Another Tax Credit for First Time Buyers in California?

March 24, 2010 · Jean Joh · 6 Comments

Yes, the Federal Home Buyer Tax Credit will end on April 30, 2010, but there may be some good news on the horizon for first time buyers in California. Bill AB-183 has been passed by both houses of the California legislature by near unanimous votes, and is expected to be signed by Governor Schwarzenegger very soon. This allows for up to $10,000 in tax credits for first time buyers, and the big difference between this and the previous California tax credit is that you can actually use it for the purchase of an existing home (not only for new homes). According to this bill, $100 million will be set aside for sales of existing homes, while another $100 million will be for sales of new homes. It will take effect from May 1st to the end of this year, but as there is a limited amount of funds, it probably wouldn’t be good to wait until November or December. More details will be forthcoming once the bill is signed and confirmed, but I thought it couldn’t hurt to help those who are stressing out over buying a home before the April 30th deadline. Unfortunately, this is only for first-time buyers, so those who are thinking to “move up” (sell their existing home and purchase a bigger and better one) still need to get moving (no pun intended).

Here’s the link to one article about Bill AB-183: http://www.sacbee.com/2010/03/24/2629239/schwarzenegger-expected-to-sign.html

Jean Joh: Visit my website at www.jeanjoh.com or follow me on twitter as jeanjoh.

Short Sale, A Great Option!

January 23, 2010 · Shokoofeh Nowbakht · 3 Comments

short sale I have talked to many home owners who are late on their mortgage payments, who are struggling to pay even their everyday expenses. Some have not paid their mortgage in over 6 months. Unfortunately, this is happening more often these days. My advice is, of course, try to modify your loan and save your home. Homeowners have to qualify for the modified loan plan. What if they can’t? What if they can’t even make the mortgage payments on the new lower interest rate? So, why not try to short sale the house? Lenders are becoming more understanding of the short sale situations. They are easier to deal with and get an approval on a short sale. Homeowners will have less effect on their credit score if they do a short sale rather than go through bankruptcy or foreclosure. A realtor will be able to assist homeowners with the short sale process.
Good Luck!

Shokoofeh Nowbakht, Realtor
Prudential California Realty
www.shokoo.com

Happy New Year?

December 28, 2009 · Jean Joh · 1 Comment

As we approach the end of 2009, things seem to be looking more promising in terms of the real estate industry. The California Association of Realtors just released a report with the following “Quick Facts”:

* Existing, single-family home sales increased 4.7 percent in November to a seasonally adjusted rate of 536,720 units on an annualized basis.
* The statewide median price of an existing single-family home increased 2.4 percent in November to $304,520 compared with October 2009.
* C.A.R.’s Unsold Inventory Index fell to 4.5 months in November, compared with 7.1 months in November 2008.

According to the C.A.R.’s President Steve Goddard: “First-time buyers continued to drive the market in November, as many opened escrow to take advantage of the federal tax credit prior to its original Nov. 30 expiration. The extension and expansion of the tax credit until April 30, 2010, along with low interest rates, should continue to positively impact the market in coming months. Read more

To Mod or Not to Mod?

November 10, 2009 · Shokoofeh Nowbakht · 5 Comments

To Mod I just found out that a friend of mine tried to modify her loan early this year. She contacted a law firm in Southern California, paid few thousand dollars and nothing has happened yet. She was told to stop making mortgage payments on her first and second loans. after 10 months in default, she has received a NOD or Notice of Default. She is now scared and worried that she’ll loose her house. She is now very confused and doesn’t know if she should continue with the loan modification process. She is also thinking about borrowing some money from family and paying all her unpaid mortgages, late fees as well as her property tax so that she can reinstate her loans and save her house.

Say NO to Extension of the Federal Tax Credit for First Time Home Buyers!!! (???)

October 16, 2009 · Jean Joh · 8 Comments

The deadline for the federal tax credit of up to $8000 for first-time home buyers is fast approaching. In order to take advantage of this credit, escrow must be closed by November 30, 2009. If one were to count backwards from this, allowing for a 45 day close of escrow (not uncommon these days), this means that buyers will need to be in contract, at the very latest, by mid-October which means NOW. Read more

Buyer (Still) Beware

September 16, 2009 · Dean Rizzi · 4 Comments

We warn once again that it will not be a buyer’s market into perpetuity, though others have a different opinion. Some forecasters – Goldman Sachs being the most prominent – project the Federal Reserve will hold the fed funds rate low for “many years” in order to help U.S. consumers and companies pull out of their funk. If that were the case, then it would appear that mortgages rates ranging between 4.5% and 5.5% could be the norm deep into 2011.

Meanwhile, Reuters reports that homebuyers are still negotiating good discounts based on data released in July’s Zillow Real Estate Market Report. Zillow notes that buyers paid 3.3%, or nearly $7,039, less than the last listing price on homes for sale during July. What’s more, 22.8% of all homes listed for sale on Zillow during August were listed for a median 96 days, up from 91 in July.

It sounds like the trend will remain the buyer’s friend through 2011 – until you dig a little deeper. Zillow also noted that the 3.3% discount is down from June’s 3.5% discount and substantially down from January’s 4.6% discount. It is also worth noting, yet again, that the usual hard-hit burgs in Nevada , Florida and California skew the data.
“Even if prices stabilize and rise, we can still finance at cheaper rates,” so the counter argument goes. Yes, that is the case today, but we think Goldman and others are underestimating how quickly an economy can turn and how quickly inflation can conflate. It is a buyers’ market today, so buyers should take advantage of it today. As for tomorrow? We are much less sure.

http://wwww.deanrizzi.com

How HIGH do I go?

September 6, 2009 · Shokoofeh Nowbakht · 6 Comments

how high I was talking to a colleague today. She said she had a disappointing day yesterday. I asked her what had happened. She explained that her client made an offer on a property. Of course there were multiple offers and their offer was already, what my friend believes, over the market value. The seller which is a bank, or perhaps the listing agent counters the top 2 offers for their highest and best offer. My friend doesn’t want her client to buy this property for more than what it’s worth. But, on the other hand she doesn’t want her client to loose another house to multiple offers, either. She said that she would feel guilty no matter what the outcome. “I know the house will not appraise,” she said. My advice was that she explains everything to her clients and let them make a decision.

It seems like the inventory is low and some listing agents take advantage of the situation and list the properties below market value. This becomes very difficult for the buyers. How high should they offer? How can a regular buyer who is using a conventional loan compete with an investor who is buying properties all cash and waiving all inspections and financing contingencies? Read more

What shall it be; Loan Modification? Short Sale? Foreclosure?

June 16, 2009 · Lee Ginsburg · 4 Comments

You are among the millions underwater and over stressed. What shall you do.

Your credit will be most negatively affected with a Foreclosure, then a short sale. As long as you stay current on your loan, loan modification should not affect your credit. Your credit score weather it is right or wrong is used by potential employers before hiring, landlords before renting, insurance companies before granting insurance and etc. Depending on your individual situation maybe credit is not important.

My client’s father nearing retirement age could live in his son’s rental unit and will not be looking for another job said he might pass away before his home in Las Vegas is worth as much as as his loan. He opted for foreclosure. Read more