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Jenny Talasazan's Blog

By Jenny Talasazan Realtor | Agent in San Diego County, CA
  • Mortgage Debt Relief Act Proposal and Extension to 2014? Are you taking advantage?

    Posted Under: Property Q&A in San Diego County  |  April 2, 2012 11:38 AM  |  1,106 views  |  No comments

    Are you getting the tax advantages that you need for your income. DO you know what you may qualify for. We always suggest talking to a CPA and a loan officer for all your needs. You may be losing thousands of dollars every year just because you DO NOT own a home. DO you know how you can save for retire ment. Do you know we can teach you how to get back on your feet. We can help you through these turbulent times. We want to know what is your "WHY" and h=ow can we get you there?

    December 31st of every year: Deadline to close escrow or pay interest and taxes for homeowner tax deductions.  Every year, homebuyers scramble to get escrows closed by the end of the year, so they can claim their prepaid mortgage interest (which makes up a good chunk of your closing costs), points and origination fees (another big chunk of closing costs) and any additional mortgage interest paid in the course of making monthly mortgage payments on the tax return they can file as early as January of the following year. 

    In the same vein, cash-flush homeowners who need some breaks from Uncle Sam should consult with their tax advisors about paying their January mortgage payment before the year is over. Because the January payment covers the mortgage interest charges for December, it is deductible and should show up on your mortgage interest statement from your lender if you get the payment in by their last business day of the year.  You might be able to get a similar tax boon by paying some of your property taxes early but, again, you should consult with your tax pro on this to put an action plan in place.

       Closing, funding, underwriting and wiring deadlines. Every real estate sale contract has a closing date in it, whether it’s a particular month/day/year or a simple statement like 30 days after the seller accepts the offer.  These dates are decreasingly met, as a rule, because of delays in obtaining appropriate appraisals, loan approvals or even green lights from a short sale lender or bank owned home’s asset manager. 

    That said, many transactions do have stringent closing deadlines, whether because:

    · the REO sale contract imposes a daily penalty on the buyer for a late close, or

    · the buyer or seller has personal reasons for needing to move in or out, or

    · a late close will require the buyer to bring in more cash for closing costs.

    So it's important for buyers and refi-ers to know what agents know: closing timelines are a little like domino effects.  The close date happening on time is dependent on a long series of other events taking place on time.

    For closing to happen on a certain date, the loan must fund on a particular date, and for that to happen, both sides must sign off on various documents on a certain prior date and the buyer must wire their cash into the escrow holder by a particular date (something that often requires an in-person visit to the bank during the workday, FYI).  When you get into contract on a home, sit down with your real estate broker or agent and your mortgage broker or banker to get a complete picture for how these end-of-transaction dependencies and timelines will need to be executed.  This will avoid the surprises, panics and timeline-destroying glitches that can happen when these dates and in-person appointments are not planned out in advance.

        Property Tax Appeal Deadlines.  In the last few years, millions of homes have had their assessed value reviewed and lowered, lowering their owners’ property tax bills in the process.  And some haven’t -- fortunately, every tax assessor I know of now has a fairly simple process in place by which a homeowner can protest that their home’s assessed value is higher than its actual fair market value, and appeal for it to be lowered.  Unfortunately, I’ve heard a number of homeowners complain recently that they just missed the deadline to appeal their home’s assessed value, and will now end up paying several thousand dollars in excess property taxes before the appeal process opens back up.

    If you own a home and think its market value might be lower than its assessed value, visit your county tax assessor’s website, stat, and educate yourself about the process and deadlines by which you must comply to appeal its assessment.

    Offer and Response Deadlines.  Some buyers approach today’s market with a bonanza-style approach, thinking that market dynamics will empower them to simply point, click and pocket whatever property they want, at whatever price they want. Reality check: there is a fair amount of competition among buyers to score the best properties at the best price points, and banks selling foreclosures have some serious unilateral procedure and contract guidelines of their own. 

    It also behooves buyers, sellers and homeowners alike to keep a very close eye on the response deadlines that are contained in offers, counteroffers, short sale and loan modification documents they receive, especially if there is a bank involved on the other side. Many of the automated systems banks and mortgage servicers use to manage these documents will completely kill all the hard-won progress that has been made on your transaction, application or request if your response is not entered on time.

