Still some benefits to moving!

With the latest revision for Homebuyers, read up on the changes that make it attractive to make that move.

New $6,500 federal tax credit for “move-up” home buyers may benefit you

The federal government recently extended and expanded the federal tax credit for home buyers. The tax credit now concludes June 30, 2010 instead of Nov. 30, 2009, and also includes existing homeowners who meet certain qualifications.



MAKING SENSE OF THE STORY FOR CONSUMERS

Current homeowners are eligible for a $6,500 federal tax credit if they have lived in their current home for a consecutive five out of the last eight years, and the adjusted household income does not exceed $125,000 for single files or $225,000 for join filers.

The expanded tax credit went into effect Nov. 6, the day President Obama signed the bill. Homes that close escrow between Nov. 6, 2009 and June 30, 2010 are eligible to apply for the tax credit.

The legislation does not require homeowners to sell their current residence; however, the new home must be the primary residence and the price of the home must not exceed the limit of $800,000. Homeowners who plan to retain their current home as a rental or second home are advised to move into the new home the day escrow closes so there is no question it was the principal residence at the time of the tax credit.

Almost all housing types are eligible, including new and existing single-family homes, condominiums, manufactured or mobile homes, and boats that serve as the owner’s principal residence. Second homes and investment properties are not eligible.

Home buyers in 2009—those who close after Nov. 6, but no later than Dec. 31, can claim the $6,500 credit on their 2009 federal tax returns, or amend their 2008 returns. Similarly, eligible buyers in 2010 will be able to file for the credit on their 2009 returns or 2010 returns. All home buyers should talk to a tax advisor regarding timing decisions.

First time home buyers shouldn't wait too long!

The outlook for getting into that first home is looking up. Income ratios, supply of available units and tax incentives are driving this positive reading. Jump on board - Good Things don't last forever!


http://tinyurl.com/ygnd6g9

Deed in Lieu

There are so many tricky ways being tauted to stall the inevitable. Loosing your home. These are times to be wary of everything you hear and throughly check with agencies that have authority before getting your hopes to high!

Great article dispels many confused on the issue of 'Deeds in Lieu' give it a quick read and then you'll get it! http://tinyurl.com/yg3c3ju

Home Ownership Help - Finally!

The following article will coincide with the previous post. Slowly but surely agencies are being formed to help homeowners.

http://tinyurl.com/yhn4mzf

Good Money After Bad

A good read on the 'Bailouts' TARP, Lack of Accountability etc.,etc.
Oct. 2009 Vanity Fair Page 204. http://tinyurl.com/yh63daz

Loan Modification Help, Check here!

Check out this website to assess if you can get your loans modified. The list of modifying agencies and specifics are all here. BEWARE OF ANY INSTITUTION ASKING FOR MONEY UPFRONT! This is usually a SCAM!!
http://www.hopenow.com/

Reality of Current Loan Modification Programs

This is a very good summation of the current state of the modification programs. This is a very difficult time for many homeowners since the scenerio has mutated since the initial programs were set up. Take a close look and realize, yes, things are a'changin!

http://tinyurl.com/yfm2hq5

Loan modifying attorneys under investigation.

Since the Loan Modification Program was announced and there was no set plan/program for these modifications to be implemented the following has been an all to common occurance.




The State Bar of California has recently launched numerous investigations against attorneys for misconduct related to loan modifications. In a rare move, the State Bar has released the names of 16 attorneys under investigation, by opting to waive investigation confidentiality in favor of public protection. These attorneys have allegedly taken fees for promised services, but failed to perform those services or even communicate with their clients who face the possible loss of their homes. Their non-attorney staff may also be under investigation for unlawfully practicing law.

Not all attorneys engaged in loan modifications are unscrupulous. However, this announcement from the State Bar serves as a good reminder for REALTORS® and their clients to be careful when dealing with attorneys and others for loan modifications. Scam artists may intentionally associate or affiliate themselves with attorneys in an attempt to lend credence to their fraudulent schemes. The list of attorneys currently under investigation is available at http://calbar.ca.gov/state/calbar/calbar_generic.jsp?cid=10144&n=96395.

Fed keeps prime @ 0

While the Fed is constantly juggling 'things' around we are still in a good lending mode. Get your fixed rate loan now, you never know when the future will change.

