Real Estate Information Archive

You want to buy a home, why?  While homeownership comes with many responsibilities that you need to be aware of, most financial advisers say there are also many advantages.
•   You'll have a place that is yours!
Homeownership provides shelter and security for you and your family. You can pass your home down to your children, and their children, creating security for generations to come. Read more…

Did you know?  The median value of home equity for homeowners was nearly 10 times the median value of stock wealth for stockholders at the end of 2007.
Among seniors, home equity makes up a large portion of portfolios, accounting for 26 percent of household wealth among all elderly and 59 percent among the low-income elderly in 2007. Read more…

Are you considering a short sale? In today's economic climate, many families are finding themselves in dire straits. The home that was once a blessing has now become a financial burden.
In an attempt to avoid foreclosure, which can reap havoc on one's credit for years to come, homeowners are searching out details on short sales.
In simple terms, a foreclosure is when, after defaulting on payments (typically after 3 months), an estate becomes the absolute property of the lender. And what's more, in some cases you, the homeowner, may also be responsible for "deficiency judgments." These mean if the sale of the foreclosed property doesn't satisfy the amount of the loan, you may be obligated to pay the difference. Read more…

Going somewhere? Get the best seat on the plane.

Good Morning, I read a great article the other day in the Wall Street Journal Markets section about how the current strength of the Dollar and the stronger U.S. economic data impacts the market that I would like to share with you. Here’s the link to the article, http://online.wsj.com/article/ahead_of_the_tape.html,  I hope you find it as interesting as I did.

Would you like to pay off your mortgage early? At a time when just about everyone knows someone who is unemployed or who owes more on a home loan than the house is worth, keeping extra cash someplace more liquid than a mortgage seems like a safer approach.

So is the case against extra payments closed for good, given that so many people have locked in rock-bottom mortgage rates for the long haul?

The answer depends on two things: how likely you are to leave the extra money in savings and how good it would feel to wipe your debt out years earlier than your mortgage requires. Read more…

IRS tells homeowners how to get tax relief if a lender forgives part of their debt. Generally, the Internal Revenue Service (IRS) treats debt forgiveness by a creditor as taxable income.  However, under federal legislation that took effect in 2007, certain home mortgage debt cancellations—such as loan modifications, short sales, or foreclosures—may be exempted from federal taxes.  Other exemptions are also available.

MAKING SENSE OF THE STORY FOR CONSUMERS

• Homeowners considering a loan modification, short sale, or foreclosure should note that the federal tax exclusion under the Mortgage Forgiveness Debt Relief Act of 2007 only applies to mortgage balances on a qualified principal residence and not on second homes, rental real estate, or business properties.
• The maximum amount of forgiven debt eligible under the 2007 law is $2 million for married taxpayers filing jointly and $1 million for single taxpayers.
• The debt reduction only can be for loan amounts used to buy, build, or substantially improve a principal residence, including refinance loans as long as  an increase in the total mortgage debt if any is attributable to renovations and capital improvements of the house.  However, if refinance proceeds were used for other personal purposes, such as paying off credit card bills, purchasing cars, or investing in stocks, then the mortgage debt attributable to those expenditures is not eligible for tax exclusion under the 2007 law.
• California homeowners who sold their house in a short sale or were foreclosed upon in 2009 still may have to pay state taxes on forgiven mortgage debt.  The California legislature did not extend the tax exemption for mortgage debt forgiveness for state taxes.  However, lawmakers are working on a bill that would provide the same tax relief on state taxes as the federal government currently offers. Read more…

Getting a home loan is a necessary part of the process of buying a home for most people. It can take extra work to get a good loan, but if you're familiar with the process and know what to look for, you can improve your prospects. 

Choosing a Mortgage 

• 30-year fixed rate: While a traditional mortgage typically has a slightly higher interest rate than an ARM to start with, it will not change over the life of the loan.<
• 15-year fixed rate: Identical to a 30-year fixed rate mortgage except for length, a 15-year fixed rate mortgage typically has a higher payment than a 30-year loan — but you'll pay less interest in the end.
• ARM: With an ARM, loans start off at a low interest rate which remains stable for a certain period of time and then is regularly adjusted until the mortgage is paid off. A 5/1 loan, for example, has a fixed interest rate for 5 years and a rate that is adjusted every year from then on out.
• Option ARM: Payments on an option ARM can vary by your personal preference. You can pay the full interest and principal due each month, pay just the interest or pay just a part of the interest. If you opt for the partial payment, the unpaid interest is added to the principal you owe.
• Interest Only: For the first five years of an interest only mortgage, you pay only the interest. Payments are low in the first five years and significantly more in the following 25. Read more…

Dogs or Cats?

David Lenarcic-

Although I currently have a cat and not a dog, I prefer dogs to cats.  I always had a dog growing up.  Cats do their own thing, where dogs are playful and trainable and can be your best friend

Brian Voigt-

Dog is the way to go. You can go for walks throw a ball play games etc.

Sheri Palade-

Dog and cat, I love them both!

Christy Voigt-

Dogs, the kids love them too!

What's the Best Restaurant in Paradise?

David Lenarcic-

In my opinion, Sophia’s is the best restaurant in Paradise.  I love Thai food, and their ingredients are always so fresh.  Well priced too

Brian Voigt-

Best restaurant: Sierra Nevada Brewery, not only great beer but outstanding food and no better building and atmosphere around.

Sheri Palade-

Best restaurant…I would have to say Outback Steakhouse because of the Bloomin’ Onion

Christy Voigt-

Happy Garden has GREAT Sushi

Governor signs home tax credit bill. Governor Schwarzenegger today signed AB 183 providing $200 million for home buyer tax credits.  The bill allocates $100 million for qualified first-time home buyers who purchase existing homes and $100 million for purchasers of new, or previously unoccupied, homes.

Eligible taxpayers who close escrow on qualified principal residences between May 1, 2010 and December, 31, 2010, or who close escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit.

This credit is equal to the lesser of 5 percent of the purchase price or $10,000, taken in equal installments over three consecutive years. Under the bill, purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state).  Buyers also must be at least 18 years old and be unrelated to the seller.  First-time buyers are defined as those who have not owned a home in the past three years.

To learn more about the California Home Buyer Tax Credit, click here

Option ARM mortgages still pose a risk. Inside the fallout from risky housing boom loans in Sacramento, one particularly notorious brand of mortgage, the option ARM, still looms as big potential trouble. Read more…

More homeowners are opting for 'strategic defaults' Underwater on their mortgages and angry at banks, more borrowers are choosing to hand over the keys, even if they can afford the payments. Read more…

Homeowners love their yards. They plant gardens, create cozy areas for entertaining, and install decorative elements that they’re as happy to look at from the kitchen window as they are from their chaise lounge. Read more…