        December 31st, 2012: Expiration of Mortgage Debt Forgiveness Relief Act (unless extended). Normally, if you lose a home to foreclosure or settle a home loan for less than the balance owed on it through a principal reducing loan modification, short sale or other settlement, the lender is required to report the amount of cancelled debt to the IRS as taxable income.  That would mean if you lost a home to foreclosure, you could face the double-whammy of having to pay thousands of dollars for the privilege of doing so in the form of income taxes.

    In light of the housing recession, though, a federal law was enacted exempting the vast majority of such homeowners from taxation on their forgiven mortgage debt in cases of foreclosure, short sale or loan modification: The Mortgage Debt Forgiveness Relief Act. That’s the good news.  The bad news is the Act is set to expire the last day of this year, which means that if you lost your home or closed your short sale or loan modification after December 31st, you might face hefty taxes on it.  Given the timeline it is taking banks to foreclose on homes, decide on loan mods and greenlight short sales, if you haven’t already put a negotiation into play, it’s possibly too late to do so and definitively meet this deadline, but you should certainly get a move on.

    Fortunately, the President has proposed that this deadline be extended through 2014, and it seems likely that Congress will take him up on this proposal.

     Contingency Removal Due Dates. Most buyers these days negotiate some sort of contingency into their home purchase contract.  A contingency is simply the right to back out of the deal, and the most popular home buyer contingencies empower buyers to bail if:

    · the property has condition problems that are revealed by the buyer’s inspections,

    · the property doesn’t appraise for the agreed-upon purchase price, and/or

    · the buyer’s loan falls through.

    Contingency periods – the timeline in which the buyer has the right to back out, without losing their deposit money or incurring other liability – run from the date the buyer and seller both agree in writing to the terms of the sale through the contingency deadlines set forth in the contract.  These contingency deadlines, the date by which the buyer must either exercise their contingencies (signing a form backing out of the deal) or remove them (signing a form letting the seller know they plan to move forward with the transaction, waiving the right to back out, and often increasing the buyer’s deposit and/or making any existing deposit non-refundable) are negotiable, but typically run anywhere from 7 to 20 days post-contract signing.

    For a buyer, the contingency timeline is a flurry of inspections, appraisals, responding to loan underwriter requests and the like. It’s critical to keep an eye on the calendar so that you can remove them on time or request an extension in advance, if necessary, avoiding demands and drama with the seller.

    Objection Period Expires.  Here’s where contingencies go wild, people – some states and almost all REO/foreclosed home sale contracts in every state turn the whole contingency process on its head.  They allow buyers to back out for a time, for certain reasons, but if the buyer doesn’t proactively object or back out by the end of this ‘objection period,’ they lose the right to do so, and may lose their deposit or incur additional liability if they try to cancel the deal later.   

    You can see why this is essential timeline to track. If your inspections and repair estimate gathering, appraisal or loan approval look like they might run past this deadline, you absolutely must secure an extension of this time period or be prepared to make a decision whether to move forward or back out of the deal by the time it runs out, all things considered.


  • Next Foreclosure Wave Coming: Reason for Alarm?

    Posted Under: Foreclosure in San Diego County  |  April 2, 2012 11:31 AM  |  450 views  |  No comments

    Next Foreclosure Wave Coming: Reason for Alarm?

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    -A A +A
    Daily Real Estate News | Monday, April 02, 2012

    Economists have been warning that a flood of foreclosures will soon be hitting the real estate market, likely this summer. Increases in foreclosures traditionally pull down nearby home prices. So should home owners be worried? 

    As of now, housing reports continue to show month-over-month drops in foreclosures. CoreLogic released a report late last week that showed completed foreclosures fell from 71,000 in January to 65,000 in February. 

    But as more banks look to clear a backlog of defaulting home loans from their books, economists say the public should expect a turn with foreclosures and the numbers are expected to soar in the coming months. Mark Fleming, CoreLogic’s chief economist, expects the wave to hit this summer. 

    However, Fleming doesn’t view the increase as a bad thing for the overall housing market. "I would like to see the pace increase, because that means we'll be able to work off the inventory faster," Fleming told AOL Real Estate. He says that recent improvements in the real estate market and economy may mitigate any traditional downward pressure seen on overall home prices by foreclosures.  

    In fact, despite an increase, Fleming still expects home prices to rise in some markets.

    RealtyTrac has predicted that completed foreclosures will jump 25 percent this year, reaching 1 million.

    "All of this will result in more foreclosure pain in the short term as some of the foreclosures that should have happened last year instead happen this year," Daren Blomquist, vice president of RealtyTrac, said in a public statement in February. 
    From Realtor Magazine!

