Californians have a brief window of opportunity 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 principal 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.
Wednesday, March 31, 2010
Monday, February 8, 2010
Buy A Home With No Money Down?!
Buyers if you buy a Fannie Mae owned REO (becoming a majority of the REOs) you will now receive a 3.5% kick back designed to cover your closing costs. This is IN ADDITION to the ‘home buyer tax credit’ that expires in April 2010. Remember, FHA buyers can also have the seller contribute 3.5% toward their DOWN PAYMENT. This effectively makes it possible for buyers to buy with no money down.
Why this new program from Fannie Mae? by covering the closing costs on purchases of its REO homes – Fannie Mae is hoping that this new incentive will help it pare down a bloated supply of repossessed foreclosed properties. So the nation’s largest mortgage financier has announced this temporary seller-assistance program under which people purchasing a property through HomePath, Fannie Mae’s REO disposition operation, will receive up to 3.5 percent of the final sales price, which can be applied toward closing costs or used to purchase appliances for their new home.
The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010, the company said. In addition, many Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, with as little as 3 percent down.
Recent data from Fannie Mae show an increase in the acquisition of foreclosed properties and an escalating rate of seriously delinquent loans, which means even larger volumes of REOs could be coming down the pipeline. So as you can see, this effectively makes it possible for buyers to buy with no money down.
If you would like a list of all Fannie-Mae homes currently listed in Ventura County call me (Carol Senff @ Troop Real Estate) at 805 497-3200.
Friday, January 29, 2010
Celebrity Real Estate News -- Brad Pitt and Angelina Jolie increased the size of their compound
Source: BergProperties.com
Brad Pitt and Angelina Jolie have increased the size of their compound in Los Angeles’ Los Feliz neighborhood, with Pitt quietly paying $1,100,000 to buy a missing link for his property in the form of a 3,232-square-foot house that his estate largely had surrounded.
In a Big Time Listings exclusive, we can report on Pitt’s latest purchase, which like some other property of his was made through his Mondo Bongo Trust (he also owns other properties in his Briarcliff Trust and his Blaircliff Trust). Records show that Pitt purchased the property on August 6 from the estate of the late Anne Tyler Sherman. The deal was recorded on August 11.
Built in 1920, the two-bedroom, former Sherman house — whose property is shaped like a key — sits on a 0.25-acre (10,759-square-foot) lot in the Oaks area of Los Feliz. It helps Pitt round out his compound and means that Brad now owns close to 2 full acres in the Oaks.
In fact, we had wondered out loud in a September 2008 post why Pitt had never purchased this critical keystone parcel.
However, when this property became available, it first was listed for a whopping $2,000,000 and later was reduced to $1,495,000, as Curbed LA’s guru Marissa Gluck had noticed in June 2009 (without realizing that Pitt’s compound surrounded it). Features in the house (we were unable to find listing photos) include two baths, a stone fireplace, a huge main room, a bonus room, and “a bar area and a secret cave,” according to the MLS. In addition, the house was advertised as being an estate sale and therefore in need of TLC. Clearly, Brad and Angelina drove some kind of a bargain, to be able to pick the house up for close to half of its original listing price — and, almost $400,000 below its final asking price.
Pitt’s other properties on his compound are as follows:
–The compound’s historically significant, five-bedroom, 5,760-square-foot main Craftsman-style house, which was built in 1915 and which Pitt purchased in 1994 for $1,700,000. That house sits on nearly an acre (a 43,268-square-foot lot), according to public records. Pitt appears to have recently expanded the house, which public records previously had said measured 5,338 square feet.
–Another adjoining 1,653-square-foot house on a small, 0.13-acre (5,606-square-foot) lot, which Pitt purchased in 1998 for $475,000.
–An adjoining 2,454-square-foot house on a 0.29-acre (12,458-square-foot) lot, which Pitt purchased in 1996 for $380,000; as part of the 1996 transaction, Pitt also purchased an adjoining, 0.03-acre (1,307-square-foot) strip of vacant land that he also continues to own.
