This may sound a little “out there,” but according to Confused.com, there’s a possibility that participating in social media could have homeowners facing as much as a 10 percent increase in their home insurance premiums.

Particular information shared on sites such as Twitter, Facebook, Foursquare and Buzz can give criminals details about you and your home, making you vulnerable to home invasion and theft. Services like Foursquare let the virtual world know where people are at any point in time and specifically when the user is not at home - kind of puts a target right on your front door.

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According to the Census Bureau, 2.8 million people commute to work 90 minutes or more each day, in each direction.

Now, your daily commute may not be as long, but time spent in cars, trains and buses is time away from work and from family. Drive-time can affect a person’s quality of life and it’s one reason why Forbes Magazine’s Best and Worst Commutes is worth reviewing, especially when considering a home purchase.

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Last week, President Obama announced a plan to direct $1.5 billion in aid to distressed homeowners in states hit the hardest by the housing crisis. During a town hall meeting held in suburban Las Vegas, the President stated, “Government has a responsibility to help deal with this problem.”

The money is earmarked for Arizona, California, Florida, Michigan and Nevada. According to the administration, the average home prices in these states have fallen by more than 20 percent since the housing peak in 2006. Money will come from the $50 billion set aside in 2009 for the Troubled Asset Relief Program (TARP).

Funding will be made accessible to state housing agencies, who will be expected to create programs to help homeowners struggling to meet their mortgage obligations - either because of unemployment, they are carrying a second mortgage or are “underwater”, owing more than their home is worth. According to the New York Times, “State housing officials will be required to submit proposals to the Treasury Department, which will review and approve them.”

TALK BACK: What do you think of this plan? Post your comments below.

Posted by Sharon Walker

The mortgage lending landscape changes a lot. Rates and guidelines are in constant flux, and it creates preparedness challenges for buyers who aren’t paying in cash.

The loan you get today won’t always be the loan you get tomorrow.

Because of how frequently bank rules are changing, it can be hard for home buyers to distinguish between mortgage fact and fiction of “what’s coming next.”

Recently, we saw this with respect to FHA home loans.

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“Like sand through the hourglass, so goes the days …” leading up to the expiration of the Federal government’s home buyer tax credit. Home purchasers must have a signed contract by April 30 and a closing date no later than June 30.

First-time home buyers can receive a tax credit of 10 percent of a home’s purchase price up to $8,000. Existing homeowners looking to downsize or upgrade, are eligible for a tax credit of up to $6,500.  Their existing home will have had to be their permanent residence for five consecutive years out of the past eight.

Other stipulations: Credit would be limited to individual buyers who earn less than $125,000 annually and married couples who have a combined yearly income of up to $225,000. The tax credit can only be used for homes purchased for $800,000 or less.

Spokesperson for the National Association of Realtors (NAR) Walt Molony attributes last year’s sale of 2 million existing homes to the first-time home buyer tax credit. NAR chief economist Lawrence Yun anticipates that the tax credit could add another 1.5 million sales to this year’s total.

The Internal Revenue Service (IRS) provides detailed information for both first-time and existing home buyers here.

Posted by Sharon Walker

I recently wrote about homeowners staying current with their credit card payments, but letting their mortgage payment slide.

That being the case, card holders need to be aware of the changes in the law, which will be occurring this month, regarding how banks handle consumer credit accounts and new responsibilities of the card holders.

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Consumer sentiment has been on the rise since last February and it’s something to which home buyers should pay attention.

The affordability of your next home may hinge on consumer confidence.

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The Economist Intelligence Unit (EIU) is the “world’s foremost provider of country, industry and management analysis. For over 60 years, the EIU has delivered vital business intelligence to influential decision-makers around the world.”

Each year the EIU ranks 140 cities, worldwide, on liveability.

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TransUnion, the third-largest American consumer credit reporting agency, has recently released a report showing more and more consumers are paying their credit card bills instead of their mortgages. The study revealed that Americans who are current on their credit cards but delinquent on their mortgage increased from 4.3 percent in the first quarter of 2008 to 6.6 percent in the third quarter of 2009.

“This goes against conventional wisdom and that has always been that, when faced with a financial crisis, consumers will pay their secured obligations first, specifically their mortgages,” said Sean Reardon, author of the study and a consultant in the analytics and decisioning services business unit of TransUnion.

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The National Association of Home Builders’ International Builders Show was held last month in Las Vegas. It hosted approximately 55,000 builders, remodelers and other members of the home building industry. There were more than 1,100 exhibitors showcasing energy retrofitting, marketing, financial resources and design trends.

Steve Kerch of MarketWatch reported that what Americans are looking for in a new home, during these strained economic times, is less rather than more.

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