Gov. Schwarzenegger has signed Assembly Bill 183, the Homebuyer Tax Credit legislation, into law. This bill provides $200 million in tax credits for qualified first time home buyers in California.

It involves a credit of 5% of the purchase price not to exceed $10,000 . To qualify you must be a first time home buyer of a new OR existing home and the sale must occur between May 1, 2010 and December 31, 2010 or after December 31, 2010 until August 1, 2011.  This credit will be applied in three equal installments over three consecutive years and the buyer must live in the property for two years or will have to repay the credit.

 The bill received wide support on all sides and is expected to generate some economy stimulus via construction repairs and rehabilitation to the homes as well as retail sales of  items for home improvements.

Almost 40 percent of first-time home buyers say they wouldn't have bought a home if the federal tax credit for first-time home buyers was not available to them, per C.A.R. research done last year. The positive effect of these home buyer tax credits is obvious.

California's former home buyer tax credit program for new home purchases had such a favorable outcome (particulaarly in the Ventura County Real Estate Market) that it depleted the tax credits by the end of June 2009, eight months before it was to expire and just as the state's housing markets seemed to be making a comeback.  Unlike last year's legislation, AB 183 includes a tax credit for the purchase of an existing home by a first-time home buyer.

There likely will soon be a tax credit of 5% of the purchase price not to exceed $10,000  for home buyers in the state of California. To qualify you must be a first time home buyer of a new  OR existing home and the sale must occur between May 1, 2010 and December 31, 2010.  

The bill received wide support on all sides and is expected to be signed by Governor Schwarzenegger.

We've all heard that phrase resonate throughout our industry as we deal with the banks and try to pick up the pieces for our clients in desperate need of a loan modification or short pay. (Advil, anyone?) The newspapers and high end politicians blithly tout the virtues of these programs to the public (really?) and have little idea as to what's truly occuring in the trenches. 

The reality is a lot of unfair treatment by banks on loan modifications, short pays or foreclosures....Some of it simply defies common sense. We all have some nightmarish stories and it doesn't seem to be abating.  

From my recent blog, "Ventura County Realtors are in the process of forming a focus group (Realtors, lenders, escrow officers, etc.) to present to Congresswoman Lois Capps and Representative Elton Gallegly. Both have expressed a desire to meet with us and provide a package of these stories to higher political offices."... We now have dates.

March 8, 2010 10 AM     Please join us to contribute your experiences so we can formulate our presentations. I know you all have at least one! (Held at Aliso Escrow.)

March 18, 2010 9 AM     Meeting with Rep. Gallegly's office (Held at VCCAR office) 

March 24, 2010 9 AM     Meeting with Congresswoman Capps office (Held at VCCAR office)

We need to create a groundswell of awareness with the people who have the power to exert some pressure on the lending institutions to expedite the processes. If you don't sell Ventura County Real Estate, you can get the ball rolling in your own area.

 Give me a holler if you want more information- more to follow!

Does the real estate market and it's challenges weigh heavily on you sometimes? Does your soul want to scream George Carlin's "Seven Words You Can't Say On TV"? Of course it does.

Of course there are those magic moments in our career that make our hearts go pitter-patter and we realize this is why we forge ahead and do what we do for a living. Ah yes, but one never knows when that will be. In the meantime we need to stay mentally healthy so we don't reach through the phone and strangle people some days, right??? They say keep smiling so when you get older all your wrinkles will be in the right place.

So take a few minutes for your mental health and take a look at this video. I promise you it is laugh out loud, slap your knee funny and will make your day better. The link below will take you to the video and comments page (which, by the way, you are welcome to make). Just be sure to scroll up to the video part and know that the show really gets started around the two minute mark.

Here's to your health!

http://www.vendoralley.com/2010/02/01/life-of-a-realtor-video/comment-page-1/#comment-866

Regarding unfair treatment by banks on loan modifications, short pays or foreclosures.... We all have some nightmarish stories and it doesn't seem to be abating.  

