$18,000 IN COMBINED HOMEBUYER TAX CREDITS FOR A LIMITED TIME
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
Saturday, March 27, 2010
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Friday, March 26, 2010
Obama administration ramps up efforts to aid struggling homeowners
This story was sent to you by: Greg Bender
--------------------
Obama administration ramps up efforts to aid struggling homeowners
--------------------
Among the major changes made to the much-criticized Home Affordable Modification Program is a set of new incentives for lenders to reduce the principal on so-called underwater mortgages.
By Jim Puzzanghera
March 26 2010, 10:08 AM PDT
Reporting from Washington -- Obama administration officials on Friday ramped up their attempts to help struggling homeowners, announcing major changes to the government's much-criticized $75-billion program to modify mortgages to avoid foreclosures.
The complete article can be viewed at:
http://www.latimes.com/business/la-fi-obama-mortgages27-2010mar27,0,6966492.story
Visit latimes.com at http://www.latimes.com
Thursday, March 25, 2010
TAX CREDITS TAX CREDITS TAX CREDITS
March 25, 2010
Dear C.A.R. Member:
I'm gratified to report that late this afternoon, Gov. Schwarzenegger signed Assembly Bill 183, the Homebuyer Tax Credit legislation, into law. His actions today are the result of our efforts in Sacramento over the last several weeks as members and our team in the capital worked for the bill's passage before it landed on the governor's desk.
AB 183 will provide $200 million for home buyer tax credits, allocating $100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. The eligible taxpayer who purchases a qualified personal residence on and after May 1, 2010, and on or before Dec. 31, 2010, or who purchases a qualified principal residence on and after Dec. 31, 2010, and before Aug. 1, 2011, pursuant to an enforceable contract executed on or before Dec. 31, 2010, will be able to take the allowed tax credit. The credit is equal to the lesser of 5 percent of the purchase price or $10,000, in equal installments over three consecutive years. Under AB 183, purchasers will be required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).
The positive impact of the federal home buyer tax credit is clear. Nearly 40 percent of first-time home buyers said they would not have purchased a home if the federal tax credit for first-time home buyers was not offered, according to C.A.R. research conducted last year.
The state's previous home buyer tax credit program was so successful that it ran out of tax credits by the end of June 2009, eight months before it was set to expire and just as housing markets appeared to be turning a corner. Unlike last year's legislation, AB 183 adds a tax credit for the purchase of an existing home by a first-time home buyer.
AB 183 will significantly contribute to the effort to stimulate jobs-creation within California's housing market by helping to incentivize first-time home buyers to purchase homes that have been abandoned, foreclosed upon and returned to the lender, or have been sitting on the market for extended periods of time. It is these homes that will require substantial rehabilitation by the new owners, which will in turn generate a tremendous increase in jobs and accessory purchases connected to home improvement activities.
Your Association's efforts at the state and federal level to help protect private property rights and your right to conduct business are ongoing. This promises to be another busy year in the state legislature and in Washington, D.C.
If you're not already involved in the political process, I encourage you to do so. You can go to http://www.car.org/governmentaffairs/getinvolved/ for a quick guide to involvement opportunities at the local, state, and national levels.
Sincerely,
Steve Goddard
2010 President
CALIFORNIA ASSOCIATION OF REALTORS®
--
GREG BENDER | Realtor
LEADING EDGE SOCIETY | Award Recipient | Top 7% Nationwide
DRE License # 01725209
323.671.1280 OFC | 323.868.6040 CEL | GregBenderLA@gmail.com
*Board Member: The Charitable Foundation | Agent Community Outreach of Prudential California Realty
www.TheCharitableFoundation.Net
www.PrimeSilverLake.com | www.LAHomesByPrice.com | www.TodaysOpenHouses.com | www.LAProbateRealtor.com | www.GregBenderLA.com |
http://www.google.com/profiles/GregBenderLA
PRUDENTIAL CALIFORNIA REALTY - LOS FELIZ BRANCH
1714 HILLHURST AVE, LOS ANGELES, CA 90027 | GregBender@prula.com
DRE LIC# 01317331 | A BERKSHIRE HATHAWAY AFFILIATE
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Broker/Agent does not guarantee the accuracy of the square footage, lot size or other information concerning the conditions or features of the property provided by the seller or obtained from Public Records or other sources. Buyer is advised to independently verify the accuracy of all information through personal inspection and with appropriate professionals. Copyright © 2010 by Combined L.A./Westside MLS, Inc. Information deemed reliable but not guaranteed.Prepared by: Greg Bender DRE# 01725209
Mortgage Interest Rates To Jump
Thanks Scott,
Good to know!
