Homebuyer Tax Credit

$18,000 in combined homebuyer tax credits for a limited time

Californians have a brief window of oppurtunity to receive up to $18,000 in combined federal and state homebuyer tax credits.  To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principle residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive.  Buyers who are not first-time homebuyers may use the same timeframes to receive up to $16,500 in combined tax credits if they are long-time residents of their existing homes as permitted under federal law, and they purchase properties that have never been previously occupied as provided under California law.

Under the federal law slated to soon expire, a first-time homebuyer may receive up to $8,000 in tax credits, and a long-time resident may receive up to $6,500, for certain purchase contracts entered into by April 30, 2010 that close escrow by June 30, 2010.  Additionally, under a newly enacted California law, a homebuyer may receive up to $10,000 in tax credits as a first-time homebuyer or buyer of a property that has never been occupied.  The new California law applies to certain purchases that close escrow on or after May 1, 2010 (see Cal. rev. & Tax Code section 17059.1(a)(4)).  California law generally allows buyers of never-occupied properties to reserve their credits before closing escrow, but buyers seeking to combine the federal and state tax credits will not be able to satisfy the timing requirements for such reservations (see Cal. Rev. & Tax Code section 17059.1(c)(1)(A)).  Other terms and restrictions apply to both tax credits.

For more information, C.A.R. offers a homebuyer tax credit chart with a side-by-side summary of the federal and California laws.  C.A.R. also offers a legal article entitled Homebuyer Tax Credit Update.

C.A.R. provides REALTORS with many other legal articles covering a wide range of topics of interest.  Some of the new or newly revised legal articles available at http://ga.car.org/ are as follows:

- Federal Lead-Based Paint Renovation Rule: Provides new certification requirements and lead-safe work practices effective April 22, 2010 for contractors and property owners performing renovations that disturb lead-based paint in target housing.

- HAFA short sale fact sheet.

Ling, Stella. "$18,000 in COmbined Homebuyer Tax Credits for a Limited Time." Editorial. Realegal. California Association of Realtors. Web. 31 Mar. 2010. http://www.car.org/.

Tags: HAFA, tax credits, homebuyer tax credits, California law, short sales  Add to: | Technorati | Digg | del.icio.us | Yahoo | BlinkList | Spurl | reddit | Furl |

The Basics: Short Sales

Due to current economic conditions, the number of short sale properties on the market is rising.  The increasing number of short sales on the market presents challenges for REALTORS.  Below you'll find more information on: short sales and their challenges, the government's efforts to address these challenges, and tools to help you navigate the short sale process.

Home Affordable Foreclosure Alternatives Program (HAFA)

To help homeowners who are unable to keep their homes under the Home Affordable Modification Program, the HAFA program may make a short sale or a deed-in-lieu of foreclosure a viable option to help them avoid foreclosure.  The HAFA Program, which will take effect on April 5, 2010, provides servicer, seller and junior lien holder incentives for these transactions and is designed to simplify and streamline use of short sales and deeds-in-lieu of foreclosure.

HAFA Forms Updated

The HAFA forms and guidelines (Supplemental Directive 09-09) have been updated as of March 12, 2010.

What is a short sale?

A short sale is a transaction in which the lender, orlenders, agree to accept less than the mortgage amount owed by the current homeowner.  In some cases, the difference is forgiven by the lender, and in others the homeowner must make arrangements with the lender to settle the remainder of the debt.

Why is the number of short sales rising?

Due to the recent economic crisis, including rising unemployment, and drops in home prices in communities across the nation, the number of short sales is increasing.  Since a short sale generally costs the lender less than a foreclosure, it can be a viable way for a lender to minimize its losses.

A short sale can alos be the best option for homeowners who are "upside down" on mortgages because a short sale may not hurt their credit history as much as a foreclosure.  As a result, homeowners may qualify for another mortgage sooner once they get back on their feet financially.

What challenges have short sales presented for REALTORS?

The rapid increase in the number of short sales, and the short sale process itself present a number of challenges for REALTORS.  Major challenges include:

1. Limited experience.
Many REALTORS are new to the short sale process; a difficulty which is compounded by many lenders' lack of sufficient and experienced staff to process short sales.  Even if the REALTORS are experienced, most servicers are under-staffed and still not adequately trained, making negotiating a short sale particularly difficult.

2. Absence of a uniform process and application.
Currently, both short-sale documents and processes are lender-specific, making it difficult and time-consuming for REALTORS to become knowledgeable and efficient in facilitating these transactions.

3. Multiple lenders.
When more than one lender is involved, the negotiations are much more difficult.  Second lien holders often hold up the transaction to exert the largest possible payment, in exchange for releasing their lien, even though in foreclosure they will get nothing.

