It's that time of year that we all look forward too, taxes !! Do you think you maybe paying to much for you property taxes considering values of properties have come down? If you purchased a home in the last couple of years, your value of your property has most likely gone into the toilet. There is a very good web-site from a company called EasyTaxFix. The address is (www.easytaxfix.com) and it will give you some valuable information on possible savings. Check it out.
Also, according to the California association of Realtors there is a program that will let you postpone payment of part or all of the property taxes on your current residence. (www.sco.ca.gov/col/taxinfo/ptp/geninfo/description.shtml)
Friday, January 23, 2009
Wednesday, January 14, 2009
Top 3 Tax Breaks for 09'
When the New Year arrives a new tax season arrives as well. We have done a little research to find out what are the best available tax breaks for the new year.
1.Property Taxes: These are fully deductible. Any local city or state property tax refunds reduces your federal property tax deduction by the same amount. (source: clientdirect)
2. Home-Based Business Deduction: Home offices, if you use a room of your house as an office it can be, if qualifies, can be deducted. According to the Taxpayer Relief Act of 1997, you don't have to allocate a home's sale's capital gains between home and business. Talk to your tax attorney for more information on if you qualify.
3.Capital Gains Exclusion: Home buying investor's best tax shelter comes from provisions in the Taxpayer Relief Act of 1997 which allows married taxpayers who file jointly to keep, tax free, up to $500,000 in profit on a sale of a home used as principal residence for two of the prior five years.
Monday, January 12, 2009
Real Estate Recovery in early '09?
That's what Alan Greenspan thinks. He is convinced that this down market will be back on an upswing in early '09.
He is a smart man but, of course, but he has been wrong before. So what gives? Does he actually take into account some of the areas that have been hurt the worst? Las Vegas, Phoenix, Riverside, just to name a few. All of these locations are in a spiral downward. Depreciation is at an all time high in most markets. Granted there are many who still have plenty of equity in their homes. What about the ones who purchased homes in the last 5 years? I know in Riverside County, Ca. that some home prices have been cut in half. Foreclosures in Riverside County have never been higher, where does it truly end?
I personally think that with the adjustable loans that are still alive and kicking, buyers are still afraid of what could happen if they purchase now. In reality, this is the most affordable time to buy a house in Southern California. Even if the prices inch down a little further, buy now while inventories are high and you have a lot to choose from. Interest rates are at historic lows and may not last there for long. No one knows for sure where this will all end but wouldn't you like to own a home of your own before the prices skyrocket again? If we could all time this perfectly, we would not be in this situation. It's all about timing. Do what is right for you and your family!
He is a smart man but, of course, but he has been wrong before. So what gives? Does he actually take into account some of the areas that have been hurt the worst? Las Vegas, Phoenix, Riverside, just to name a few. All of these locations are in a spiral downward. Depreciation is at an all time high in most markets. Granted there are many who still have plenty of equity in their homes. What about the ones who purchased homes in the last 5 years? I know in Riverside County, Ca. that some home prices have been cut in half. Foreclosures in Riverside County have never been higher, where does it truly end?
I personally think that with the adjustable loans that are still alive and kicking, buyers are still afraid of what could happen if they purchase now. In reality, this is the most affordable time to buy a house in Southern California. Even if the prices inch down a little further, buy now while inventories are high and you have a lot to choose from. Interest rates are at historic lows and may not last there for long. No one knows for sure where this will all end but wouldn't you like to own a home of your own before the prices skyrocket again? If we could all time this perfectly, we would not be in this situation. It's all about timing. Do what is right for you and your family!
Friday, January 9, 2009
6 Tips to Avoid Foreclosure
I know we have touched on this subject before with Shorts Sales v. Foreclosure. This time we want to give you 10 tips that we feel are vital to save your home.
1. Don't ignore the problem
The further behind you become, the harder it is to keep your loan secure and more likely you will lose your home.
2. Contact your lender
Lenders don't want your house. Most will be willing to work with you in difficult times.
3. Respond to your lender
If you get a notice from your lender, read it !! There could be some helpful hints to help you avoid foreclosure
4. Know your mortgage rights
Find your loan documents and read them and find out what your lender may do if you don't make your payments.
5.Understand foreclosure prevention options
Valuable information about foreclosure prevention can be found at www.hud.gov.
6.Contact HUD-approved housing counselor
HUD offers free or very low cost counseling nationwide. They can help you with your finances and also represent you in negotiations with your lender. Visit their website above.
