Listing Courtesy of COLDWELL BANKER RESORT REALTY - R
Since Dewey Beach home interest rates continue to play such a leading role for buyers in today’s real estate market, any relevant news items bear watching. For quite a while, home interest rates in Dewey Beach have cooperated nicely, dwelling at tantalizingly low levels. It’s been helpful to sellers and buyers alike.
Meanwhile, some strange headlines about European home interest rates have been appearing from time to time. They never seemed to make much sense, but it’s Europe, after all—and we have our hands full trying to clarify our own economics right here on this side of the Atlantic.
Yet there are some headlines you just can’t ignore. Late last month, this one appeared in Yahoo Finance:
“NEGATIVE MORTGAGE RATES IN DENMARK”
After pausing to be certain the item wasn’t under an April Fool’s dateline (it wasn’t), further examination didn’t dispel the feeling that someone at Yahoo had spent too much time reading Alice in Wonderland. The article said that bank interest rates had declined so far that home interest rates in at least one country had now fallen below zero.
In other words, through the looking glass.
Now, before leaping to the conclusion that home buyers in Denmark would therefore expect banks to pay them every month, this seemed to be the point at which bringing a little common sense would be called for!
That, according to Yahoo, is exactly what’s going on in Denmark.
Since we’ve all been hoodwinked by silly news items on the web, here is where it was clearly time to check out other authoritative sites. A respected European blogger named Jan Oravec stated in no uncertain terms, “Many economists consider negative interest rates impossible.” But reading further, Oravec admitted that nonetheless they do exist.
Per Market Realist: “In Germany, Switzerland, Ireland, Belgium, and [you guessed it] Denmark, it was about time we saw negative mortgage rates in Europe as well.”
Bloomberg Business quoted Danish Business Minister Henrik Larsen: “There’s a need for us to create clarity over how we can best handle this situation going forward” (that seems to be something of an understatement).
Yahoo got specific: "Nordea Bank’s IT systems need to be reprogrammed as it’s not accustomed to situations where the bank isn’t receiving interest payments on outstanding mortgages.”
According to a Google translation of blogger gjohnsit, banks there “have had to pay interest back instead of charging them.” Reading our minds, he asks, “How is it possible, that someone could go to a bank, take out a mortgage, and expect the bank to give them money every month?”
The answer, according to economists, is Euro deflation (but then again, wasn’t it economists who considered negative interest rates to be impossible?)…
We might be tempted to wish for the same situation for our own Dewey Beach home interest rates, but I don’t know. There is an aura of something-for-nothing hovering over the whole idea. Besides, today’s mortgage rates are already quite reasonable—and a solid reason to give me a call!
You may have wondered why there are credit repair companies out there, since the credit reporting agencies have to allow any Dewey Beach consumer to dispute incorrect line items on their own. The big Credit Reporting Agencies (“CRAs”) even have online systems for challenging erroneous information. The Agency must act speedily to investigate and correct any false information. Soooo, why pay someone else to just fill out their form?
The answer seems to be the same one that makes practitioners in the legal profession permanently in demand: it’s in the fine print. And in this case, it could be that some of that fine print is written in invisible ink.
As you can well imagine, speed is vital when a would-be Dewey Beach mortgage applicant finds a credit score that’s lower than expected. The mortgage companies will decide whether you qualify (and how much interest to charge) based largely on that credit score. The actual details about how speedily the CRA must act are all contained in the fine print located in the FDIC’s Consumer Protection regulations, “Procedure in case of disputed accuracy” (6500, § 611). Once you notify the CRA, they have to investigate the validity of your claim and (without charging you a dime) determine within 30 days whether the item is accurate. More fine print describe further protections you have—
PARAGRAPH 2: The CRA has but 5 days to notify the company or person who provided the information about your challenge.
PARAGRAPH 6: The CRA has to provide you the results of their investigation in writing, and, if you’ve asked for it, describe the steps they took to arrive at their decision.
PARAGRAPH 7: If you didn’t know that you had the right to receive the above description, they must furnish it within 15 days after you later request it.
Those sound like pretty solid protections—vitally important, since the CRA can’t just sweep your dispute under the rug, stall, or ignore you altogether. After all, they have to detail in writing how strenuously they worked to protect you! Right?
Except for one problem, which is in PARAGRAPH 8. If the CRA simply drops the disputed item from your current report within the first 3 days, that’s officially considered an expedited dispute resolution. Since the item has been dropped, that might seem to be a solid win. But PARAGRAPH 8 says that if the CRA does that, it no longer has to do anything demanded in Paragraphs 2,6, and 7! It’s as if those protections were written in invisible ink…so that next month, if the company or person just reports the same thing, voila! your credit report might once again go back to Square One. The CRA is supposed to notify you 5 days in advance; but let’s face it, the phrase ‘Catch-22’ comes to mind…or ‘Credit Score Whack-a-Mole’…
What can you do, short of hiring repair agency experts to fix your credit score? Most commentators are in agreement: just stay away from the online dispute forms. Send a registered letter with your dispute, because it usually takes the CRA longer than three days to act on it, so they can’t skip the protections.
And while you’re waiting, why not give me a call? We can start scouting for your new Dewey Beach home! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestate.com.