Real Estate Information Archive

The federal tax credit for home buyers was signed into law by President Obama Friday, Nov. 6.  The tax credit, which was set to expire Nov. 30, has been extended through April 30, 2010 with a 60-day extension if a binding contract is in place prior to deadline.  It also was expanded to include existing homeowners who have lived in their primary residences for five consecutive years out of the last eight years.

First-time home buyers still may be eligible for a tax credit of up to $8,000, while existing homeowners may receive a credit of up to $6,500.  The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers, to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000 in both instances.

Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

If you know any woman currently undergoing Chemo, please pass the word to her that there is a cleaning service that provides FREE housecleaning - 1 time per month for 4 months while she is in treatment.  

All she has to do is sign up and have her doctor fax a note confirming the treatment. Cleaning for a Reason will have a participating maid service in her zip code area arrange for the service.   http://www.cleaningforareason.org/

Please pass this information on to bless a woman going through Breast Cancer treatment. This organization serves the entire USA and currently has 547 partners to help these women. It’s our job to pass the word and let them know that there are people out there that care. Be a blessing to someone and pass this information along.

Pending home sales have increased for seven straight months, the longest in the series of the index which began in 2001, according to latest survey. The Pending Home Sales Index rose 6.4 percent to 103.8 from a reading of 97.6 in July, and is 12.4 percent above August 2008 when it was 92.4. The index is at the highest level since March 2007 when it was 104.5. Lawrence Yun, NAR chief economist, said not all contracts are turning into closed sales within an expected time frame. The rise in pending home sales shows buyers are returning to the market and signing contracts, but deals are not necessarily closing because of long delays related to short sales, and issues regarding complex new appraisal rules,” he said. “No doubt many first-time buyers are rushing to beat the deadline for the $8,000 tax credit, which expires at the end of next month.

Over the years Carol and I have enjoyed fine wines and have spent time in the Napa Valley and surrounding areas along with Paso Robles tasting wine.  In recent years we have started spending time at the Temecula Valley wineries.  It’s a short drive from Orange County and great for a day trip or weekend getaway.  We have put together a list of the wineries, restaurants at wineries, lodging and resorts, and informational websites to make easier to plan your trip. Temecula Valley Wineries to get the information or if you prefer enter the complete U.R.L .  below.  

http://www.northorangecountyrealestatesales.com/Buyer-Resources/Buyer-Suggested-Reading/Temecula-Valley-Wineries

Qualifying for a jumbo loan—those with loan amounts higher than the conventional conforming loan limit of $729,750 in high-cost areas—is more difficult than it was a few years ago.

While rates on jumbo mortgage historically have been higher than rates on conforming loans, jumbo loans still are available, but often come with stringent underwriting requirements. Prior to the credit freeze, borrowers of jumbo mortgages could qualify for loans with a 5 percent down payment, credit scores of 620and enough money in the bank to cover two months of payments. Now, borrowers typically must have six months’ reserves, a 700 credit score, and a down payment of at least 20 percent.

I have reprinted this from AARP  to help warn people about the problems with homes exchanging hands without anyone knowing it until its too late. Just like identity theft you need to keep an eye on your properties too.

Forged deeds can give crooks the keys to your castle

 Source: From the AARP Bulletin print edition | July 1, 2009 | By: Sid Kirchheimer

Teresa Bidwell learned that her house had been stolen when contractors she hired to make minor renovations found another crew already there—and much of the Philadelphia row home gutted.

“My guys called me to ask if I had hired other contractors,” says the 45-year-old business owner. “I hadn’t.”

Instead, her property had been sold for just $5,000, and the new “owner” hired the unexpected workmen. “Unknown to me, the deed was transferred to her name, and she had that as proof I had ‘sold’ it,” Bidwell told the AARP Bulletin. Her signature had been forged. “I spent more than one year, $16,000 and a lot of hassles to get back my house.”

House stealing: easier than you might think

House stealing is a fast-growing and easy scam. Once a home is targeted—vacant ones are preferred, but occupied residences are also vulnerable—scammers find out who owns it by searching public records.

“When I went to City Hall, there were maybe 20 people in the deed recorder’s office, using its computers to research properties owned by those who, like me, live outside the city. When I told the clerk, ‘I’m here because my house was stolen,’ they scattered like cockroaches,” Bidwell says. 