Greg
---------------------------------
This week's treasury auctions were poorly received by US and international investors. Additionally, for the first time in decades, private issued bonds by institutional lenders like Warren Buffet are paying a lower rate of interest to their investors than are US Treasuries. These issues are causing US Treasury rates to rise. This causes mortgage interest rates to jump.
This from Todd Johnson, the President of Homeservicing Lending:
The stability we've had in bonds, mortgage-backed securities and similar fixed-income instruments have traded in a very narrow range for a long period of time. When we think about the Federal Reserve buying $10 to $25 billion dollars a week in mortgage related securities, as well as direct debt of Fannie and Freddie, the Fed's purchases combined were over $1.4 Trillion dollars as of a couple of weeks ago [which helped to keep rates artifically low over the last year]. We're only a week away from the Federal Reserve completing its Mortgage Backed Securities and debt acquisition subsidy [the tool which as kept rates so low].
From a U.S. deficit perspective, our country will issue over $2.4 Trillion this year [in bonds], $1.4 in new spending and the rest to refinance other U.S. debt that is coming due. This week, the U.S. Treasury was selling over $110 Billion in new issuance, and the way they do this is that they start the week with the short term paper and finish their sales by the end of the week with the longer end of the curve. Yesterday, the $42 Billion dollar sale of 5 year notes went quite poorly, and Tuesday's $44 Billion dollar sale of the 2 Year notes were weaker than expected as well. On Thursday, the U.S. Treasury will complete its sale of the week with a $32 Billion large block of 7 Year debt [which was also received very poorly today].
All this poor performance by Government debt means the Government will have to 'sweeten' the deal at the next treasury auction by paying higher interest rates to attract potential investors. This, in turn, causes mortgage rates to rise.
Additionally, the FHA has announced that as of April 5th, the cost of FHA loans, and price of the mortgage insurance associated with these loans will increase substantially.
This information, along with the elimination of the first time home-buyers credit which is currently set to expire at the end of April, means a more costly loan for our clients.
What can we do?
* As always, get your clients pre-approved with Homeservices Lending as early in the process as possible. These higher rates and fees are going to be a reality of our market and clients need to re-examine what they can afford. A rate increase of 0.500% on a $600,000 mortgage increases payments by about $250.00 a month
* Lets work as a team and let your clients know about the importance of locking in a rate as soon as possible once they have an accepted offer
* Talk to your clients who may be on the fence or trying to "time the bottom of the market". Waiting to buy may cause their mortgage costs to increase more than the savings they make on further declines on property values.
I realize this is a lot of information, please do not hesitate to call or email with your questions.
Scott L. Groves
Mortgage Consultant
Homeservices Lending
MAC M0923-011
Good to know!
Greg
---------------------------------
This week's treasury auctions were poorly received by US and international investors. Additionally, for the first time in decades, private issued bonds by institutional lenders like Warren Buffet are paying a lower rate of interest to their investors than are US Treasuries. These issues are causing US Treasury rates to rise. This causes mortgage interest rates to jump.
This from Todd Johnson, the President of Homeservicing Lending:
The stability we've had in bonds, mortgage-backed securities and similar fixed-income instruments have traded in a very narrow range for a long period of time. When we think about the Federal Reserve buying $10 to $25 billion dollars a week in mortgage related securities, as well as direct debt of Fannie and Freddie, the Fed's purchases combined were over $1.4 Trillion dollars as of a couple of weeks ago [which helped to keep rates artifically low over the last year]. We're only a week away from the Federal Reserve completing its Mortgage Backed Securities and debt acquisition subsidy [the tool which as kept rates so low].
From a U.S. deficit perspective, our country will issue over $2.4 Trillion this year [in bonds], $1.4 in new spending and the rest to refinance other U.S. debt that is coming due. This week, the U.S. Treasury was selling over $110 Billion in new issuance, and the way they do this is that they start the week with the short term paper and finish their sales by the end of the week with the longer end of the curve. Yesterday, the $42 Billion dollar sale of 5 year notes went quite poorly, and Tuesday's $44 Billion dollar sale of the 2 Year notes were weaker than expected as well. On Thursday, the U.S. Treasury will complete its sale of the week with a $32 Billion large block of 7 Year debt [which was also received very poorly today].
All this poor performance by Government debt means the Government will have to 'sweeten' the deal at the next treasury auction by paying higher interest rates to attract potential investors. This, in turn, causes mortgage rates to rise.
Additionally, the FHA has announced that as of April 5th, the cost of FHA loans, and price of the mortgage insurance associated with these loans will increase substantially.
This information, along with the elimination of the first time home-buyers credit which is currently set to expire at the end of April, means a more costly loan for our clients.
What can we do?
