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Facing the prospect of foreclosure can be terrifying. Programs are available to assist borrowers in difficult circumstances, but some people prey on homeowners who are afraid and desperate. Here are some tips to help you avoid becoming a victim.

Beware of False Claims
Sometimes scammers find out the names of homeowners and their mortgage lenders and call or send letters claiming to be from the lender. In other cases, they claim to represent the lender without naming it, or say they work for a government-approved agency. Fraudsters might offer to buy your home for cash at a price well below market value. Dont provide any financial information to someone who contacts you if you didnt reach out to the company or agency on your own first.

A company other than your lender cant pre-approve a mortgage modification or guarantee that youll be approved if you fill out an application. Only your lender can decide whether to modify your loan. Paying an outside company wont increase your chance of being approved for a mortgage modification.

Dont Be Pressured Into Making Payments or Signing Documents
Its illegal for a company to demand payment up front for a mortgage modification. Dont pay, even if the company offers a money-back guarantee.

Fraudsters often tell homeowners to pay them a fee and promise that theyll handle everything. They tell homeowners not to have any further contact with their lender or instruct them to send mortgage payments to a different address. Dont fall for it.

Avoid any company or representative who pressures you to sign documents that you havent had a chance to review or dont understand. Dont sign a document unless youve had it reviewed by your own attorney and you understand the reason for it and the ramifications.

Some scammers tell homeowners they need to sign over the deed to their home but claim that the transfer is only temporary. Dont sign over your deed to anyone unless your mortgage lender has agreed to forgive your balance and youre working with the lender directly.

The Right Way to Avoid Foreclosure
The foreclosure process is long and expensive for mortgage lenders and is filled with all sorts of potential problems. Your lender would rather work with you to modify your loan and keep you in your home than proceed with foreclosure. If youve fallen on hard times, contact your lender to explain your circumstances and discuss your options.

Mortgage assistance programs are available for homeowners who are struggling, and you can apply for free on your own. You can also get help from a housing counseling agency approved by the U.S. Department of Housing and Urban Development.

This article is intended for informational purposes only and should not be construed as professional or legal advice.

Published with permission from RISMedia.

You’ve likely heard of carbon monoxide (CO) and that it’s dangerous, but what is it”and how can you protect yourself and your family from it at home?

CO is a colorless, odorless gas produced when carbon-based fuels, such as propane, natural gas and wood, are burned. The gas can become extremely hazardous when it builds up indoors and someone breathes it in. The most common symptoms of CO poisoning are headache, fatigue, dizziness, nausea and vomiting, trouble breathing, and confusion. However, severe CO poisoning can make you fall unconscious and even lead to death, which is why the mostly undetectable gas is often referred to as an “invisible killer.”

If you use fuel-burning appliances improperly or have faulty equipment, your home might be at risk. To help prevent CO poisoning, the U.S. Consumer Product Safety Commission (CPSC) offers the following tips:

• Install a CO alarm in the hallway near every separate sleeping area of the home. Make sure the alarm is certified to UL safety standards and cant be covered up by furniture or draperies. Although alarms are important and provide added protection, CPSC notes that theyre no substitute for proper use and upkeep of appliances that produce CO.
• Make sure appliances are installed and operated according to the manufacturer’s instructions and local building codes. Most appliances should be installed by qualified professionals. Have the heating system professionally inspected and serviced annually to ensure proper operation. The inspector should also check chimneys and flues for blockages, corrosion, partial and complete disconnections, and loose connections.
• Never service fuel-burning appliances without proper knowledge, skill and tools. Always refer to the owners manual when performing minor adjustments or servicing fuel-burning equipment.
• Never operate a portable generator or any other gasoline-powered tool either in or near an enclosed space, including the garage and house. Even with open doors and windows, these spaces can trap CO and allow it to quickly build to lethal levels.
• Never burn charcoal inside a garage or home.
• Never leave a car running in an attached garage, even with the garage door open.
• Never use gas appliances such as ranges, ovens, or clothes dryers to heat your home.
• Never operate unvented fuel-burning appliances in any room where people are sleeping.
• Don’t cover the bottom of natural gas or propane ovens with aluminum foil. Doing so blocks the combustion air flow through the appliance and can produce CO.
• During home renovations, ensure that appliance vents and chimneys aren’t blocked by tarps or debris. Make sure appliances are in proper working order when renovations are complete.

If your CO alarm goes off or you think youre experiencing any CO poisoning symptoms, get outside to fresh air immediately and call 911. For more safety tips, visit CPSC.gov.

Published with permission from RISMedia.

Renting out a property can be an excellent way to earn a living or to supplement your income from a job. Its important to understand what types of information youll need to include on your tax return and to keep accurate records to avoid penalties.

Whats Considered Rental Income?
Youll have to report all rental income on your tax return. That includes any regular rent payments, as well as rent paid in advance. If a tenant pays you to cancel a lease, that also counts as rental income. If a renter pays any of your bills, such as utilities, or provides services in lieu of regular rent payments, the cost of those bills or the fair market value of the services provided must be counted as rental income.

If a tenant pays a security deposit to cover the last months rent, that should be counted as rental income when you receive the money. Dont include a security deposit in your income if you plan to return the money when the tenant moves out. If you keep all or part of a security deposit to cover damage to the property or a violation of the lease, that money needs to be counted on your tax return as rental income.

