Tax Time Less Taxing for Home Owners

With a little more than one month before income taxes are due, many of the nation’s 75 million home owners may be appreciating the value of home ownership just a bit more as they take advantage of the tax benefits of owning a home.

“Owning a home offers myriad benefits throughout the year, but some of the financial advantages of home ownership are most apparent at tax time,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “As many of today’s hard-working American families are feeling a financial squeeze, the tax benefits that can come from owning a home can be a welcome relief.”

A number of tax deductions and credits are still available for home owners; these include deductions – with specific limits – for mortgage interest and capital gains on home sales, and credits for certain energy-efficient home improvements. Even with these benefits, home owners pay 80-90 percent of all U.S. federal income taxes.

“It’s been suggested that many of today’s tax incentives for home ownership primarily benefit wealthy individuals, but that’s simply not true,” said Phipps. “As today’s public debate continues about what home ownership means for families, communities, and the nation’s economy, there’s no question that for many, owning a home is still the best way to begin building wealth.”

Ninety-one percent of home owners who claim the mortgage interest deduction earn less than $200,000 a year, and the ability to deduct the interest paid on a mortgage can mean significant savings at tax time. For example, a family who bought a home in 2010 with a $200,000, 30-year, fixed-rate mortgage, assuming an interest rate of 4.5 percent, could save nearly $3,500 in federal taxes when they file this year.

“REALTORS® see the very real positive impact of home ownership every day with our clients,” said Phipps. “Recent proposals to reduce or eliminate the mortgage interest deduction and remove government support of the housing finance market could have disastrous consequences for the economy, not to mention making it harder or nearly impossible for millions of families to own their own homes. We believe America must continue to invest in home ownership, for the future of our families and our nation.”

For home owner tax season tips, visit www.HouseLogic.com. HouseLogic is a free source of information from NAR that helps home owners maintain and enhance the value of their homes and engage in issues that affect their local communities.

Source: NAR

U.S. Department of Housing and Urban Development (HUD)

FHA today announced policy changes that will help FHA better manage risk and maintain support for the housing market as well as underserved communities. Check out the HUD press release for more details on the changes to FHA/ http://bit.ly/6ndtdV

U.S. Department of Housing and Urban Development (HUD)

Conforming Loan Limits Extended

Late last week President Obama signed a continuing resolution that, among other things, extended the $729,750 FHA, Fannie Mae and Freddie Mac conforming loan limits through December 31, 2010.

Maintaining the $729,750 limit makes home ownership more affordable for thousands of home buyers because borrowers do not have to pay the higher interest rates typically associated with "jumbo" non-conforming loans.

Fourth of July Picnic and Fireworks

Red, White & Blue Picnic and Fireworks
Saturday, July 4th, 2009
5:00pm-10:00pm
San Ramon Central Park
Presented by Shapell Homes

The City of San Ramon’s Red, White & Blue Picnic & Fireworks is scheduled for Saturday, July 4th in San Ramon's Central Park located at 12501 Alcosta Blvd from 5pm - 10pm. Enjoy our beautiful park setting with a family picnic and music from KKIQ radio being broadcast for your listening enjoyment. There will be a spectacular fireworks display synchronized to music at 9:30 p.m. For those of you not in Central Park, the accompanying music for the fireworks can be heard on KKIQ radio, 101.7.

Everyone is encouraged to bring a picnic to the park, enjoy time with family and friends and celebrate the birthday of our great nation. Please note that there will not be any food booths or live entertainment on-site this year. Plan to bring your food and non-alcoholic beverages with you. Please be kind to your pets and leave them secure at home.

The charge for parking in lots surrounding Central Park will be $10 per car. Handicapped parking will be located in the Community Center lot off of Alcosta Blvd. Residents are encouraged to go green and carpool and walk to the park to help the environment.

From the 680 Freeway exit at Bollinger Canyon and head east to Central Park.

No Job? Can' Refinance? How to Talk to Your Bank

As unemployment rises in many states, more homeowners are finding it difficult to pay their mortgage each month. Although most unemployed homeowners do not qualify for refinancing, as they do not meet the minimum qualifying requirements such as proof of income, there are steps they can take to improve their chances of a successful refinance.

KEEP THIS IN MIND
• The first, and probably most important step in the refinance process, is to find out which company services the loan. The loan servicer may or not may not be the company where the mortgage payment is sent each month. This step is crucial, because the loan servicer is generally the one that can modify the loan. If the loan servicer is not able to provide assistance, the owner of the mortgage may be able to help.

• Once a homeowner realizes he or she may no longer be able to pay the mortgage, the homeowner should contact the “loss mitigation department” of the lender. The “loss mitigation department” is where the refinance and/or loan modification process begins.

• After discussing options with the loss mitigation department, homeowners should write a
forbearance letter, also known as a postponement of payment letter. This letter is sent to the
servicer or lender and details the homeowner’s current financial situation and hardship.

• Many government agencies and nonprofit organizations provide free services to homeowners and will serve as an intermediary between the lender/servicer and the homeowner. Some companies charge fees for the same services. Housing analysts caution homeowners to conduct research and due diligence prior to paying a company for loan modification and/or refinance assistance.

To read the full story, please click here: http://www.cnbc.com/id/29595747

Article compliments of California Association of REALTORS

Spring Forward Began March 8

Daylight Saving Time (DST) began on Sunday, March 8, 2009. The way we refer to time zones also changes. For example, Eastern Standard Time (EST) becomes Eastern Daylight Time (EDT).