 To prove how easy this scam is, William Sherman, a reporter at the Daily News in New York, bought the Empire State Building with doctored documents.

Armed with property records, crooks can then purchase $10 property transfer forms at any office supply store. The signatures of “sellers” are forged, and paperwork is filed with the city or county recorder’s office. In many states, deed recorders and those who oversee property closings are not required to authenticate the identities of buyers or sellers. Some crooks simply create fake IDs, stealing the real homeowner’s identity.

With a newly issued deed, stolen homes are sometimes sold, as in Bidwell’s case, for a fraction of their worth to cash-paying buyers (who are also scammed). But more often, hijacked homes are used as collateral to get new loans.

Lenders are more likely to issue new loans to homeowners with no existing mortgage. “The elderly are most often targeted because they usually don’t have a mortgage,” says Molly Butters of the Indiana Attorney General’s Office.

To prove how easy this scam is, William Sherman, a Pulitzer Prize-winning reporter at the Daily News in New York, bought the Empire State Building with doctored documents. “After downloading the correct existing deed, I transferred it from its rightful owners to my own phony company, Nelots (“stolen” spelled backward) Properties LLC, using paperwork I bought at Staples,” he told the Bulletin. “It took about 90 minutes, and the next day the property was mine, according to the New York Register’s office.” Sherman promptly “returned” the landmark skyscraper.

How do you protect your own home?

• From time to time, check all property records with your local deed recorder or register’s office to ensure all documents and signatures are legitimate.
• If you receive a payment book or other information about a loan that isn’t yours, “whether your name is on the envelope or not, don’t just throw it away,” advises the FBI website. “Open it, and follow up with the company that sent it.”
• Some deed-recording offices use software that alerts homeowners whenever a transfer is made on their property. If yours doesn’t, ask why not.
• If you discover your home has been stolen, immediately report it to your district attorney or state attorney general’s office.

December 1,  the Federal Tade Commission has required all prerecorded telemarketing calls to include a "quick and easy" opt-out system to stop future call by the company. Typically for calls you answer, that means saying a certain word or press a number. Message left on your voice mail must have a toll-free number that connects to an automated opt-out system. Any prerecorded sales or fundraising calls that do not meet these criteria are subject to fines. File complaints at www.ftcomplaintassistant.gov or call 1-877-382-4357 toll-free.

Electric Dryer Vs Gas Dryer.

Consider switching to a natural gas clothes dryer, which is typically less expensive to operate than electric dryers, often by as much as 50 percent.

This is a reprint from our California Association of Realtors Newsline. The public needs to see this one. Jim

DRE issues fraud warning
The DRE recently issued a fraud warning alerting consumers about loan modification scams and informing consumers of what they can do to protect themselves. The alert is available in both English and Spanish.  Last July, the DRE had fewer than 10 complaints involving loan modification companies; today the department has 750 pending investigations. In addition, since last October, the DRE has filed more than 200 Desist and Refrain Orders. A list of the companies and persons the DRE has filed an action against can be viewed at http://www.dre.ca.gov/cons_drs.asp..

It is worth noting that not all firms who collect advance fees for loan modification services do so illegally, the DRE said.  In general, only licensed real estate brokers and attorneys operating within the scope of their license may collect advance fees. Real estate brokers must have their advance fee agreement reviewed by the DRE prior to its use to ensure it is compliant with real estate law.

C.A.R. also has learned of what appears to be a loan modification assistance program and lead generator, from a company using the legislative bill number 3648, that looks as if it’s a government entity, complete with a misleading seal closely resembling a governmental seal but that is not affiliated with the government. C.A.R. cautions all members to be on the alert for schemes seeking funds from REALTORS® or consumers with no value, or that may be misleading or unlawful.

This article of was worthy of re-posting from Realtor Magazine Online. Important information for buyers! Jim C 

Daily Real Estate News  |  May 29, 2009  | 

FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.

Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.

The loans can't be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.

Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.

There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.

In addition,  some state house finance agencies have developed their own tax credit bridge loan programs (None in California yet), so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today.

The first-time homebuyer tax credit was enacted last year--and improved upon earlier this year--to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven't owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.

Learn more about the credit, including how to apply for it this year even if you've already filed your taxes, at REALTOR.org.

Source: Robert Freedman, REALTOR® Magazine Online