SOUTH BAY 2015 STATE OF THE NEIGHBORHOOD

Happy New Year! 

After "zipping" into 2015, I listened to the President give the “State of the Nation” address and was thinking…what’s the state of my neighborhood? Have you thought about what actually happened in your little world last year and what you’ll be doing about it in 2015? Personally my little world is limited to the South Bay. It’s hard to process all the facts and figures of what’s happening across the nation when my family is more concerned with missing the chicken breast sale at Albertsons this week, but I digress…Here are a few thoughts to ponder…

 The Satellite/Cable bills keep getting larger even though the level of service continues to decline. Since we need them just to watch regular TV stations, they think they have us cornered. 2015 is going to begin a new era for us and for them in terms of digital programming. We’ll see who laughs last.

 According to the well-sourced rumors, Los Angeles may be getting its own football team (or maybe two) soon but it's still totally uncertain where that team would play. There are three potential stadium sites—in Downtown, Inglewood and the City of Industry. Then there's a fourth in Carson. Two unnamed teams have shown interest in a 172-acre property near the 405/110 interchange that today hosts Victoria Park and a golf course. The site is owned by LA County and sits on a former landfill. I wonder if they will have to pipe in an evacuation system like we have in Rolling Hills Estates and Torrance for people living on that landfill in Country Hills and in those condos off Rolling Hills Road. Hmmm!

 2014 was definitely the year for Neighborhood Watch roll outs and the beginning of people getting involved in onsite venues like “Nextdoor” to catch up on neighborhood news. Of course they also got to snitch (water wasters) and bicker (parking issues) and sell their wares (anyone interested in two very cute baby goats?) Eventually we’ll figure out how to serve the original purpose which was to help us keep our neighborhoods safe and sane. Looking forward …

 Interest rates are in the 3’s so if you’re interested in refinancing, now would be a great time. First time buyers should be jumping up and down. remember when rates were double digit? Take advantage before the government decides to do something about its multi trillion dollar deficit.


Blessings for a safe, healthy, happy
and prosperous 2015!




Charlie Hoffmann
TeamSouthBayRealty
Broker/OwnerBRE Lic # 0769985
310-378-4440

CharliesNeighborhood.com

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

Perspective - Perspective - Perspective!

As a Realtor, I have to keep reminding myself not everyone views life as I do.  For example... interest rates today are so low they seem silly to me.  Maybe that's because I started selling homes in 1979 when interest rates were 16-17%.  We couldn't even get loans on most of the homes then and had to use "creative financing" to close those escrows.  Every sale closed with a major party for me and the buyer or seller!  And celebrate we did ... it seems amazing today as we remember how happy we were just to be able to put together a transaction in those times ... sometimes you don't know what you don't know and it doesn't matter.  We all visualize things differently and therefore we all see the outcomes from those perspectives.  I was walking my beautiful Great Pyrenees dog the other day and was stopped by a lady walking down the street toward us.  "What an amazing animal that it is" she remarked.  "It looks like a wolf walking down the street."  I laughed - you should look at her from behind I said, from this angle with her long legs and dewclaws she looks like a hooker in high heels.  We both laughed.  How different she looked from each perspective.  

I was working with a first time buyer showing homes this month.  He was so excited and worried as he looked at each home we were previewing from the perspective of what it would be like to live in that house, in that neighborhood and with that mortgage.  We looked at quite a few homes over a few weeks and finally we found one that seemed to appeal to him.  We parted ways for the weekend and regrouped on Monday.  I asked him which home he liked best out of three we saw the previous week.  I started with helping him remember how the houses appeared from the street, how big the garages were, how many bathrooms and then he stopped me.  "I know" he said "which one I really liked."  Which one? I asked - he hesitated for a moment and then explained  "I liked the one with the kittens the best - remember the kittens in the backyard?  I hope they are still there.  That was the house I liked the best."  I laughed because I remembered the kittens too, they really pulled at our heartstrings knowing someone had left them behind.  But the big surprise was how he was processing all the previews and what made him remember his favorite house.  He remembered the home quite well too but his trigger was the kittens.  