* As always, get your clients pre-approved with Homeservices Lending as early in the process as possible. These higher rates and fees are going to be a reality of our market and clients need to re-examine what they can afford. A rate increase of 0.500% on a $600,000 mortgage increases payments by about $250.00 a month
* Lets work as a team and let your clients know about the importance of locking in a rate as soon as possible once they have an accepted offer
* Talk to your clients who may be on the fence or trying to "time the bottom of the market". Waiting to buy may cause their mortgage costs to increase more than the savings they make on further declines on property values.
I realize this is a lot of information, please do not hesitate to call or email with your questions.
Scott L. Groves
Mortgage Consultant
Homeservices Lending
MAC M0923-011
Multi-Unit: 1716 GRIFFITH PARK BLVD LOS ANGELES, CA 90026
Listed by Michael Slater of Prudential California Realty - Los Feliz
Listed for $995,000.
Listed for $995,000.
-
 | GREG BENDER LA REALTOR | |
| 323.868.6040 | ||
| GregBenderLA@gmail.com | ||
| www.LAHomesByPrice.com |
| STATUS: Active | ADDRESS: 1716 GRIFFITH PARK BLVD , LOS ANGELES 90026 | LP: $995,000 |
 |  | |||
| RESIDENTIAL INCOME | DOM: 1 | AREA: (21) Silver Lake - Echo Park | MLS#: 10-437651 | LD: 03/24/2010 |
| APN: 5429-016-011 | ADP: | STYLE: | MAP: 594/C5 | SP: 0 |
| NUM UNITS: 3 | APX LSZ: 8,842/AS | POOL: No | CVD PKG: | SD: |
| APX SF: 1,646/AS | APX LDM: | TRASH: | NUM PKG: 1 | |
| YB: 1938 | GI: $0 | GRM: 0.00 | SCHED/ACT: Actual | WATER: |
| RC: | GOI: 0 | CAP: | TAXES: | VAC: 0 |
| CONST: | AOE: | INS: | GRDN: | MGMNT: |
| NUM STO: 1 | ATE: $0 | ELEC: | MAINT: | POOL EXP: |
| ZONE: LARD1.5 | NOI: $0 | GAS: | MGR: | ELEV: |
| ASSED IMP VAL: $204,000 | ASSED TOT VAL: | ASSED LND VAL: $775,200 | LT: 299 | |
| Type | Number of Units | Bedrooms | Baths | Furnished(y/n) | Revenue |
| Unit 1 | 1 | 1 | 1.00 | No | $0 |
| Unit 2 | 1 | 0 | 1.00 | No | $599 |
| Unit 3 | 1 | 0 | 1.00 | No | $1,575 |
| DIRECTIONS: North of Sunset, East of Hyperion |
| REMARKS: Unique 1930's Silver Lake artist's compound featuring a house plus detached duplex. Sitting high above street level, the separate one bedroom and one bathroom house currently used as the owners unit, features a deck with stunning city and hillside views. The rustic interiors include hardwood floors, redwood beamed ceilings, brick fireplace, gated entry, large private patios and backyard. The street level duplex features artist studios including hardwood floors, polished concrete floors, a sleeping loft and large private patio. All units have 1 bathroom each. Owners unit can be vacant at close of escrow. |
| AIR: Wall/Window | HEAT: Floor Furnace |
| ROOF: | FIN: Cash To New Loan |
| WATERFRONT: | DISC: As Is |
| SEWER: In Street | TYPE: Triplex |
| EQUIP: Built-Ins,Dishwasher,Range/Oven,Refrigerator | TENANT PAYS: |
| OWNER PAYS: | OCC/SHOW: 24-hr Notice,Appointment w/List. Office,Listing Agent Accompanies |
| SPA: | |
| LP: $995,000 | DOM: 1 | LD: 03/24/2010 | SP: | SSP: | BLOG Y/N: Yes |
| OLP: $995,000 | CD: | SD: | WD: | AVM Y/N: Yes |
| Broker/Agent does not guarantee the accuracy of the square footage, lot size or other information concerning the conditions or features of the property provided by the seller or obtained from Public Records or other sources. Buyer is advised to independently verify the accuracy of all information through personal inspection and with appropriate professionals. Copyright © 2010 by Combined L.A./Westside MLS, Inc. Information deemed reliable but not guaranteed. Prepared by: Greg Bender DRE# 01725209 |
-
Wednesday, March 24, 2010
BofA Debuts Plan for Underwater Mortgages
BofA Debuts Plan for Underwater Mortgages
Bank of America will announce a program Wednesday to allow underwater borrowers to systematically reduce the principal they owe over five years, as long as they stay current on payments.
The program targets borrowers who owe more than 120 percent of their home’s worth.
BofA is also expected to reduce principal balances on "payment option" ARMs with negative amortization to as low as 95 percent of property’s value.
