Thanksgiving 2013

This has been a rough year for several of my friends.  My friend Limi's son Leo accidentally shot himself in the eye with a pellet gun (something our parents have always warned about.) He lost the sight in his eye and the pellet is lodged in his brain.  He is paralyzed on his left side.   Another friend has a brain tumor that had been in remission for the past 10 years and reared it's ugly head again.  At the same time, her husband is preparing for a triple by-pass.  Meanwhile another close friend just found out her dog has cancer.  All this at the same time and right before the Holidays. 

My husband and I were thinking about how lucky we are the other day.  He was preparing his annual Thanksgiving gratitude and blessing request for our upcoming feast.  He was also going over our prayer list for all our friends and loved ones going through hard times.   We realized how grateful we really are just for our common everyday lives, filled only with mundane trials and tribulations.    My husband is very familiar with the pain of long term illness and the total disruption of the entire family's lives and sanity with just the initial diagnosis.  His late wife had gone through a long term illness and her pain and passing is recalled easily with others' stories. 

With Everyone in our prayers, we are focused this year on Gratitude and Thankfulness for so many things...

 

One of my agents fought breast cancer and WON this year - she is now cancer free! Thank You, Thank You, Thank You! 

My husband had some minor surgery that has made a big improvement in his health!

 

We found a "forever" home for a wonderful little bulldog that had been terribly neglected!

We watched all my husband's grandchildren grow healthy and strong!

We helped several people save their homes from foreclosure! 

We found "dream homes" for quite a few first time buyers!

My husband finally finished his storage shed (albeit it looks more like a "man cave" than a storage shed.) 

We were able to feed and clothe our families and even help feed a few less fortunate!

My friend Annie (87 in Jan) is still walking with me and the dogs EVERY morning - 7 days a week!

My sister and her husband were able to sell their condo and move in their remodeled  "Pool" house! 

My Nephew Noah graduated High School and is embarking on a career as a chef and my friend Cathy's two boys are now attending USC - don't even ask about the tuitions! 

We all managed to get through another year in California without the BIG ONE!

My dogs are all happy and healthy even though they are all on "mature dog" kibble. 

We spent some great quality time with our friends!

Of course I can add a lot more to this list but you get the picture.  As we look forward to Christmas and the New Year, let's look back and count our blessings ..it doesn't hurt to pay it forward either! 

Happy Thanksgiving Everyone! 

We are very grateful for all our friends and neighbors.  Blessings for a safe, healthy and joyous Holiday season. 

Please keep our friends Limi & KC,

 Leo, Gale, Jim and Lulu on your prayer list. 

Thank You!

 

Charlie

Team South Bay Realty

310-534-3940

 

 

My Dog Is A Good Sport And Loves To Please - Just Like Me...

My Halloween Bow

 Here it is Halloween again.  Of course I have to dress up my baby for the holiday.  She's seen here to the left with her Halloween bow - straight from the groomers - still intact.  Honestly, it won't last until Halloween but at least we tried.  

My St. Patty's Day Hat

Earlier this year, we gussied up the old girl for Saint Patty's Day.  You can see how excited she was.  

My Valentines Day Flower

Even earlier, it was Valentines Day and she was such a sweet gift.  

My Bunny Ears

But Easter was the topper!  She was "all ears" for that one.  It's amazing how patient our dogs are with us.  Always willing, always excited to please.  I wonder what goes on in their heads though...might be good not to think about that.

I don't think there is a National Dog Day but there should be.  They do deserve it.  Happy Haunting this month.  Take advantage of the government shut-down and get some stuff done while things are at a standstill.  You can see that's what I'm doing.  Don't worry, I'll make up for it in the fourth quarter.  

Meantime, if you know anyone that needs to buy or sell a home this month, call me!  I'm not shut down, I'm ready, willing and able to take care of business.  I want to set an example.  We're more than happy to make your home purchase or sale put a smile on your face or we'll eat a bug!  

Team South Bay Realty  310-534-3940

IS YOUR NEIGHBORHOOD SAFE?

Here in the South Bay we feel pretty safe and secure about our

neighborhoods.  We know the most important thing to consider when purchasing a home is always, location, location, location. 

But, what about other neighborhoods we may be considering for income property, vacation homes or helping one of our kids find their first place?   

Today, with the amount of information available online, crime statistics can be easy to find if you just know where to look.  Here are some helpful places to start...