Read the following carefully to understand all the machinations.

http://www.federalreserve.gov/newsevents/press/monetary/20090923a.htm

Big Brother is Watching -- IRS Audits

This latest article from the Wall Street Journal will give a lot of homeowners pause. Read carefully


http://online.wsj.com/article/SB125176078680774177.html#articleTabs%3Darticle

Get Accurate Information

With all the different 'Stories' going on around, this is the straight scoop.
Too many people hear parts of the facts and run with it or just stop listening because they get overwhelmed.
If you are looking for mortgage advice, seek a reccommended professional. Don't have one, call me I've got some GREAT reccommendations!



NEW FEDERAL LAW AFFECTING DISTRESSED PROPERTIES
On May 20, 2009, President Barack Obama signed into law the Helping Families Save Their Homes Act of 2009 to help homeowners and lenders avoid foreclosure. Previously included in this bill was a measure to allow bankruptcy judges to modify mortgage loans for principal residences, but the U.S. Senate did not pass this "cram-down" legislation. The Helping Families Save Their Homes Act of 2009 contains various new laws to address the national foreclosure crisis. Major provisions that may affect California REALTORS® and your clients include the following:

Longer Stay for Tenants of Foreclosed Homes: Effective immediately, an REO lender or buyer who acquires title through a foreclosure sale must give at least a 90-day notice to terminate a bona fide tenant as defined. A 90-day notice to terminate is sufficient for a month-to-month tenant or if a new owner will occupy the property as a primary residence at the end of the 90 days. Otherwise, a tenant with a one year or other fixed-term lease with a remaining lease term exceeding 90 days can stay in the premises until the remaining lease term ends. This new 90-day notice requirement applies to foreclosures of a federally-related mortgage loan or residential real property, except for properties under rent control, rent-subsidized programs (such as Section 8), or other state laws that provide additional protections for tenants. This law expires on December 31, 2012.

Notification of Transfer of Mortgage Loans: The Truth in Lending Act now requires a lender to whom a mortgage loan is sold or otherwise transferred to notify the borrower in writing of such transfer within 30 days. The notice must include the new lender's identity, address, telephone number, authorized representative's contact information, and other relevant information. This measure should help alleviate the problem borrowers may face in determining who owns their mortgage loans.

Hope for Homeowners (H4H) Revamped: The new law loosens the H4H program requirements to help homeowners refinance out of their troubled mortgages and into more affordable, fixed-rate FHA-insured loans. Originally launched in October 2008, the H4H program intended to help 400,000 distressed homeowners, but in the program's first seven months, it apparently only helped one family stay in its home. The maximum loan-to-value ratio for an FHA refinance is 96.5% of the appraised value. If refinance proceeds are insufficient to pay off existing liens, the existing lienholders must voluntarily agree to a short payoff, but a new inducement is an opportunity for them to share in the homeowner's equity. Other changes to the H4H program include monetary incentives for both the participating servicers of the existing loans and originators of the FHA refinance. Millionaire borrowers (with net worth over $1 million) are now excluded from the program. HUD will establish the requirements and standards to implement the H4H program as revised.
Other provisions of the Helping Families Save Their Homes Act include a 4-year extension of the $250,000 FDIC deposit insurance to December 31, 2013, protection for loan servicers who establish qualified loss mitigation plans from liability for an alleged breach of duty to maximize mortgage values for their investors, $130 million for foreclosure prevention counseling and education, and $2.2 billion to strengthen homeless programs.

Don't Miss the Boat for the second time!

In my weekly reading of C.A.R.'s newsletter and my analysis of mortgage rates and the prices being asked for properties now, this is an article that is an understatement to what I have been (Screaming) sorry I get excited! Prices have dropped back down to what I had seen in 2001-2003. So if you thought you were out of the running, or locally -"Missed the Boat" here is your second chance -- don't miss it!

Buying is now cost-effective for some renters

Many renters debating whether to buy or rent their homes are realizing that the increase in affordability, coupled with low interest rates and tax incentives, are tipping the scales toward homeownership.



MAKING SENSE OF THE STORY FOR CONSUMERS



· An analysis of 45 metro areas by the Associated Press found that the gap between the monthly mortgage payment on a median-priced home and the median rent has decreased from $777 a month to just $221 in the past three years.



· In markets across the nation, including the inland areas of California, prices have declined by nearly 40 percent, resulting in rising sales as first-time buyers use a federal tax credit that covers 10 percent of the home price, up to $8,000.