–An adjoining 1,534-square-foot house on a 0.15-acre (6,530-square-foot) lot, which Pitt purchased in mid-2008 for $1,287,500.
Putting all these parcels together, we see that Pitt now as under his own personal control 79,928 square feet of contiguous land in the Oaks (across six separate parcels!), or more than 1.8 acres of land. In addition, as we noted in September 2008, Pitt, who also not long ago won approval to add a guardhouse to his compound, sold another adjoining 3,141-square-foot house on a 0.30-acre (12,972-square-foot) lot in October 2003 for $740,000 to Richard “Richie” Malchar and Rebecca Malchar, according to public records. Richie Malchar has been identified in various news reports over the years as being Pitt’s security chief (and he has his name on the deeds of many of Pitt’s properties as his money manager, as does money manager Cynthia Pett). So in many regards, Malchar’s house and parcel could be included as part of Pitt’s compound as well. Pitt also sold a 2,219-square-foot house on a 0.30-acre (13,190-square-foot), uncontiguous tract at 5720 Valley Oak Drive in 2002 for an undisclosed price (north of $1 million, though).
Also, tallying everything up, we see that Pitt has spent $4,933,500 in assembling this compound, or close to $5 million. It’s obviously worth a lot more than that now, though, since some of those purchase prices were from long ago.
Brad Pitt and Angelina Jolie have increased the size of their compound in Los Angeles’ Los Feliz neighborhood, with Pitt quietly paying $1,100,000 to buy a missing link for his property in the form of a 3,232-square-foot house that his estate largely had surrounded.
In a Big Time Listings exclusive, we can report on Pitt’s latest purchase, which like some other property of his was made through his Mondo Bongo Trust (he also owns other properties in his Briarcliff Trust and his Blaircliff Trust). Records show that Pitt purchased the property on August 6 from the estate of the late Anne Tyler Sherman. The deal was recorded on August 11.
Built in 1920, the two-bedroom, former Sherman house — whose property is shaped like a key — sits on a 0.25-acre (10,759-square-foot) lot in the Oaks area of Los Feliz. It helps Pitt round out his compound and means that Brad now owns close to 2 full acres in the Oaks.
In fact, we had wondered out loud in a September 2008 post why Pitt had never purchased this critical keystone parcel.
However, when this property became available, it first was listed for a whopping $2,000,000 and later was reduced to $1,495,000, as Curbed LA’s guru Marissa Gluck had noticed in June 2009 (without realizing that Pitt’s compound surrounded it). Features in the house (we were unable to find listing photos) include two baths, a stone fireplace, a huge main room, a bonus room, and “a bar area and a secret cave,” according to the MLS. In addition, the house was advertised as being an estate sale and therefore in need of TLC. Clearly, Brad and Angelina drove some kind of a bargain, to be able to pick the house up for close to half of its original listing price — and, almost $400,000 below its final asking price.
Pitt’s other properties on his compound are as follows:
–The compound’s historically significant, five-bedroom, 5,760-square-foot main Craftsman-style house, which was built in 1915 and which Pitt purchased in 1994 for $1,700,000. That house sits on nearly an acre (a 43,268-square-foot lot), according to public records. Pitt appears to have recently expanded the house, which public records previously had said measured 5,338 square feet.
–Another adjoining 1,653-square-foot house on a small, 0.13-acre (5,606-square-foot) lot, which Pitt purchased in 1998 for $475,000.
–An adjoining 2,454-square-foot house on a 0.29-acre (12,458-square-foot) lot, which Pitt purchased in 1996 for $380,000; as part of the 1996 transaction, Pitt also purchased an adjoining, 0.03-acre (1,307-square-foot) strip of vacant land that he also continues to own.
–An adjoining 1,534-square-foot house on a 0.15-acre (6,530-square-foot) lot, which Pitt purchased in mid-2008 for $1,287,500.
