San Diego & Riverside Counties| Real Estate Blog

Half of all homeowners foreclosured on, had no contact with lender

•  Industry estimates find that half of all homeowners who lose their homes to foreclosure have no contact with their loan servicers.  Homeowners at risk of default or those who already are behind on mortgage payments are advised to contact their servicer at the first sign of trouble.  Consumers should request to speak with someone in the home retention dept., and expect a long wait time. 

•  When working on a loan modification, short-sale, or repayment plan, servicers likely will ask the homeowner to explain the reasons they can no longer make their mortgage payments.  Borrowers should be honest and realistic.  The servicer also will need to verify the borrower’s current income, unemployment benefits (if any), household expenses, tax returns, property taxes, hazard and flood insurance premiums, and condo or HOA dues.

•  Whether the loan servicer requests it or not, borrowers should include a letter authorizing the servicer to speak with their REALTOR®, another family member, or perhaps their attorney, as this can help speed up the process.

At County Properties 23 years of brokerage experience and trust! We offer free counseling in real estate re; home values and information on options of selling vs Foreclosure.  If you have equity in your home, we will sell your home and get top dollar in this challenging market. If you do not have enough equity, and you must sell your property as a short sale we have the expertise to do so also. Please feel free to contact me today for free counseling at (619) 301-0200 or Toll free (866) 825-8124 visit our website, click  CountyProperties.net

 By the way…if you know of someone who would appreciate the level of service I provide, please call me with their name and business number and I’ll be happy to follow up and take great care of them.

Fewer banks tightened lending standards last quarter

Fewer banks tightened lending standards last quarter, Federal Reserve says
Fewer U.S. banks tightened lending standards for companies and consumers in the third quarter as the economy grew for the first time in more than a year, a Federal Reserve survey showed.

Demand for most types of loans weakened at a smaller number of banks than in the second quarter, the Fed also said Monday in its quarterly Senior Loan Officer survey. For prime residential mortgages, a larger number of banks reported stronger demand, the central bank said.

The report helps explain why Fed policymakers last week said "tight credit" remains a drag on the economy and pledged to keep their benchmark interest rate near zero for an "extended period." JPMorgan Chase & Co. is among the banks that have reduced lending in response to stricter underwriting standards for consumer loans and lower demand from companies.

"It will be helpful if the banks were more prepared to lend, because there are creditworthy borrowers that are having difficulty getting credit," said Brian Bethune, chief financial economist at IHS Global Insight.

The survey of loan officers at 57 U.S. banks and 23 U.S. branches of foreign banks was conducted from about Oct. 6 to Oct. 20, the central bank said. The report doesn't identify respondents.

Loans and leases held by U.S. commercial banks have declined for 10 straight months, falling to $6.7 trillion as of Oct. 28 from $7.2 trillion at the end of 2008, according to a separate statistical release from the Fed.

Commercial and industrial loans have dropped to $1.37 trillion from $1.6 trillion, commercial real-estate loans have declined to $1.66 trillion from $1.72 trillion, and consumer loans have fallen to $847 billion from $857 billion at the end of last year.

In response to a question on the decline in commercial and industrial loans, banks cited lower originations of loans and decreased draws on revolving credit lines as the two most important reasons for the drop.

About a net 15% of banks tightened standards on commercial and industrial loans, half of the prior survey and below the peak of about 80% a year ago, the Fed said. Also, about a net 15% of respondents said they tightened standards for credit-card loans, the smallest since April 2008 and down from 35% in the July survey.

Banks were extending commercial real estate loans more often than refinancing them, the Fed survey showed. About 75% of U.S. banks reported extending more than one-fourth of construction and land development loans that were scheduled to mature by September.

Last month, the Fed and other regulators urged commercial real estate lenders to "work constructively" to arrange modifications with borrowers who show a willingness to repay debt posing the biggest threat to the U.S. banking industry. Loan originations by the biggest U.S. banks receiving government assistance fell by 17% in August from a month earlier, the Treasury Department said Oct. 15, the most recent report.

