Tax Breaks Pile up for California Home Buyers
Posted By Paige On February 23, 2009 @ 4:05 pm In Consumer News and Advice, Home Buying 101, Real Estate Comments Disabled
RISMEDIA, February 24, 2009-(MCT)-Major housewarming gifts worth thousands of dollars are piling up for Sacramento-area couples and singles who buy a house in 2009.
Home buyer tax breaks, which surfaced in the 1970s to stimulate buying, are back.
Thursday’s new California budget provides a $10,000 state tax credit to people who buy a new house soon. And the $787 billion stimulus bill signed Tuesday by President Obama gives an $8,000 federal tax credit to first-timers buying new or resale homes. Some home buyers this year can set themselves up for $18,000 off their taxes.
Here are details of the state tax break for new houses and condominiums (provided by Senate Bill 15 X2 over the weekend, an incentive to get a Republican budget vote from Sen. Roy Ashburn, R-Bakersfield):
– It applies to new California houses or condos bought as primary residences between March 1, 2009, and March 1, 2010.– It’s for 5% of the purchase price or $10,000, whichever is lower.– The state will take $3,333 off a buyer’s state taxes starting in the year of purchase and for two following years.– The owner must live in the new home or condo for two years or lose the break.– Collectively, the state tax break is limited to $100 million. At $10,000 per tax break that’s 10,000 new dwellings.
Last year, builders started 65,380 homes and condos, and some are still unsold. Getting those sold is partly the purpose.
But the measure is also about new construction jobs, new home buyers going to stores and local governments reaping higher property taxes, said Dennis Rogers, an executive with a Roseville-based home builder trade group, the North State Building Industry Association. He said the building industry has worked for a year to get a state tax credit for buyers. In the end it came as part of a budget deal.
A legislative analysis of the Ashburn bill said, “It is likely the full $100 million would be reserved before the end of 2009, perhaps in the first few months of availability.”
In other words: first come, first served.
Here, too, are details of the new federal tax break for first-time home buyers that went into effect:
– It’s for new and existing homes purchased between Jan. 1 and Dec. 1, 2009.– Buyers get a tax break equal to 10% of the purchase price, up to $8,000.– It does not have to be repaid. (Last year, buyers got $7,500 tax credits for homes bought between April 9, 2008, and Jan. 1, 2009, but had to repay over 15 years, interest-free).– Singles must earn less than $75,000 a year. Married couples can qualify with joint annual incomes up to $150,000.
Originally, a more ambitious stimulus bill pushed by Democrats called for $15,000 in first-time buyer tax credits. But it got whacked to $8,000 in talks with Democrat and Republican holdouts.
“We were hoping for $15,000, but this is fine, too,” said Sara Cabrey, 25, one of the first capital-area buyers to qualify. She got keys to her first house this week in Tahoe Park.
Buyers snapping up repos
Now that the capital’s housing can just about be summarized as “all repos all the time,” Home Front wondered what percentage of homes repossessed by banks in recent months have already been sold.
The number is better than expected. MDA DataQuick pegged it at 78%.
DataQuick statistics show that about eight of every 10 homes repossessed in Sacramento County between June 2007 and November 2008 now have new owners. Presumably, they got better financing and lower prices than those who lost the houses.
That 78% figure suggests that the region continues to avoid an overwhelming pileup of unsold foreclosed homes. Credit goes to a median price of $165,000 in Sacramento County — and several neighborhoods now priced below $100,000.
Copyright © 2009, The Sacramento Bee, Calif.Distributed by McClatchy-Tribune Information Services.
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Wednesday, February 25, 2009
Tuesday, February 24, 2009
Why is the livable square footage missing from the listing information?
Hi Everyone,
I recently had an inquiry about why the square footage was not posted on a listing sent through our Santa Barbara MLS. I wanted to clarify that most of the agents within our Santa Barbara MLS will not post the square footage due to a past lawsuit and do not want to take the liability of providing the informaton.
Also, since Santa Barbara is a coastal area most of the value is in the location therefore, cost per square footage is not generally applicable.
The best solution if you would like to find the exact square footage is to visit the LDT archives provided by the city. It is an excellent source and will let you know not only the square footage but also what additions are genuinely permitted and perhaps even provide you with a floor plan. Many of my clients are internet savvy and appreciate the direct link, so I thought I would post it here:
http://www.santabarbaraca.gov/Resident/Home/LDTRA/tiff_surfer.htm
Also you can look up zoning cases online here:
http://www.santabarbaraca.gov/tm_web/Case_Status/
Hope this helps!
I recently had an inquiry about why the square footage was not posted on a listing sent through our Santa Barbara MLS. I wanted to clarify that most of the agents within our Santa Barbara MLS will not post the square footage due to a past lawsuit and do not want to take the liability of providing the informaton.