 

Sex Offenders: Thanks to Megan's Law, determining if there are registered sex offenders in the area has never been easier. Simply Google "Megan's Law, (your city), (your state)," and you should see a list of available resources. You should be able to enter the address, neighborhood, town, ZIP code, or other identifiers that will allow you to see if there are any registered sex offenders in the area. Be aware that process may vary by state, and if you don't have any success with the keywords "Megan's Law," instead try "sex offender, (your city), (your state)."

 

Drugs: Has a property been used for drug sales or drug production? Was it ever a meth lab? It may be a bit tougher to find all the information you want, but there are options:

 

Google the address. If a crime had been reported there, some details may show up in the search, especially if it made the local paper or news channels.

 

Drive by in the evening or weekend (when people are most likely around) and talk with neighbors. They can often be the best source for what happened in that home before it went on the market.


 Justice Dept. website Click on the map to view a list of counties and addresses where drug labs have been found.

Crime: Want to find out about stolen vehicles, robberies, and more? Below are three sites to help your buyers do that (besides the Daily Breeze, of course.) 


Trulia: To get an understanding of the overall crime statistics in the area, Trulia can be a good place to start. After entering the address in the search field, scroll down to the "Local Info" area and click on the "Crimes" tab. This information is also available for larger areas using the "Local Info" tab in the search area.
 

CrimeReports: This site allows you to see the types of crimes that occurred throughout the area. By clicking on the icons, you learn what type of crime was committed, where it was committed, and when it occurred.

SpotCrime is another site that works similarly to CrimeReports, though you may find more details on the CrimeReports site depending on the area.

 

Of course, call me for information on any property in Southern California.  I'd be more than happy to help you research and find a safe place to live, vacation, relocate or check out for the kids.  
Charlie :)
Team South Bay Realty

24214 Hawthorne Blvd. Suite B

Torrance, CA 90505

310-534-3940

GOT THE CREDIT REPORT BLUES?

 

MY CREDIT IS ALL MESSED UP! 

I hear complaints everyday from my clients about issues with their

credit reports.  The worst time to start dealing with these issues is when you are in the process of making a purchase.  It makes sense to check your credit report at least once a year and handle the mistakes as they come up.  The following information from one of my mortgage brokers should be helpful to get the ball rolling ... the process just got EASIER and FASTER. 

 

To get you FREE Credit Report you can check either of these two sites:

 

AnnualCreditReport.com

CreditKarma.com

After reviewing your credit reports, if you find any errors or discrepancies, you must first notify each of the credit bureaus in writing.  Then you can begin the process below. 

 

The Consumer Finance Credit Bureau (CFPB) now allows consumers to “directly dispute” misinformation by directly uploading their complaints on line.

 

"The Bureau has the power to conduct (costly) administrative reviews, levy fines and provide information to consumer rights attorneys for the sake of class action lawsuits".

 

To begin the complaint process click here CFPB 

Below are the most common examples of misreporting:

 

a) Information is “not creditor’s

b) Belongs to someone else, identity theft, fraud, etc.

c) Account terms are reported wrong

d) Creditor name/info, balance, payment, etc.

e) Account status

f) Paid bill on time, account closed, etc.

g) Wrong date of birth, address, etc.

h) Inaccurate public records (Bankruptcy, judgments, etc).

i) Reinserted (previously deleted) information

j) Credit Reporting company's investigation was flawed

 

To dispute an issue, the consumer must first order a credit report from each bureau and file a dispute for each derogatory item with the specific credit reporting bureau.

 

Once the bureau has reviewed the filing, they must (within 30 days) inform the consumer the results of their investigation.

 

Assuming the investigation is negative, the consumer should appeal to the CFPB for relief.

 

The uploading of any supporting documents online directly to the agency expedites ('starts" the clock ticking") the process by bringing pressure on credit bureaus, collection agents and credit vendors.

 

It's just easier for all involved to delete a consumer's derogatory item rather than risk sanctions.

 

Those documents are (but not limited to):

 

a) Incorrect part of credit reports, payment records, cancelled checks, court documents, birth certificates or other identity verification documents.

 

b) To add pressure I recommend the borrower/ buyer includes a cover letter (and subsequent purchase contract) explaining the sensitivity and timeliness of a quick response.

 

All too often unethical bill collectors target and pressure innocent borrowers and borrowers with common surnames, to pay illegitimate debts just to raise their credit scores.

 

Collection agents coldly calculate the pressure of losing an earnest money deposit (and the home) to bully innocent buyers into paying an (unjust) outstanding balance just to close escrow.

