CREDIT

Borrowers always have questions about credit.  Attached is a colorful info graphic which gives some great information on how credit works and the impact on the cost of a loan. 

EFFECTIVE IMMEDIATELY, HOMEOWNER'S IN CA HAVE MORE PROTECTION IN SHORT SALES AGAINST DEFICIENCY JUDGMENTS

In a major victory for REALTORS®, Governor Brown signed into law today a C.A.R.-sponsored bill, Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder.  Effective immediately for transactions closing escrow from this day forward, both senior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale.  This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units.  Any purported waiver of this rule shall be void and against public policy.

Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale.  A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.

Exceptions to the new law include a lender seeking damages for a borrower’s fraud or waste; a borrower that is a corporation, LLC, limited partnership, or political subdivision of the state; a lien secured by a bond as specified; a public utility lien; and additional rules apply if a note is cross-collateralized by more than one property.

This law is fully set forth as Senate Bill 458 (Corbett)   CLICK HERE

 

Tax Tip 2011-54:  Employee Business Expenses Issue Number:    Tax Tip 2011-54

Inside This Issue

Employee Business Expenses 

If you itemize deductions and are an employee, you may be able to deduct certain work-related expenses. The IRS has put together the following facts to help you determine which expenses may be deducted as an employee business expense.

Expenses that qualify for an itemized deduction include:

• Business travel away from home
• Business use of car
• Business meals and entertainment
• Travel
• Use of your home
• Education
• Supplies
• Tools
• Miscellaneous expenses

You must keep records to prove the business expenses you deduct. For general information on recordkeeping, see IRS Publication 552, Recordkeeping for Individuals available on the IRS website, http://www.irs.gov, or by calling 800-829-3676.

If your employer reimburses you under an accountable plan, you do not include the payments in your gross income, and you may not deduct any of the reimbursed amounts.

An accountable plan must meet three requirements:

1.     You must have paid or incurred expenses that are deductible while performing services as an employee.

2.     You must adequately account to your employer for these expenses within a reasonable time period, and

3.     You must return any excess reimbursement or allowance within a reasonable time period.

If the plan under which you are reimbursed by your employer is non-accountable, the payments you receive should be included in the wages shown on your Form W-2. You must report the income and itemize your deductions to deduct these expenses.

Generally, report expenses on IRS Form 2106 or IRS Form 2106-EZ to figure the deduction for employee business expenses and attach it to Form 1040. Deductible expenses are then reported on Form 1040, Schedule A, as a miscellaneous itemized deduction subject to 2% of your adjusted gross income rules. Only employee business expenses that are in excess of 2% of your adjusted gross income can be deducted.

For more information see IRS Publication 529, Miscellaneous Deductions available on the IRS website, http://www.irs.gov, or by calling 800-829-3676.

 

 

June 2011 County Sales And Price Activity - Existing Single-Family Detached Homes 

June-11	Median Price of Existing Single-Family Homes							Sales
State/Region/County	Jun-11	May-11		Jun-10		MTM% Chg	YTY% Chg	MTM% Chg	YTY% Chg
CA SFH (SAAR)	$295,300	$292,420	r	$313,890	r	1.0%	-5.9%	1.2%	-3.6%
CA Condo/Townhomes	$236,190	$234,640	r	$260,870	r	0.7%	-9.5%	7.0%	-7.3%
Los Angeles Metropolitan Area	$276,230	$276,680	r	$292,700		-0.2%	-5.6%	6.5%	-8.5%
Inland Empire	$172,800	$172,110		$185,130	r	0.4%	-6.7%	9.9%	-4.4%
S.F. Bay Area	$539,880	$512,420		$553,360	r	5.4%	-2.4%	15.3%	-0.2%
S.F. Bay Area
Alameda	$485,870	$465,550		$519,280		4.4%	-6.4%	15.2%	-5.0%
Contra-Costa (Central County)	$658,700	$602,860		$658,420		9.3%	0.0%	11.6%	8.5%
Marin	$843,080	$807,140		$840,690		4.5%	0.3%	25.0%	-0.9%
Napa	$350,000	$377,270		$390,320		-7.2%	-10.3%	-7.6%	-10.7%
San Francisco	$695,910	$641,670		$740,690		8.5%	-6.0%	8.8%	0.7%
San Mateo	$750,000	$810,000		$793,000		-7.4%	-5.4%	12.9%	5.0%
Santa Clara	$635,000	$600,000		$633,000		5.8%	0.3%	15.1%	0.8%
Solano	$189,790	$191,850		$212,830		-1.1%	-10.8%	17.8%	-6.2%
Sonoma	$327,430	$353,750		$366,390		-7.4%	-10.6%	28.3%	1.8%
Southern California
Los Angeles	$301,300	$271,540	r	$313,420	r	11.0%	-3.9%	2.4%	-11.6%
Orange County	$534,680	$544,700		$566,090	r	-1.8%	-5.5%	7.6%	-12.8%
Riverside County	$202,910	$200,000		$214,330	r	1.5%	-5.3%	9.2%	-1.7%
San Bernardino	$129,570	$127,380		$141,900	r	1.7%	-8.7%	11.3%	-8.8%
San Diego	$377,550	$382,300		$397,910		-1.2%	-5.1%	7.3%	-3.0%
Ventura	$443,290	$425,000		$450,930		4.3%	-1.7%	11.1%