In its monthly survey of lending by the top 22 recipients of capital injections from the $700 billion Troubled Asset Relief Program, the Treasury also said total loan balances fell by 1% in August from a month earlier.

Loans at JPMorgan Chase in New York fell to $653.1 billion at the end of the third quarter from $761.4 billion a year earlier. The decline reflected "some tightening of underwriting standards" on consumer loans, including credit cards, Chief Financial Officer Michael Cavanagh told analysts during an Oct. 14 call following the release of the quarter's results. Loan demand from companies also fell, he added.

Bank of America Corp.'s loans and mortgages shrank to $878.4 billion from $922.3 billion a year earlier. The drop was due to "lower consumer spending and a resurgence in the capital markets" that allowed corporations to issue bonds and equity to pay off debt, Kenneth Lewis, chief executive officer of the Charlotte, N.C., said on an Oct. 16 conference call with analysts after the third-quarter report.

Employers continued cutting jobs even after the economy expanded at a 3.5% annual pace in the third quarter. The unemployment rate rose above 10% last month for the first time since 1983, a Nov. 6 Labor Department report showed.

CA State's tax withholding bump-up starts today

TAX CREDIT EXTENDED-It's official
 
President Barack Obama has signed into law the The Worker, Homeownership, and Business Assistance Act of 2009 which extended the tax credit of up to $8,000 for qualified first time home buyers purchasing a principle residents and a $6,500 tax credit to Move-Up home buyers who have owned a home for at least 5 years.
 
It has been extended through April of 2010.  The credit can also be used to help pay for closings costs as well as meet the FHA 3.5% downpayment requiremnets (Consult with one of our Approved Lenders).  The credit can also be used to change your clients paycheck withholdings so that they can save for a downpayment quicker for those conventional loans.  

 State's tax withholding bump-up starts today

Some call it California'scash advance.  Effective today, the amount of state income taxes withheld from California workers' paychecks will increase 10 percent.  That might sound like a tax increase, but state officials insist that's not the case.  Tax experts agree, saying this bump up in withholding taxes gives the state some wiggle room in managing California's treasury in a year that saw a titanic political battle to get a handle on the state's budget.  The increased withholding comes on top of a 0.25 percent state income tax increase and a reduction in the dependent credit, also enacted as part of the state budget.
Essentially, the accelerated withholding program does not generate additional tax revenue. Instead, it front-loads it, bringing cash in more quickly in an effort to keep the state treasury stocked with funds, which is where the "cash advance" tag comes in.  State officials have estimated that the move will generate an additional $1.7 billion in the current fiscal year.  The bottom line is that a worker's total annual income tax bill won't rise, and the amount owed at April 2010 tax time will be adjusted accordingly.

Simply put, if you owe taxes when April 15 comes along, the balance due will be less based on what was withheld from your paycheck in the last two months of the year. If you're due a refund, you can expect a little more.  Taxpayers can evade the accelerated withholding schedules simply by increasing the number of allowances on the withholding forms filed with their employers.  That won't make much difference for the calendar 2009 tax year, but it will have a bigger impact for 2010 and perhaps beyond.

Besides increased withholding, a state income tax increase approved by the Legislature as part of February's budget deal will raise rates by 0.25 percentage points for each tax bracket for the 2009 and 2010 tax years.

Also in the mix: A new tax law lowered the state dependent exemption credit from last year's $309 to $98 for the 2009 and 2010 tax years.

Please consult and verify withyour tax adviser regarding the above tax information.

From Congresswoman Susan Davis to Broker of County Properties

 

November 9, 2009

 

 

Mr. Arnold M. Levine

3111 Camino Del Rio North, Suite 400

San Diego, CA 92108

 

Dear Mr. Levine,

 

Thank you for taking the time to share with me your support for extending the home buyer tax credit.  I appreciate hearing from you on this important issue.