Putting all these parcels together, we see that Pitt now as under his own personal control 79,928 square feet of contiguous land in the Oaks (across six separate parcels!), or more than 1.8 acres of land. In addition, as we noted in September 2008, Pitt, who also not long ago won approval to add a guardhouse to his compound, sold another adjoining 3,141-square-foot house on a 0.30-acre (12,972-square-foot) lot in October 2003 for $740,000 to Richard “Richie” Malchar and Rebecca Malchar, according to public records. Richie Malchar has been identified in various news reports over the years as being Pitt’s security chief (and he has his name on the deeds of many of Pitt’s properties as his money manager, as does money manager Cynthia Pett). So in many regards, Malchar’s house and parcel could be included as part of Pitt’s compound as well. Pitt also sold a 2,219-square-foot house on a 0.30-acre (13,190-square-foot), uncontiguous tract at 5720 Valley Oak Drive in 2002 for an undisclosed price (north of $1 million, though).
Also, tallying everything up, we see that Pitt has spent $4,933,500 in assembling this compound, or close to $5 million. It’s obviously worth a lot more than that now, though, since some of those purchase prices were from long ago.
Monday, December 7, 2009
New Plans to streamline short sales coming out of Washington
I really would like to believe that our Government has the ability, understanding and foresight to get us out of every mess – but history speaks for it’s self. We all have had that sweet old “Auntie” (or someone like her) who thinks that they know what’s best for us and who is always chiming in with their advice and point of view (no matter how irrelevant or out of touch that it may be) . I’m afraid that it seems that our Government and the U.S. Treasury Department has now gone from being our strong and dependable good ole’ Uncle Sam, to that dear, sweet (but mostly out of step) “Auntie” who has no real idea of how things in the real world work, but insists on telling us how we can fix our problems and live our life’s.
Point in case - the Treasury Department is currently taking steps to work with lenders in order to help streamline the short sale process, which is encouraging, because as for those of us who are committed to helping homeowners who are upside down in value – we all know too well, the horrendous lack of uniform procedure and common sense on the part of the investors and servicers.
Last week the treasury department announced new guidelines aimed at easing the short sale process. Under these new guild lines, the Jr lien holder (2nd mortgage/equity line) must agree to only $3000 as payment in full. I like the idea of formatting the process but come on! What works for one inventor’s situation isn’t going to work for all – here’s what I’m talking about. In my market we saw homes appreciate to the point were the average sale was in the mid to high $500,000 range, many homeowners experienced such huge equity increases that they in turn took out big equity lines of credit.
So now that homeowner is in default with let’s say has a $150,000 line of credit, the junior lien holder has two choices:
Retain the rights to a deficiency judgment upon foreclosure
OR
Sell the deficiency rights for 10% (or more) to a creditor as a charge-off prior to or after foreclosure…
So my questions is -- why would they take $3000 as payoff?
In the above example, the junior lien holder could get $15000 from a collector so why would the settle for $3000? The far better idea, in my opinion would be to limit the amount a 2nd lender can receive to a percentage of he loan. This would have a greater chance of success on a national level and would make the necessary allowances for the regional price differences that currently exist.
Only time will tell if these new guidelines will do anything to help the short sale process, or turn out to be just another pacifier offered to quiet and soothe the large group of upside down homeowners desperate for answers, clarity and above all, some real help!
In the mean time, I can’t get too excited about what is coming out of Washington right now, but I can and will continue to help educate homeowners in Ventura County who need assistance negotiating their short sales so that they can sell, move out and move on.
Point in case - the Treasury Department is currently taking steps to work with lenders in order to help streamline the short sale process, which is encouraging, because as for those of us who are committed to helping homeowners who are upside down in value – we all know too well, the horrendous lack of uniform procedure and common sense on the part of the investors and servicers.
