IF YOU HAD TO LIST YOUR BIGGEST FEARS WHEN MOVING TO A NEW HOME, WHAT WOULD THEY BE? 

You might be worried about something valuable or sentimental breaking. Or you might worry that a box would get lost along the way. Or, that the movers won’t show up on time – or perhaps not at all.
But one thing you aren’t worrying about may be the biggest concern of all – the moving company you hired is a scam company, and they’re holding your stuff hostage until you fork over a wad of cash.
“There are bad guys out there for a number of reasons, just like in any other industry,” admits Linda Bauer Darr, president and CEO of the American Moving and Storage Association.
Bauer Darr says there are two primary scams consumers should watch out for when hiring movers: the hostage goods scam and the advance deposit scheme.
“In a hostage goods situation, somebody has already moved your stuff and quoted you one price. But by the time you get to the destination, they’re holding onto the goods and they ask you to pay an inflated price,” she explains, adding, “We all know that when someone’s charging twice the amount they originally quoted, something’s gone afoul.”
In a deposit scam, movers ask for a lot of money up front and then they never show.
Bill Bortgman, senior vice president of Graebel Relocation, describes a common hostage goods situation: “Most of the scam artists have a few tractor trailers and some warehouses, but relatively few. They will give a low-ball estimate over the phone. The price will be too good to be true. They’ll want a consumer to give a deposit upfront of 25% of the total. They’ll make arrangements, pick up your boxes, and leave. Once they knock on your new front door, they’ll ask for a credit card or certified check for twice the amount. When the consumer doesn’t have it, they’ll drive away with all the goods. The consumer then gets an invoice for a grossly inflated amount, a bill for four or five times what they were originally going to pay.” 

How can you protect yourself from a moving scam? According to Steve Bernas, president and CEO of the Chicago region of the Better Business Bureau, there are a few big red flags you should watch out for, including: 

· The moving company has no interest of an on-site inspection of your goods, which is key to giving you an accurate estimate of your total moving costs.
· The movers will accept only cash or a large deposit before they will move.
· The company’s website has no local address or information about licensing.
· The estimate is much lower than any other estimate you receive (which is why it’s always good to get three separate estimates).
· They refuse to put everything, or anything, in writing. 

Doing your research before you commit to a mover will help you avoid getting scammed, Bernas says. 

“Check with the Better Business Bureau to see whether the company is a BBB-accredited business and if there has been governmental action against them. We let consumers know the number of complaints, types of complaints, and patterns of complaints against a company. We’ll tell you whether the company resolved the complaints,” Bernas explained. 

“The FMCSA has a world of information on their website to help consumers,” Borgman says, adding that consumers who suspect they have a problem or who have had their belongings hijacked should call FMCSA’s toll free hotline (888-368-7238) to file a complaint.
 

For the Month of May 2008 --- Vol. 3, Issue 5

IN THIS ISSUE...

Up, up, and away? Not necessarily. Did you know that the US Postal Service is raising postage rates this month? Before you get too discouraged, take a minute to read the article below on postage rate changes you may just find some surprising ways to save! 

Of course, postage rates aren't the only thing on the rise this season. Gas prices have recently set a new high-water mark... and we haven't even hit the summer driving season yet! But you don't have to grin and bear it! The gas saving tips below can help you drive farther on each tank of gas--so you can fill up less and save more! Speaking of driving, if you or someone you know will be in the market for a new car this summer, you'll want to weigh the options of buying versus leasing before you drive off the lot. 

As always... this information may be of interest to your friends, family members, and coworkers. So feel free to pass it along to help them save this May! And call or email me with any questions.


A PENNY FOR YOUR THOUGHTS

Starting May 12th, it'll cost you one extra little penny to mail someone your thoughts. That's right...the US Postal Service is getting ready to make some price changes, and the biggest change for most consumers will be a price increase for First Class stamps from 41¢ to 42¢. 

The news isn't all bad, though. That's because for the first time in the history of the US Postal Service, the new pricing structure will include online price reductions, rebates, commercial volume and contract prices, as well as several other new incentives. The heat must be on the USPS to be competitive in pricing, as according to Postmaster General John Potter: "These innovative pricing incentives will make our products more attractive to all shippers, especially small businesses. We're pricing our products to sell in today's competitive shipping market." 

The information below can help you plan for your postal expenses and figure out a few ways that you can save! 