  • Washington- 40 states have signed to draft......

    Posted Under: Home Buying in San Diego County, Financing in San Diego County, Foreclosure in San Diego County  |  February 7, 2012 11:11 AM  |  753 views  |  No comments

    WASHINGTON (CNNMoney) -- More than 40 states have signed on to a draft settlement with the nation's largest banks aimed at helping homeowners struggling with loans bigger than the value of their homes.

    But several key states -- including California, New York, Nevada, Florida and Delaware -- remain undecided, sources familiar with the negotiations tell CNN.

    ing settlement passed Monday with more than 40 states," said Iowa Attorney General Thomas Miller, who has been leading negotiations that have spanned nearly a year. "This enables us to move forward into the very final stages of remaining work."

    Attorneys general from California, New York and Delaware, who have all been cold to the deal in past weeks, are still talking with negotiators and may yet signal their participation, according to sources familiar with the talks.

    Attorneys general from Florida and Nevada also have issues, but are still at the negotiating table.

    "My office is continuing to review the intricate draft settlement terms and advocating for improvements to address Nevada's needs," said Nevada's Attorney General Catherine Cortez Masto.

    Federal officials and state attorneys general could announce -- perhaps as early as this week -- the deal with some of the nation's largest banks that could yield up to $25 billion for qualified homeowners. That would be more than any housing relief program has produced since the financial crisis began.

    Obama proposes new home refinancing plan

    Under the latest draft, about 1 million U.S. homeowners who are "underwater" on their mortgages -- with principal exceeding the home's value -- could be eligible for as much as $20,000 in relief of principal owed, according to U.S. Housing and Urban Development Secretary Shaun Donovan.

    In return, mortgage servicers in states that agree to the deal would get immunity from future state servicing and originating claims -- although homeowners could pursue claims against banks and states could still pursue criminal investigations, according to reports.

    Driving the deal originally were allegations that mortgage servicers cut corners and enlisted robo-signers that improperly foreclosed on homeowners. However, the deal under negotiation now wouldn't be able to return houses to those who have already been foreclosed on, according to reports.

    What the deal would do is ensure that mortgage servicers agree to communicate better, avoid delays and give homeowners who are late on mortgage payments a fairer shake.

    The big question is how much money would be available to help homeowners, but that depends on how many states agree to the deal. If all 50 states sign on, the mortgage servicing settlement has the potential to offer as much as $25 billion. But without California, the nation's largest state, the pot would be several billion dollars smaller.

    Last week, California's Harris and Attorney General Beau Biden of Delaware said the deal, as drafted, wasn't good enough for their states.

    New York's Schneiderman was tight-lipped about his participation when asked. Calls to his office on Monday weren't returned.

    Generally, the attorneys general have said they're worried they if they agree to the deal it would cripple their own investigations into mortgage cases.

    But California's Harris is more comfortable that the deal will leave her room to pursue her own investigations and lawsuits, a source close to the talks told CNN. However, she had not signed on as of Monday night.

    At least one consumer advocacy group, the Center for Responsible Lending, has said the deal -- while "no silver bullet" -- leaves room to hold banks accountable in other mortgage probes, said Kathleen Day, a spokeswoman for the nonprofit.

    The negotiations are between federal agencies, including the U.S. Department of Justice and the U.S. Department of Housing and Urban Development, as well as the state attorneys general and the five largest mortgage servicers:Bank of America (BAC, Fortune 500), Wells Fargo (WFC, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Citigroup (C, Fortune 500) and Ally Financial (GJM). A few other regional banks that service mortgages are reportedly considering signing on as well.

    The big banks aren't as keen to sign off on a multi-state deal that doesn't include immunity from mortgage servicing claims from California's and New York's attorneys general, said a source familiar with the deals.

    And left-leaning groups, including Move On and the New Bottom Line, are continuing to urge states to hold out for a big criminal investigation and a $300 billion settlement award.

    -- CNN's Jessica Yellin and Lesa Jansen, and CNNMoney's Erica Fink contributed to this report. To top of pagePOSTED FROM CNN MONEY

  • Credit Cleaning Tips

    Posted Under: Financing in San Diego County, Property Q&A in San Diego County, Credit Score in San Diego County  |  November 28, 2011 5:24 PM  |  1,403 views  |  No comments
     

    Below is some good information credit.  Feel free to pass this along to anyone you care about!

     

    Credit Cleaning Tips

    .  Review your credit report line-by-line, specifically search for errors, omissions, duplications, and "common name" errors.