I try to remind myself to slow down and smell the roses from time to time but sometimes the greatest help is to stop and try to see the world through someone else's eyes for a change.  It can make such a difference.   

Blessings for a wonderful summer!  

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

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

 

 

 

 

 

 

 

 

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 





TEAM SOUTH BAY ADDS A NEW FAMILY MEMBER!

September 2012 News

After decades of home delivery of our Newsletter to thousands of homes, starting October 2012, Team South Bay News is going GREEN!  We've been encouraging everyone to update their email addresses so we can send our Newsletter directly to their box each month.  You can send your updates to Charlie, Team South Bay Realty (dot com)

Another News Item...

Charlie Hoffmann & Rod Russell  "Tied the Knot" on the bow of the Lady Hornblower in Marina Del Rey last month.  Marilyn North, the bride's sister, performed the Nautical Nuptials and Anne Antletz was the Maid of Honor.  A small family affair, everyone played a part and some guests said it was the best "party of the year."  Here are a few pics... 




Marilyn Marries Her Sister



And, If You EVER Do Anything To Hurt My Sister....



Sis and Little Bro

To Dah Boat To Dah Boat...



All Over But The Shouting



The KISS

Best Man Holds Court

First Dance






















My Fabulous Florist and Maid of Honor (and Dan too)



Thank You to My Wonderful Friends and Family for all your help and support.  And Thank You to my Amazing Husband who is "steady as she goes" through all manner of weather 

Love You all ...mean it!  :)

Financing Foreclosed Homes

 A "not so beautiful day in the neighborhood" for some homeowners today. Living next door to a boarded up home after foreclosure is not anyone's choice. Even with the price being way below market value (also not a blessing for the neighbors) the problem generally lies in being able to finance a severely distressed property. There is an answer that a lot of folks are over-looking in today's market. That is the old 203K loan. Still viable, available and a real good way to purchase that "fixer property" and have enough money to make it habitable.

Foreclosure properties, especially those with the water and power turned off, may not qualify for standard financing, but may qualify for a federally insured 203(k)loan. Buyers who are going to "owner occupy" the property and do not have enough money to purchase a foreclosure home using cash, may qualify for the federally insured 203(k) loan, which allows borrowers to roll projected rehab costs into the loan.

Since most foreclosure properties are sold "as is" and, oftentimes, heating, plumbing, and/or electric are problematic or inoperable, it's unlikely a conventional lender will lend money on the home. With a 203(k) loan, buyers generally employ an independent consultant hired by the Federal Housing Administration to review contractor cost estimates and architectural plans for things like whether the work will bring the property up to minimum standards, while not going overboard on improvements.

Buyers should be aware that not all foreclosure properties will be eligible. For instance, a partially built house that has never had a certificate of occupancy will require a construction loan of the kind that a commercial developer would use. We're also seeing more and more "unfinished remodeling job" homes today where the seller ran out of money and the building systems and/or structural definitions are lacking or insufficient. Those would require construction loans as well.

The interest rate on a 203(k) loan is approximately a quarter of a percentage point higher than on a standard FHA-insured loan, and a buyer also can expect to pay 1 or 2 points. Also, as with other FHA-backed loans, down payments may be as low as 3.5 percent, and loan limits apply. Currently, most FHA loans are capped at $729,750.

My friends at PACIFIC FIRST FINANCIAL will give you all the information necessary to investigate the 203K loan for your purchase. They also work with the CHF Platinum Program which is a Homebuyers Assistance Program featuring low interest rates and down payment along with closing cost assistance with Grants that do not have to be repaid. Call Sheila for the latest info at 310-214-9299.

Tote your toolbelt over to my office and I'll give you list of great opportunities in your neighborhood! We're always ready to work for you here at Team South Bay Realty, Your Realtors For Life!

Call 310-534-3940 or email: Charlie

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. 

IT'S RAINING INSIDE MY MASTER BATH!

