Strategic Defaults On The Rise?
Did you catch the latest 60 Minutes episode? It discusses the increase of "strategic foreclosures" where homeowners are walking away from their homes that are "underwater" (worth less than what they owe on it), even though they can afford to pay.
Currently, there are approximately 11 million homeowners in the country who are "underwater", and this number is expected to DOUBLE this year. Some would argue that it's a wise business decision to stop pouring good money after bad, but it's scary to think what would happen if everyone decided to just walk away. Your thoughts?
Sorry, Your House DIDN’T Go Down in Value
I had an interesting experience the other day. A homeowner came into my office and asked if I could help him fill out a “Decline in Value” Reassessment Application Form in order to request a reduction in property taxes based on a decline in property value. I agreed to help him and began to do the necesssary research on prices for homes sold within the last three months of 2009 in order to come up with a market value opinion for January 1, 2010. The result? It turned out that there was no significant decline since the last time the house was reassessed for 2009-2010 taxes, such that there would only be about $100 in yearly tax savings.
So, the bad news – the decrease in property tax will be minimal. But the GREAT news is that Read more
“Sorry, I Don’t Do Short Sales…”
Recently, one of my newer clients asked me, “Do you work with short sales?” Her reason for asking was that one of the other agents she interviewed told her that he did not work with short sales. I was somewhat surprised that there are still agents out there who will not work with a short sale.
Of course, if you asked me a couple years ago before “short sale” became a common household word, I would have said that I’d stay away from them if I could help it. But as an agent, I have a responsibility to my clients to work in their best interests. Read more
Another Tax Credit for First Time Buyers in California?
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.
Calling All CRAB FEEDS!
Yes, crab season is underway, and I’m starting to hear news of CRAB FEEDS all around the San Francisco Peninsula. What a chance to stuff yourselves with crab while supporting great causes. Here’s a little a plug for one in my hometown of Millbrae:
Hosted by Mills High Grad Night, Mills Sports Boosters, & Millbrae Lions Club
Saturday, February 6th from 6:30-9:30pm at the Millbrae Recreation Center
For more information, visit: http://millsgradnight.com/media/Crab_Feast_Flyer.pdf
Know of any others? Add them to this blog via the Comments section, and if there are enough, I’ll come up with a calendar for those who want to have a CRAB FEED MARATHON over the next couple of months. Bon appétit!
www.JeanJoh.com
Jean Joh- Prudential California Realty- Residential real estate
Happy New Year?
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
Say NO to Extension of the Federal Tax Credit for First Time Home Buyers!!! (???)
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
Music on (Millbrae’s) Broadway!
In the mood for some good music & family fun? Join the City of Millbrae for our Summer Concert Series – Music on Broadway! These concerts are scheduled for every Wednesday evening from 6-8pm throughout the month of July. Come and see another reason why Millbrae is a great place to live. For more information regarding activities in Millbrae, visit the Millbrae Parks & Recreation website: www.ci.millbrae.ca.us/recreation
July 8th
The Hot Rods Band
300 Block of Broadway
July 15th
Orquesta Borinquen
Parking lot on the corner of Hillcrest & Magnolia
July 22nd
The Refugees – Tom Petty Tribute Band
400 Block of Broadway
July 29th
Zoo Station – U2 Tribute Band
700 Block of Broadway
Enjoy your summer!
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