Also, since Santa Barbara is a coastal area most of the value is in the location therefore, cost per square footage is not generally applicable.
The best solution if you would like to find the exact square footage is to visit the LDT archives provided by the city. It is an excellent source and will let you know not only the square footage but also what additions are genuinely permitted and perhaps even provide you with a floor plan. Many of my clients are internet savvy and appreciate the direct link, so I thought I would post it here:
http://www.santabarbaraca.gov/Resident/Home/LDTRA/tiff_surfer.htm
Also you can look up zoning cases online here:
http://www.santabarbaraca.gov/tm_web/Case_Status/
Hope this helps!
Mortgage Workout Programs for Homeowners
Mortgage Workout Programs for Homeowners
find the article at:
"http://www.car.org/legal/mortgage-workout-programs/"
On Wednesday, February 18, 2009, President Obama announced his new Homeowner Affordability and Stability Plan to help troubled homeowners avoid foreclosure. This plan will offer assistance up to 9 million homeowners and applies only to primary residences. The first component of the plan allows homeowners who are current to refinance an existing Fannie Mae or Freddie Mac conforming loan with a loan-to-value ratio up to 105 percent. The second component addresses homeowners who are at risk of foreclosure on their mortgages, but they do not have to be delinquent. The government will work with the lenders to ensure that monthly mortgages do not exceed 31 percent debt-to-income ratio. Furthermore, the government will seek to create clear and consistent guidelines for loan modifications.
The details of the Homeowner Affordability and Stability Plan will be released on Wednesday, March 4. We will continue to update the information on loan modifications once those details are known.
For more information about the Homeowner Affordability and Stability Plan, click here .
The following information is intended for REALTORS® and homeowners seeking information on existing mortgage workout programs. In general, the loan modification programs on the chart (see link below) and consumer information sheets (see links below) are intended for primary residences only.
For a lender comparison chart on existing mortgage workout programs, click here (revised 2/09). The chart is a compilation of programs offered by the larger lenders and government entities. If a specific lender or loan servicer is not on the chart, homeowners may wish to contact the lender or loan servicer to determine if a workout program is available.
For consumer information sheets containing detailed information on specific programs that REALTORS® can share with their clients, please click on the appropriate link below.
. HOPE For Homeowners (H4H) (revised 2/09)
. Countrywide Financial (Bank of America)
. Citigroup, CitiMortgage
. JP Morgan Chase & Co.
. IndyMac Federal Bank, FDIC (revised 2/09)
. Federal Government Loan Modification (revised 2/09) (Participants include: Fannie Mae, Freddie Mac, Federal Home Loan Banks, Hope Now participants, Department of the Treasury, Federal Housing Administration and the Federal Housing Finance Agency, and Wells Fargo.)
Mortgage loan modifications typically are handled on a case-by-case basis. Homeowners having difficulty meeting their mortgage obligation or interested in finding out more about a loan modification program should start by contacting their lender. Prior to calling a lender or loan servicer, homeowners should have the following information available:
. Loan number
. Income information and documentation
. Most recent mortgage statement
. Bank statements
. Letter demonstrating financial hardship
REALTORS® who wish to assist their clients in seeking loan modifications should ensure they are in compliance with California law. For further information, please visit the California DRE Web site at http://www.dre.ca.gov/mlb_adv_fees.html . REALTORS® also may direct clients to work with a U.S. Dept. of Housing and Urban Development (HUD)-approved counselor. For a list of HUD-approved counselors in California, visit the HUD Web site at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=CA .
Terms and Conditions of Use
Privacy Policy
Permission to Reprint Content
Site Map
Copyright © 2009 CALIFORNIA ASSOCIATION OF REALTORS®
find the article at:
"http://www.car.org/legal/mortgage-workout-programs/"
On Wednesday, February 18, 2009, President Obama announced his new Homeowner Affordability and Stability Plan to help troubled homeowners avoid foreclosure. This plan will offer assistance up to 9 million homeowners and applies only to primary residences. The first component of the plan allows homeowners who are current to refinance an existing Fannie Mae or Freddie Mac conforming loan with a loan-to-value ratio up to 105 percent. The second component addresses homeowners who are at risk of foreclosure on their mortgages, but they do not have to be delinquent. The government will work with the lenders to ensure that monthly mortgages do not exceed 31 percent debt-to-income ratio. Furthermore, the government will seek to create clear and consistent guidelines for loan modifications.
The details of the Homeowner Affordability and Stability Plan will be released on Wednesday, March 4. We will continue to update the information on loan modifications once those details are known.
For more information about the Homeowner Affordability and Stability Plan, click here .
The following information is intended for REALTORS® and homeowners seeking information on existing mortgage workout programs. In general, the loan modification programs on the chart (see link below) and consumer information sheets (see links below) are intended for primary residences only.
