$18,000 Homebuyer Tax Credit!

$18,000 IN COMBINED HOMEBUYER TAX CREDITS FOR A LIMITED TIME

Californians have a brief window of opportunity to receive up to $18,000 in combined federal and state homebuyer tax credits. To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive. Buyers who are not first-time homebuyers may use the same timeframes to receive up to $16,500 in combined tax credits if they are long-time residents of their existing homes as permitted under federal law, and they purchase properties that have never been previously occupied as provided under California law.

Under the federal law slated to soon expire, a first-time homebuyer may receive up to $8,000 in tax credits, and a long-time resident may receive up to $6,500, for certain purchase contracts entered into by April 30, 2010 that close escrow by June 30, 2010. Additionally, under a newly enacted California law, a homebuyer may receive up to $10,000 in tax credits as a first-time homebuyer or buyer of a property that has never been occupied. The new California law applies to certain purchases that close escrow on or after May 1, 2010 (see Cal. Rev. & Tax Code section 17059.1(a)(4)). California law generally allows buyers of never-occupied properties to reserve their credits before closing escrow, but buyers seeking to combine the federal and state tax credits will not be able to satisfy the timing requirements for such reservations (see Cal. Rev. & Tax Code section 17059.1(c)(1)(A)). Other terms and restrictions apply to both tax credits.

Super Clean!

One of the nicest homes on the market...

3715 Monogram

3 Bedrooms / 2 Baths / 1,441 SQFT
$499,900

(N/Wardlow & E/Los Coyotes)

Call today for a private showing.

Tax Relief For Lender Debt Forgiveness

IRS tells homeowners how to get tax relief if a lender forgives part of their debt

Generally, the Internal Revenue Service (IRS) treats debt forgiveness by a creditor as taxable income. However, under federal legislation that took effect in 2007, certain home mortgage debt cancellations—such as loan modifications, short sales, or foreclosures—may be exempted from federal taxes. Other exemptions are also available.

MAKING SENSE OF THE STORY FOR CONSUMERS

• Homeowners considering a loan modification, short sale, or foreclosure should note that the federal tax exclusion under the Mortgage Forgiveness Debt Relief Act of 2007 only applies to mortgage balances on a qualified principal residence and not on second homes, rental real estate, or business properties.
  
  
• The maximum amount of forgiven debt eligible under the 2007 law is $2 million for married taxpayers filing jointly and $1 million for single taxpayers.
  
  
• The debt reduction only can be for loan amounts used to buy, build, or substantially improve a principal residence, including refinance loans as long as an increase in the total mortgage debt if any is attributable to renovations and capital improvements of the house. However, if refinance proceeds were used for other personal purposes, such as paying off credit card bills, purchasing cars, or investing in stocks, then the mortgage debt attributable to those expenditures is not eligible for tax exclusion under the 2007 law.
  
  
• California homeowners who sold their house in a short sale or were foreclosed upon in 2009 still may have to pay state taxes on forgiven mortgage debt. The California legislature did not extend the tax exemption for mortgage debt forgiveness for state taxes. However, lawmakers are working on a bill that would provide the same tax relief on state taxes as the federal government currently offers.

Governor Signs Home Tax Credit Bill

Governor signs home tax credit bill

Governor Schwarzenegger 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.

Are Interest Rates Set To Rise?

Info from The Wall Street Journal...

Nabbing a bargain-basement mortgage before rates rise
The Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac since early last year. The purchase program has helped maintain low interest rates for borrowers. As planned, the Fed this week announced it will stop purchasing these securities at the end of this month. Many analysts anticipate this will result in a slight rise in rates by year’s end.

MAKING SENSE OF THE STORY FOR CONSUMERS

• Interest rates have hovered at or near historic lows for much of the past 18 months, resulting in lower payments for many borrowers. With the Fed discontinuing its purchase program, some analysts believe a rise in interest rates could range from 0.25 percent to as much as 1 percent by the end of 2010.
  
  
• The federal tax credit for home buyers also is scheduled to end April 30. The tax credit combined with the expectation interest rates will increase has created a sense of urgency for many home buyers. In fact, 23 percent of California home buyers purchased a home in 2009 due to the perception that interest rates will rise and they would be priced out of the market, according to C.A.R.’s 2009 Survey of California Home Buyers.
  
  
• Rising interest rates will have an effect on home buyers. For example, a qualified couple with a combined pretax income of $100,000 per year and debt obligations (excluding mortgage) of $500 who receive a mortgage rate of 5 percent could qualify for a loan of up to $590,000, assuming a 20 percent down payment. If the interest rate were to rise to 6 percent, as analysts at Barclays Capital predict, the same couple could only qualify for a mortgage of $540,000.


Read the full article: http://online.wsj.com/article/SB10001424052748704655004575113711943683500.html?mod=WSJ_Real+Estate_LeftTopNews

New Traffic Light on Palo Verde

From The Gazettes.com:

New Light Helps Protect Cubberly

By Shereen Oca
Staff Writer

Published: Wednesday, March 17, 2010 4:18 PM PDT

The intersection at Palo Verde Avenue and East Metz Street long has been a site of concern for Fifth District residents and city officials.