 

June-11	Unsold Inventory Index					Median Time on Market
State/Region/County	Jun-11	May-11		Jun-10		Jun-11	May-11		Jun-10
CA SFH (SAAR)	5.0	5.5	r	4.6	r	50.3	51.9	r	41.5	r
CA Condo/Townhomes	5.2	6.0	r	5.2	r	57.4	57.9	r	47.5	r
Greater Los Angeles Area	5.4	6.0		4.4		54.4	55.6		39.2
Inland Empire	4.6	5.2		4.0	r	47.3	51.5		34.2	r
S.F. Bay Area	4.3	5.0		4.4	r	49.9	51.9		48.8	r
S.F. Bay Area
Alameda	4.0	4.8		3.7		65.3	69.4		68.6
Contra-Costa (Central County)	4.3	4.9		4.5		77.4	78.3		72.5
Marin	5.1	6.5		5.7		52.5	55.4		56.3
Napa	7.8	7.3		7.8		57.7	57.4		63.1
San Francisco	4.8	5.2		5.3		45.5	47.0		43.1
San Mateo	3.7	4.1		4.1		26.0	24.6		25.7
Santa Clara	3.3	3.9		3.7		24.5	26.0		23.2
Solano	4.5	5.5		3.7		48.3	53.6		47.3
Sonoma	5.9	7.4		5.7		62.9	65.1		62.5
Southern California
Los Angeles	5.4	6.0	r	4.6		52.7	51.9		40.4	r
Orange County	6.6	7.1		6.1		75.0	70.1		64.2	r
Riverside County	4.3	4.9		3.8		53.4	57.8		44.6
San Bernardino	4.9	5.5		4.3		46.6	50.4		31.1
San Diego	6.4	6.8		6.1		50.7	49.7		41.5
Ventura	6.6	7.5		4.4		62.2	77.6		55.8
Central Coast
Monterey	5.5	5.6		5.1		32.3	39.8		26.4
San Luis Obispo	6.2	6.8		7.6		59.7	59.6		49.9
Santa Barbara	6.9	7.0		6.9	r	56.3	99.8		63.2	r
Santa Cruz	5.4	6.8		6.5		41.0	39.1		29.4
Central Valley
Fresno	5.0	4.8		N/A		39.7	39.6		32.1
Kern (Bakersfield)	4.3	4.0	r	3.4		NA	NA		NA
Kings County	4.7	5.3		4.9		45.5	37.0		34.1
Madera	4.7	4.9	r	6.5		57.1	44.2	r	36.8
Merced	4.2	4.1	r	3.1		40.9	32.9	r	23.8
Placer County	NA	N/A		N/A		NA	NA		NA
Sacramento	2.4	2.5		2.5		35.1	40.9		28.7
San Benito	5.8	4.2		3.9		47.3	33.9		29.5
Tulare	5.0	4.6		5.7		34.3	39.9		25.5
Other Counties in California
Amador	8.2	8.0	r	12.6		55.2	46.7	r	121.0
Butte County	6.7	8.2		6.0		45.5	50.3		45.1
Humboldt	8.0	12.2		8.3		46.4	47.6		35.5
Lake County	7.5	7.7		6.3		92.0	88.7		82.8
Tuolumne	8.9	10.7		12.5		47.0	78.7		79.9
Mendocino	10.5	12.6		13.1		63.1	93.4		80.3
Shasta	5.5	6.1		8.2		41.2	44.4		45.9
Siskiyou County	N/A	N/A		N/A		NA	NA		NA
Tehama	7.4	7.9		7.3		50.8	52.8		44.2