For a lender comparison chart on existing mortgage workout programs, click here (revised 2/09). The chart is a compilation of programs offered by the larger lenders and government entities. If a specific lender or loan servicer is not on the chart, homeowners may wish to contact the lender or loan servicer to determine if a workout program is available.
For consumer information sheets containing detailed information on specific programs that REALTORS® can share with their clients, please click on the appropriate link below.
. HOPE For Homeowners (H4H) (revised 2/09)
. Countrywide Financial (Bank of America)
. Citigroup, CitiMortgage
. JP Morgan Chase & Co.
. IndyMac Federal Bank, FDIC (revised 2/09)
. Federal Government Loan Modification (revised 2/09) (Participants include: Fannie Mae, Freddie Mac, Federal Home Loan Banks, Hope Now participants, Department of the Treasury, Federal Housing Administration and the Federal Housing Finance Agency, and Wells Fargo.)
Mortgage loan modifications typically are handled on a case-by-case basis. Homeowners having difficulty meeting their mortgage obligation or interested in finding out more about a loan modification program should start by contacting their lender. Prior to calling a lender or loan servicer, homeowners should have the following information available:
. Loan number
. Income information and documentation
. Most recent mortgage statement
. Bank statements
. Letter demonstrating financial hardship
REALTORS® who wish to assist their clients in seeking loan modifications should ensure they are in compliance with California law. For further information, please visit the California DRE Web site at http://www.dre.ca.gov/mlb_adv_fees.html . REALTORS® also may direct clients to work with a U.S. Dept. of Housing and Urban Development (HUD)-approved counselor. For a list of HUD-approved counselors in California, visit the HUD Web site at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=CA .
Terms and Conditions of Use
Privacy Policy
Permission to Reprint Content
Site Map
Copyright © 2009 CALIFORNIA ASSOCIATION OF REALTORS®
Tuesday, February 10, 2009
Phantom Tax
Hi Everyone,
First my apologies for not updating in a few days. Another whirl wind of activity...
Dust settled I wanted to address a recent topic that my sellers are approaching me with...
In common terms it is known as the "Phantom Tax."
I am not a tax accountant so I thought it best to link you all back to article that aided in my research in the further understanding of short sales:
http://www.realtor.org/press_room/news_releases/2007/10/passage_mortgage_cancellation_tax_relief
I have copied and pasted the article below:
Realtors® Applaud House Passage of Mortgage Cancellation Tax Relief
WASHINGTON, October 04, 2007
The National Association of Realtors® praised the U.S. House of Representatives for today’s passage of the Mortgage Cancellation Tax Relief Act, H.R. 3648, by a vote of 386 to 27. Since the early 1990s, NAR has advocated for repeal of the current law, which forces individuals to pay an income tax when they have had a loan forgiven or have had to foreclose because of their inability to pay their mortgage.
“Congress made a good decision today that will affect many Americans who find themselves in a truly bad situation,” said NAR President Pat V. Combs, of Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt. “Changing the IRS code is an issue of fundamental fairness. It would relieve a tax burden at a time when an individual or family has experienced a true economic loss arising from the sale or loss of their home. These families are already in financial distress and are most likely unable to pay additional taxes.”
NAR has expressed its commitment to continue efforts to make the horror of losing a home less burdensome for families. “This is not only about the subprime turmoil we are currently experiencing. This is also about families who have lost their home or a need to sell that home for less than the amount owed on their home mortgage because of job loss, divorce, health issues, a decrease in the value of the home or other unfortunate circumstances. Clearly it is unfair to tax people on phantom income when they most likely have no cash with which to pay the tax,” said Combs.
The current tax code requires a lender who forgives debt to provide a Form 1099 to the IRS stating the amount the borrower has been forgiven. This disclosure applies whether it is a short sale, foreclosure, deed in lieu of foreclosure or any similar arrangement that relieves the borrower of the obligation to pay some portion of their debt. If the property is sold at foreclosure or is sold for less than was borrowed, that difference is considered income and is subject to the tax.
H.R. 3648 would ensure that any amount forgiven on mortgage debt secured by a principal residence will not be taxed. The legislation has a provision to safeguard against abuses. That provision is similar to one that already exists for commercial real estate owners and would treat commercial and residential property equally.
“Realtors® are about building communities, not just selling homes. We must work together to prevent the dream of homeownership from becoming a nightmare” said Combs. “This is just one step that will help families get on with their lives and begin rebuilding their economic security.”
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
First my apologies for not updating in a few days. Another whirl wind of activity...
Dust settled I wanted to address a recent topic that my sellers are approaching me with...
In common terms it is known as the "Phantom Tax."