 

You will be pleased to know that Congress recently passed legislation extending the first-time homebuyer tax credit.  In areas harder hit by the housing crisis, such as San Diego, the credit has been especially valuable.  In fact, nationally, we saw home values actually increase during the month of May for the first time since 2006 - with a .5 percent increase in San Diego.  The tax credit likely helped encourage the turnaround.

 

I joined with a number of my colleagues calling for an extension.  In a letter to Congressional leadership, we highlighted the positive impact of the credit and stressed the need to continue the rebound in the housing market.  Not only is the credit good for the economy, it is also helping families purchase homes.  It only makes good sense to continue the success we have seen with the first-time homebuyer credit.  I'm pleased Congress and the President recognized the need and took action.

 

Once again, thank you for contacting me.  As your representative, I both need and value your perspective.  Please sign up for my E-Newsletter on my website, www.house.gov/susandavis, if you would like to receive monthly updates about what is happening in Congress.

 

 

With warm regards,

SUSAN A. DAVIS
Member of Congress

Thinking of halting payments on house?

Some homeowners underwater on their houses—who owe more on their mortgages than their homes are worth—wonder what would happen if they were to stop paying their mortgages.  

When lenders do not receive payments, the first action taken by the lender is to report the missed payment to the credit bureaus by the first day of the next month.  Sometimes this can happen in as little as two weeks from the due date, depending on when the payment is due.  Generally, this action will leave a negative mark on a credit report and decrease the homeowner’s credit score by as much as 200 points.

Because of the negative mark on the homeowner’s credit report, within the next 30 days, homeowners can expect their other creditors to take note of the late payment and to take action.  Credit card issuers may raise interest rates, lower credit limits, or close credit card accounts.  The borrower’s auto insurance, student loans, and other forms of credit also may change, as these are tied to the borrower’s credit score as well.

If the homeowner does not pay for 90 days, the lender likely will start calling, trying to persuade the homeowner to enter into a loan modification.  If a loan modification cannot be agreed upon between the homeowner and the lender, and the homeowner continue missing payments, the homeowner likely will be served with a foreclosure notice.  After the foreclosure notice is received, the lender asks a court to issue a judgment against the homeowner, and a county sale is arranged.

Homeowners at risk of defaulting on their mortgages, or those who already are behind, should contact their lender immediately to work out a repayment plan and/or loan modification.  

 

At County Properties 23 years of brokerage experience and trust! We offer free counseling in real estate re; home values and information on options of selling vs Foreclosure.  If you have equity in your home, we will sell your home and get top dollar in this challenging market. If you do not have enough equity, and you must sell your property as a short sale we have the expertise to do so also. Please feel free to contact me today for free counseling at (619) 301-0200 or Toll free (866) 825-8124 visit our website, click  CountyProperties.net

By the way…if you know of someone who would appreciate the level of service I provide, please call me with their name and business number and I’ll be happy to follow up and take great care of them.

Short Sales, Foreclosures and Credit Repair

Q 1.  What is a "preforeclosure sale" is that the same as a short sale?

A  "A preforeclosure sale involves the sale of the property by the borrower to a third party for less than the amount owed to satify the delinquent mortgage, as agreed to by the lender, investor, and mortgage insurer" (Source:  FNMA Announcement 08-16, 6-25-08 ).

Although the terms preforeclosure sale and short sale have been used interchangeably, there is a significant difference for purposes of obtaining credit.  For Fannie Mae purposes, a preforeclosure assumes that the borrower has been delinquent in paying his or her mortgage and the lender agrees to accept a lesser amount to avoid the time and expense of a foreclousre action.  A short-sale, however, can also refer to situations in which the lender of the mortgage agrees to a payoff of a lesser amount than is actually owed, even on a current mortgage, to facilitate the sale of the property to a third party. (Source: FNMA Announcement 08-16 Q&A, 8-13-08. )

Q 2.  If a borrower sold his or her property as a short sale but was never delinquent on that mortgage and is now attempting to purchase a new primary residence, will the borrower still get a loan?