Which Expenses Can Be Deducted?
You can deduct property taxes, mortgage interest, management costs, maintenance, utilities and insurance. You can also deduct expenses paid by a tenant if the Internal Revenue Service considers those deductible rental expenses.

You may not deduct the cost of changes to improve or restore a property or to convert it to a different use. You can deduct depreciation to recoup some or all of the cost of improvements.

How to Prepare for and File Your Taxes
Keeping accurate and complete records throughout the year will make things easier when it comes time to file your taxes and will help if you get audited. Include all money received for rent and all costs associated with ownership, management, maintenance and repairs, as well as costs to travel to the rental property to perform maintenance and repairs.

In most cases, youll need to report your rental income and expenses on Form 1040, Schedule E. The IRS has instructions to help you figure out which income and expenses should be included and how to calculate depreciation. If your expenses are greater than your rental income, or if you use a property that you rent out as a personal residence some of the time, the amount of loss you can deduct on your tax return will be limited.

Seek Professional Assistance
Owning a rental property can be lucrative, but you need to be mindful of how it can affect your taxes. Talk to an accountant so you understand what you must include on your tax returns, and keep detailed records of all income and expenses. If you dont want to handle record-keeping yourself, hire professionals to make sure everything is in order.

This article is intended for informational purposes only and should not be construed as professional or legal advice.

Published with permission from RISMedia.

If you own a house and you recently got married or are planning to soon, you and your new spouse may want to share the cost of the mortgage. You might think that you can simply contact your lender and add your spouses name to the mortgage, but the process is actually more complicated than that.

Why Youll Need to Refinance Your Mortgage to Add Your Spouses Name
Any time a change is made to an existing mortgage, a refinancing process is required. Before the lender agrees to add your spouses name to the loan, the company will want to make sure that the two of you will be able to repay the loan. That means you and your new spouse will need to demonstrate that youre both creditworthy.

How the Process Works
Before you try to make any changes to the mortgage, your spouse should request copies of his or her credit reports, check them for errors and dispute any inaccurate information. Then you can contact your lender and explain that you want to add your spouse to the mortgage.

Youll have to fill out an application and submit documentation showing both your incomes and assets. The lender will consider that information, as well as how much home equity you currently have and the type of loan, to decide whether to refinance the mortgage.

Whether you stick with your current lender or apply for a mortgage from a different company, you arent guaranteed an approval just because you were granted a loan in the past. If a lender approves the application, any future mortgage statements will include both your and your spouses names.

Potential Problems
Whenever a mortgage is refinanced, the homeowner(s) have to pay for an appraisal and closing costs. Those could total thousands of dollars that you might not have been expecting to pay.

If your spouse has a low credit score because of high credit card balances, late or missed payments, bankruptcy, or foreclosure, the mortgage application could be rejected. The lender might decide to approve the application but charge a higher interest rate than you had for the initial loan, which could raise your monthly payments. Refinancing the mortgage could also change the payoff date.

Is Adding Your Spouses Name to Your Mortgage the Right Move, Right Now?
When planning a life with your new spouse, its natural to want to share expenses, but things can be complicated if you have different financial circumstances. Before you add your spouses name to your mortgage, make sure you understand how his or her financial situation could affect the terms of the loan. If your spouse has bad credit, it might be a good idea to wait until he or she has had time to bring up the scores before you seek a joint mortgage.

Published with permission from RISMedia.

Homeowners insurance will protect you if your home is damaged by a storm, fire, theft or vandalism, or if an accident results in injuries. Your coverage and rates are based on the value of your home and its contents and the level of risk, but those variables can change over time. You should periodically review your homeowners insurance policy to make sure you have the right coverage.

When Your Policy Is up for Renewal
If your insurance renewal date is approaching, you should receive a letter detailing your current coverage limits and future premiums. Before you agree to the terms, review the document and figure out if your existing coverage is still adequate for your needs. If the company has made changes to its policies, see how they will affect your coverage and premiums. If your rates are higher than youd like, you might want to switch to a higher deductible or look for a less expensive policy with a different insurer.

When You Make Changes to Your Home or Belongings
If you make major home improvements, be sure that your insurance company knows. A new room, deck or shed can affect your coverage needs and rates. If you install a pool, youll need to have high liability coverage in case theres a serious accident. Some companies dont cover trampolines or deny homeowners insurance coverage altogether when one is involved.

On the other hand, upgrades that make your home safer may lower your rates. If youve installed a security system, sprinklers or other safety features, you may qualify for discounts.

Your coverage for property is based on the total value of belongings in the house. If you recently bought something expensive, or if you received something of value as a gift or inheritance, you may need to adjust your coverage or get a floater or endorsement to cover those items. If someone recently moved in with you, you may need to increase your coverage to include the value of that persons possessions.

When Your Family or Lifestyle Changes
Marriage, divorce, the birth or adoption of a child, or a family member moving in or out, can all affect your coverage needs. If youve recently experienced any of these events or anticipate them, contact your insurance company to discuss any changes you should make to your policy.

Insurance companies consider dogs risky because they could bite someone and cause injuries. If you get a dog thats classified as an aggressive breed, your insurance company may raise your premiums or exclude coverage for your pet altogether.

Using your house to make money can also affect your insurance coverage. If you start a home-based business or rent out your house, youll need to have an appropriate business insurance policy.

Think About How Changes Could Affect Your Insurance Needs
Your homeowners insurance needs may change anytime your life changes. Whenever something significant happens in your life or at your home, talk to your insurance company or agent to make sure you have the right coverage.

Published with permission from RISMedia.