As a result of these challenges our members have reported difficulties with: unresponsive lenders; lost documents that require multiple submissions, inaccurate or unrealistic home value assessments, and long processing delays, which cause buyers to walk away.

What is being done to address or eliminate these challenges?

On May 14, 2009, the Obama Administration announced its upcoming Foreclosure Alternatives Program.  Among other things, the new program:

- Establishes financial incentives for servicers, sellers and second lien holders to encourage the completion of short-sale transactions.

- Requires that a timeline, of no fewer than 90 days, be set to allow a homeowner to sell a home, without threat of foreclosure action.

- Requires the short sale agreement to specify reasonable and customary real estate commissions and costs to be deducted from the sales prices. (The servicer must agree not to negotiate a lower commission after recieving an offer.)

- Will provide standardized documents, including short sale agreements and offer acceptance letters.

National Association of Realtors. Realtors. The Basics: Short Sales. Realtor.org. National Association of Realtors. Web. 29 Mar. 2010. http://www.realtor.org/realtors/basics_short_sales.

Tags: realtors, hafa, home affordable foreclosure alternative, hafa forms, short sale, lenders, short sale challenges
Add to: | Technorati | Digg | del.icio.us | Yahoo | BlinkList | Spurl | reddit | Furl |

Govenor Schwarzenegger Signs $10,000 Homebuyer Tax Credit Legislation

Govenor Arnold Schwarzenegger today returned to the La Ventana Homes project in Fresno where he kicked off his campaign to extend and expand the hugely successful homebuyer tax credit to sign legislation that will do just that.  AB 183, authored by Assemblymember Anna Caballero (D-Salinas) and Senator Roy Ashburn (R-Bakersfield), will provide a tax credit of up to $10,000 to Californians who are buying their first home or purchasing a brand new home.  This legislation, part of the Govenor's larger California Jobs Initiative, will play a key role in getting our economy moving again by encouraging home ownership and stimulating job creation.

"I have been up and down the state pushing this important housing bill that will get people off the fence and into homes while creating jobs and stimulating our economy- and today I am proud to take action and put it into law," said Govenor Schwarzenegger.  "Creating jobs is my number one priority and I am glad that I have been able to sign two job-creating bills in two days.  I applaud the legislature for their great work and encourage them to keep it up and pass the remaining job-creating elements of my California Jobs Initiative."

AB 183 was passed by the legislature on March 22 and gives the Franchise Tax Board authority to extend a total of $200 million in tax credits to California homebuyers; $100 million for buyers of new, unoccupied homes and another $100 million for first-time buyers of existing homes.  The credit will be extended from May 1, 2010 to December 31, 2010.  The tax credit will be available to buyers on a first-come, first-served basis and is applied in equal amounts over a period of three years.  To qualify, the buyer must not be a dependant and must purchase a home that does not belong to a relative.

Govenor Schwarzenegger fought hard to extend and expand the homebuyer tax credit after its successful run in 2009.  That $100 million tax credit, which was apporved in February 2009, ran out after just four months with 10,659 Californians claiming the credit- increasing home purchases, jumpstarting building projects and boosting local economies.  In fact, La Ventana Homes saw a 300 percent increase in sales when the tax credit went into effect.

The homebuyer tax credit is a part of the larger California Jobs Initiative that the Govenor proposed in his State of the State address in January to create jobs and stimulate the economy.  Today's bill is the second piece of it to be approved by the legislature.  A sales tax exemption on green-tech manufacturing equipment was also approved to encourage green businesses to relocate and invest in California.  The Govenor signed yesterday.

State of California. Office of the Govenor. Govenor Schwarsenegger Signs $10,000 Homebuyers Tax Credit Legislation. Office of the Govenor. 25 Mar. 2010. Web. 29 Mar. 2010. http://gov.ca.gov/press-release/14712/.

Tags: govenor arnold schwarzenegger, la ventana homes, fresno, ab 183, anna caballero, senator roy ashburn, california jobs initiative, franchise tax board, green-tech manufacturing equipment
Add to: | Technorati | Digg | del.icio.us | Yahoo | BlinkList | Spurl | reddit | Furl |

Short Sales Huge in San Joaquin county

Short sales accounted for 40 percent of all San Joaquin County home sales in February, an indication that the once bemoaned practice has become a predominate method of sale for troubled homeowners.

Countywide in February, 515 homes moved into escrow via short sales- when a person sells his home for less than he owes on his mortgage- a 31 percent jump over January short sales and a mighty 278 percent leap over the number of short sales made in February 2009, according to this month's Trendgraphix sales report, based on Multiple Listing Services data.

With thousands of San Joaquin County homeowners underwater on their mortgages- owing more than the home is now worth- government and banks have become more accepting of short-sale transactions.  With banks loosening up on short-sale approvals, transactions are much easier for real estate agents and brokers.