A  The loan will be eligible provided that the borrower's previous mortgage history complies with lenders excessive prior mortgage delinquency policy--that is the borrower does not have one or more 60-, 90-, 120-, or 150-day delinquencies reported within the 12 months prior to the credit report date--and the borrower has not entered into any agreement with the short sale lender to repay any amounts associated with the short sale, including a deficiency judgment.  Different programs vary please contact our office at County Properties (866) 825-8124  or click.  CountyProperties.net

Q 3.  Are preforeclosure (short) sales and deed-in-lieu of foreclosure actions identified on a credit report?

A  Preforeclosure sales may be reported as "paid in full" with a "settled for less than owed" remarks code, and the mortgage tradeline would indicate any recent delinquency.  A deed-in-lieu may be reported by a remarks code indicating a deed-in-lieu. (Source: FNMA Announcement 08-16 Q&A, 8-13-08. )

Q 4.  What is the difference between a Chapter 13 bankruptcy and a Chapter 7 bankruptcy?

A  Chapter 13 permits a borrower with a regular income to propose a plan to repay some or all of his or her obligations over a period of up to five years.  A borrower who files a Chapter 7 is permitted to retain exempt assets and receive a discharge of the borrower's debts.  Chapter 7 is a relatively quick liquidation process that is generally completed within 120 days.  Chapter 7 cases are rarely dismissed.  (Source: FNMA Announcement 08-16 Q&A, 8-13-08. )

Q 5.  What is the difference between a Chapter 13 dismissal and a Chapter 13 discharge?

A  A borrower who files a Chapter 13 can dismiss the case at any time (voluntary dismissal) or the case may be dismissed by the court based on the borrower's failure to comply with the requirements of the Bankruptcy Code or to make the required payments. If the borrower who files a Chapter 13 case makes all of the payments required by the plan, the borrower receives a discharge at the end of the plan.  A borrower who doesn't make all the payment required by the plan may still receive a discharge if the court finds, among other things, that the borrower made a certain amount of the payments and the borrower's failure to make all of the payments was due to circumstances beyond the borrower's control.  (Source: FNMA Announcement 08-16 Q&A, 8-13-08. )

Q 6.  What are the requirements to re-establish a credit history?

A  After a bankruptcy or foreclosure-related action, a credit history must meet the following rquirements to be considered re-established:

^.  It must meet the requirements for elapsed time (as discussed in this article).

^.  It must reflect that all accounts are current as of the date of the mortgage application.

^.  it must include a minimum of four credit references.  At least one of the references must be a traditional credit reference, and one of the references must be housing-related.

(1) A housing-related reference must cover the period following the bankruptcy discharge or dismissal, foreclosure, or deed-in-lieu, and can be in the form of mortgage payments or rental payments.

(2) If rental payments wre not reported to the credit repositories, the lender must obtain copies of bank statements, money orders, or canceled checks for the most recent 12-month period as a supplement to the rent verification.

^.  It must reflect three of the four credit references, including rental housing references, as active in the 24 months preceding the date of the mortgage application.

^.  It must include no more than two installment or revolving debt payments 30 days past due in the last 24 months.

^.  It must include no installment or revolving debt payments 60 or more days past due since the discharge or dismissal of the bankruptcy or the completion of the foreclosure-related action.

^.  It must include no housing debt payments past due since the discharge or dismissal of the bankruptcy or the completion of the foreclosure-related action.

^.  It must include no new public records since the discharge or dismissal of the bankruptcy or the completion of the foreclousre-related action.  Public records include bankruptcies, foreclosures, deeds-in-lieu, preforeclosure sales, unpaid judgments or collections, garnishments, liens, etc.

(Source:  FNMA Selling Guide, 4-1-09 at 392. )

II.  Bankruptcy, Foreclosure, and Short Sale and the Impact on a FICO® Score

Q 7.  What is a FICO® Score?

