Fremont Real Estate Blog

Based on FTB's clarification on how the new California First Time Home buyer credit works, it looks like you can get both the federal 1st time home buyer credit of $8000 and the California 1st time home buyer credit of maximum $10,000 (over 3 years). The federal credit requires that you get into contract by April 30, 2010 and the California credit requires that you close on or after May 1, 2010 and submit your closing HUD-1 within 2 weeks of closing the purchase.

Maybe you can get both the federal and New Califoria home purchase credit. read the blog at WSJ http://blogs.wsj.com/developments/2010/03/24/californias-tax-credit-will-home-buyers-stampede-for-18000/ full bill on new California Tax Credit http://www.leginfo.ca.gov/pub/09-10/bill/asm/ab_0151-0200/ab_183_bill_20100322_enrolled.html and tomorrow by 5pm FTB is expected to post Q&A on the bill.

Here’s a link to a great site that’ll give you all the information you need to know about the recently passed 1 st time home buyer program. www.Federalhousingtaxcredit.com        -sunil   SUNIL SETHI REAL ESTATE Sunil Sethi / Broker, President, REALTOR, MBA, CPA / SUNIL SETHI  REAL ESTATE 38750 Paseo Padre Pwky Suite B3 / Fremont, CA 94538 Main 510 388 2436 / Fax 510 431 9046       My Bio: http://sunilsethi.com/about_me.htm Personal: http://www.sunilsethi.com      My blog: http://fremontrealestate.blogspot.com/ LinkedIn: http://www.linkedin.com/in/fremontrealtor CA DRE#: 01173766  

I don’t think we need it here in California. I don’t like giving away money. The original version of this credit that required payback ws more sensible. At a minimum make people psay it back on a future sale or refinance. Read more here http://www.dsnews.com/articles/senate-approves-homebuyer-tax-credit-extension-with-unanimous-vote-2009-11-04 -sunil SMA REALTY Sunil Sethi / Broker, President, REALTOR, MBA, CPA / SMA Realty 38350 Fremont Blvd. #202 / Fremont, CA 94536 Office 510 793 8600 / Mobile 510 388 2436 My Bio: http://sunilsethi.com/about_me.htm Personal: http://www.sunilsethi.com My blog: http://fremontrealestate.blogspot.com/ LinkedIn: http://www.linkedin.com/in/fremontrealtor CA DRE#: 01173766

The White House Blog does a great job going over the basics of the plan. http://www.whitehouse.gov/blog/09/02/18/Help-for-homeowners/ Key take aways March 4 – further details will be provided Lenders will be self evaluating their portfolios to see who’s eligible, if you don’t hear from them, than contact them. The program is focused on lowering the interest rates, not writing off loans The loans need to be owned by Freddie or Fannie (you can find out by contacting your lender after March 4) (max loan would be $729,750 than??) Even if your loans exceeds 80% of the value, Fannie and Freddie will refinance (I assume what they mean is that there won’t be an MI fee, or other risk based fee for going beyond 80% in LTV) Maximum Loan-To-Value (LTV) is 105% 2 nd mortgagee lenders have to agree to subordinate (i.e. no consolidation, terms of 2 nd don’t change unless they you negotiate separately with them) Primary residences only (1-4 units okay) Interest rate you get is a 30 yr fixed at ...

I’ve been getting this question a lot, so here’s a great Summary and a detailed FAQ on the first time home buyer tax credit at the National Home Builders Association Site. http://www.federalhousingtaxcredit.com/2009/faq.php Sunil Sethi www.sunilsethi.com

The new version passed includes An $8000 tax credit for homes bought after Jan 1 2009 and before 12/31/09 Also the conforming limit goes back to $729,750, that’ll help a raise prices again. Friday, February 13, 2009 Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® Feb. 13, 2009 Dear C.A.R. Member: Late this evening, the U.S. Senate passed the American Recovery and Reinvestment Act of 2009 by a 60 to 38 vote. Earlier today, the stimulus package passed the U.S. House of Representatives in a 246 to 183 vote. Today’s votes followed several days of negotiations by the House, Senate, and White House, with the final tab for the stimulus bill coming in at $787.2 billion. On the housing front, the good news is that the legislation resets the conforming loan limit cap at $729,750, up from $625,500. Numerous counties in California experienced a marked decrease in their conforming loan and FHA limits on Jan. 1, and the stimulus bill reinstates 2008 loan limits through Dec. 31, 2009. T...

the national association has posted a nice summary of how the $7500 tax credit passed by Housing and Economic Recovery Act (H.R. 3221) on July 30, 2008. At the bottow you'll ind a summary chart and FAQ.

