Not all California lenders are created equal when it comes to the state's newly implemented foreclosure prevention act launched early last week. It is being reported that 7 lenders have been provided immunity, and several others have made application to become immune.
Among the first 7 qualifying and found exempt from the act are:
Bank of America Home Loans
CitiMortgage
Carrington Mortgage Services
Among qualifying criteria for bank exemption is participation in the "Making Home Affordable" program promoted by the Obama administration.
California has been heavily impacted by the number of foreclosures in the current housing crisis, with more than 365,000 foreclosures in the last two years. Sacramento logged in 37,000 of these.
The implementation of the foreclosure prevention act was seen as a tool to help quell those numbers. While some homeowners may be helped, many real estate professionals view the act as only delaying the inevitable.
GreatWest GMAC Real Estate professionals are often asked by Home Buyers if home sellers age 55 or older were still allowed a once-in-a-lifetime tax exemption of up to $125,000 in sale profit. That is no longer true. On May 7, 1997, the tax law on home sales changed.
If you live or dwell in the house for two of the five years before you sell, the IRS won't collect tax on sale profit of up to $250,000 if you're single or $500,000 if you and your spouse file a joint return.
Currently the law rewards people who sell frequently. In this current market, homeowners who sell every couple of years can benefit.
Still, remember to always keep track of what you paid and what improvements you make. The improvements add to your home's basis, which you subtract from the sale price to determine your profit and whether any of it is taxable.
For important tax questions it is advisable to seek the advice of a tax professional or CPA.
The State of California rolled out a new foreclosure prevention Act this Monday. This action brings into effect a ninety-day moratorium on home foreclosures. Before implementing foreclosure, banks must prove they have tried to assist troubled homeowners modify loans.
The new law is titled, "The California Foreclosure Prevention Act." It is estimated there have been 365,000 foreclosures in California since 2007.
It is hoped some homeowners may be helped by this act via modification of their mortgages with reduced interest rates and other measures providing remedy. However, some real estate experts suggest this act only works to delay the inevitable.
For homebuyers, this development will further shrink the supply of bank owned properties, leaving "short-sales" as a primary source for home buying inventory.
Are you a Renter wondering about the benefit that can come from Home Ownership? Here's some things to consider:
(1) Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, and some of the costs involved in buying your home.
(2) Gains. Between 1998 and 2002, national home prices increased at an average of 5.4 percent annually. And while there's no guarantee of appreciation, a 2001 study by the NATIONAL ASSOCIATION OF REALTORS found that a typical homeowner has approximately $50,000 of unrealized gain in a home.
(3) Equity. Money paid for rent is money that you'll never see again, but mortgage payments let you build equity ownership interest in your home.
(4) Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
(5) Predictability. Unlike rent, your mortgage payments don't go up over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will rise.
(6) Freedom. The home is yours. You can decorate any way you want and be able to benefit from your investment for as long as you own the home.
(7) Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.
A number of GreatWest GMAC Real Estate professionals are noticing that the cost of gasoline has risen substantially in the last few weeks as we approach summer.
While exploring internet, and looking for the cheap gas prices, several resources were found which may help you as well.
Today is a day of remembrance. It is a day where we honor those who lost their lives for ours. We honor the men and women who stand up against all odds so that we may continue living our lives at home in peace. They fight for our honor, they fight for our justice, and they fight for our freedom. GreatWest GMAC would like to pay tribute to these individuals for all they have done for us, and our country. Thank you for everything.
Sincerely,
Brodie Stephens Executive VP GreatWest GMAC (916) 481-3400 x 166
GreatWest GMAC Real Estate professionals are certainly noticing there hasn't been a home-buying opportunity like what we are currently experiencing in a very long time.
Many times folks interested in buying a home are somewhat cash strapped for cash to use as a down payment, or closing costs. High gas prices, and the increases in food costs are not helping efforts to put extra cash aside for obtaining the dream of home ownership.
However, there are some things you can do today, which can aid you in your ability to remedy that.
Summer is the time of year most families are planning vacations. There are some really cool ways you can save significant amounts of money, which can be diverted to a "down payment fund" to procure a home.
For an example, if you are a family of 4, planning on flying somewhere, consider driving instead.
Recent comparison pricing for a trip to San Diego from Sacramento, round-trip flight was over $200.00 per person ($800 for the family).
Compare a rental car instead, and it soon becomes clear that the approximate $200.00 weekly fee for a mid-sized SUV - Even with the cost of gas, is quite a savings!
Also, since you have a car, you can take along a cooler. Instead of eating all your meals out, you can pack some of your own foods - and especially drinks, which can add up to considerable savings in a hurry!
There are some resources on line to help you locate the cheapest gas prices in any area you travel. http://gasbuddy.com has a really easy to use website, that can help you with that.
There is also a website to provide helpful tips on saving gas with your driving habits. It is provided at: http://fueleconomy.gov
Driving at 70 mph rather than 55 mph can cost you 17 percent in lost fuel economy.
Also, rather than staying at a hotel, you may wish to rent a vacation home from an owner. There are several websites, which provide access to this type of lodging:
Another more important tip for a family vacation in a bad economic year, or when you simply wish to set aside funds for a more important goal - such as obtaining a new family home, is to set your sights on a location closer to home, or to go on a camping trip instead.
Perhaps, this year you can decide to delay the luxurious trip to the Bahamas, and opt to head for a campsite in one of California's wonderful state parks and recreation areas instead.
The greater Sacramento area is particularly blessed with being within a short distance to some of the most beautiful and delightful areas on the globe. Within a couple hours, you can be in Half Moon Bay (campground available), Aptos Beach, Capitola, Bodega Bay - the list goes on and on!
The cost of a campsite is much less expensive than a hotel. And the savings in gas from staying closer to home can boost that home down payment by significant amounts.
In addition to vacation cost savings, there other ways, which can aid you in quickly saving money for purchasing a home.
Written for GreatWest GMAC Real Estate" by: Myrl Jeffcoat
GreatWest GMAC Real Estate Welcomes Betty Huntington
Now affiliated with our Roseville Office, Betty is a lifelong Greater Sacramento Native. She has a Real Estate career spanning more than three decades.
She specializes in all property in Sacramento, Placer and El Dorado Counties.
Betty can be contacted at GreatWest GMAC Real Estate Roseville Office 2235 Douglas Blvd., Suite 520 Roseville, CA 95661
We here at GreatWest GMAC would like to reach out and thank all of the Mother's in our lives. We appreciate the hard work taking care of a family, being there when things get tough, the warm food in our bellies, and the gentle love only a Mother could give.
You have been there for us since we were small, and you watch over us still as we grow older. Being a Mother is a task that demands such pride and responsibility. That is why we have a holiday just for you. GreatWest GMAC wants to say Happy Mother's Day, and thank you for being amazing.
Sincerely, Brodie Stephens- Executive Vice President Great West GMAC Real Estate (916) 481-3400 x166 brodiestephens@greatwestgmac.com
GreatWest GMACreal estate professionals have been noticing the Sacramento housing market has been stabilizing. About 80% of the foreclosure market is completed, and sales have doubled in number since a year ago. It appears that the housing market declines of the past months have began to slow, rather than plunging from an airplane without a parachute.
According to analyst, John Burns, Sacramento's new home supply has shrunk more than other markets he tracts. Mr. Burns also touts Sacramento housing affordability, and the ability to get mortgages. However he does go on to say that unemployment could deter in this recovery. But all in all, John Burns article is bullish on housing for our area.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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