 

NOTE: If the debt is legit it’s CRUCIAL that the debt be paid ONLY thru escrow.

 

Charlie Hoffmann

Team South Bay Realty

310-378-4440

 

 

 

 

 

 

 

 

THE MARKET AWAKENS

Nothing stays the same forever, especially the real estate market.  Just like the stock market, what goes up eventually comes down and so goes

the circle of life. 

This month we've seen some great improvement in South Bay home prices.  We're slowly moving away from the Foreclosures and Short Sales (although we still may see more to come from the "shadow inventory" some of the banks are holding.)  Meantime, we're holding our breath - anticipating a interest rate hike - long overdue.  A lot of folks are still not convinced that now is the time to roll out their plans for moving into bigger homes or selling the family home which they've outgrown for something more manageable.  I suggest that NOW is the time to start moving forward.  We have a perfect blend - lowest interest rates in history accompanying comparatively modest home prices.  If you are trading up, the money you save on your "up leg" will more than make up for any lag in increased value for your present home.  It's all numbers. 

I'm sending out Market Update Profiles to all my clients over the next few months.  If you're not in my current database, call me and I'll do the same for you.  My job has always been to provide information so you can make an intelligent informed decision.  That starts with looking at the big picture and narrowing it down to how it will play into your life and family plans.  My husband teases me with my own mantra ... if you fail to plan you plan to fail!  We are now in a transitioning market.  Take advantage of the window and watch how these changes play into your goals and dreams. 
Of course, I can help you visualize and project whatever you have in mind.  Then when you're ready to move forward, I can help you make it all happen.  That's my job - your Real Estate Consultant For Life and all it brings...

Meantime, I have a little girl looking for a "forever" home.  She's a sweet 4 year old English Bulldog.  She plays with all my dogs (and cats) and has taken up a post as the best watchdog ever to earn her keep.  She needs someone who will walk her (she loves walks) and give her some attention (not that much but a little.)  She will return those favors ten fold.  Let me know if you or someone you know would like to adopt this wonderful companion pooch.  It's good Karma you know - doesn't hurt to pay it forward. 

Have a great month and please feel free to call me with any of your real estate questions. I'm here to help. 

Charlie :)
Team South Bay Realty
24214 Hawthorne Blvd. Suite B
Torrance, CA 90505
310-378-4440

SPRING HAS SPRUNG

and our Market Is On The Move!

4000Newton.com
 

Everyone is wondering what the 2013 real estate market will deliver.  So far, it looks like we have definitely bottomed out and are seeing significant increases in pricing in some areas already.  Some sellers are reluctant to put their homes on the market, worried they won't be able to get their price.  Of course that means fewer homes for sale and the competition can be fierce in the lower price ranges.  The sellers looking to move up in the market will benefit even if the pricing hasn't met their expected levels for their home sale.  The difference in purchase price on a higher value will make up for the lower sales price in most cases. 

Another important issue this year is interest rates.  So far we are still seeing the lowest rates in history for mortgage money.  That will change.  As the interest rates begin to rise, prices will be affected as the affordability for buyers will change.  Right now, we are even seeing 100% loans back in the market.  Unbelievable opportunity for financing right now if you have decent credit (FICO scores in the mid-600 range plus) and verifiable income.  Even those with distressed credit from previous short sales can benefit (must be longer than two years since recorded sale) as long as they have kept their spending to a minimum and paid all their accounts on time.  The financing is out there for everyone from first time buyers to jumbo refinances - take advantage while you can.

Some Fun Facts About the Market*

Who's Moving In The Next Two Years? 

48%  18-34 year olds

26%  35-49 year olds

16%  50-64 year olds

10%  65 and older

 

 

Team South Bay is looking for homes for our South Bay buyers!  If you are thinking about moving up or downsizing please give us a call.  We'll prepare a full market analysis for your home and neighborhood free of charge.  We also have a list of Income Property Buyers too.  Let us help you take advantage of this HOT real estate market. 

 

 

p.s. Dyna says the South Bay is

Heaven on Earth and we agree! 



*courtesy of the Demand Institute 





New Dog In Town!

All my friends know that Annie (my neighbor down the street, who is 85 years old this year and spry as a Spring chicken) and I walk my dogs every morning.  Annie is on my porch at 6:00 a.m. (which we refer to as O'Dark'30) and you can set your watch by it. We've been doing this for years now.  This keeps us both in shape and accountable to each other.  We walk 7 days a week, unless it's raining.  Each day is a new adventure for us.  We never know what to expect.  There is all manner of nocturnal life moving about at that hour.  We've had a few unusual encounters.