· Favorably priced foreclosures in some markets are drawing multiple bids. Many housing experts believe that as supply and demand even out, home prices will eventually begin to rise, but for now most buyers are having little difficulty finding affordable homes.



· Qualified first-time buyers may be eligible for loans insured by the Veterans Administration (VA), which does not require a down payment. Another loan product gaining popularity are those insured by the Federal Housing Administration (FHA), which require only a down payment of 3.5 percent.



· It is important that potential home buyers not only look at the monthly mortgage payment compared with their monthly rent payment, but that they also consider other costs associated with homeownership. These can include homeowner association (HOA) fees, insurance, maintenance, and utilities, which most renters are not responsible for paying.


For the full story Call: Marlene Henderson

Easing of Refi Guidelines by FED.

This is "Hot of The Press" according to Calif. Assoc. of Realtors and will effect many homeowners in this situation. So it is time to revisit your "qualified lender" and get the Ball Roll'in to modify your loan that is causing havoc in your life.


Reporting from Washington and Los Angeles -- The Obama administration eased eligibility rules Wednesday for its Home Affordable Refinance program, lifting the maximum loan-to-value ratio to 125% from 105%.

The shift, which regulators had hinted was coming, is aimed at making refinancing available to more people whose homes are worth less than their mortgages.


HARP is open to homeowners whose loans are owned or guaranteed by Fannie Mae or Freddie Mac, the mortgage finance giants now under government control. It covers first mortgages only.

The refinance program, launched this year, has gotten off to a slow start, in part because the maximum 105% loan-to-value ratio was too low to include many homes that have fallen sharply in value.


The new 125% maximum means an eligible homeowner with a $375,000 mortgage can refinance if his or her house is worth at least $300,000. But the borrower still must be able to afford the new loan. Income requirements are an increasing problem as unemployment soars and many workers are dealt pay cuts.


Treasury Secretary Timothy F. Geithner said the move to raise the loan-to-value limit was "a crucial step in our broader efforts to get America's housing market and economy on the path to recovery."

But refinance activity in general remains vexed by the jump in mortgage rates from their generational lows in April. Refi applications to lenders have tumbled since mid-May as rates have surged, according to Mortgage Bankers Assn. data released Wednesday. Despite a down-tick in rates in the last two weeks, refi activity hasn't rebounded.

The State incentive for first time buyers is GONE!

As of today the State has stopped taking applications for the First time HomeBuyer $10,000. rebate for purchasing New homes. The applications for the $100,000,000 account are in excess of the available funds and are being reviewed. This was on a first come, first served basis so -- timing was important

Time and Money Running out!!

You might of thought you had plenty of TIME, But . . . .

the time to get off the 'SideLines' is NOW!



California running out of $10,000 tax creditsFirst-time home buyers wanting to take advantage of the state’s $10,000 tax credit may have less time than originally expected. California set aside $100 million to help home buyers purchase newly built homes, hoping to jump start the residential-construction market. According to state officials, the tactic has worked well and is helping to entice home buyers into the market. However, there only is approximately 20 percent of the program’s funding remaining.


The program launched in March, and as of June 3 nearly $24 million in tax credit certificates already had been issued, according to the state’s Franchise Tax Board, leaving nearly $76 million in credit available. Many applications still are in the pipeline awaiting approval. If all of the submitted applications are approved, only $17.5 million would remain in the fund.



The California state legislature is considering adding another $200 million to the program. However, securing approval may be difficult due to the state’s estimated $24 billion budget deficit. A bill to extend the program already has won Assembly approval and now is awaiting activity in the state Senate.

"Reverse Mortgage" the Bad and Ugly--minus the Good!

I have always had a concern about these "vehicles" and now that money has gotten tighter and tighter when 401K's and other retirement plans have gone the way of GM the Calif. Assoc. of Realtors is piping up too!! Read the following and pay close attention to the warnings in the coming weeks.


C.A.R. Mortgage Update



This week’s C.A.R. Mortgage Update contains information about reverse mortgages, mortgage rates, mortgage re-fis, loan modifications, an increase in the number of prime mortgage defaults, the FDIC’s plan to postpone the initial sale of bank assets, and a new loan for seniors.



U.S. regulator: Be wary of reverse mortgages
Some industry analysts, including U.S. bank regulator, John Dugan, believe that reverse mortgages could be the next subprime mortgage product to gain traction. Dugan says that while reverse mortgages can be beneficial, they also share some of the characteristics of the riskiest types of subprime mortgages.