Beginning in May, BofA is expected to identify and notify homeowners it believes are eligible for these adjustments.
Source: Reuters News, David Lawder (03/24/2010)
and Stan Smith - Prudential California Realty
Manager - Los Feliz
Bank of America will announce a program Wednesday to allow underwater borrowers to systematically reduce the principal they owe over five years, as long as they stay current on payments.
The program targets borrowers who owe more than 120 percent of their home’s worth.
BofA is also expected to reduce principal balances on "payment option" ARMs with negative amortization to as low as 95 percent of property’s value.
Beginning in May, BofA is expected to identify and notify homeowners it believes are eligible for these adjustments.
Source: Reuters News, David Lawder (03/24/2010)
and Stan Smith - Prudential California Realty
Manager - Los Feliz
UCLA economists: no 'double dip' - Inman New Article
GOOD READ, uplifting.
Greg
Subject: UCLA economists: no 'double dip' - Inman New Article
Rejecting the possibility of a "double dip" recession, economists with the
University of California, Los Angeles, Anderson Forecast say they expect
economic growth to remain on track even in the face of continued high
unemployment.
"Simply put, the financial emergency of 2007-09 is over, and we believe the
Fed will soon recognize this reality" by tightening monetary policy, UCLA
Anderson Forecast <http://uclaforecast.com/> Senior Economist David Shulman
said.
In their first quarterly report of the year, economists with the forecast
predict the nation's economy will grow at an annual rate of 3.2 percent
during the first three months of the year before leveling off to 2 percent
for the remainder of 2010.
Economic growth -- as measured by gross domestic product (GDP) -- is
expected to average 2.3 percent in 2011 and 3.2 percent in 2012, propelled
by strength in business equipment and software production, exports, and a
revival in home construction from postwar lows.
But job growth is expected to remain anemic through 2012, with unemployment
averaging 9.7 percent this year and not dipping below 9 percent until 2012,
when it's expected to average 8.6 percent.
The forecast predicts that California's unemployment rate, currently 12.5
percent, will ease a bit and average 11.8 percent for the year.
California?s economic prospects depend on demand for manufactured and
agricultural goods from outside the state, public works construction, and
investment in business equipment and software.
Although the state's economy is expected to grow, it won't generate enough
jobs to bring unemployment back into single-digits until 2012, the forecast
predicted.
Some pundits have the called the current trend of economic growth coupled
with high unemployment a "jobless recovery." Shulman has coined his own
term: "The Bipolar Economy."
Government stimulus programs -- including tax cuts, spending programs, and
near-zero short-term interest rates -- have spurred growth, he said.
But unemployment may be so persistent because companies aren't going to base
long-term hiring decisions on "temporary tax and spending programs coupled
with a nonsustainable zero interest rate policy," Shulman said. ...CONTINUED
Shulman identified inflation as the greatest risk to the economy, but said
he expects the Federal Reserve to tighten monetary policy to keep inflation
under control.
The Fed?s monetary policy "has strewn kindling wood throughout the economy
that could ignite into inflation at any time," Shulman said. Economists at
the UCLA Anderson Forecast "believe that the Fed understands this risk and
that is why we believe policy will be tightened this year."
The forecast anticipates that the Fed will gradually raise its target for
the federal funds rate -- the rate banks charge each other for overnight
loans -- from zero to 0.25 percent now to 3.4 percent by the second quarter
of 2012. Yields on 10-year Treasury bonds are expected to increase from 3.8
percent to 4.8 percent during the same period.
The Fed has already announced that it will wrap up $1.25 trillion in
purchases of mortgage-backed securities this month, a move that's expected
to gradually push mortgage rates up (see
story<http://www.inman.com/news/2010/03/17/fed-end-mbs-purchases>
).
In a March 15 forecast<http://www.mbaa.org/files/Bulletin/InternalResource/72219_.pdf>,
economists with the Mortgage Bankers Association said they expect rates on
30-year fixed-rate mortgages to rise from an average of 5.1 percent during
the first three months of 2010 to 5.8 percent in the final quarter of the
year.
That forecast anticipates that rates for 30-year fixed-rate loans will
average 6.2 percent in 2011 and 6.4 percent in 2012.
The MBA expects sales of existing homes will grow nearly 4 percent this
year, to 5.34 million, and reach 5.72 million in 2011. Sales of new homes
are expected to rebound from a record low of 372,000 in 2009 to 398,000 this
year and 528,000 in 2011.
Stan Smith - Prudential California Realty
Manager - Los Feliz
Monday, March 22, 2010
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Friday, March 12, 2010
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Thursday, March 11, 2010
Thursday, March 4, 2010
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| Pending | $382,000 | # of Units: 5 | |||||
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