A few weeks ago, as we were getting everyone leashed up on the front porch, an additional nose was poking through the porch gate.  It seems that all stray dogs in my neighborhood show up at my house at some point because they are attracted to my Great Pyrenees, Dyna.  She's sort of the matriarch of the hood.  So, that didn't surprise me much.  Annie arrived and we started our walk with the new dog,  Our new guest didn't have any tags at all.  That's unusual.  When they do, we call the "parents" and escort them home.  "Buddy" which we began calling him, seemed perfectly content to just walk with us, enjoying our normal early morning frivolity.  When we returned, all the dogs headed inside for their morning breakfast - including Buddy.  He was not interested in going anywhere else. 

I posted flyers, checked the websites, called the neighbors and took Buddy to the vet to scan for chips.  Nothing.  A neighbor mentioned seeing someone let a dog out of a van in the early morning and the dog looked confused and afraid.  He thought it looked like our Buddy.  As a Realtor in this market in our times of economic downturn and confusion, I see a lot of animals abandoned.  Cats left in vacant homes to fend for themselves, dogs left chained in yards with no food or water.  Now some families who can no longer care for their pets have been dropping them off in good neighborhoods, hoping some family will adopt them.  The shelters have reduced the time between drop off and euthanaisa, which is also sad, but I digress. 

Anyway, Buddy has decided that I'm his new Mama.  He's a true "Heinz 57" variety pup.  Looks like a cross between a Beagle, a Dalmation with maybe a bit of Lab or Setter.  He has these big liquid brown eyes that follow you everywhere. He wags his tail as soon as you turn your head toward him. He gets along with all the animals, including my three recently adopted cats.  You can leave the gates or doors open and he justs sits down and waits for someone to notice.  He's moved in!  If you or someone you know has lost this wonderful dog, please let me know.  Otherwise, I guess three dogs and three cats are still manageable.   Buddy seems to be a special messenger that has chosen our family and me in particular, for which I feel very blessed.  My friend Ray, who is an artist, painted a beautiful painting which is hung in my office.  It's called The Messenger.  Ray says, sometimes in life we are the message and sometimes we are the messenger...makes sense. 

Charlie Hoffmann (Mother of six furry children)
Team South Bay Realty

DON'T FORGET ABOUT THE 203K LOANS!

Tis the time of vast foreclosure opportunities. Since most of these properties needs some fixing, don't forget about this little-known loan program for fixer-uppers.


Home buyers thinking of purchasing a distressed property in need of repair, but who are concerned that the cost of the repairs could drain their savings account may qualify for the Federal Housing Administration’s (FHA) 203(k) rehabilitation program.

KEEP THIS IN MIND

• The FHA’s 203(k) rehabilitation program provides loans for covering renovation costs as well as the purchase price of the primary residence. Investors are not eligible for this program. Additionally, similar to traditional FHA loan programs, the rehab program allows for a down payment of as little as 3.5 percent.

• A common misperception about the program is that the house needs to be unlivable. Realistically, the property just needs to be outdated, according to a lender familiar with the program. The property “just has to appraise below market value and then at market value with the repairs.”

• Improvements deemed “luxury” are ineligible; however, the program has a wide range of definitions for “repairs” and “modernization.” Covered repairs include items such as a new roof or heating system, as well as decorative changes, like replacing vinyl with ceramic tile on the kitchen floor or painting the interior.

• In addition to putting down at least 3.5 percent of the current value of the property, buyers also must use a HUD-approved lender, appraiser, and a contractor approved by the lender for the repairs. One list of approved businesses can be found at 203kcontractors.com.

• Borrowers considering the FHA rehab loan program should be aware that loan rates typically run around a percentage point higher than conventional loans, and come in 15- to 30-year terms, either fixed or adjustable. Additional paperwork for inspection, appraisal, title updating, and the like can increase closing costs by $1,000 or more higher than the average.

• For additional information about the FHA 203(k) rehabilitation program, please visit HUD 203K INFO

So if you're looking at a good buying opportunity but worried about how to find the money to fix it up, this is a great program for you.  Call me with any questions.  I have access to 203K approved contractors and lenders for this program.  It's worth your time to investigate the possibilities. 

