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
Saturday, July 25, 2009
Friday, July 10, 2009
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.
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.
Friday, July 3, 2009
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
Thursday, June 18, 2009
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.
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.
Thursday, June 11, 2009
"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
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
Monday, June 1, 2009
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.
Back to Top of Page
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.
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.
Back to Top of Page
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.
Wednesday, May 13, 2009
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"
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"
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