1. Don't ignore the problem
The further behind you become, the harder it is to keep your loan secure and more likely you will lose your home.
2. Contact your lender
Lenders don't want your house. Most will be willing to work with you in difficult times.
3. Respond to your lender
If you get a notice from your lender, read it !! There could be some helpful hints to help you avoid foreclosure
4. Know your mortgage rights
Find your loan documents and read them and find out what your lender may do if you don't make your payments.
5.Understand foreclosure prevention options
Valuable information about foreclosure prevention can be found at www.hud.gov.
6.Contact HUD-approved housing counselor
HUD offers free or very low cost counseling nationwide. They can help you with your finances and also represent you in negotiations with your lender. Visit their website above.
Thursday, January 8, 2009
Reviewing Your Credit Report
What is in your credit report? What does it all mean? The first one that you look at may be a little confusing but here's what you can expect to find....
-Your personal information will be at the top of the report. Your name, address, social security number, birth date and employer information will start off the report. When reviewing the report, make sure that this and all other items are correct.
-Your accounts are listed next (credit cards, mortgage, car loans, etc) will be listed and show the date you opened each account, your credit limit or loan amount, account balance and payment history.
-Inquires are listed next. Whenever you inquire about getting any type of loan, the inquiries will be listed here. The more inquiries you have, the lower your score could be. Keep inquiries at a minimum.
-Negative items are also listed. This could be a late payment, tax lien, garnishment, judgement, bankruptcy or foreclosure.
Review each line very carefully to make sure that everything listed belongs to you. The items on your report will also include anything that you have co-signed for with someone else. It is imperative that you review your credit report yearly to make sure that everything is correct. If someone else's information ends up on your report by mistake, it can take months to clear up and damage your credit. Many people only look at their credit reports when they are ready to get a home mortgage. If there are mistakes on your report that need to be cleared up, this is the worst time to find a mistake as it can hold up your escrow.
If you find a mistake on your credit report, you should fill out the dispute form that comes with the credit report and turn it in to the 3 credit reporting agencies immediately. In some cases, it will be removed from your report within 30 days. You should rerun your report at that time to make sure that it is correctly removed from your credit.
Monitoring your credit is your responsibility. Make sure it's the best that it can be!
In health,
Brian & Cherie
-Your personal information will be at the top of the report. Your name, address, social security number, birth date and employer information will start off the report. When reviewing the report, make sure that this and all other items are correct.
-Your accounts are listed next (credit cards, mortgage, car loans, etc) will be listed and show the date you opened each account, your credit limit or loan amount, account balance and payment history.
-Inquires are listed next. Whenever you inquire about getting any type of loan, the inquiries will be listed here. The more inquiries you have, the lower your score could be. Keep inquiries at a minimum.
-Negative items are also listed. This could be a late payment, tax lien, garnishment, judgement, bankruptcy or foreclosure.
Review each line very carefully to make sure that everything listed belongs to you. The items on your report will also include anything that you have co-signed for with someone else. It is imperative that you review your credit report yearly to make sure that everything is correct. If someone else's information ends up on your report by mistake, it can take months to clear up and damage your credit. Many people only look at their credit reports when they are ready to get a home mortgage. If there are mistakes on your report that need to be cleared up, this is the worst time to find a mistake as it can hold up your escrow.
If you find a mistake on your credit report, you should fill out the dispute form that comes with the credit report and turn it in to the 3 credit reporting agencies immediately. In some cases, it will be removed from your report within 30 days. You should rerun your report at that time to make sure that it is correctly removed from your credit.
Monitoring your credit is your responsibility. Make sure it's the best that it can be!
In health,
Brian & Cherie
Wednesday, January 7, 2009
What is a FICO score?
Most of us have heard of the term FICO score but what is it and how does it affect you? The term FICO is the abbreviation for Fair Isaac Credit Organization. Your "FICO score" summarizes your credit risk, based on a snapshot of your credit report at a particular time. A credit score helps lenders evaluate your credit report and estimate the amount of risk that they will undertake if they do business with you.
The range of FICO scores are from 300-850 with 850 being excellent or the best credit score that you can achieve. There are three credit reporting agencies; Experian, TransUnion and Equifax. When you ask for a mortgage, the lender may pull scores from all three agencies and use the average score to determine your interest rate. The interest rate that you are given on a mortgage can affect your payment by hundreds of dollars a month so you want to make sure that your score is as high as possible before applying for a loan.