    .  If you encounter errors, write out exactly what should be corrected and why. You are able to add 100 words or less to your reports on questioned items.

    .  You can find assistance through credit counselors which are available through the various credit bureaus.

    .  Federal law requires credit bureaus to contact all creditors on items where mistakes were made. According to the Fair Credit Reporting Act of 1971, if these firms fail to respond to you in writing within  30 days, they are obligated them to remove the disputed items from your records.

    .  Most merchants are willing to negotiate customized repayment plans for those that find themselves with considerable debt.

     

    Judgments, Garnishments, or Liens

    Liens, garnishments, etc., typically are indicators of an unstable borrower. Any judgments, garnishments, or liens must be paid in full. Prior to closing, proof that the judgment, garnishment or lien has been cleared must be obtained; this can be reflected through a clear credit report supplement or a paid receipt form from the creditor. IRS tax liens also must be paid in full. Standard property tax liens do not have to be recorded as paid in full since they are not yet due or payable. Also, the borrower is obligated to provide a satisfactory letter of explanation.

     

    Delinquent Child Support

    Child support payments must be brought current, and specific documentation from the credit reporting agency evidencing this fact must be in the file with NO EXCEPTIONS! Because of the seriousness of the delinquency/default, which in many states can cause incarceration, the A letter from the court or the legal authority responsible for collection in the city/state (e.g. district attorney, sheriff, etc.) is acceptable. A letter from an ex-spouse and copies of personal checks are not acceptable, nor is an agreed upon, but not yet completed, payment plan.

     

    Credit Bureaus:

    There are a good number of reporting agencies that can provide you your credit score. Three of the leading services for this are:

     

    Experian

    www.experian.com

    1-888-397-3742  Equifax

    www.equifax.com

    1-800-685-1111  Trans Union

    www.transunion.com

    1-800-888-4213 

     

    Give me a call if I may be of assistance to you and your business.  Have a great day.

    Info from Craig Piland posted with permission .

    Please call me for more reports that are free or an Ebook I wrote on short sales.A sk me about SB 458 and how to get rid of a second lien!

     

     
  • Loan Limits, will they affect your purchase or sale?

    Posted Under: Home Buying in San Diego County, Financing in San Diego County, Property Q&A in San Diego County  |  November 21, 2011 5:44 PM  |  1,414 views  |  No comments
     

    Last Friday, President Obama signed a bill that reinstates the recently expired higher loan limits that were in effect for FHA loans through Dec 31, 2013.  This does NOT apply for Conventional loans (Fannie Mae and Freddie Mac)  This means FHA loan limits will increase back up to $697,500 for San Diego county, and $729,750 for Orange county. 


    In economic news, Washington is having a tough time, the budget talks are not going well and the stock market is not getting the love, and mortgage rates are staying status quo to last week.  Simply put, I do not expect any big movements in rates this week, if anything, there is more downside than upside.
    content from Craig Piland posted with permission.... call us to see if buying a home is now a good time for you. We are also looking for inventory for cash buyers. Please call us if we may help you or someone you care about!
    Please go to my website for a free book I cowrote on shortsales.
  • Market Update

    Posted Under: Financing in San Diego County, Foreclosure in San Diego County, Credit Score in San Diego County  |  November 21, 2011 5:35 PM  |  1,398 views  |  No comments

    >> Market Update 

    QUOTE OF THE WEEK..."Our greatest glory is not in never falling, but in rising every time we fall."--Confucius

    INFO THAT HITS US WHERE WE LIVE
    ...Last week some observers felt there were signs home building may be starting to rise. October Housing Starts came in above expectations at a 628,000 unit annual rate. Off a mere 0.3% from the month before, starts are now up 16.5% versus a year ago. Single-family starts were up 3.9% in October, so the slight monthly decline was all from those very volatile multi-family units. Multi-family starts are actually up 88.6% over a year ago.

    Even better, Building Permits, which indicate where Housing Starts may be a few months out, were UP 10.9% in October, to a 653,000 annual rate. Over the last year, permits are UP 6.6% for single-family homes and UP 48.0% for multi-families. The total number of homes being built has increased three times in the last four months, after posting no increases from 2006 until four months ago. In line with all this, a national home builder index rose to its best reading since May 2010.

    BUSINESS TIP OF THE WEEK...The best way to handle a complaint is to quickly address it. Studies show this often makes a customer even more likely to come back.