Ventura County Realtors are in the process of forming a focus group (Realtors, lenders, escrow officers, etc.) to present to Congresswoman Lois Capps and Representative Elton Gallegly. Both have expressed a desire to meet with us and provide a package of these stories to higher political offices.

Let me know if you'd like to contribute your experiences or know of someone who does. If you're not in our area, feel free to get on the bandwagon in your zone. It would be great if this could become a grass roots effort on our part as professionals.

Far too many elected officials are still looking through rose colored glasses.....

Just a reminder to City of Ventura residents that Saturday January 16th is a household Hazardous Waste Event. It's a good time of year to get rid of some of that old oil, paint, solvents, etc. you'll never use that's taking up space!

http://www.cityofventura.net/public_works/resources/environmental_services/res_hhw_q_a

It's truly a "no-brainer". Just make an appointment and drive through. They even unload it for you...

Let's keep our homes safe and our city clean!

                                                     First-time Homebuyer Tax Credit Extended

The U.S. Congress has approved a bill that extends and broadens tax credits that were set to expire this month. The bill extends the credit for contracts signed by April 30th and closing by June 30th.  

Income limits are expanded to cover more affluent buyers; couples earning up to $225,000 and individuals earning up to $125,000 annually now qualify. It also creates a new $6,500 credit for buyers who have owned their current home for at least five years. Homes worth more than $800,000 wouldn't be eligible.

President Obama is expected to sign the bill as early as tomorrow, although he may have his hands full with the Fort Hood situation...

The days of flagrant overbidding may be coming to an end- even for well qualified investors- unless it's an all cash offer. One of our local Ventura Real Estate Brokers who does a lot of business in REO'S has reported a new trend on the part of the seller/ lenders.

Typically, what we've seen with multiple offers is buyers offering far over list price and value just to be "the chosen one".  All the while you're head is straining from the HIGHEST AND BEST OFFER guessing game. The logic is that if it doesn't appraise, the seller will negotiate a lower realistic price rather than put it back on the market and start over.

I'll admit to being guilty of this because, after all, I have a selfish streak and I want MY buyer to get the property after I've written 8 realistic offers and gotten knocked out by those pesky over-bidders. It's particularly daunting if you have an FHA or VA buyer...(picture PeeWee Herman in the ring with Mike Tyson- not a pretty sight, eh?)

So now if they're considering accepting an offer absurdly over market value, they require the buyer to ammend out or delete the appraisal contingency and pay the price difference in cash if it doesn't appraise.

In all honesty, I'm surprised they haven't caught on sooner and it will be interesting to see how quickly the rest jump on the band wagon and level the playing for all.

I'd love to hear if any of you have had any experience with this yet!

Is the market still getting you down? Are you struggling to get in that Happy Place and keep on your Game Face? Ready to pull that short sale Negotiator who lost your file for the last four weeks through the phone lines?

Fear not! I have the perfect answer to your mental woes!   PLAY WITH YOUR FOOD!!!!

The merits of this treatment are as follows:

1. It's cheaper than a Shrink.

2. It doesn't have to come in at value.

3. You can use common household items. (i.e. It's inexpensive)

4. Doesn't need recharging and so eliminates the pesky daily task of finding the right charger.

5. The wine corks have to come from SOMEWHERE.

Any additional ideas my friends? Happy Carving and Happy Halloween!

I heard from one of my lenders recently that we may know in the next week of the fate of the First Time Homebuyer Tax Credit. There are a few possible tweaks to the current system if they renew it, such as:

• The current tax credit of $8,000 may be increased to $15,000
• Income restrictions may be changed or eliminated. At this time the maximum income is $75,000 for a single person  and  $150,000 for a couple.
• May be used by anyone, not just first time homebuyers. (Defined as someone who hasn't owned a home in the last 3 years.)
• 6 -9 month extension after the new bill is in place.

There are, of course, pros and cons if this occurs. (Like how much money can we print?) But I don't believe anyone can contest the fact that the current credit has contributed in large part to the increase in sales over the last several months- at least in the Ventura Real Estate market- which is a crucial component in the economic recovery.

Rumors abound like sad tales and short sales what the "powers that be" have up their sleeves. Any scoop out there in AR land???