The weather has finally begun to show signs of summer. June gloom is edging away and the sunny Southern California sun has finally begun her tour across the South Bay. The air in the mornings is crisp and clean. As I walk with my dogs through the tall Pine trees, everything smells fresh and sweet at 6:00 a.m. with temperatures in the low 60's. Lomita Pines Photos

Now it's about Noon ... the sun begins to beat down ... and beat down... and beat down... and temperatures rise and my dogs find shelter on the cool stone floors, begging not to be put outdoors. I begin to remember those hot summer days I used to frolic through when I was 10. Now they create rivulets of sweat coarsing down my back but I digress...It is definately summer. 90 degrees+ Not normal!


Here in the South Bay we enjoy very mild weather patterns. We are actually quite spoiled by the weather. The cool breezes off the ocean or the harbor (depending on which side of the Peninsula your home is attached) keep us quite comfortable. We rarely use air conditioning. We pride ourselves on our conservative use of electricity in the summer.


At 5:00 I did it! I turned on the air conditioning. I just wanted to cool things down a tad before getting prepared for an evening event. Just a few hours of air conditioning usually do the trick. About 7:00 I headed for the master bedroom to get ready to go out. I walked into the master bath and there was a new "water feature" not unlike the one in my patio, but upside down so to speak. Water was not dripping but pouring from the light fixture in my bathroom. My brain went into shock as I tried to figure out what would cause such a thing to happen. The dogs and I watched for a few seconds and then it hit me. It had to be the air conditioner. The furnace is poised right above the bath. I pulled open the attic door and sure enough, water was pouring from the condensation tubing which should have been entering the drain provided for it's collection. I rushed to shut down the air conditioner and gathered up a mop and towels and started cleaning up the new lake in my bathroom.


Since this is the beginning of the summer season for many of you, my story is meant as a reminder. Many of us have not used our air conditioner for six months or more. Many things can occur in that period of time. The drains get clogged, The tubing escapes from the fittings. Mold has formed in the tube or drain. Remember to remind your clients (and friends and husbands or wives) that summertime is a good time for a air conditioning "dust and clean." We change the filters and vacuum the vents but we don't think about the fragile mechanical parts until something like this happens. It's not a bad idea to have the air conditioning people take a peek and make sure you're ready for the season! Flooding does not help to cool the house in the summer ...

By the way, if you need a few recommendations for help around the house, check my Business Referral Directory and let them know that Charlie sent you - they'll take good care of you!




Good luck and God Bless. Let me know if you have any helpful hints for homeowners preparing for the summer season.


Charlie


Team South Bay Realty

What is a Certified Distressed Property Expert?

All markets have a certain percentage of homes or homeowners who are distressed. Distressed could reference the condition of the property, the state of the homeowners finances, the reduced value of a property because of poor market conditions...there are many variations. In a healthy market one can expect about 1 to 3% of properties/homeowners to be "distressed." In some areas today, distressed properties may number as many as 1 in 10.

Here in the South Bay area we are quite fortunate. We are experiencing somewhere in the area of 1 in 75 homeowners facing either some loss of income, property in foreclosure (or currently behind in payments) or mortgages adjusting to sometimes double the original monthly payment. Our values have declined but generally only 25 to 35% (varies from city to city.) This is good news for us geographically. For a homeowner who just lost a job and is facing an increase in his/her mortgage payment because of an adjustable rate mortgage at a time when their value has decreased possibly under their loan balance, the news is not so great. Many times, these homeowners try to work with their lender (loss mitigation departments) to work out a payment plan or rewrite their loans for lower payment amounts (with the owed balance tacked on the back end.) Check Government Site: http://www.makinghomeaffordable.gov When the lender can't help and the homeowner must sell the home to avoid foreclosure, my expertise as a Certified Distressed Property Expert applies. In working with a "short sale" (loan balance is higher than market value) the first thing a homeowner must do is put their property on the market. Homeowners must choose a Realtor who has the specific training to work with the lender and help them through this process in the most efficient and painless way possible. Call me for a free confidential consultation to help determine whether you, a friend or a loved one may be a candidate for a "short sale."

In my next few blogs, I will be going through some additional information to help distressed property owners. In the meantime, I will be putting together a new website http://www.TeamSouthBayShortSales.com and will be posting information on the website to answer some of your questions, especially the biggest question regarding FORECLOSURE vs. SHORT SALE.

Call anytime for no obligation information: 310-534-3940