Call Charlie, your friend in the Neighborhood with all your real estate questions.  If we don't have the answer, we'll find it for you!

OWE MORE ON YOUR HOME THAN IT'S WORTH? GOOD NEWS!

If you owe more on your home than it's worth, I have some good news for you! No Short Sale Deficiencies: Starting January 1, 2011, a seller's first trust deed lender cannot obtain a deficiency judgment against the seller after a short sale. Providing written consent to a short sale shall obligate the first trust deed lender to accept the sales proceeds as full payment and discharge of the remaining amount owed on the loan. This law applies to first trust deeds secured by one-to-four residential units, but does not limit the lender from seeking damages for fraud or waste by the borrower. Senate Bill 931. Governor Schwarzenegger vetoed Senate Bill 1178, our sponsored bill, which would have extended California's anti-deficiency protection to refinance loans.

If you owe more than your home home is worth and don't know what to do, call me, I can help! You can also check out my Short Sale Website for answers to some common questions in today's market.

As we near the Holiday season for 2010, please start thinking about ways to help some of our South Bay families in need this year. Although we are blessed to have fewer foreclosures and homeless families than most areas in the county, we still have friends and neighbors in need. If you have a request for your neighbor or friend, let me know. We are starting to collect Holiday Gifts for kids and food bank supplies for families. If you can contribute, please call and I will pick up. If you or a friend or neighbor needs help please let us know. We are here to support our community in any way we can!

TIME TO CANCEL TIME MAGAZINE

I’d always considered myself a centrist/conservative. Subscribing to Time Magazine is not something a “dyed in the wool” conservative would do. I appreciate hearing all points of view. That said, the August 30th issue with the cover question “Is America Islamophobic?” really got my dander up (that’s a Midwest phrase.) I spent 9-11-01 in Hawaii with 2000 people at a seminar, a good portion from New York. My roommate lived less than 1 mile from Ground Zero. Dozens of my attendee friends lost loved ones. We were stuck on the island. No flights in or out that week. We grieved together, cursed together and learned about each other on a much deeper level than could ever have been anticipated. The Time article particularly angered me. To cover that gripe I need the space of a book, not a blog.

Now I’m reading the September 6th issue, the front cover shouting “Rethinking Homeownership.” As a Realtor and Real Estate Broker I tried to review their information with an open mind. After all, I need to know what my clients are being told. That recalls another phase “Keep your friends close and your enemies closer.” When I finished their ludicrous article I didn’t know whether to laugh or cry. Their concept conclusion - Americans should trend toward dumping their homes and consider inner city living in cities where people can walk to work. The author envisioned urban areas becoming hotbeds of rental housing. Obviously, this writer is probably not a homeowner, certainly doesn’t live in Los Angeles and most likely will never earn a living as a writer except maybe for comedy.

Since most of my clients live near the beach or on the hill (Palos Verdes Peninsula) I’m trying to imagine leaving those homes behind and moving downtown. They could rent a flat (some buildings are currently converting to lofts.) They could walk to work (assuming they can find a job downtown.) They could also take the Red line to the Blue line to the bus station to the beach …problem with dragging those surf boards though. Perhaps this author lives in New York City. If that’s the case, I pray she lives in the same neighborhood as the intended mosque. Meantime, if you would like to downsize to a rental loft in the business district, please call me! I have many people trying to buy homes in the South Bay area. Somehow we have this strange conception that God is not making anymore Beach Front property. I suppose that will hold until the next “big” one drops us into Las Vegas, but I digress.

If you are a first time buyer NOW is the time to buy not rent. Interest rates are in the 4’s for heaven’s sake. If you have a paycheck and even if you have to commute to a job in East Butt Scratch, I suggest this is your window of opportunity. And if you’re short on funds, you can start saving money right now by cancelling your Time Magazine subscription!

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.

Governor    “I have been up and down the state pushing this important housing bill that will get people off the fence and into homes while creating jobs and stimulating our economy – and today I am proud to take action and put it into law,” said Governor Schwarzenegger. “Creating jobs is my number one priority and I am glad that I have been able to sign two job-creating bills in two days. I applaud the legislature for their great work and encourage them to keep it up and pass the remaining job-creating elements of my California Jobs Initiative.”

If you are a first time home buyer - call me!  Let's put you in escrow before all our First Time Home Buyer initiatives run out.  If you're a move-up Buyer, the clock is ticking on the $6500 federal tax credit for you this year as well. 