Last week the treasury department announced new guidelines aimed at easing the short sale process. Under these new guild lines, the Jr lien holder (2nd mortgage/equity line) must agree to only $3000 as payment in full. I like the idea of formatting the process but come on! What works for one inventor’s situation isn’t going to work for all – here’s what I’m talking about. In my market we saw homes appreciate to the point were the average sale was in the mid to high $500,000 range, many homeowners experienced such huge equity increases that they in turn took out big equity lines of credit.
So now that homeowner is in default with let’s say has a $150,000 line of credit, the junior lien holder has two choices:
Retain the rights to a deficiency judgment upon foreclosure
OR
Sell the deficiency rights for 10% (or more) to a creditor as a charge-off prior to or after foreclosure…
So my questions is -- why would they take $3000 as payoff?
In the above example, the junior lien holder could get $15000 from a collector so why would the settle for $3000? The far better idea, in my opinion would be to limit the amount a 2nd lender can receive to a percentage of he loan. This would have a greater chance of success on a national level and would make the necessary allowances for the regional price differences that currently exist.
Only time will tell if these new guidelines will do anything to help the short sale process, or turn out to be just another pacifier offered to quiet and soothe the large group of upside down homeowners desperate for answers, clarity and above all, some real help!
In the mean time, I can’t get too excited about what is coming out of Washington right now, but I can and will continue to help educate homeowners in Ventura County who need assistance negotiating their short sales so that they can sell, move out and move on.
Wednesday, October 7, 2009
Will the sun set on “First Time buyers tax credit”?
The count down is on!! On November 30th the Obama administrations “First Time Buyer Credit” is due to expire and many are asking the question, will it be renewed. What do I think? YES! and here’s why, I believe that Senator Isakson’s bill will pass; his legislation would increase the maximum amount of the tax credit from $8,000 to $15,000 and expand the current tax credit so that it applies to any buyer of any home, not just first-time buyers. His legislation also would eliminate the income caps of $75,000 for an individual and $150,000 for a couple under the current tax credit so that there is no income limit for eligibility. Finally, the legislation would extend the tax credit for one year from date of enactment and would still allow home buyers to claim the credit on their 2009 tax return for purchases made in 2010.Should this proposal pass it would double the size of the current program and it would change it from ‘first time buyer’ to ‘anyone goes’. Also, the FHA will make available 90% mortgages at low rates, increasing from the current 96.5% LTV.
On September 17th the IRS came out with this headline: First-Time Homeowner Credit Provides Tax Benefits to 1.4 Million Families to Date, More Claims Expected…. I believe that we can reasonable assume that the $8000 credit could result in 2mm homes being sold. Taking that into consideration, how many homes will be sold with a $15k incentive that is available to all? 4 million is probably a safe number. But let’s say 3 million to on the conservative side. If that becomes realities and the average price of a home is $200,000 (conservatively speaking) that would translate into a total sale value of about $600 billon, the direct cost to the government would be about $45 billon and the total equity required by the private sector, net of subsidy would be around $15 billon(the equivalent of only 2% down) so the FHA would end up guaranteeing an additional $540 billon in new mortgages
Now remember these are merely assumptions, but if these positives were to occur this would usher in a back door bailout of the GSE, giving them the ability to off load some of their REO inventory. It could and would reduce the cost of short sales that will come in next year.
In a nutshell, the FHA would explode with new activity, dramatically increasing their cash cushion and that would temporarily bail them out. The econonomic activity related to the sale of 3mm homes will pump up the GDP. Example; the real estate commissions alone would be $30 billion, mortgage brokers would rake in 6 billon, lawyers, title & escrow another 6 Billon, This pumping up of current consumption could be a good thing for housing market sector, but especially interesting is how the big benefit would be to the publicly traded homebuilders, how much clout does this group have? Plenty, it just so happens that Senator Isakson’s family owns one of the largest private real estate brokerages in the country.
Consequently, if the tax credit isn’t renewed… look for the housing market to suffer the same fate of the auto industry at the end of the cash for clunkers program.
