Garage Sale

Your neighbors are having a Garage Sale

Please visit them at:

6426 Keynote

Between Palo Verde & Los Coyotes / North of Wardlow


Saturday May 1

Checking On The Numbers

Watching the number of homes both for sale and in escrow in East Long Beach gives us a barometer on what is happening in our local real estate market. Obviously, a rising number of homes in escrow is a good sign of things. On the other hand, a rising number of homes currently for sale can have a depressing result on prices. We will be constantly watching these numbers and posting them here. As of today the numbers stand at:

Date	Homes On Market	Homes In Escrow
Apr 20	114	85
Jan 02	77	72
Nov 7	78	78
Oct 21	66	90
Oct 4	73	87
Sept 21	70	86
Sept 03	69	97
Aug 13	76	80
July 14	107	93
July 1	69	98
June 13	77	105
June 8	69	106
May 30	66	102
May 18	59	102
May 10	78	88

Please add your comments and questions below...

Good News for Consumers

A new California state law enacted at the eleventh hour allows residents to immediately exclude forgiven mortgage debt from their taxable income.

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The measure, "SB 401," permits most taxpayers to exclude canceled mortgage debt up to $500,000 on their primary residence resulting from a foreclosure, short sale, or loan modification. The limit is $250,000 for married/registered domestic partner individuals filing separately. It applies to debt forgiveness in 2009 through 2012, and mainly brings California into conformity with federal debt relief laws.

If you've already filed your tax return, but believe you qualify based on the new law, you can file a Form 540X (amended individual income tax return), and subtract the amount of debt relief from income. "To expedite processing, write "Mortgage Debt Relief" in red across the top of the amended tax return. Taxpayers must attach a copy of their federal return, including Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), with their state tax return."

More info at taxes.ca.gov

Time Is Running Out on Tax Credits

Federal tax credit update

Time is running out on the federal tax credits for first-time and repeat buyers. First-time buyers who enter a binding contract by April 30 and close escrow before July 1—and meet the income limits—are eligible for the full $8,000 credit (maximum, or 10 percent of the sales price, whichever is less) on their federal tax returns. The first-time home buyer credit applies to homes purchased for $800,000 or less, and does not require repayment if buyers live in the residence for three or more years.

Existing homeowners may be eligible for a tax credit (10 percent of the purchase price, not to exceed $6,500). To be eligible for this credit, homeowners must have lived in their current home for five consecutive years out of the last eight years and must enter a contract to purchase a new or existing home by April 30, 2010. Existing homeowners do not need to sell their current home to qualify for this credit, but must close escrow before by June 30, 2010.

No More State Tax On Forgiven Debt

Distressed homeowners no longer have to pay California state income tax on debt forgiven in a short sale, foreclosure, or loan modification. Enacted into law yesterday, Senate Bill 401 generally aligns California's tax treatment of mortgage debt relief income with federal law. For debt forgiven on a loan secured by a "qualified principal residence," borrowers will now be exempt from both federal and state income tax consequences. The existing federal exemption is for indebtedness up to $2 million, whereas the new California exemption is for indebtedness up to $800,000 and forgiven debt up to $500,000.

"Qualified principal residence" indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence. It includes both first and second trust deeds. It also includes a refinance loan to the extent the funds were used to payoff a previous loan that would have qualified.

The tax breaks apply to debts discharged from 2009 through 2012. Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.

Celebrate Earth Day & Help Haiti

Celebrate Earth Day by helping out those in desperate need in Haiti. They are still recovering from the devastating earthquake.

When: April 17, 2010 @ 10:30am

Where: 245 W. Broadway (@3rd) Suite 100

Short Sales Gaining In Popularity

From ClarkHoward.com

Short sales gaining in popularity

Short sales are becoming a more viable option for sellers, buyers and lenders alike. One in six homes that closed in February were short sales, according to new data. That's a huge jump from the same time last year, when they were practically non-existent.

For those who may be unfamiliar with the term, a short sale is where you work with a lender to actively market your home and sell it for less than the mortgage balance.

The advantages are that the buyer gets a home at a great price; the bank doesn't have to absorb the expense of a foreclosure; and the seller walks away with only a minimal hit on his or her credit -- much less than if they had gone into foreclosure.

Banks generally lose about 20 percent of the mortgage balance on a short sale. Compare that to the 50 percent loss of mortgage balance the bank takes on a foreclosure. Now that's quite a haircut!

One special warning for sellers. Be careful with the paperwork your lender gives you as part of the short sale agreement. Some lenders are behaving immorally and slipping in legalese that makes their financial loss your legal obligation to pay back. That is not the intent or purpose of a short sale.