I am not a tax accountant so I thought it best to link you all back to article that aided in my research in the further understanding of short sales:
http://www.realtor.org/press_room/news_releases/2007/10/passage_mortgage_cancellation_tax_relief
I have copied and pasted the article below:
Realtors® Applaud House Passage of Mortgage Cancellation Tax Relief
WASHINGTON, October 04, 2007
The National Association of Realtors® praised the U.S. House of Representatives for today’s passage of the Mortgage Cancellation Tax Relief Act, H.R. 3648, by a vote of 386 to 27. Since the early 1990s, NAR has advocated for repeal of the current law, which forces individuals to pay an income tax when they have had a loan forgiven or have had to foreclose because of their inability to pay their mortgage.
“Congress made a good decision today that will affect many Americans who find themselves in a truly bad situation,” said NAR President Pat V. Combs, of Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt. “Changing the IRS code is an issue of fundamental fairness. It would relieve a tax burden at a time when an individual or family has experienced a true economic loss arising from the sale or loss of their home. These families are already in financial distress and are most likely unable to pay additional taxes.”
NAR has expressed its commitment to continue efforts to make the horror of losing a home less burdensome for families. “This is not only about the subprime turmoil we are currently experiencing. This is also about families who have lost their home or a need to sell that home for less than the amount owed on their home mortgage because of job loss, divorce, health issues, a decrease in the value of the home or other unfortunate circumstances. Clearly it is unfair to tax people on phantom income when they most likely have no cash with which to pay the tax,” said Combs.
The current tax code requires a lender who forgives debt to provide a Form 1099 to the IRS stating the amount the borrower has been forgiven. This disclosure applies whether it is a short sale, foreclosure, deed in lieu of foreclosure or any similar arrangement that relieves the borrower of the obligation to pay some portion of their debt. If the property is sold at foreclosure or is sold for less than was borrowed, that difference is considered income and is subject to the tax.
H.R. 3648 would ensure that any amount forgiven on mortgage debt secured by a principal residence will not be taxed. The legislation has a provision to safeguard against abuses. That provision is similar to one that already exists for commercial real estate owners and would treat commercial and residential property equally.
“Realtors® are about building communities, not just selling homes. We must work together to prevent the dream of homeownership from becoming a nightmare” said Combs. “This is just one step that will help families get on with their lives and begin rebuilding their economic security.”
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
Wednesday, February 4, 2009
Wednesday - February 4 - Montecito
Hi Everyone!
Listed at $5,750,000 they came down from their original listing price of $6,750,000. The first thing that really stood out was the great use of wood and stone throughout. I like the warmer feel that darker wood provides it allows this house to be contemporary but not cold. I enjoy the layout as it seems really open and allows for natural light to come through and highlight the house from the inside out. Not the best house for really young children but great once they can run around. The backyard is one of the best features of this house...
Another beautiful day in Santa Barbara! The IPhone reports that it's a sunny 66 degrees although the car claimed 72 degrees! After much thought, several discussions with Buyers and further research I have decided to dedicate myself to offering you what most of my clients want from me... my opinion on properties.
The Real Estate industry is changing. Twitter, Trulia, Zillow (the list goes on) all of these online features providing instant information to prospective buyers with one click. Long gone are the days of people waiting to hear back from their Realtor for "what is new on the market." (BTW: You can visit http://www.jennifercrader.com/ to access the Santa Barbara MLS for Free with no annoying sign up stuff!)
The bottom line is now what does the seasoned agent who has seen several hundred, perhaps even thousands of homes think of this particular property. "Do I think this is a good buy?" is what most of my clients are asking and that is the last piece of information they are searching for and entrusting me to provide them with... the final opinion from the expert. The person they are trusting to guide them through the rough part of what in California we call "escrow" and the details that mend together to ensure the transfer of title, the loan and purchase and the little pieces of random information that only experience can give you. The Internet has indeed strengthen the need for the human touch and guidance of the Realtor.
Santa Barbara Real Estate is liking buying a piece of art, along with the purchase the property gives you a lifestyle of living in a beautiful and peaceful place that so many call paradise. Like any piece of art it holds it value with the progress of time...
I am not sure when we will see a bottom to this market, all I do know is that interest rates are low and prices are coming down and seldom are there times when it is a SOLID BUYER'S MARKET in Santa Barbara.
So here are my opinions of what I saw today: *
I finally revisited this property on Park Lane and it seemed to provide the total Montecito Package:
Ocean & island views. Nice sized house. Great, private lot. Park Lane fabulous location! Seems very well priced at $4,995,000. For my personal taste, I would like to see the interior of the home have a different decor, but it's a pretty nice pallet to work with and you could easily convert it to whatever your taste is.
A Beauty on East Valley...
Listed at $5,750,000 they came down from their original listing price of $6,750,000. The first thing that really stood out was the great use of wood and stone throughout. I like the warmer feel that darker wood provides it allows this house to be contemporary but not cold. I enjoy the layout as it seems really open and allows for natural light to come through and highlight the house from the inside out. Not the best house for really young children but great once they can run around. The backyard is one of the best features of this house...There are no ocean views, BUT the scenery is incredible. I really liked the rock table and the location of the spa! (See below.)