On September 17th the IRS came out with this headline: First-Time Homeowner Credit Provides Tax Benefits to 1.4 Million Families to Date, More Claims Expected…. I believe that we can reasonable assume that the $8000 credit could result in 2mm homes being sold. Taking that into consideration, how many homes will be sold with a $15k incentive that is available to all? 4 million is probably a safe number. But let’s say 3 million to on the conservative side. If that becomes realities and the average price of a home is $200,000 (conservatively speaking) that would translate into a total sale value of about $600 billon, the direct cost to the government would be about $45 billon and the total equity required by the private sector, net of subsidy would be around $15 billon(the equivalent of only 2% down) so the FHA would end up guaranteeing an additional $540 billon in new mortgages
Now remember these are merely assumptions, but if these positives were to occur this would usher in a back door bailout of the GSE, giving them the ability to off load some of their REO inventory. It could and would reduce the cost of short sales that will come in next year.
In a nutshell, the FHA would explode with new activity, dramatically increasing their cash cushion and that would temporarily bail them out. The econonomic activity related to the sale of 3mm homes will pump up the GDP. Example; the real estate commissions alone would be $30 billion, mortgage brokers would rake in 6 billon, lawyers, title & escrow another 6 Billon, This pumping up of current consumption could be a good thing for housing market sector, but especially interesting is how the big benefit would be to the publicly traded homebuilders, how much clout does this group have? Plenty, it just so happens that Senator Isakson’s family owns one of the largest private real estate brokerages in the country.
Consequently, if the tax credit isn’t renewed… look for the housing market to suffer the same fate of the auto industry at the end of the cash for clunkers program.
Monday, September 14, 2009
Federal Incentives Coming for Short Sales
As I read and study on the subject of “Short Sales” it is my belief that short sales will be the de-facto solution for mortgage servicers to come. As I am seeing now, most people simply don’t want their homes because of their negative equity situation. Others don’t find that there is any advantage to taking a loan modification form their lender that will only put their home ownership back into jeopardy five years from now.
Since FHA ‘owns’ close to 70% of all existing mortgages in the country I would expect to see the government ‘encourage’ the servicers/ banks to outsource their short sales to them. In other words, expect that an FHA arm will be processing short sales by this time next year. Taking into consideration their potion in the mortgage arena, it only makes sense that they will want to process their own short sales. As a “Short Sale Specialist” it is my feeling that a move like this by the Government will eventfully make the process faster and smoother, that is my hope anyway.
For the latest information on the subject go to: http://www.housingwire.com/2009/09/10/federal-incentives-coming-for-short-sales-deeds-in-lieu/
Wednesday, August 19, 2009
Home auctioned by mistake
Home auctioned to the highest bidder, by mistake.
I've been saying for quite some time now, that the system that most mortgage lenders/servicers work under is badly flawed and this confirms it, read this account of this poor family and tell me you don't agree:
My Bad! Woman's House Mistakenly Auctioned by Bank
A Homestead woman's home was auctioned to the highest bidder
By TODD WRIGHT
You know times are tough when people are getting kicked out of their house when it's not even for sale.That's what happened to Anna Ramirez after she found all of her stuff out on the front lawn of her Homestead home last week and a strange man demanding she get out of his newly purchased house.
The eviction came after Ramirez's home was mistakenly auctioned off to the highest bidder by her bank, Washington Mutual. Usually, you get a warning before you get the boot. A foreclosure letter. Maybe a sign saying your house is up for sale. Not Ramirez, who found her belongings bashed and battered in the street."This came out of nowhere," Ramirez said. "The bank took the house from right under my feet."
The man who bought the house told Ramirez he paid $87,000 for it, which shocked Ramirez, who bought the house for $260,000.What's worse is her husband, daughter and grand children were also kicked out by Homestead and Miami-Dade police officers, said Martha Taylor, who witnessed the unexpected eviction."I have never seen anything like it," Taylor said. "They literally threw all her stuff on the front lawn. I didn't sleep that night and it wasn't even my house."