Although the majority of reverse mortgages is insured by the Federal Housing Administration and poses limited credit risk, a different class of reverse mortgages is becoming popular--“proprietary” products--which offer less consumer protection.



To protect consumers, regulators are crafting guidelines and Dugan is recommending that regulators be more vigilant about misleading marketing and cracking down on lenders who try to bundle a reverse mortgage with other financial products, such as an annuity or life insurance product

Proposition's 60 and 90

Just recently I have had clients ask for both themselves and their parents about the details of these two propositions and a lot of the particulars on how each one works. Since each has its own intricacies and each person/family has theirs, I advise to consult with a tax expert so you do not miss a vital component. This can be a substantial tax savings with little effort, as long as all the steps are followed.
The following are the Propositions and for further information and discussions on them go to: http://www.boe.ca.gov/proptaxes/faqs/propositions60_90.htm

You can NEVER get too much information!



What are Propositions 60 and 90?
Propositions 60 and 90 are constitutional amendments passed by California voters that provides property tax relief for persons aged 55 and over. Implemented by section 69.5 of the Revenue and Taxation Code*, it allows these persons, under certain conditions, to transfer a property's factored base year value from an existing residence to a replacement residence.

Typically the property tax of a newly purchased or constructed residence is based on its current market value upon change of ownership. However, the provisions of Propositions 60 and 90 may result in substantial tax savings since it allows the property tax of the original (sold) property to be transferred to the newly purchased or constructed home if eligibility requirements are met.

* Section 69.5 also sets forth the provisions of Proposition 110 which allows the transfer of a base year value for severely and permanently disabled persons. Except for the disability factor, the qualifications for Propositions 60/90 are same as Proposition 110.

What is the difference between Proposition 60 and Proposition 90?
Proposition 60 allows transfers of base year values within the same county (intracounty). Proposition 90 allows transfers from one county to another county in California (intercounty) and it is the discretion of each county to authorize such transfers. As of January 2007, only seven counties have passed an ordinance authorizing intercounty transfers; however, it is recommended that you call your assessor for verification as it could change at any time. See question #17 for a list of the seven counties.

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What are the eligibility requirements for Propositions 60/90?


You, or a spouse residing with you, must have been at least 55 years of age when the original property was sold.


The replacement property must be your principal residence and must be eligible for the homeowners' exemption or disabled veterans' exemption.


The replacement property must be of equal or lesser "current market value" than the original property. The "equal or lesser" test is applied to the entire replacement property, even if the owner of the original property purchases only a partial interest in the replacement property. Owners of two qualifying original properties may not combine the values of those properties in order to qualify for a Proposition 60 base-year value transfer to a replacement property of greater value than the more valuable of the two original properties.


The replacement property must be purchased or built within two years (before or after) of the sale of the original property.


To receive retroactive relief from the date of transfer, you must file your claim within three years following the purchase date or new construction completion date of the replacement property.


Your original property must have been eligible for the homeowners' or disabled veterans' exemption either at the time it was sold or within two years of the purchase or construction of the replacement property.
The original property must be subject to reappraisal at its current fair market value at the time of sale, unless the buyer(s) of your original property also qualify the property as a replacement property for a base year value transfer due to disaster relief or a base year value transfer for a severely and permanently disabled person. Therefore, most transfers between parents and children will not qualify.

This is a one-time only benefit. Once you have filed and received this tax relief, neither you nor your spouse who resides with you can ever file again, even upon your spouse's death or if the two of you divorce. The only exception is that if you become disabled after receiving this tax relief for age, you may transfer the base year value a second time because of the disability, which involves a different claim form.

If I qualify for Proposition 60 benefits, do I still need to file for a homeowners' exemption on the replacement property?
Yes. The exemption is not granted automatically and must be filed for separately.

Don't Get Dupped!!

The latest scam to unwitting homeowners, is the "Property Tax Reassessment and/or Property Tax Adustment Services". There have been mailers sent statewide alleging this service. This is a free service through your County Tax Assessor's Office.
If you have been scammed contact the State Attorney General's office Phone 800-958-5885

If there is a way to make a dishonest Buck, someone will figure it out!!