A A FICO® score is a number representing the creditworthiness of a  person or the likelihood that person will pay his or her debts. The three credit reporting agencies, Equifax, Experian, and TransUnion, collect data about consumers in order to compile credit reports. The credit agencies use FICO® software to generate FICO® scores, which are then sold to lenders. Actually FICO® is just one of the several credit scoring systems available. The Fair Isaac Corporation (known as FICO®) created the first credit scoring system in 1958.  Others are NextGen, VantageScore, and the CE Score.  They all evaluate the creditworthiness of a borrower.  However, FICO appears to be the most-used credit scoring system.  A FICO® score is between 300 and 850.  The higher the better the credit.

Each consumer has three credit scores at any given time for any given scoring model because the three credit agencies have their own databases, gather reports from different creditors, and receive information from creditors at different times.

Q 8.  What factors go into determining a FICO® score?

A Credit scores are designed to measure the risk of default by taking into account various factors in a person's financial history. Although the exact formulas for calculating credit scores are closely-guarded secrets, FICO® has disclosed the following components and the approximate weighted contribution of each:

35% — Payment History – Late payments on bills, such as a mortgage, credit card or automobile loan, can cause a consumer’s FICO® score to drop. Paying bills as agreed over time will improve a consumer’s FICO® score.

30% — Credit Utilization - The ratio of current revolving debt (such as credit card balances) to the total available revolving credit (credit limits). Consumers can improve their FICO® scores by paying off debt and lowering their utilization ratio. The closing of existing revolving accounts will typically adversely affect this ratio and therefore have a negative impact on the FICO® score.

15% — Length of Credit History – As a consumer's credit history ages, assuming the consumer pays his or her bills, it can have a positive impact on the FICO® score.

10% — Types of Credit Used (installment, revolving, consumer finance) – Consumers can benefit by having a history of managing different types of credit.

10% — Recent search for credit and/or amount of credit obtained recently - Multiple credit inquiries for a consumer seeking to open new credit, such as credit cards, retail store accounts, and personal loans, can hurt an individual’s score. Applying for lots of new credit in a short period of time is also viewed as risky and can cause a drop in an individual’s score. However, individuals shopping for a mortgage or auto loan over a short period will likely not experience a decrease in their scores as a result of these types of inquiries.

(Source: http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx) 
 

Q 9.  How does a mortgage modification affect my FICO® score?

A FICO® credit scores are calculated from the information in consumer credit reports. Whether a loan modification affects the borrower's FICO® score depends on whether and how the lender chooses to report the event to the credit bureau, as well as on the person's overall credit profile. If a lender indicates to a credit bureau that the consumer has not made payments on a mortgage as originally agreed, that information on the consumer's credit report could cause the consumer's FICO® score to decrease or it could have little to no impact on the score.

(Source: http://www.myfico.com/crediteducation/questions/Mortgage_Modification.aspx)  

Q 10.  How does a bankruptcy affect my FICO® score?

A  A bankruptcy is considered a very negative event regardless of the type. A bankruptcy is factored into your FICO® score until it is removed from your credit report.  As long as the bankruptcy is listed on your credit report, it will be factored into your score. If you are considering bankruptcy as an alternative to foreclosure, keep in mind that it may have a greater impact on your FICO® score.

Typically, you can expect bankruptcies to remain on your credit report, from the date filed, as follows:

(1)  Chapter 11 and Chapter 7 bankruptcies up to 10 years.

(2)  Completed Chapter 13 bankruptcies up to 7 years.

These time periods refer to the public record item associated with filing for bankruptcy. All of the individual accounts included in the bankruptcy should be removed from your credit report after 7 years.  (Source: http://www.myfico.com/crediteducation/Questions/Bankruptcy-Types.aspx)

If you plan to file a bankruptcy, here are some things you should do to make sure your creditors are accurately reporting the bankruptcy filing:

(1) Check your credit report to ensure that accounts that were not part of the bankruptcy filing are not being reported with a bankruptcy status. 
 

(2) Make sure your bankruptcy is removed as soon as it is eligible to be "purged" from your credit report.