*  Los Angeles Metropolitan Area is a 5-county region that includes Los Angeles County, Orange
    County, Riverside County, San Bernardino County, and Ventura County
*  S.F. Bay Area has been redefined to include the following counties: Alameda, Contra Costa,
    Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma
*  Inland Empire includes Riverside County and San Bernardino County

Regional/County sales data and condo sales data not seasonally adjusted.

The MLS median price and sales data for detached homes are generated from a survey of more
than 90 associations of REALTORS® and MLSs throughout the state, representing 90 percent of
the market. County sales data are not adjusted to account for seasonal factors that can influence
home sales. MLS median price and sales data for condominiums are based on a survey of more
than 60 associations. The median price for both detached homes an condominiums represents
closed escrows. Movements in sales prices should not be interpreted as changes in the cost of a
standard home. Median prices can be influenced by changes in cost and in the characteristics
and size of homes sold. Due to low sales volume in some areas, median price changes may
exhibit unusual fluctuation. C.A.R.’s data has been standardized to reflect county-level statistics.

Folks, This is by far one of the best times to buy Real Estate contrary to what the negative reports are on the news. Our prices here in the Tri-County area represent the lowest we have seen in years  and with so many people facilitating short sales, or losing their homes to forecloser, it has really created a huge market for renters and the rents are increasing! Investors are now cash flowing on their rentals, first time homebuyers are finding their house payment is less than what they were paying in rent! In addition, if have always wanted a bigger home now is the time to sell yours and do just that! How about helping your kids get into their first house?  Interest rates are the lowest we have seen since the 60’s and there are still many great loan programs available and some with no money down!!  Call me and I would be happy to assist you in your Real Estate needs.

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Foreclosure Filings are Down as the Time to Foreclosure Speeds Up In Some States

 On average it took less Time to Foreclose in California, Arizona and Nevada in June 2011, countering what has been a growing trend to extend the foreclosure process. The time to foreclose has increased on a year-over-year basis throughout our coverage area, with the largest increase seen in Nevada where it now takes on average 319 days to foreclose, up from 239 days a year ago. California saw the second most significant increase with the average time to foreclose at 317 days, up from 261 days a year ago. The least change was observed in Washington where the average time to foreclose is 106 days, only slightly higher than the 105 days seen a year ago.

Foreclosure filing activity was down throughout our coverage area in June 2011, with fewer foreclosure filings in all states. There were fewer foreclosure sales, both Back to Bank and Sold to 3rd Parties everywhere except Oregon which saw an uptick in activity at the courthouse steps.

 "While the decrease in the time to foreclose last month is statistically interesting," says Sean O'Toole, CEO and Founder of ForeclosureRadar, "We do not see it as signaling an end to lenders looking to avoid losses that they can't afford by continuing the extend and pretend policies of the past."

California

California saw slowed foreclosure activity across the board. Notice of Default filings fell for the third consecutive month after a slight 1.5 percent drop in June. Notice of Trustee Sale filings were down in June as well, with an 11.7 percent decline month-over-month and a 34.3 percent drop from June 2010. Cancellations of foreclosure sales decreased for the second time in as many months, with a 3.0 percent drop compared to May. Foreclosure sales on the courthouse steps were slower than the prior month, with 13.4 percent fewer sales Back to Bank and 7.1 percent fewer foreclosed properties Sold to 3rd Parties. For the first time in six months the average time to foreclose decreased, down 7.9 percent to 317 days month-over-month but remained up 21.5 percent as compared to this time last year. Third parties continued to resell inventory more quickly, with the time to resell down 1.5 percent month-over-month to 131 days, clearly outperforming banks, which took an average of one hundred days longer at 231 days to resell inventory (REO).

Below is a chart of inventory for Placer & Sacramento Counties