All the old world oaks and the winding paths create a great Montecito old world feel. Even though it's on East Valley I did not note any road noise. The house and second structure is tucked back into the property and it seems incredibly private. Also, the downstairs to the main house is where it's at: they set up a gym, have a home theatre room set up and this huge living area space!
I took a trip down to Solimar Beach today...
There were two new listings that I wanted to check out:
The first Solimar property is located in a great place within this gated beach community. 
It has plenty of room for guest parking (a key element in that area) and nice sized deck and back yard area. The house is very charming - the decor is great! Fun, Hampton Beach style using the white and blue interior colors. It has some nice interior square footage and two gas operated fireplaces. I love that when you walk in the house seems HUGE - just never ending and then you see the ocean gleaming from the glass sliders. (Essentially there are two living rooms.) The only quirk for me is that the ceiling is a little lower in the second living room, but that is me being overly picky. 
Check out the kitchen! it opens up the right way into a living area and into formal dining area. I would also like to note that a good amount of the square footage is where you need it - in the living spaces of the house. And they designed the home to enjoy the ocean views from two of the three bedrooms, both living areas and dining area. I also like that this has an easily accessible laundry area. (Hey it's the little things!)
Listed at $5,195,000.
The other Solimar is great too. My favorite part is the decor. 
Exactly what I love a splash of contemporary with quintessential "Beachy" feel. It looks like it should be a in catalogue. A little less square footage but the living area is open and bright with soaring ceilings so you don't miss it too much.
I like the finishes just a little bit more on this house, but don't forget location in my opinion is always imporatant so don't forget to weigh that if you are in the unique position to be going back and forth between the two properties.
Listed at $5,500,000.
I am officially off to go grab a Pink Berry (http://www.pinkberry.com/). As always feel free to email me at jencrader@aol.com or call the mobile at 805.451.5484.
As always you can access the MLS for free at www.jennifercrader.com
Get ready for rain tomorrow - it's headed our way!
Thursday, January 22, 2009
Update on the Market from the California Association of Realtors
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
Welcome to the Market Matters Advisory, your weekly guide to responding to the market. To access a version specifically formatted for consumers that you can print, share via e-mail, or post on your Web site, please click here.
C.A.R. Mortgage Update
This week’s C.A.R. Mortgage Update contains information about mortgage modifications, foreclosure sales and evictions, and borrowers applying to refinance with multiple lenders.
Mortgage modification fails to slow state, Inland foreclosuresThe number of California households receiving notices of default -- the first step in the foreclosure process -- rose 122 percent between November 2008 and December 2008, following a three-month decline, according to RealtyTrac.Some real estate analysts believe a California law that required mortgage lenders to provide customers with 30 days notice, before filing a default, only postponed the foreclosure, but did not resolve the challenges associated with loan defaults.
To read the full story, please click here:
http://www.pe.com/localnews/inland/stories/PE_News_Local_S_realtytrac15.3f28d92.html
Freddie foreclosures, eviction plans continue during moratoriumFannie Mae and Freddie Mac have agreed to suspend foreclosure sales and evictions through the end of January 2009; however, Freddie Mac, unlike Fannie Mae, is continuing the foreclosure process and filing the necessary paperwork. According to Freddie Mac, even though the process is continuing, the actual sales and evictions have stopped.
To read the full story, please click here:
http://www.bloomberg.com/apps/news?pid=20601206&sid=aNaue9COnrdc&refer=realestate
Multiple applications for mortgages
Anecdotal evidence suggests only 50 percent of borrowers applying to refinance are being approved, down from 60 to 70 percent during previous refinance cycles. Homeowners with FICO scores below 700 or with little equity in their homes likely will not qualify to refinance. To increase the likelihood of receiving approval, some borrowers are applying with multiple lenders.
Lenders can lose money on a loan locked in with investors if the borrower decides to go with a different lender. To discourage borrowers from applying with multiple lenders, some lenders are charging up-front deposits.
To read the full story, please click here:
http://www.washingtonpost.com/wp-dyn/content/article/2009/01/15/AR2009011504100.html?hpid=sec-business
****************************************************************************************************C.A.R. EXCLUSIVE OFFER: Attend the Sell-a-bration® Conference Feb. 5-7 at the San Francisco Hilton and receive $50 off yourregistration fee. Fill out the C.A.R. Registration Form today or visit sellabration.com for more details. Not valid with any other offer.
****************************************************************************************************
Orlando SentinelHere’s where to start when buying a homeSome home buyers, especially first-time home buyers, may be intimidated by the home-buying process and unsure of where to start. Determining how much house they can afford, getting pre-approved for a mortgage loan, and conducting a home search online can overwhelm even more experienced home buyers.