After a bankruptcy has been filed, the sooner you begin re-establishing credit in good standing, the sooner you can expect your FICO® score to rebound. A good practice is to obtain a secured credit card and continually make all of your payments on time. As time passes and the impact of the bankruptcy lessens, you might apply for a traditional credit card and also continually make all of your payments on time.

(Source: http://www.myfico.com/crediteducation/questions/Bankruptcy-Reach.aspx) 

Q 11.  How does a short sale, deed-in-lieu-of foreclosure. or a foreclosure affect my FICO® score?

A  The alternatives to foreclosure, such as a deed-in-lieu of foreclosure or a short sale, aren’t any better as far as a FICO® score is concerned.

The common alternatives to foreclosure, such as short sales, and deeds-in-lieu of foreclosure are all "not paid as agreed" accounts, and considered the same by your FICO® score. This is not to say that these may not be better options for you from a financial or tax perspective, just that they will be considered no better or worse for your FICO® score.

If you are considering bankruptcy as an alternative to foreclosure, that may have a greater impact on your FICO® score. While a foreclosure is a single account that you default on,  declaring bankruptcy has the opportunity to affect multiple accounts and therefore has  potential to have a greater negative impact on your FICO® score.

(Source: http://www.myfico.com/CreditEducation/Questions/foreclosure-alternatives-fico-score.aspx)

Q 12.  What won't affect my FICO® score?

A The following information is not considered by the FICO® scoring formula:

^.  Your race, color, religion, national origin, sex, or marital status
^.  Your age
^.  Your salary, occupation, title, employer, date employed, or employment history
^.  Where you live
^.  Any interest rate being charged on a particular credit card or other account
^.  Certain types of inquiries (such as promotional, account review, insurance or employment-related inquiries)
^.  Credit counseling
^.  Any information not found in your credit report
^.  Any information that is not proven to be predictive of future credit performance

At County Properties 23 years of brokerage experience and trust! We offer free counseling in real estate re; home values and information on options of selling vs Foreclosure.  If you have equity in your home, we will sell your home and get top dollar in this challenging market. If you do not have enough equity, and you must sell your property as a short sale we have the expertise to do so also. Please feel free to contact me today for free counseling at (619) 301-0200 or Toll free (866) 825-8124 visit our website, click  CountyProperties.net

 

By the way…if you know of someone who would appreciate the level of service I provide, please call me with their name and business number and I’ll be happy to follow up and take great care of them.

First Time and Previous Homebuyer Tax Credit Extended Into 2010!

Plus...A New Tax Credit for Certain Existing Home Owners!

It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.

In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

So Who Gets What?
The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.

Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Deadlines
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.

First-Time Homebuyer Tax Credit – Frequently Asked Questions
Here are answers to some commonly asked questions about the tax credit.

What is a tax credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.

What is the tax credit for first-time homebuyers (FTHBs)?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is eligible for the FTHB tax credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How do I claim the credit?
For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).

Can you claim the tax credit in advance of purchasing a property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.

Are there other restrictions to taking the credit?
Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.

• You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
• You do not use the home as your principal residence.
• You sell your home before the end of the year.
• You are a nonresident alien.
• You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
• Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
• You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.

Can you buy a home from a step-relative and be eligible for the credit?
Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.

Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?
Yes.

Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?
No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.

If you have any questions that fall outside the situations here, give me a call and if you do not have an accountant to speak with, I can refer you to one.Please feel free to contact me today for free counseling at (619) 301-0200 or Toll free (866) 825-8124 visit our website, click CountyProperties.net

By the way…if you know of someone who would appreciate the level of service I provide, please call me with their name and business number and I’ll be happy to follow up and take great care of them.

 

Credit account dispute could stall mortgage application

Some consumers with exceptional credit reports and high FICO scores are being denied mortgages by Fannie Mae’s automated underwriting system because there is a notation in the credit report that the consumer has disputed an item.

Under the Fair Credit Reporting Act, consumers are guaranteed the right to dispute inaccurate information on any account in their credit files.  Once a consumer disputes an item in their credit report, a notation to this effect is made in the file.  Until the notation is removed, most credit-scoring system generally will not factor the disputed item into the computation of the consumer’s score.