    >> Review of Last Week

    WEAK WEEK...In last week's financial and economic news, all the stories seemed to be coming out of Europe. Coverage of the debt crisis continued, and was joined by concerns that economic growth was slowing, putting some of the more troubled countries on the brink of recession. All this Euro trashing sent our stocks on a mighty slide down, the market ending up with its worst weekly performance in almost two months.
     
    Over here, our Leading Economic Indicators (LEI) Index headed up, bolstering hopes for the U.S. economy. New jobless claims dropped by 5,000 last week, to 388,000, while Continuing Claims declined by 57,000, to 3.6 million. Some analysts feel November could be another month with respectable job growth. Retail sales rose for the fifth consecutive month in October and are 7.2% higher than a year ago. Vehicle sales in November are tracking at a 14 million annual rate. And consumer confidence was up for the third month in a row in early November.

    For the week, the Dow ended down 2.9%, at 11796; the S&P 500 was down 3.8%, to 1216; and the Nasdaq slid 4.0%, to 2573.

    The plummeting stock market help bonds somewhat. But economic data that beat expectations prevented bond prices from really taking off. The FNMA 3.5% bond we watch ended the week up .03, at $101.22. National average mortgage rates were little changed, according to Freddie Mac's weekly survey, staying at their recent extremely low levels.
    Content written by Craig Piland posted with permission
    please go to my site for a free qualification if you are struggling with little or no equity and do not know what to do!
  • Double or Triple Dip?

    Posted Under: Home Selling in San Diego County, Foreclosure in San Diego County, Property Q&A in San Diego County  |  November 9, 2011 11:18 AM  |  1,229 views  |  No comments

    The number of people falling behind on their mortgages increased over the last quarter for the first time since 2009, according to a new report by the credit bureau TransUnion.

    And while the news surprised many people, it came as no surprise at all to some mortgage experts, who have known for years that a wave of wildly risky mortgages written in the waning days of the mortgage boom would come back to haunt the American economy in 2011.

    That means the mortgage market meltdown that began in 2007 is headed for a double-dip, and likely won't get resolved until 2015, says Dr. Joseph R. Mason, a banking professor at Louisiana State University and a senior fellow at The Wharton School.

    "These loans are the worst of the worst of the worst," Mason says of some of the riskiest sub-prime adjustable interest rate loans, many of which are now resetting. "These loans never should have been underwritten in the first place."

    [Article: Another Bad Idea to Help the Housing Market]

    Mason asserts that these loans are tied to the recent troubling mortgage numbers. The national delinquency rate of borrowers going 60 days or more past due on their mortgage payments increased to 5.88 percent during the third quarter of 2011, the first increase since 2009, TransUnion found. The rise in late payments came after six straight quarters of decline.

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    "We expected that trend to continue given recent, relatively more conservative lending policies and the apparent stabilization of both home values and unemployment," Tim Martin, chief of U.S. Housing for TransUnion, said in a press release.

    The company blames the increase on a variety of factors.

    "In the third quarter, the consumer was hit with several unanticipated shocks, including the U.S. credit rating downgrade, stock price declines, European debt concerns, stubbornly high unemployment, more downward pressure on home values and low consumer confidence," Martin said.

    Sure, none of those things helped. But according to Mason, the real cause is much simpler than all that. Pure and simple: It's the loans themselves. In 2006 and 2007, lenders had largely run out of qualified borrowers to buy homes. But banks and other lenders were still making lots of money from fees generating by selling mortgages to individual homeowners, and other fees from bundling those loans together and reselling them to investors.

    To keep that pipeline of cash flowing, many allege that banks threw lending standards out the window (economist Kathleen Engel covered this trend in her book "The Subprime Virus"). Some of the riskiest loans were called Pay-option ARMs. In this case, "ARMs" stands for "adjustable rate mortgages," in which the interest rate fluctuates over time. There's nothing necessarily risky about that.

    The risk comes in the "pay-option" part, Mason says. Typically these loans gave borrowers the option to make minimal payments at the outset of the loan. Not only did they not have to pay toward the principal, they didn't even have to pay all the interest as it accrued. This "teaser" period usually lasts five years.

    The practice helped people get loans they couldn't actually afford, Mason says, adding that many such borrowers were spending 40 percent of their incomes to pay down credit cards and other forms of debt before they ever bought a house.

    "These loans were already defective right from the start," says Mason. 

    What do you think ? Is there a triple dip coming?

    Article from ABC news!

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