Debt Relief Income Exempt from California State Income Tax: This will be welcome relief for those taxpayers who had relief of debt in 2007 & 2008. If you've already filed your tax return, there are options to file an amended return. Given that the federal provisions were recently extended to 2012, California legislatures are being short sighted, and creating unnecessary anxiety for taxpayers who will be recognizing relief of debt from 2009 to 2012. Details on Senate Bill 1055 summary: The California mortgage forgiveness debt relief law is effective immediately. It is similar to federal law, but with important differences. The California law covers qualified debt forgiven in 2007 and 2008, and it: Limits the amount of qualified principal residence indebtedness to $800,000 for taxpayers who file as married/registered domestic partners ( RDP ) filing jointly, single, head of household, or widow/widower, and to $400,000 for taxpayers who file as married/ RDP filing separately. Lim...

highlights are: AMT Patch. Currently, a taxpayer receives an exemption of $33,750 (individuals) and $45,000 (married filing jointly) under the AMT. Current law also does not allow personal credits against the AMT. At the end of last year, H.R. 3996 increased the exemptions to $44,350 and $66,250, respectively, and allowed the personal credits against the AMT to hold the number of taxpayers subject to the AMT at bay. The provision expired December 31, 2007. The proposal increases the exemption amounts to $46,200 (individuals) and $69,950 (married filing jointly) for 2008. The proposal will also allow the personal credits against the AMT. The estimated cost of this proposal is $61.817 billion over ten years. Qualified Tuition Deduction. The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) created an above-the-line tax deduction for qualified higher education expenses. The maximum deduction was $4,000 for taxpayers with AGI of $65,000 or less ($130,000 for joint returns) or $2...

FIRST-TIME HOMEBUYER TAX CREDIT First-time homebuyers are eligible for a temporary refundable tax credit equal to 10% of the purchase price of a home up to $7,500. The tax credit is phase-out between Adjusted Gross Incomes of $75,000 to $95,000 Single ($150,000 to $170,000 Married Filing Jointly). PROPERTY TAX DEDUCTION FOR NON-ITEMIZERS For 2008 only, if you take the standard deduction you can add to that the lower of your actual property taxes paid or $500 Single ($1000 Married Filing Jointly). This will benefit individuals with small or no mortgage. REDUCED HOME SALE EXCLUSION For homes sold after 12/31/08, you will not get full exclusion on the sale of primary residence if you rent it out after moving out. The examples I've seen go like this: You buy a home on 1/1/09, live in it for 2 years, and then rent it for two year, and then sell it. In this example if you had a gain of $400,000 and were married filing jointly, than 50% of the gain can be excluded and 50% would be subject...

This bit of news hasn't been highly publicized but one I find more interesting than the $7,500 interest free loan that has gotten a lot of press. The recently passed housing bill includes a provision to provide homeowners who in 2008 wouldn't benefit from itemizing but do have property tax expenses. These folks will be allowed an extra standard deduction. The maximum amount that may be claimed under this provision is $500 ($1000 for joint filers). I read this in article published by Michelle Singletary of the Washington in my local paper this morning, but here's another article on the topic I found online. http://www.courier-journal.com/apps/pbcs.dll/article?AID=/20080728/NEWS02/807280446 I couldn't find the housing bill online, but some can direct me to it. I'd love to get a copy of it. thanks, Sunil