The best way to determine and track your credit score is to run your credit report every year. In the state of California, every person is entitled to one free credit report per year. To learn more about obtaining your free credit report contact the Annual Credit Report Request Service at:
P.O. Box 105281
Atlanta, GA 30348-5281
1 877 FACT ACT (1 877 322 8228)
www.annualcreditreport.com
You can also obtain your credit report by calling the agencies directly at the following numbers:
Equifax: 800-685-1111, www.equifax.com
Experian: 888-397-3742, www.experian.com
TransUnion: 800-888-4213, www.transunion.com
Look for information on improving your credit, how credit cards affect your credit score and more in future posts!
In health,
Brian & Cherie
The range of FICO scores are from 300-850 with 850 being excellent or the best credit score that you can achieve. There are three credit reporting agencies; Experian, TransUnion and Equifax. When you ask for a mortgage, the lender may pull scores from all three agencies and use the average score to determine your interest rate. The interest rate that you are given on a mortgage can affect your payment by hundreds of dollars a month so you want to make sure that your score is as high as possible before applying for a loan.
The best way to determine and track your credit score is to run your credit report every year. In the state of California, every person is entitled to one free credit report per year. To learn more about obtaining your free credit report contact the Annual Credit Report Request Service at:
P.O. Box 105281
Atlanta, GA 30348-5281
1 877 FACT ACT (1 877 322 8228)
www.annualcreditreport.com
You can also obtain your credit report by calling the agencies directly at the following numbers:
Equifax: 800-685-1111, www.equifax.com
Experian: 888-397-3742, www.experian.com
TransUnion: 800-888-4213, www.transunion.com
Look for information on improving your credit, how credit cards affect your credit score and more in future posts!
In health,
Brian & Cherie
Thursday, November 6, 2008
Short Sale vs. Foreclosure
There is a lot of confusion in the marketplace over the difference between a short sale and a foreclosure. A short sale may show up on your credit report with late payment status and clear up in about 2 years. A foreclosure impacts your credit rating for the next 7 to 10 years.
Obviously, the short sale is the preferred method in saving your credit rating. When considering either, it is important to seek legal and or tax advice prior to entering into a listing agreement.
Short sales require the sale of the home, where the lender agrees to accept payment less than the full amount owed on the home in order to sell the property. If the lender agrees, the home is placed on the market while yet in pre foreclosure status. The pre foreclosure status is approximately 90 days before home is auctioned unless otherwise negotiated with the lender.
Sellers must act quickly to avoid foreclosure.
If the seller decides that the short sale is in their best interest, they should have their Realtor contact the lender immediately. The Realtor will provide the lender short sale documents along with a letter of hardship, describing the homeowner's current financial position explaining why the homeowner is unable to make mortgage payments. The Realtor will then negotiate price and terms of the short sale acting as the liaison between home owner and lender. All lenders treat each situation differently and make decisions according to their specific circumstances.
Working with the lender requires patience and persistence. The seller, buyer and Realtor are all at the mercy of the lender. It is imperative that the homeowner stay focused on the end result. Short sales are usually a long, tedious process that requires a great deal of the Realtor's time and resources. If you are considering the short sale of your home, please call us for details on your specific situation. We are here to help!
In health,
Brian & Cherie
Obviously, the short sale is the preferred method in saving your credit rating. When considering either, it is important to seek legal and or tax advice prior to entering into a listing agreement.
Short sales require the sale of the home, where the lender agrees to accept payment less than the full amount owed on the home in order to sell the property. If the lender agrees, the home is placed on the market while yet in pre foreclosure status. The pre foreclosure status is approximately 90 days before home is auctioned unless otherwise negotiated with the lender.
Sellers must act quickly to avoid foreclosure.
If the seller decides that the short sale is in their best interest, they should have their Realtor contact the lender immediately. The Realtor will provide the lender short sale documents along with a letter of hardship, describing the homeowner's current financial position explaining why the homeowner is unable to make mortgage payments. The Realtor will then negotiate price and terms of the short sale acting as the liaison between home owner and lender. All lenders treat each situation differently and make decisions according to their specific circumstances.
Working with the lender requires patience and persistence. The seller, buyer and Realtor are all at the mercy of the lender. It is imperative that the homeowner stay focused on the end result. Short sales are usually a long, tedious process that requires a great deal of the Realtor's time and resources. If you are considering the short sale of your home, please call us for details on your specific situation. We are here to help!
In health,
Brian & Cherie
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