank you very much.
Good. thank you.
Willis: still leading the way in paying for open house and home renovations.
We will tell you what upgrades are worth your time and money.
Then, finding the right car can be a challenge, but finding the right loan to finance is not necessarily the case.
We will tell you what to pay attention to, but first your mortgage number. (
Willis: If you want to sell your house, you may think that the renovation will help you with the opportunity, but before you remove the walls and remove the fixtures, our next guest is here to tell us which renovations will pay off and which ones will put you in trouble.
Amy Matthews is a licensed contractor that hosts the "sweat asset" of DIY and joins us.
Nice to meet you, Amy.
Amy Matthews, a licensed contractor: Thank you for inviting me.
Willis: OK, we start with the kitchen.
Willis: You know, you're trying to create value at home, and that's all, values are falling all the time.
You gave us some examples of a kitchen you actually decorated.
Let's take a look at the previous picture because I think there will be a big contrast here.
Matthews: there is a big difference.
Especially this house, built in the suburbs, it doesn't have much personality, it really needs to introduce a lot of its own personality.
Willis: It's like grandma's kitchen.
Matthews: It's kind of like grandma's kitchen. it's kind of dated and kind of crap.
Of course, those who want to buy are looking for the latest and greatest things and they want us to dress them up beautifully.
Okay, let's talk about what you did.
The after-sales service here is really impressive.
Now, you really go all out.
It's a cabinet, it's a countertop.
Looks like you changed the floor too, I'm not sure about the lights.
How much did you spend?
MATTHEWS: Well, most of these kitchens remember innovation, and if you're doing a small remodel and you're not destroying the kitchen, you can spend about $21,000, that's hiring someone to come in.
Willis: it may be what I want at these times, not to spend too much money.
Matthews: That's right. it's not like these options. the whole place has been scratched. it's just a cosmetic surgery.
Then you can choose to do an intuitive job, do a major transformation, even in the medium term.
The price is around $55,000.
Willis: That's a lot of money.
Matthews: It's a lot of money, but the place where people really save money and make money is when they start doing some labor on their own, that's why DIYers don't just get a 83% return in the kitchen, they get a 10 per cent bonus because they're cutting labor costs, but they're still taking back the value.
Willis: Everyone loves the bathroom, it's a great place and you may spend a lot of money, especially if you have this kind of problem.
Look at the tiles and the old ones-
The shower is old fashioned.
Matthews: Oh, it's completely out of date.
They do want to dig this space out and give a new feeling of warmth.
They re-laid the floor, so they laid the shower tiles, re-installed the shower, installed a nice new glass shower, and then worked creatively in this particular bathroom.
What you can do in a small bathroom remodel.
Willis: look at that.
Install new fixtures, new sinks and taps, new cabinets.
Willis: let me park you there, because of those sinks, I think maybe it's not a sink if you have kids.
Matthews: Do you know? I would agree.
As a remodeler with a container sink, I like the style of it.
This is a master bedroom so the kids will never use it.
But in the kids bathroom I would put a normal base or sink on the top.
Willis: How much did you spend on this?
This should be the main bathroom remodel for about $20,000 to $25,000.
Because they went to the antique shop and saw the chandelier they bought for $50?
I like the bathtub.
Matthews: The bathtub is so beautiful.
Feet with claws
Matthews: they installed new doors there, they spent about $100 at a thrift store and $500 elsewhere.
They spent about 13,000 in that bathroom.
Now look, it makes sense when you're ready to sell that house, you know, it looks like $25,000, $30,000, but that's not the case.
Matthews: that's not the case. these are all done in a suburban house that doesn't have much personality.
All the other houses look a lot like their house, so by increasing interest and warmth, all may want her to come and redo the house for a house, but if they put the house on the market, it will be sold soon.
Willis: Amy, thank you so much for being with us today, and we really appreciate it.
Matthews: Thank you for inviting me.
Willis: As always, if you have ideas on how to save money, please email us to openhouse @ cnn. com.
If you would like to check this "project savings" again, please check our website cnn. com/openhouse.
A brand new car is on the market?
We will show you how to get the best car loan but first of all, you are the "bottom floor of the local area ". " (Start Video)(voice over)
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Denver is high and only one mile above sea level.
But you don't have to pay a mile.
Had a good time in this town and the price was high.
Look at one of Colorado's most famous companies, Coors.
Visit the brewery and enjoy up to three free samples.
Learn how America in Denver makes moneyS.
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Be sure to stop at the Colorado state Capitol for a free visit.
The unique golden dome features ultra-thin Colorado golden lines.
It takes only 57 ounces to cover the entire dome.
This is your local insider. " (
Willis: most of the reason for the mortgage collapse is a mortgage with adjustable interest rates, which is reset to a higher payment that the borrower can't afford at all.
There is no adjustable interest rate for car loans, but the terms of the loan are getting longer and longer.
So how do you make these loans work for you and your budget?
Philip Reid of Edmondscom. (Start Video)
Do you know what this topic means?
People spend all sorts of time thinking about what they pay for the car, but they don't think about how they pay for the loan.
Philip Reid, editor of Edmonds senior consumer advice.
Yes, this is absolutely right.
You know, people drive a lot, they are very excited about the car, and when they sign the contract, they really start thinking about car loans, which puts them at a huge disadvantage.
Willis: what we hear now is about seven. year car loans.
I have to say that it sounds like a bad idea to extend the debt during that time.
What do you think?
Reid: I think it's a bad idea, I think five
Given how expensive cars are now, a one-year car loan to buy a car is not acceptable and we recommend you three years if you are going to rent it
Year lease, but the longer you extend it, the more likely you are to reverse it at the beginning of the loan or at the end of the car loan, you will hate that car
You know, once you drive a car out of the parking lot, you lose about 20% of the value, so you know, you're going to raise a lot during that time, what do automakers want from it?
Reid: Obviously they want the factories that produce new cars to continue production, they want to put these cars in the hands of consumers, so they are always scrambling to find new ways to finance cars, to fit the family budget.
Car prices have been rising steadily, which is related to the annual income of most families, so it becomes more difficult to do so.
Willis: Well, shall we park the car longer?
I mean, it might make sense if you keep your car for 7, 8, 10 years.
Reid: No, actually, the statistics show that we're going to stay shorter and we're going to go into a shorter cycle of care ownership.
So, no, it reflects the cost of the car better than our user habits.
Willis: overpaid, how do I avoid doing this?
Reid: Well, it's a good idea to consider financing before you actually start.
Consider whether you want to rent or buy, and then make a very smart decision about the car.
You need to pull-
Like a car in Edmonds.
Something you are interested in, but be sure to look at the competitor's vehicle.
There are a lot of new concerns, and sometimes people just don't know what they have to choose from.
Willis: Well, what are the key things you need to remember before you sign?
Reid: Well, you should know the terms of the loan, you should know the term of the loan, you should know ---
You should know the percentage you deserve before you approach the car dealership.
In other words, you need to know what your credit score is and what kind of loan you are eligible.
Before you go to the dealer, it's not a bad idea to talk about getting pre-approved financing.
Then, when you're at the dealer, let them do it if they can beat the terms.
But at least that's how you're protected.
Willis: Well, Philip Reid of Edmonds.
Great website and suggestions.
Thank you very much.
Thank you, Gerri. (END VIDEOTAPE)
Willis: we want you to be at our open day every weekend, but next week is a special event on CNN.
Financial Security Watch
Your home, your investment, your work, your debt.
When you try to manage your money, we will provide you with answers and we will answer your calls.
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