David Roseman, traffic engineer for the city, and his team have been monitoring the intersection for nearly 10 years. He said residents have complained that vehicles traveling on Palo Verde frequently exceed the posted speed limit of 35 mph and fail to stop for pedestrians crossing the street — many of whom are students who attend Cubberley, a K-8 school located five blocks east of Palo Verde and Metz at 3200 Monogram Ave.

(A crossing guard is there to assist them before and after school.)

Over the last few years, Roseman said the city has upgraded the crosswalk’s signage and marking and increased street lighting. However, he said the changes didn’t make much of a difference. So, the city decided to install a traffic signal, which cost roughly $120,000, at Palo Verde and Metz. On March 3, it was turned on. “The traffic signal is really making a number of improvements,” Roseman said. “Hopefully it will reduce speed through the better control of traffic and make access to schools and the neighborhood easier.”

One of the traffic signal’s features is a special mode called “rest in red.” During the evening, the traffic signal will be red in all directions, and if a vehicle is speeding as it approaches the intersection, the signal will not turn green immediately.

Roseman said the signal will force drivers to slow down or stop.

“The speed limit is 35 mph,” Roseman said. “It wasn’t uncommon to see speeds 15 mph over that, especially during off-peak hours in the evening, mid-day and early morning. Hopefully with the new (signal), we will be able to keep speeds closer to that 35.”

Paul Bauer, a Fifth District resident, has been advocating for a traffic light at Palo Verde and Metz for about seven years. His 11-year-old son attends Cubberley, and before the light was installed, either Bauer or his wife would walk their son to and from school every day. Now, he said he feels comfortable letting his son walk to school alone.

“We’ve noticed big change in speed limit,” Bauer said. “A majority of the traffic has slowed down… I’m still concerned, but I feel 99% more confident.”

In addition to the traffic light at Palo Verde and Metz, the city has installed or is in the process of installing signals at other troubled intersections: Atlantic Avenue and 11th Street near the St. Mary Medical Center; Long Beach Boulevard and 67th Street at Starr King Elementary School; and Studebaker Road and Los Arcos Street at El Dorado Regional Park.

“Each year we go through and evaluate these crosswalks,” Roseman said. “We’re trying to be proactive… We’re trying to get pedestrian accidents down as far as we can.”

Hazardous & E-Waste Round-up

Too Toxic to Trash
Household Hazardous and E-Waste Round-Up

Saturday, March 27, 2010
9:00am - 3:00pm
Long Beach City College Veteran's Stadium
Clark Ave. and Conant St.

Dispose of household hazardous waste and e-waste the right way on Saturday, March 27, 2010.

• Pack household hazardous wastes in a cardboard box so that it does not spill during transport. Be prepared to leave your containers.
• Put like chemicals together. Separate unlike chemicals.
• Label materials that are not in their original containers.
• Make sure containers are not leaking and lids are tightly sealed.
• Put your box of household hazardous waste in the trunk of your car, away from passengers during transport.
• At the collection site, trained personnel will ask you to remain in your car while they remove the household hazardous waste from your trunk.

There is a transportation limit of 15 gallons or 125 pounds of hazardous waste per trip.

For a complete listing of what you can and cannot bring or info on the event contact (888) CLEAN-LA or www.888CleanLA.com

Want To Pay Off Your Home Loan Quicker?

Homeowners wanting to pay off their mortgage earlier than planned can do so by making extra principal payments. One extra full principal and interest payment a year will reduce a 30-year loan to about 17 years, and adding the following month’s principal payment to the current one will cut the loan almost in half. It is important that borrowers tell their lender the extra money is to be credited to principal. Homeowners should keep records of their payments and review it once a year to be certain the lender has followed directions.

Fast Facts

Fast Facts

Calif. median home price: January 2010: $287,440 (Source: C.A.R.)

Calif. highest median home price by C.A.R. region January 2010: Santa Barbara So. Coast $760,000(Source: C.A.R.)

Calif. lowest median home price by C.A.R. region January 2010: High Desert $124,480 (Source: C.A.R.)

Calif. First-time Buyer Affordability Index - Fourth Quarter 2009: 64 percent (Source: C.A.R.)

Mortgage rates - week ending 3/4/10 30-yr. fixed: 4.97 Fees/points: 0.7% 15-yr. fixed: 4.33% Fees/points: 0.7% 1-yr. adjustable: 4.27% Fees/points: 0.6% (Source: Freddie Mac)

Open House on our New Listing

Please stop by our open house this Sunday.
We will be there March 14: 1pm - 4 pm.
Please stop by and say hi.



3232 Conquista
(S/Wardlow & W/Palo Verde)
4 BR / 2 BA / Pool / 1,801 SQFT
$599,900

This home is gorgeous!!

Long Beach Schools

Below is a link to a petition to re-introduce a measure to the ballot to keep LBUSD schools funded. Please read the petition. If you agree with it please sign it and forward to your friends, families and colleagues in Long Beach . The petition needs to get to the superintendent of LBUSD by this Friday because the measure needs to be reintroduced by the following Friday in order to make it on the ballot!!

http://www.thepetitionsite.com/4/save-our-schools-long-beach-unified-school-dist rict