MAKING SENSE OF THE STORY FOR CONSUMERS
· To help educate home buyers about the home-buying process, the CALIFORNIA ASSOCIATION OF REALTORS® in partnership with the Los Angeles Times, is hosting the second annual Southern California Home Buyer’s Fair. The free, two-day event is designed to help consumers navigate today's real estate market with confidence and peace of mind. The second annual Southern California Home Buyers Fair is scheduled for Saturday, April 18 and Sunday, April 19 at the Los Angeles Convention Center in downtown Los Angeles. The event is free to the public, and will feature more than 60 educational how-to seminars presented in both English and Spanish. For more information, please visit www.homebuyersfair.com.
· Both first-time home buyers and experienced home buyers will benefit from working with a REALTOR®. While a REALTOR® can help guide a buyer through the home-buying process, consumers can do some of the prep work on their own, such as talking with relatives and friends who have bought a home recently and learning about home buyers’ programs through government agencies.
To read the full story, please click here:
http://www.orlandosentinel.com/features/consumer/orl-housing1709jan17,0,4142843.story
Washington Post
Clean up your creditWith financial institutions, auto dealers, and credit card companies more cautious about lending than in previous years, consumers are advised to closely monitor their credit history and FICO score to ensure they receive the best interest rates possible.
MAKING SENSE OF THE STORY FOR CONSUMERS
· Consumers considering the purchase of a home should first get their credit and finances in order. Reducing spending, limiting credit card balances to no more than 25 percent of the available balance, and monitoring credit reports are highly recommended by most financial experts. Even borrowers with less than ideal credit scores and credit histories still may qualify for a home loan. Some lenders will be more forgiving if the borrower has started meeting monthly debt obligations in the last six to 12 months. Consumers can view their credit reports from Experian, Equifax, and TransUnion by visiting www.annualcreditreport.com. The free credit reports will provide a borrower’s credit history, but not the credit score. The credit score can be purchased for approximately $10 from the credit reporting bureaus.
· Borrowers who already have received their free annual credit report can purchase a copy from www.myfico.com. The cost is approximately $16 for the score from one credit bureau, or $50 for all three.
· Good credit doesn’t mean simply paying bills on time; it also can mean job stability. Most lenders require borrowers to have worked for the same employer for at least one year, possibly longer before they will approve the home loan application. For self-employed individuals, most lenders will want at least two years of tax returns before approving a conventional loan.
· Many large financial institutions have been forced to write off high levels of credit card debt. As a result, borrowers are being required to have higher FICO scores than previously required. A year ago, a FICO score of 720 was considered excellent. By today’s standards, a credit score of 740 or higher likely will mean the borrower is approved, but not necessarily at the best interest rate possible, according to an executive with LowCards.com.
· Inaccuracies on a credit report can be disputed with each credit reporting agency. Typically, the process takes 30 to 45 days for the bureau to investigate the dispute. Although this process can be time-consuming, it is well worth the time and effort. Incorrect notations, such as an account that has gone to collection or a home in foreclosure, could cost the borrower 100 points or more on their credit score.
· Credit advisors recommend that borrowers pay their accounts in full each month, if possible. If that is not feasible, then borrowers should pay at least the minimum amount owed, and ensure the payments are made on time. Late payments will likely lower a credit score and could automatically result in a higher interest rate.
To read the full story, please click here:http://www.washingtonpost.com/wp-dyn/content/article/2009/01/15/AR2009011501231.html
In Other News
CNN MoneyConsumer confidence in surprise reboundTo read the full story, please click here:
http://money.cnn.com/2009/01/16/news/economy/consumer_sentiment/index.htm?postversion=2009011610
The New York TimesCredit markets showing some signs of revivalTo read the full story, please click here:
http://www.nytimes.com/2009/01/16/business/16norris.html?ref=business
CNN MoneyCiti splitting into two after $8.3 billion lossTo read the full story, please click here:
http://money.cnn.com/2009/01/16/news/companies/citigroup/index.htm?postversion=2009011610
Washington PostSenate votes to release bailout funds to ObamaTo read the full story, please click here:
http://www.washingtonpost.com/wp-dyn/content/article/2009/01/15/AR2009011504253.html
San Francisco ChronicleFTC’s warning to foreclosure fix-it firmsTo read the full story, please click here:http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/01/18/REIA157SL0.DTL
Los Angeles TimesNew-home sales in Southland fall 53% in DecemberTo read the full story, please click here:http://www.latimes.com/business/la-fi-housing20-2009jan20,0,946173.story
Talking Points
Here’s what to tell consumers
· "Curb appeal," -- the first impression a home makes when a visitor arrives – is critical when it comes to selling a home. One area that often is neglected is the driveway, which often is one of the first features a potential home buyer sees when they arrive. If the concrete driveway is oil-stained or has cracks, check with a local home center for cleaners and crack-repair compound. For asphalt driveways, a seal-coat often can make a big difference in appearance and help prolong the asphalt as well.