"Short sales are really big right now.  We are seeing short sales approved in a shorter time,"  Grupe Real Estate broker Stephanie Rodriguez said.  "I've had some approved in two or three months.  If you can get a short sale approved in 60 days, that is very fast."

Rodriguez said a yearlong wait is not uncommon for short sales, but the government continues to provide support for them to help troubled homeowners who were caught in the middle of the nation's foreclosure crisis.

The state Legislature is considering a bill that would provide financial relief to homeowners after a short sale is made by clearing them of tax obligations on the difference between their mortgage value and the short sale price.

Currently, a homeowner who uses a short sale would have to include that difference as income.  For example, if a home with $300,000 remaining on the loan is sold for $250,000, the seller would be taxed on the $50,000 difference.

"It's nice to see short sales being encouraged, because it's always a case where people just feel defeated to think they are going to spend years making payments on their house that isn't worth it,"  Rodriguez said.  "It was a bad investment, and they just want to get out from under it."

The overall median sales price for San Joaquin County homes declined more than 5 percent, from $169,000 in January to $160,000 in February, Trendgraphix said.

Real estate agents say they are still seeig multiple offers on entry-level homes priced at $150,000 or lower.  It's much slower for the move-up market at the $300,000 level, they say.

Sales could inicrease if banks begin to release foreclosed properties on the market.  The Wall Street Journal reported that banks were holding on to 645,800 foreclosed homes in January, a 4.6 percent increase from a month earlier.  The industry calls this "shadow inventory".

"We are all still waiting on the banks to release their shadow inventory.  The homes are there; they are just still releasing them in fits and spurts,"  Stockton PMZ Real Estate manager Ben Balsbaugh said.

Reid, Keith. "Short Sales Huge in San Joaquin County." The Record [Stockton] 20 Mar. 2010. Recordnet.com. San Joaquin Media Group, 20 Mar. 2010. Web. 25 Mar. 2010. http://www.recordnet.com/apps/pbcs.dll/article?AID=/20100320/A_BIZ/3200307/-1/A_BIZ03.

Tags: short sale, san joaquin county, real estate, wall street journal, the record, homes underwater, multiple listing services, trendgraphix
Add to: | Technorati | Digg | del.icio.us | Yahoo | BlinkList | Spurl | reddit | Furl |

FOR SALE!- 4460 Mist Trail Dr.

FOR SALE!

4460 Mist Trail Dr., Stockton Ca

For more information and pictures CLICK HERE.

Bedrooms: 5

Bathrooms: 3

Square Feet: 2,602

Lot Size: 5,663

Style: Contemporary

Description:

Nice 2 story home with 5 bedrooms and 3 baths. 3 car garage. Extra bedroom conveniently located downstairs. Perfect for a large family.

Tracy PD Sergeant Writes Novel

Sgt. Danny Dunne, a long time Tracyite and a 1966 graduate of Tracy High School, has published a novel about the inner workings of our very own Tracy Police Department.

He first joined the police department in 1960 as a clerk and his career soon blossomed into becoming a patrolman in 1970 and then later into sergeant in 1976. He later became a detective in 1980 and continued that until 1984 when he decided to start attending the University of the Pacific in Stockton. There he studied English and finally graduated with a master’s degree, which has greatly helped him in writing his very first novel entitled “The Blue Mexican”.

He retired from the Tracy Police Department in 1997 and he now teaches English at St. Mary’s High School in Stockton and UOP. He also teaches Greek mythology and film as literature at Delta College’s Mountain House campus. As reported by the Tracy Press, Dunne says, “I tried to keep the interest of the students by relating stories of my work in the police department, and they enjoyed them. I decided to use some of the stories, and also what I had learned in English classes, to write the novel- some fiction and some fact.”

There will be a book signing at Tracy’s local bookstore, Barnes & Noble, on Saturday, March 20, at 1 o’clock in the afternoon. You are all welcome to join Sgt. Dunne and talk about his experience with the police department. See you there!

Matthews, Sam. "In First Novel, Retired Sergeant Offers Look into Old Tracy PD." Tracy Press [Tracy] 17 Mar. 2010. Print.



Tags:tracy, Tracy Police Department, St. Mary’s High School, book review, The Blue Mexican, Danny Thomas Ruiz, Mountain House, tracy press,
Add to: | Technorati | Digg | del.icio.us | Yahoo | BlinkList | Spurl | reddit | Furl |

What Our Clients Are Saying...

We received this from a client over the weekend and we wanted to share with you her kind words about our team.

-Bill

Hi Pat,

Both my husband and I are estatic with our latest acquisition. We both are grateful to you and your company for providing the most reliable and expedient service we have experienced in acquiring a property. Initally we thought that it would be extremely difficult to purchase a property in the USA and almost four (4) weeks ago we were ready to give up our hopes.