2010 FNMA LOAN LIMITS BY COUNTY IN CALIFORNIA

Wake up to some good news in 2010!  It's a piece of cake to trade up in this market.  Prices are low - interest rates are low and conforming loan limits are the highest they have ever been!  There is a great window of opportunity that is wide open right now.  Don't stay behind the curve and miss your chance to lock in a great deal on a home at historically low interest rates fixed for 30 years.  Also, don't forget the $8000 first time buyer credit and $6500 move-up tax credit for current homeowners.  They both require purchases by April 30th and closed escrows by June 30th 2010. 

If you're stuggling with your mortgage and want to sell your home - this is the right time to attract buyers too!  Check out the conforming loan list by county below.  Feel free to call with any questions and if you're thinking about moving out of your current area and need a great broker referral, let me know and I'll research the appropriate professional for you in your chosen city or county. 

1- Unit       2-Units        3-Units        4-Units

Los Angeles-Long Beach-Santa Ana                     
Component Counties: Los Angeles, Orange

$729,750 $934,200 $1,129,250 $1,403,400

Oxnard-Thousand Oaks-Ventura                          

Component County: Ventura

$729,750 $934,200 $1,129,250 $1,403,400

Riverside-San Bernardino-Ontario

Component Counties: Riverside, San Bernardino
$500,000 $640,100 $773,700 $961,550

San Diego-Carlsbad-San Marcos

Component County: San Diego
$697,500 $892,950 $1,079,350 $1,341,350
                  

Santa Barbara-Santa Maria-Goleta

Component County: Santa Barbara
$729,750 $934,200 $1,129,250 $1,403,400


                

I have the entire list for California by county.  If you don't see yours here, call or email and I'll send you the list for your area or any area of interest to you. 

If you think your property's market value may be below your current loan amount, call me and I can show you how to work with that issue as well.  I'm also a Certified Distressed Property Expert.   

Once we isolate the problem, we can always find a solution! 

Call Charlie @ Team South Bay Realty  310-534-3940 for all your real estate needs!

LOVE THY NEIGHBOR ...

Being a Christian, I love the Christmas season.  It brings hope and laughter and love, even in economic recessions.  It reminds us to be kind, faithful, patient.  After all, Jesus is the reason for the season! 

We think about our neighbors more during the Christmas season.  We reflect on their choice of decorations (indoor and outdoor.)  We listen more intently to their declarations (in church and out .)  We have expectations of their kindness and consideration.  We are reminded of bible verses and hymns. Unfortunately, we are also sometimes reminded of the old addage, "keep your friends close and your enemies closer."  This, my friends, is a "high profile" season.  Whether you're a shopkeeper, neighbor, relative, teacher, fellow student, employee, sports fan, politico or zealot of one sort or another, this season shines a light on you in so many, many ways. 

I recently wrote about my experience with a local business owner in my Facebook...how I felt wronged by his less than stellar business policy and questionable ethics...how I felt cheated by his treatment, not just financially but emotionally as well.  I pledged a vendetta of negative marketing as my revenge.  I had all the tools at my disposal.  I devised a plan to bring him to justice.  Then I realized how much energy it takes to wage such a war or to even envision it.  I began to rethink my plan.  How much better might it be to try to help people avoid being ripped off by simply educating them about the problem.  How short lived my vendetta would have been versus how long lasting and far reaching my informational tips could be.  I reflected on various ways to help others avoid being ripped off both during the Holiday Season and throughout the year instead. I relected on a quote by Isaac Bashevis Singer...

Life is God's Novel, Let him write it! 

In that decision was my clarity.  How we move forward in life is a statement of who we are and how we love.  In checking our own perspective, we can influence others as well.  As the cat in the photo teaches us, there's a lot more going on than we'll ever really understand individually.  With the help of our friends and neighbors and relatives and yes, even those who disparage us or rip us off, comes life's lessons to be learned and shared for their worth and value - as opposed to their pain and suffering.  In this season, as in all seasons, We Are Not Alone.  

God Bless Us Everyone and

 Merry Christmas!!

Oh, and by the way, if you want my recommendations for businesses and service people in the South Bay, please visit my Online Business Directory

and I'm NEVER too busy for your referrals!

Charlie and Team South Bay

Wish you a safe and joyous Holiday

 and a Prosperous and Engaging 2010!

First Time 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 also 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.


Frequently Asked Questions...

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 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.