· In today’s economy, many homeowners are looking for ways to reduce spending. One way to do so is by reviewing the homeowner’s insurance policy and looking for cuts. Raising the deductible from $500 to $1,000, reducing coverage on the “household contents” portion of the policy, and installing home security devices could save as much as 25 percent every month on premiums, according to the Insurance Information Institute.
This message was sent to jencrader@aol.com. Visit your subscription management page to modify your email communication preferences or update your personal profile. To stop receiving messages from the Legislative Liason Program, click to unsubscribe.
Market Matters is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. Executive offices:525 South Virgil Ave., Los Angeles CA 90020phone (213) 739-8200; fax (213) 480-7724 Legislative offices:980 Ninth Street #1430, Sacramento CA 95814phone (916) 492-5200; fax (916) 444-2033 To view C.A.R.'s Privacy Policy click on this link:http://www.car.org/aboutus/privacypolicyTo contact C.A.R., click on this link:http://www.car.org/?view=ContactUs
Welcome to the Market Matters Advisory, your weekly guide to responding to the market. To access a version specifically formatted for consumers that you can print, share via e-mail, or post on your Web site, please click here.
C.A.R. Mortgage Update
This week’s C.A.R. Mortgage Update contains information about mortgage modifications, foreclosure sales and evictions, and borrowers applying to refinance with multiple lenders.
Mortgage modification fails to slow state, Inland foreclosuresThe number of California households receiving notices of default -- the first step in the foreclosure process -- rose 122 percent between November 2008 and December 2008, following a three-month decline, according to RealtyTrac.Some real estate analysts believe a California law that required mortgage lenders to provide customers with 30 days notice, before filing a default, only postponed the foreclosure, but did not resolve the challenges associated with loan defaults.
To read the full story, please click here:
http://www.pe.com/localnews/inland/stories/PE_News_Local_S_realtytrac15.3f28d92.html
Freddie foreclosures, eviction plans continue during moratoriumFannie Mae and Freddie Mac have agreed to suspend foreclosure sales and evictions through the end of January 2009; however, Freddie Mac, unlike Fannie Mae, is continuing the foreclosure process and filing the necessary paperwork. According to Freddie Mac, even though the process is continuing, the actual sales and evictions have stopped.
To read the full story, please click here:
http://www.bloomberg.com/apps/news?pid=20601206&sid=aNaue9COnrdc&refer=realestate
Multiple applications for mortgages
Anecdotal evidence suggests only 50 percent of borrowers applying to refinance are being approved, down from 60 to 70 percent during previous refinance cycles. Homeowners with FICO scores below 700 or with little equity in their homes likely will not qualify to refinance. To increase the likelihood of receiving approval, some borrowers are applying with multiple lenders.
Lenders can lose money on a loan locked in with investors if the borrower decides to go with a different lender. To discourage borrowers from applying with multiple lenders, some lenders are charging up-front deposits.
To read the full story, please click here:
http://www.washingtonpost.com/wp-dyn/content/article/2009/01/15/AR2009011504100.html?hpid=sec-business
****************************************************************************************************C.A.R. EXCLUSIVE OFFER: Attend the Sell-a-bration® Conference Feb. 5-7 at the San Francisco Hilton and receive $50 off yourregistration fee. Fill out the C.A.R. Registration Form today or visit sellabration.com for more details. Not valid with any other offer.
****************************************************************************************************
Orlando SentinelHere’s where to start when buying a homeSome home buyers, especially first-time home buyers, may be intimidated by the home-buying process and unsure of where to start. Determining how much house they can afford, getting pre-approved for a mortgage loan, and conducting a home search online can overwhelm even more experienced home buyers.
MAKING SENSE OF THE STORY FOR CONSUMERS
· To help educate home buyers about the home-buying process, the CALIFORNIA ASSOCIATION OF REALTORS® in partnership with the Los Angeles Times, is hosting the second annual Southern California Home Buyer’s Fair. The free, two-day event is designed to help consumers navigate today's real estate market with confidence and peace of mind. The second annual Southern California Home Buyers Fair is scheduled for Saturday, April 18 and Sunday, April 19 at the Los Angeles Convention Center in downtown Los Angeles. The event is free to the public, and will feature more than 60 educational how-to seminars presented in both English and Spanish. For more information, please visit www.homebuyersfair.com.
· Both first-time home buyers and experienced home buyers will benefit from working with a REALTOR®. While a REALTOR® can help guide a buyer through the home-buying process, consumers can do some of the prep work on their own, such as talking with relatives and friends who have bought a home recently and learning about home buyers’ programs through government agencies.