Ramirez and her family had three hours to get out of the house, police ordered. They had to stash their belongings at multiple locations and shacked up with a friend for the night as cops chained the doors of their home. With Taylor's help, Ramirez appeared before a judge two days later to explain what happened."I had all my stuff scattered everywhere," she said. "They did this in front all my neighbors. It was so embarrassing."
A mistake in the Miami-Dade Clerk's Office appears to be behind the mishap, which landed Ramirez homeless for more than 24 hours.
The sale was eventually reversed by a Miami-Dade judge, allowing Ramirez to return to her old digs. Ramirez said she wants to sue for the damage to her furniture.
Ramirez has lived in the house for three years and recently refinanced the home with the bank."This shouldn't be happening, you know, because we did the right thing," she said. "We went step by step."
You might want to respond with "UNBELEAVABLE" but don't, because in today's crazy world of banks & Real Estate this is how it really is. I have had my very own clients experience first hand a lender selling their home out from underneath them with virtually no warning. One particular time we had a great buyer, were in escrow scheduled to close in 15 days and BOOM! House was sold at auction - lenders response- "OOOPS... that one must have fell through the cracks". And this was an attorney assisted short sale in which the attorney then demanded that they resend the sale - they did not.
So good luck to all of us who are trying to do the right thing and help people save their homes from foreclosure. We're going to need it!!!
I've been saying for quite some time now, that the system that most mortgage lenders/servicers work under is badly flawed and this confirms it, read this account of this poor family and tell me you don't agree:
My Bad! Woman's House Mistakenly Auctioned by Bank
A Homestead woman's home was auctioned to the highest bidder
By TODD WRIGHT
You know times are tough when people are getting kicked out of their house when it's not even for sale.That's what happened to Anna Ramirez after she found all of her stuff out on the front lawn of her Homestead home last week and a strange man demanding she get out of his newly purchased house.
The eviction came after Ramirez's home was mistakenly auctioned off to the highest bidder by her bank, Washington Mutual. Usually, you get a warning before you get the boot. A foreclosure letter. Maybe a sign saying your house is up for sale. Not Ramirez, who found her belongings bashed and battered in the street."This came out of nowhere," Ramirez said. "The bank took the house from right under my feet."
The man who bought the house told Ramirez he paid $87,000 for it, which shocked Ramirez, who bought the house for $260,000.What's worse is her husband, daughter and grand children were also kicked out by Homestead and Miami-Dade police officers, said Martha Taylor, who witnessed the unexpected eviction."I have never seen anything like it," Taylor said. "They literally threw all her stuff on the front lawn. I didn't sleep that night and it wasn't even my house."
Ramirez and her family had three hours to get out of the house, police ordered. They had to stash their belongings at multiple locations and shacked up with a friend for the night as cops chained the doors of their home. With Taylor's help, Ramirez appeared before a judge two days later to explain what happened."I had all my stuff scattered everywhere," she said. "They did this in front all my neighbors. It was so embarrassing."
A mistake in the Miami-Dade Clerk's Office appears to be behind the mishap, which landed Ramirez homeless for more than 24 hours.
The sale was eventually reversed by a Miami-Dade judge, allowing Ramirez to return to her old digs. Ramirez said she wants to sue for the damage to her furniture.
Ramirez has lived in the house for three years and recently refinanced the home with the bank."This shouldn't be happening, you know, because we did the right thing," she said. "We went step by step."
You might want to respond with "UNBELEAVABLE" but don't, because in today's crazy world of banks & Real Estate this is how it really is. I have had my very own clients experience first hand a lender selling their home out from underneath them with virtually no warning. One particular time we had a great buyer, were in escrow scheduled to close in 15 days and BOOM! House was sold at auction - lenders response- "OOOPS... that one must have fell through the cracks". And this was an attorney assisted short sale in which the attorney then demanded that they resend the sale - they did not.
So good luck to all of us who are trying to do the right thing and help people save their homes from foreclosure. We're going to need it!!!
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