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 I 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 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 additional questions about the First Time Home Buyers Credit or any other real estate related questions please call me anytime.  If your question needs to be answered by a CPA or tax preparer and you do not currently have one, I'll be glad t refer to you in my network. 

And of course, I am NEVER too busy for your business or referrals.  Please let me know how I may be of service to you with any of your South Bay or Southern California Real Estate Needs.  I also have a great network of brokers outside our area ready to handle your business as well. 

Firestorms 2009 Legal Issues from C.A.R.

The following information is brought to you courtesy of

The California Association of Realtors.

Many of us have experienced a loss this season or have friends or loved ones who have been impacted by the firestorms. I hope this information will be helpful in answering some questions regarding real estate transactions and the impact of the Firestorms on real estate contracts and personal obligations. This is not intended as legal advice or tax advice.

The seasonal firestorms we experience in California raise several legal questions for REALTORS® and their clients. The following questions and answers may be helpful for property owners and residents who have suffered a loss, or for buyers who are in escrow to purchase property involved in the disaster.

Q 1. What are the general rules concerning who bears the risk of loss in a real estate transaction where an "Act of God" or other disaster, such as fire, affects the property?
A If the purchase contract between the parties does not specify who is to bear the risk of damage or loss to the premises during the time between the execution of the contract and the transfer of title, the liability of the parties is governed by the California Uniform Vendor and Purchaser Risk Act (Cal. Civ. Code § 1662). Under the provisions of this statute (assuming no fault on the part of the buyer), the risk of loss or damage to the premises is carried by the seller until the buyer receives either title or possession. If all or a material part of the premises are damaged before title or possession is given to the buyer, the buyer can cancel the contract and recover any portion of the purchase price paid. It is not clear whetherthe buyer can alternatively elect to enforce the contract with a reduction in the purchase price equal to the loss of value or cost of repair. (Cal. Civ. Code § 1662.) After the buyer has taken possession or has received title,the buyer bears the risk of loss or damage to the premises (assuming no fault on the part of the seller). Therefore, if the premises are damaged, the buyer must still complete the contract and pay the balance of the purchase price. (Cal. Civ. Code § 1662.) If the purchase contract does contain a risk of loss provision, that provision will govern to the extent it is different from or more specific than the Uniform Vendor and Purchaser Risk Act (Uniform Act) (Cal. Civ. Code § 1662).
Q 2. May a buyer get out of a purchase contract under the Uniform Act if the damage or loss caused by fires to the property is minor?
A Probably not. The Uniform Act implies that the seller may still enforce the contract if the damage is not material. However, a purchase agreement may require the seller to repair such damage. For example, Paragraph 7A of C.A.R.'s Residential Purchase Agreement requires the property to be maintained in substantially the same condition it was in on the date of acceptance. Under this language, a seller could be obligated to repair fire-related damage to his or her property.
Q 3. May a buyer get out of a purchase contract under the Uniform Act if the damage or loss caused by fires to the property is major?
A Yes. To repeat, if (1) neither legal title nor possession has transferred from the seller to the buyer, and all or a material part of the real property is destroyed by fire, and (2) no express contract provision to the contrary exists, then, under the Uniform Act the seller cannot enforce the purchase contract and the buyer may cancel and recover any portion of the purchase price already paid. (Cal. Civ. Code § 1662.)
Q 4. If the damage is not severe, does the timing of the fires (whether they occur before or after an inspection) affect the right to cancel?
A Yes. If the damage occurs before the buyer has removed an inspection contingency in his or her purchase contract, the buyer can, of course, exercise any inspection, disapproval, and cancellation rights provided by the contract.
If the damage occurs after the buyer has removed his or her inspection contingency, the buyer generally does not have an automatic right to reinspect the property and approve or disapprove of its condition under most purchase contracts (including C.A.R.'s Residential Purchase Agreement). However, the seller may be obligated to repair the property. A purchase agreement may, however, require a seller to disclose fire-related information, which in turn may give a buyer a right to cancel a transaction, even if he or she has already removed contingencies. For example, Paragraphs 5A(3) and (4) of C.A.R.'s Residential Purchase Agreement provide that if,prior to the close of escrow, the seller becomes aware of adverse conditions materially affecting the property, the seller must provide a subsequent or amended disclosure or notice, which then gives the buyer a right to cancel the agreement.
Q 5. Must a seller disclose major fire damage that has not been repaired when attempting to sell the property?
A Yes. For sales of residential one-to-four unit properties, the Real Estate Transfer Disclosure Statement (TDS), Section II (Seller's Information), paragraph C.9, asks:
"C. Are you (Seller) aware of any of the following: . . . 9. Major damage to the property or any of the structures from fire, earthquake, floods, or landslides.______ Yes ______ No." (Cal. Civ. Code § 1102.6 (emphasis added).)
In addition, for both residential one-to-four unit and other properties, the seller is required to inform a buyer whether the property is located in a "very high fire hazard severity zone" (which has certain maintenance requirements) or a "state responsibility area" (which may contain substantial forest fire risks and for which the state has primary financial responsibility for fire prevention and suppression). (Cal. Civ. Code §§ 1103.2 et seq.) The disclosure of these and other natural hazard zones is discussed more fully in C.A.R.'s legal article, Natural Hazard Disclosure Statement.
For all types of property, the general requirement of disclosing known material facts affecting the value or desirability of property applies.
Q 6. Must a seller disclose the fact of a fire when there was no major damage to the property?
A Yes, if it is a material fact affecting the value or desirability of the property to the buyer. Even though the property may not have suffered major fire damage, the seller may be aware of other factsrelated to the fire that the buyer might not be aware of. Of course, a buyer must also exercise reasonable care to protect himself or herself in a real estate transaction, and is not excused from discovering problems that are within his or her diligent attention and observation.
Q 7. Must a seller disclose the fact of a fire when there was major damage to the property but it has been repaired?
A California law does not clearly answer whether a seller must disclose past property defects and repairs. At the present time, the law does not appear to require disclosure of past defects and repairs unless the problems may be persistent. In other words, a defect which has been fully repaired and no longer threatens the value or desirability of the property probably need not be disclosed. On the other hand, defects which are difficult to remedy and which may continue to plague the property may have to be disclosed. Given some uncertainty in this area of the law, many sellers may prefer to resolve doubts infavor of disclosure to minimize the risk.