To read the full story, please click here:
http://www.orlandosentinel.com/features/consumer/orl-housing1709jan17,0,4142843.story
Washington Post
Clean up your creditWith financial institutions, auto dealers, and credit card companies more cautious about lending than in previous years, consumers are advised to closely monitor their credit history and FICO score to ensure they receive the best interest rates possible.
MAKING SENSE OF THE STORY FOR CONSUMERS
· Consumers considering the purchase of a home should first get their credit and finances in order. Reducing spending, limiting credit card balances to no more than 25 percent of the available balance, and monitoring credit reports are highly recommended by most financial experts. Even borrowers with less than ideal credit scores and credit histories still may qualify for a home loan. Some lenders will be more forgiving if the borrower has started meeting monthly debt obligations in the last six to 12 months. Consumers can view their credit reports from Experian, Equifax, and TransUnion by visiting www.annualcreditreport.com. The free credit reports will provide a borrower’s credit history, but not the credit score. The credit score can be purchased for approximately $10 from the credit reporting bureaus.
· Borrowers who already have received their free annual credit report can purchase a copy from www.myfico.com. The cost is approximately $16 for the score from one credit bureau, or $50 for all three.
· Good credit doesn’t mean simply paying bills on time; it also can mean job stability. Most lenders require borrowers to have worked for the same employer for at least one year, possibly longer before they will approve the home loan application. For self-employed individuals, most lenders will want at least two years of tax returns before approving a conventional loan.
· Many large financial institutions have been forced to write off high levels of credit card debt. As a result, borrowers are being required to have higher FICO scores than previously required. A year ago, a FICO score of 720 was considered excellent. By today’s standards, a credit score of 740 or higher likely will mean the borrower is approved, but not necessarily at the best interest rate possible, according to an executive with LowCards.com.
· Inaccuracies on a credit report can be disputed with each credit reporting agency. Typically, the process takes 30 to 45 days for the bureau to investigate the dispute. Although this process can be time-consuming, it is well worth the time and effort. Incorrect notations, such as an account that has gone to collection or a home in foreclosure, could cost the borrower 100 points or more on their credit score.
· Credit advisors recommend that borrowers pay their accounts in full each month, if possible. If that is not feasible, then borrowers should pay at least the minimum amount owed, and ensure the payments are made on time. Late payments will likely lower a credit score and could automatically result in a higher interest rate.
To read the full story, please click here:http://www.washingtonpost.com/wp-dyn/content/article/2009/01/15/AR2009011501231.html
In Other News
CNN MoneyConsumer confidence in surprise reboundTo read the full story, please click here:
http://money.cnn.com/2009/01/16/news/economy/consumer_sentiment/index.htm?postversion=2009011610
The New York TimesCredit markets showing some signs of revivalTo read the full story, please click here:
http://www.nytimes.com/2009/01/16/business/16norris.html?ref=business
CNN MoneyCiti splitting into two after $8.3 billion lossTo read the full story, please click here:
http://money.cnn.com/2009/01/16/news/companies/citigroup/index.htm?postversion=2009011610
Washington PostSenate votes to release bailout funds to ObamaTo read the full story, please click here:
http://www.washingtonpost.com/wp-dyn/content/article/2009/01/15/AR2009011504253.html
San Francisco ChronicleFTC’s warning to foreclosure fix-it firmsTo read the full story, please click here:http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/01/18/REIA157SL0.DTL
Los Angeles TimesNew-home sales in Southland fall 53% in DecemberTo read the full story, please click here:http://www.latimes.com/business/la-fi-housing20-2009jan20,0,946173.story
Talking Points
Here’s what to tell consumers
· "Curb appeal," -- the first impression a home makes when a visitor arrives – is critical when it comes to selling a home. One area that often is neglected is the driveway, which often is one of the first features a potential home buyer sees when they arrive. If the concrete driveway is oil-stained or has cracks, check with a local home center for cleaners and crack-repair compound. For asphalt driveways, a seal-coat often can make a big difference in appearance and help prolong the asphalt as well.
· In today’s economy, many homeowners are looking for ways to reduce spending. One way to do so is by reviewing the homeowner’s insurance policy and looking for cuts. Raising the deductible from $500 to $1,000, reducing coverage on the “household contents” portion of the policy, and installing home security devices could save as much as 25 percent every month on premiums, according to the Insurance Information Institute.
This message was sent to jencrader@aol.com. Visit your subscription management page to modify your email communication preferences or update your personal profile. To stop receiving messages from the Legislative Liason Program, click to unsubscribe.
Market Matters is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide. Executive offices:525 South Virgil Ave., Los Angeles CA 90020phone (213) 739-8200; fax (213) 480-7724 Legislative offices:980 Ninth Street #1430, Sacramento CA 95814phone (916) 492-5200; fax (916) 444-2033 To view C.A.R.'s Privacy Policy click on this link:http://www.car.org/aboutus/privacypolicyTo contact C.A.R., click on this link:http://www.car.org/?view=ContactUs
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