For the latest in Real Estate News, finding a great deal or having your property Managed Professionally contact:


Marlene Henderson, Realtor-Broker - Ca/Nv MoeBEST-Henderson Properties and Property Management
831-429-9091 Landline 831-419-9091 Airphone 775-588-3325 Nevada Office
Website http://www.bestsantacruzproperties.com/
"When only the BEST will do . . . MoeBEST-Henderson Properties and Property Management"

Golden Opportunities State/ Fed Tax Savings/incentives

The Time of Golden Opportunity is now,
don't miss out!
If you haven't been keeping your ears to all the financial and tax changes going on in the last few months, waiting for things to settle out, which quite honestly could take another chunk of time, read this!
As of now, some of the significant benefits to purchasing a home whether in foreclosure or not are:
The first-time home buyer tax credit,
which Congress in February increased to $8,000 from $7,500 and eliminated the repayment requirement.
The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.I only wish I could use this but it is only for those that, haven't owned a property for three years. You also must retain the property as your primary residence for three years and the most important item, you have to qualify within the set guidelines.
There is also, in the state of California, a property tax reduction. Most counties are re-assessing properties bought from 2003 to present and adjusting the taxable values downward. It will be reflected in the tax bills and a notice of such will be mailed to affected property owners.
State Tax Credit On NEW Homes
How much is the state tax credit?The state tax credit is for $10,000 or 5 percent of the purchase price of a newly built home, whichever is less. The home must be the principal residence of the buyer, and the sale must close between March 1, 2009 and March 1, 2010.
How does the tax credit work?The credit will be provided in equal amounts (up to $3,333) per year, over three successive tax years, beginning with the year the purchase is made.
Will I receive the credit if I buy an existing home? The credit is only for the purchase of a newly built home that has never been occupied. That is because building a new home generates more tax revenues than the credit will cost the state.
Are there any other restrictions?The taxpayer must live in the home as their principal residence for at least two years. If he/she does not, he/she will have to repay the credit.
　
　
How much money is available under the program?The law limits the total amount of credits that can be claimed to $100 million. Credit reservations will be allowed on a first-come, first-served basis. It is likely that the full amount will be exhausted this year, so prospective buyers should move quickly.
Can the credit be used in conjunction with the recently enacted federal tax credit?Yes. If you buy a new home between March 1 and Dec. 31 and are a first-time homebuyer, you can take advantage of both the $10,000 state credit and the $8,000 federal tax credit.
"Green" Mortgage Rebates
In purchasing a home, foreclosed or not, there are programs offered by lenders that rebate the borrower up to $35,000. of their loan, when energy efficient and/or sustainable products/materials are used in upgrading the property. Call me, I will be happy to refer you to some significant lenders.
California Help for FIRST-TIME Home buyers.
To help provide first-time home buyers with peace of mind when purchasing a home, the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) Housing Affordability Fund is offering a new mortgage protection program to first-time home buyers. Through the C.A.R. Housing Affordability Fund’s Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit. For more information including eligibility requirements and information on applying for the C.A.R.H.A.F. Mortgage Protection Program, please visit www.car.org/aboutus/hafmainpage/carhafmortgageprotection/
Buying Now vs. Renting
Given recent changes in home prices and the current low mortgage rate climate, there have been significant gains in affordability for prospective first-time homeowners. Earlier in 2009, a provision in the Stimulus Bill provided for a first-time Homebuyer Tax Credit of 10 percent of the purchase price of the home up to $8,000. The CALIFORNIA ASSOCIATION OF REALTORS® analyzed the difference between renting and buying a home in light of recent market and policy developments. Housing costs and tax implications of buying a home and renting a home were computed as a part of the analysis.
Assumptions:
• The household currently rents a 3-bedroom, 2-bathroomapartment at the prevailing rent and purchases rental insurance.The prevailing rent for a 3-bedroom, 2-bathroom apartment was$1,855 per month (Q4 2008, latest available). The household purchases renter’s insurance at a cost of $247 per year or $20 per month.• The household considers the purchase of a home at the entry-level price, which is 85 percent of the statewide median price.The monthly cost of housing is equal to the mortgage payment,taxes, and insurance.• The entry-level home is priced at $248,000, or 85 percent of theprevailing median-priced home of $291,800.• The monthly payment including taxes and insurance (PITI) wascalculated using a 10 percent down payment, a 40 percentqualifying ratio, the prevailing one-year ARM mortgage rate,and a 1.038 percent assumed insurance costs and propertytaxes. The monthly PITI payment under these assumptionsis $1,630.
　
To seach for available homes in the Santa Cruz or Lake Tahoe Areas go to my website: www.BestSantaCruzProperties.com
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