However, with the recent surge in companies claiming to “clean up” and “erase” blemishes on consumers’ credit reports, some lenders are finding that these credit companies are disputing accurate, but negative items, hoping the consumer will qualify for a loan before the dispute is resolved.

 

Applications that are denied through Fannie Mae’s automated underwriting system, which is used by virtually all lenders doing business with Fannie Mae, are sent back to the lender for manual underwriting.  It is then up to the lender to determine and document whether the disputed information is accurate and underwrite the borrower’s credit accordingly.

 

If you would like to get loan information from recommended banks, or get started and view all homes, condos, investment properties, pre-foreclosures, bank owned foreclosures (REO's) or thinking of selling your property, please visit our website at: County Properties San Diego or County Properties Riverside

By the way…if you know of someone who would appreciate the level of service I provide, please call me with their name and business number and I’ll be happy to follow up and take great care of them.

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Breaking News new and old homebuyers tax credit

According to the Associated Press, Senators have agreed to extend the

tax credit for first-time homebuyers and to offer a reduced credit to

some repeat buyers.

 

Reportedly, Senators agreed to extend the existing tax credit for

first-time homebuyers while offering a reduced credit of up to $6,500

to buyers who have owned their current homes for at least five years.

The tax credits would be available to buyers who sign sales agreements

by the end of April 2010. They would have until the end of June to

close on their new homes.

 

This is a preliminary report, details and conditions may change as the

legislation becomes finalized. We will give more details as they

become available.

For informational purposes only please speak to your accountant or

attorney for details.

 

If you would like to get loan information from recommended banks, or get started and view all homes, condos, investment properties, pre-foreclosures, bank owned foreclosures (REO's) or thinking of selling your property, please visit our website at: County Properties San Diego or County Properties Riverside

By the way…if you know of someone who would appreciate the level of service I provide, please call me with their name and business number and I’ll be happy to follow up and take great care of them.

 

County Properties new business partner from Bank of America Home Loans

We are proud to announce County Properties new business partner Rose Batacan a loan officer with Bank of America Home Loans.  Rose has over 22 years experience in real estate lending. Having worked in so many different capacities has provided Rose with the experience and know how that allows her to help borrowers of all levels buy a home or refinance with confidence.  

 

Contact:

Rose Batacan
Bank of America Mortgage Loan Officer
3400 Central Avenue, Suite 300
Riverside, CA 92506

Direct: (858) 926-9245
Fax: (866) 905-3546
click here to contact Rose
 
Welcome to Bank of America Home Loans, my name is Rose Batacan. As a Mortgage Loan Officer, I have a wide range of mortgage choices, competitive rates and flexible terms and conditions, as well as online tools, so you can find the mortgage solution that best fits your needs. You can Pre-Qualify online in minutes.

 During my 22 years of experience in the mortgage industry, I have shared my expertise to personally assist numerous families with responsible and affordable home financing. I have an extensive background assisting first time homebuyers, high net worth borrowers, low-to-moderate income borrowers, self-employed borrowers, investment borrowers and our local heroes: Police, Firefighters, Teachers and Medical workers and a great deal of experience in:

  *Affordable mortgage lending

  *Conventional loans

  *Government lending

  *Non-conventional "Jumbo" lending

I contribute my time to the community by supporting: Special Olympics and Housing Agencies.

 

Integrity is the cornerstone of my business. I believe a mortgage should be about building relationships, and helping my customers achieve their home financing goals, not just a transaction. As a Bank of America Mortgage Loan Officer, I take a consultative approach to the home loan process by customizing each home financing solution to help customers achieve their home financial goals. Many loan officers can get you a loan. My mission is to get you the right loan.

 

If you would like to get information from County Properties, or get started and view all homes, condos, investment properties, pre-foreclosures, bank owned foreclosures (REO's) or thinking of selling your property, please visit our website at: County Properties San Diego or County Properties Riverside