New Prices as of May 12 

Consistent with The Postal Accountability and Enhancement Act, the average increase of the prices is at or below the rate of inflation as measured by the Consumer Price Index. Here's what the new pricing will be: 

First-Class Mail letter 1 oz. = .42¢ (current price = .41¢)
First-Class Mail letter 2 oz. = .59¢ (current price = .58¢)
Postcard = .27¢ (current price = .26¢)
Certified Mail = $2.70 (current price = $2.65)
First-Class Mail International to Canada and Mexico 1 oz. = .72¢ (current price = .69¢)
First-Class Mail International to all other countries 1 oz. = .94¢ (current price = .90¢)
Ways to Save... 

Forever Stamps - Last year, the US Postal Service introduced Forever Stamps... and this is your chance to reap the rewards! You can purchase Forever Stamps prior to May 12 at the lower .41¢ rate, and then use them even after the price change. Forever Stamps are widely available through Post Offices, Contract Postal Units, consignment locations, Automated Postage Centers, and The Postal Store®. To help meet increased demand before the price change, the US Postal Service plans to have 5 Billion Forever Stamps in stock. So you shouldn't have any problems getting your hands on them. 

In addition to Forever Stamps, the US Postal Service is introducing all new ways to help you save, including the following new incentives: 

Express Mail - With the new "zone-based pricing system," you'll pay less when you send a letter to a nearby destination using Express Mail. You can also save 3 percent when you purchase Express Mail online or through a corporate account. Finally, additional price reductions are available if you ship quarterly minimums. 

Priority Mail - The new pricing structure includes a provision to help you save an average of 3.5 percent when you use electronic postage or meet other requirements. 

Parcel Select - Large - and medium-size shippers will receive pricing and volume incentives under the "last mile" delivery provision. 

Parcel Return Service - A new weight-based pricing system will result in significant price reductions for the return shipping of lighter packages. 

You can learn more about the new pricing structure at www.usps.com/prices, and you can purchase Forever Stamps at your local Post Office or online at The Postal Store®.

BEAT THE HIGH GAS PRICES!

With record-setting gas prices at the pump, now's the time to make sure you're stretching every mile you can out of each gallon of gas. So before you hit the road this spring and summer, make sure you take a few simple steps to operate more fuel efficiently... and save some cash. 

Put a Lid on It. Did you know that a bad seal on your gas cap could allow as much as 30 gallons of gas to evaporate over the course of a year? Before you leave the pump, make sure you tighten the cap completely. And if you notice that the rubber seal on the cap is beginning to wear out or crack, replace it. This minimal investment will pay dividends down the road. 

Don't Just Kick the Tires...Check Them! Under-inflated tires are one of the most common reasons for poor gas mileage. If your tires are under-inflated by just 20%, your gas mileage can drop by as much as 15%. That means you'd be getting two to three miles LESS per gallon...which leads to filling up sooner and paying at the pump more often than you need to. 

Take a Load Off. For every 100 pounds of unwanted weight your car carries, your fuel economy drops up to 2%. Shedding that unwanted poundage--including golf clubs, bike racks, and tools--can save you the equivalent of three to six cents per gallon! So check your trunk and empty out any unnecessary items. 

Ease on Down the Road. Remember, unnecessary stops and starts, as well as aggressive acceleration can overshadow all of the good tips on this list--so take it easy on your gas pedal. You'll also want to use your cruise control wisely. For instance, turn off cruise control when climbing steep hills to stop your car from automatically cranking up to maintain its speed. And, leave your cruise control off when you go down the other side of that steep hill--your car doesn't understand gravity as well as you do and, therefore, won't take advantage of the downhill momentum. 

Give It Some Air. Believe it or not, replacing a clogged air filter can improve your car's gas mileage by as much as 10%! Not only will replacing a dirty air filter save gas, it will protect your engine. 

Consider Using Overdrive Gears. By using the overdrive gears, you can reduce your car's engine speed... which means you'll save gas and reduce engine wear at the same time. 

Stop Idling. Finally, if you're sitting still for longer than a minute, you should consider shutting down the car. Idling endlessly reduces gas mileage and wastes precious fuel you could be using to get across town. 

By following these simple tips, you'll be taking better care of your car...and your wallet!

BUYING VERSUS LEASING: WHICH OPTION BEST FITS YOU?  

Despite claims to the contrary, there really is no one-size-fits-all answer to the question of whether to buy or lease a car. In either scenario, a portion of every payment is lost to depreciation, even with the best interest rate attached. With this in mind, consider your own lifestyle needs and priorities at the time of each transaction. 