Friday, August 01, 2008 Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® FEDERAL HOUSING BILL NOW LAW, INCLUDING FIRPTA FIX This week, President Bush signed into law the Housing and Economic Recovery Act of 2008. This sweeping legislation primarily seeks to protect homeowners from foreclosure, stop declining home prices, and stabilize the mortgage industry. Major provisions of the new law affecting the real estate practice are as follows: - SELLER NEED NOT REVEAL SSN TO BUYER UNDER FIRPTA: Effective immediately, sellers are no longer required to provide to their buyers the Seller's Affidavit of Nonforeign Status (C.A.R. Form AS), which includes the sellers' social security numbers, under the Foreign Investment in Real Property Tax Act (FIRPTA). Instead, as another option, no federal withholding is required if the seller furnishes the Seller's Affidavit with his or her social security number to escrow or other qualified substitute as defined, who in turn, fur...

just got this forwarded to me from C.A.R. -------------------------- This morning President Bush signed the "Housing and Economic Recovery Act of 2008." For the past several years, C.A.R. and the NATIONAL ASSOCIATION OF REALTORS® have aggressively lobbied for Congress to pass numerous provisions found in this historic bill. Many of you participated in these efforts by communicating with your Members of Congress. Thank you to all of you who responded to these Calls-for-Action. Your efforts have made a difference. This federal housing bill is a significant move in the right direction for California homeowners. It will aid in stabilizing our economy and help stem foreclosures, while also providing support to first-time homeowners. The legislation will assist an estimated 400,000 homeowners facing foreclosure, many of whom reside in California, by allowing them to refinance their current mortgages with a Federal Housing Administration (FHA)-backed loan. The bill also will perm...

this was just passed to me by Bayeast: I've highlighted in Bold the sections I find interesting. They are not asking that the conforming loan limit stay at a maximum of $729,750, instead they are making the maximum for most of California and other priced areas $625,500. This means any home priced more than $781,875 will require more than 20% so as not to exceed the $625,500 limit. example buy a home for $900,000 in 2008 you could get a conforming jumbo loan for $720,000, but buy the same house in 2009, the 1st mortgage is capped at $625,500 if you want a GSE sponsored loan (read lower interest rate), and the difference of $94,500 will have to come from a second mortgage if you can find one (I say that because they are hard to find). So he'll be affected the most, any home sold for more than $781,875 ($625,500/80%). Write your congressman now, if you disagress with the new limit. ------------------------------------------------------------ National Association of REALTORS® Summa...

In California, when you buy a primary residence , the loans obtained at the time of purchase are referrred to as " Purchase Money Loans " and deemed NON-RECOURSE DEBT. NON-RECOURSE DEBT Non-recourse debt means the bank can not go after any of your other assets if the secured asset isn't sufficent to pay off the debt obligation. That's a very good thing! They can't take you to court over any deficency. A 1st or 2nd loan can both be purchase money non-recourse loans as long as they are for your primary residence. However once you refinance these loans they become recourse loans. Now if you default you may become personally liable for any deficiency. On top of that you could be liable to recognize income on cancellation of debt. Kenneth L. Andrews, attorney at law has written a number of articles that do a great job explaining what the implications to you will be on a short sale or foreclosure.

FORECLOSURE RELIEF BILL BECOMES LAW This week, the State Legislature enacted foreclosure reform law to address the adverse effects of high foreclosure rates in California. The new law requires lenders to contact homeowners to explore options for avoiding foreclosure at least 30 days before filing a notice of default. It also requires owners acquiring property through foreclosure to maintain the exterior of vacant residential properties. The new law also extends from 30 to 60 days the time for residential tenants to move out of properties that have been foreclosed upon, unless other laws apply. These requirements will remain in effect until January 1, 2013. The full text of Senate Bill 1137 (Perata) is available at www.leginfo.ca.gov. Highlights of the new law are as follows: - Contact Between Lender and Borrower: Effective on or about September 8, 2008, a lender, trustee, or authorized agent may not file a notice of default until 30 days after contacting a borrower to assess the borrow...

Bayeast's official position on Prop's 98 & 99 YES on Proposition 98 and NO on Proposition 99: C.A.R. asks REALTORS® to support Proposition 98 and oppose Proposition 99 when they vote on June 3. Proposition 98 would ban the use of eminent domain to take any private property – including homes, business and farms – for another private use. Proposition 99, on the other hand, is designed to maintain the status quo and only offers limited protection from eminent domain. For more information, please review the C.A.R. analysis of both propositions here .