Q 8. What are the tax effects of destruction of a property?
A Federal income tax law provides for the deduction of "casualty losses," which include destruction of property by "Acts of God" including fire, theft, and certain other types of losses. (See 26 U.S.C. §165.)
The following is a brief summary of the rules:
(1) For business property, the casualty loss is fully deductible. (26 U.S.C. §165(a).)
(2) For non-business property of individuals, losses from "casualties," including floods, earthquake, fire, storm, or other natural occurrences, are generally deductible only to the extent that the total of such losses exceeds 10 percent of the taxpayer's adjusted gross income for the year of loss. Any loss is deductibleonly by a taxpayer who itemizes deductions. Each loss is subject to a $100 floor. The amount of a casualty loss is the lesser of, (a) the difference between the value of the property immediately before and after the loss, or (b) the adjusted basis of the property immediately before the loss. (26 U.S.C. §165(c)(3) and (h).)
(3) If the loss results from a disaster that the President determines to be eligible for federal assistance, the taxpayer has the choice of deducting the disaster losses on his or her return either, (a) for the year in which the loss occurred, or (b) for the preceding tax year. (26 U.S.C. §165(i).)
See the Internal Revenue Service's website for more information. For a copy of the IRC code, go to U.S. Code Online and enter 26 for the title and 165 for the section and click on search.
Please contact an accountant or tax attorney for further details about the tax effects of fire losses on a particular transaction.
Q 9. Can a landlord or tenant terminate a lease or a rental agreement if all or parts of the premises are destroyed by fire?
A Yes. Under California Civil Code Section 1933(4), the agreement is terminated automatically if the entire premises are destroyed, unless the parties have agreed to something different. In the event the premises are only partially destroyed, the tenant can terminate the lease by notice to the landlord if the landlord had reason to believe at commencement of the lease or rental agreement that the portion destroyed was a "material inducement" to the tenant to enter into the lease (Cal. Civ. Code §1932(2)).Again, any contrary agreement between the parties will govern.
Q 10. Can a landlord collect further rent after the lease or rental agreement is terminated due to destruction of the premises?
A No. The obligation to pay future rent is extinguished when the rental agreement is terminated. However, a tenant may still owe back rent.

The information contained herein is believed accurate as of September 2, 2009. It is intended to provide general answers to general questions and is not intended as a substitute for individual legal advice. Advice in specific situations may differ depending upon a wide variety of factors. Therefore, readers with specific legal questions should seek the advice of an attorney.

Please call me with any questions ... if I don't have the answers, I'll get them for you! Let us know how we may be of service!