Benefits of Leasing: 

Lease payments are generally between 30%-60% lower than car loan payments.
It's as if you have a guaranteed buyer of your vehicle at a specified price when the lease is up. If the vehicle is worth more, you can sell it on the market and pocket the gain, if it is worth less than the lease buyout value, you just hand over the keys.
Little or no down payment is required for a lease, freeing up cash for investments with a better return.  

Benefits of Buying: 

With the purchase of a car, significant trade-in or re-sale value can accumulate.
There are no surprise fees or charges after the fact for wear and tear or overuse.
Once your loan is paid off, you will have something tangible to show for the money you have spent over the years.

The material contained in this newsletter has been prepared by an independent third-party provider. The material provided is for informational and educational purposes only and should not be construed as investment, financial, real estate and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors.  

As your Trusted Advisor, I always want to make sure you are clear on all details of the home financing process. If you or someone you know are interested in purchasing or refinancing a home, give me a call today! 

If you prefer to send your removal request by mail the address is:
Cindy Emerine
6555 Olympus Dr
Evergreen, CO 80439  

Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Market Guide, LLC does not grant to the recipient or distributor a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content except as otherwise provided in our Terms and Conditions of Membership, for any purpose.
 

5 NEW RULES FOR HOME BUYERS 

There's no guarantee that prices have hit bottom yet - but that doesn't mean that you can't get a great deal now. 

Rule 1: You can't time the bottom. Face it: The house you buy today will more than likely be worth less next year. That could get you thinking about trying to time the bottom. Resist. It's harder to do than you think, and this is the best buyers have had it in two decades, with inventories up and mortgage rates low.  

Pace yourself, find the perfect place and drive a hard bargain: Ignore the seller's asking price and bid 10% below what comparable homes are selling for. If the seller balks, move on. Remember that if you're trading up, your home could sit. So sell before you buy. 

Rule 2: One reason to buy now - mortgage rates
Homes are plentiful and will remain so, but financing will be getting more expensive. True, the Federal Reserve has slashed interest rates, but fixed mortgages don't directly follow the Fed. They reflect the bond market's expectations about inflation, which remains a concern. The 30-year, now at 6.1%, will likely reach mid-6% by December and 7% in 2009, says Celia Chen of Moody's Economy.com.  

That means there could be a penalty for waiting to buy even if prices fall more. Today a $250,000 loan would set you back $1,500 a month. At 7%, a $1,500 payment gets you only a $225,000 mortgage. As for variable-rate loans, the spread between conforming ARMs and fixed loans is too narrow to do you much good. 

Rule 3: Another reason to buy - rates on big mortgages. Mortgages in amounts greater than $417,000 - the limit for buying by federally sponsored mortgage agencies - usually run a fifth of a percentage point above conventional products. But investors are shunning jumbos, which now average 7.2% and are unlikely to drop much this year, according to HSH Associates.  

Certain jumbo borrowers could get relief, however. A new law allows Freddie Mac and Fannie Mae to buy loans as large as $729,750 in 71 high-priced areas. So far "jumbo conforming" loans average 6.6%. The program has gotten off to a slow start; you'll need to shop around. And unless Congress acts, this bargain will disappear at year-end. 

Rule 4: Don't buy cheap; buy good schools
By now you've heard from somebody who knows somebody who got a great deal on a foreclosed property. But when you buy a house, you're also buying into a neighborhood. And foreclosures tend to be bunched in areas where residents and speculators alike took out exotic mortgages to get into homes they subsequently found they couldn't afford. That's not a recipe for stability. Prices and quality of life could both decline further.  

Similarly, avoid developments that popped up in the past few years. They too likely have a lot of owners with risky loans and little equity, says Mike Larson of Weiss Research. Instead, go for areas with highly rated schools. They generally fare better during downturns, and that pattern is holding today, according to a recent study by real estate site Trulia.com. 

Rule 5: Make sure your agent has your interest at heart. The real estate game has a built-in conflict of interest, since the listing agent and your agent both get paid by the seller. And these days more sellers are offering extra cash to buyer's agents.  

So make sure you're not being steered to a house that's better for your agent than for you. Agree up front on his commission (typically 3%) and that any extra payments will go to you, says Jon Boyd, past president of a buyer's agent trade group. 

By Amanda Gengler, Money Magazine
Last Updated: May 12, 2008: 1:06 PM EDT