Your company's engagement, advise and your individual input has been marvellous. I know you have gone out of your way to make our hope come to reality. For this we greatly appreciate your kind efforts and services.

I will most definitely put the word around, in case there are more Australians, like ourselves, intending to invest in Tracy California USA. Be assured that you and your company will be my choice of Real Estate Agents for my next property purchase in the USA (watch the space, it could be as early as next year!!)

It has been a great pleasure working with you and your company.

Thanks & Warm Regards
Bina Kumar

Friends and Fellow Animal Lovers...

Jeannie Duckworth (owner of Decadent Pets and founder of Lucky Paws Foundation) has been giving away cat food for many months now so that pet owners who are unable to afford food for their four legged friends can continue taking care of them. Jeannie's work has greatly reduced the number of animals turned out onto the streets to fend for themselves or ending up in our already overcrowded shelter.



Please consider dropping off a bag of cat or dog food at Decadent Pets (corner of East Ave. and Grantline Rd.) to help feed some of the needy animals in our Tracy community.

Thank you Jeannie for doing so much in our community to save these precious animals and to all that have donated to the cause each week.

By:
Bill Barringer

It's a Winner!

Below is a common story happening in our office…

Yesterday a lady emailed about a home and said she heard my podcast about "Writing an Offer That Wins". She went on about how she's written 20 offers with another Realtor and has never bought a home before. She said it hit her when she heard my podcast. She realized her agent was not aggressive enough, didn't have a strategy or any connections in the real estate industry.

We made a few phone calls to help her out. We spoke with the representative of the agent representing the investor. Upon speaking with him, she purchased a home within 48 hours by simply following our instructions and using our "Buyer Advantage System".

We would be happy to meet with you and explain our simple strategy for free with no obligations. In our meeting, we will discuss the real estate market in all areas such as, Tracy, Manteca, Lathrop and Stockton.
Here is Elysia’s; you can e-mail her to talk about her experience with the Barringer Team. She wants to tell everyone because she is sooooo happy and that is what makes us happy.

I was so excited about buying my first home. But as I was going through the motions of finding a home, I found it wasn’t easy at all.

I met with several Realtors, looked at so many homes for sale and submitted 20+ offers!! So many offers I honestly lost count!! I thought buying a home was going to be fun and exciting, but the experience I was having took all the excitement out of it. I was so frustrated and discouraged that I almost gave up! Until I read and heard Bill Barringer’s article about “writing a winning offer”. I was so impressed with what he had to say that I immediately emailed him asking for his help. Bill introduced me to Nicole, his buyer’s agent, who was absolutely wonderful! We looked at ONE house, made ONE offer and my ONE offer was accepted the next day!! I was speechless when Nicole told me my offer had won! Working with the Barringer Team was the best decision I made. They are awesome and I would tell everyone, “Call them FIRST!” They are not lying when they say “It really is all about working with a Realtor who knows the business!”

Check it out for yourself at: http://www.tracyrealestateexpert.com/Blog/Writing-An-Offer-That-Wins.

Or click here to hear my podcast: http://www.talkrealty.com/billbarringer/audio/player.aspx

Feel Free to e-mail me, I would be happy to tell this story to anyone.

A happy new home owner!
Elysia Keel
Elysia.keel@bankofthewest.com

Writing An Offer That Wins

In Tracy's current market it is completely run by bank owned homes. When a buyer wants to purchase a home there are numerous factors to consider. Here is a list of factors based on priority.

The Agent You Choose To Represent You Is Almost Everything. I know you are thinking, "Why is that so important?!" The answer is simple, you need an agent with many years of experience and one that is well known in the community of other agents. Most of all the business done by 20% of the agents in Tracy do 80% of the business. What this means for you, the buyer, is when you are represented by the Barringer Team; the other agent knows they are going to get to the closing table because they most likely have worked with us before.

Fewest Contingencies Win. We do all of our homework up front. The lender you choose also really plays a BIG role. We want to come in with the strongest offer possible. This means quick close, quick inspection time frames and high dollar deposits.

Lender. We primarily use Alex Alvarez with Wells Fargo. The advantages are great! First, we have been partners for over 15 years. This means he is accountable to us and you will get a good deal as well as good service. If the home is a bank owned home by Wells Fargo, then it will be looked at more favorably than other offers not using Wells Fargo as their financing. That's because you are using Wells as YOUR financing.

Being Fast. How fast and professional an offer and pre-approval letter is submitted means everything! The Barringer Team uses a system called Doc-U-Sign. The contract is signed and dated over the Internet and it is recognized by most banks as a legal contract even though it has no "wet signatures" on it.

Being First To Know. In the Tracy area many times we are made aware of listings before they hit the open market. Our sources are the banks themselves, bank listing agents and investors. All of whom we have working relationships with.