But remember, some areas of the United States don’t use DST, such as Arizona, Puerto Rico, Hawaii, the US Virgin Islands and American Samoa. More Sun…

Daylight Saving Time Runs Longer
In case you hadn’t noticed over the last two years, DST now begins earlier and runs longer. The extra time that we enjoy is actually the result of the Energy Policy Act, which President Bush signed into law in 2005 and went into effect in 2007. The Act changed the start date of DST to the second Sunday in March — three weeks earlier. It also moved the end date out one week to the first Sunday in November.

Benefits of Daylight Saving Time
Despite some concerns, Americans overwhelmingly like Daylight Saving Time. There is simply more sunlight in the evenings to enjoy the outdoors and get things done. Plus, additional hours of daylight can help save energy on a national scale — as much as 100,000 barrels of oil per day according to some estimates.

And brighter is safer. Studies have shown that the DST shift reduces traffic accidents. Additionally, a study by the US Law Enforcement Administration also determined that crime is consistently lower during DST, with violent crimes down as much as 10% to 13%. For many crimes, like mugging, darkness is a factor — so more light in the evening hours reduces these types of crimes.

Cons of Daylight Saving Time
Not everyone benefits from DST. For example, many farmers say that DST has a negative impact on their livestock’s natural schedules. The airline industry also reports that it costs millions of dollars to adjust time schedules — and even then, airlines report numerous problems with international flight connections during the transition time since DST isn’t followed uniformly worldwide.

Finally, since many electronic devices and computer programs are set to adjust to DST based on the old dates, they may not change automatically on March 8. So, you’ll want to double-check all of your devices and confirm that the time is correct.

Compliments of Cherry Creek Mortgage

Limited Tax Credits Available to New-Home Buyers

Senate Bill 15 was approved by the Governor on February 20, 2009, and provides for a tax credit against the net tax for a taxpayer who purchases a qualified principal residence on or after March 1, 2009, and before March 1, 2010. The maximum amount of credits available to allocate is $100,000,000.00 (one hundred million dollars) and are available on a first come first serve basis.

The following qualifications and limitations apply:

Ø The qualified principal residence is a single family residence, whether detached or attached, that has never been occupied

Ø Allowed for the purchase of one qualified principal residence per taxpayer

Ø Must be occupied for at least two years immediately after the purchase and is eligible for the homeowners property tax exemption

Ø The credit is the lesser of 5% of the purchase price of the qualified principal residence or $10,000.00 (ten thousand dollars). The credit must be claimed in equal amounts over three consecutive tax years beginning with the tax year the purchase is made

Ø The seller must provide a certification to the taxpayer and the Franchise Tax Board within one week of the sale that the qualified principal residence has never been occupied. Upon certification, the Franchise Tax Board will allocate the credit to the taxpayer on a first come, first serve basis.

Ø To claim the credit, the taxpayer will submit with each tax return the certification by the seller.

Federal Foreclosure Prevention Plan Launched

On Wednesday, Feb. 18, President Obama unveiled a major new foreclosure prevention program - the Homeowner Affordability and Stability Plan (HASP). The multi-billion dollar effort is based on three strategies:

Foreclosure prevention by refinancing mortgages held by Fannie Mae and Freddie Mac: The goal is to protect those homeowners with homes that have lost significant value to the extent they are unable to refinance under the current Fannie and Freddie rules. As part of the HASP, Fannie and Freddie will change their policies regarding the amount of equity a borrower must have in their home in order for them to refinance into a mortgage with a lower interest rate.

Homeowners able to refinance their mortgages under these new rules could end up with a lower mortgage payment. In situations where a borrower has lost their job or is experiencing other financial difficulties, the lower payment could prevent them from becoming delinquent on their payments and help them avoid foreclosure.

Homeowner Stability Initiative: This part of the plan will provide a variety of incentives to lenders to keep "at risk" borrowers out of foreclosure. In exchange for federal assistance, lenders will either reduce interest rates or principal amounts in order to also reduce a borrower's payment.

Additional support for Fannie Mae and Freddie Mac: Stabilizing and supporting the two major players in the secondary mortgage market is key to the security of residential real estate. The Treasury Department will take several steps to ensure the viability of Fannie Mae and Freddie Mac, including providing $200 billion to each and purchasing mortgage-backed securities. These actions are anticipated to boost investor confidence in both GSEs and ensure lower interest rates for mortgages purchased by Fannie Mae and Freddie Mac.

For more details about the Homeowner Affordability and Stability Plan, please click here.

President Signs Stimulus Bill

Last week Congress passed the American Recovery and Reinvestment Act of 2009. President Obama has signed the bill today. Among other things, the stimulus legislation resets the conforming loan limit cap at $729,750, up from $625,500 and reinstates these 2008 loan limits through Dec. 31, 2009.

The bill also increases the first-time home buyer credit from $7,500 to $8,000, and removes the requirement that the credit be paid back if the buyer stays in the home for at least three years. It also extends the expiration date for the credit from July 1 to Dec. 1, 2009. Homebuyers must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009, to be eligible for the $8,000 credit.

Thank you to everyone who contacted their Member of Congress in support of the housing provisions contained in this legislation.

State Budget Negotiations Continue ~ As of this time, the California state Senate is still debating an emergency measure to address the state's ever-growing budget deficit. C.A.R. will keep you posted on the budget's possible impact on your business and the real estate market.

Septic Regulation Update ~ The State Water Board (SWB) has extended its deadline for submitting testimony on the currently proposed regulations of septic systems to February 23rd. C.A.R. is deeply troubled by several items contained in these proposals and understands that due to public outcry, the proposals will probably be revised. However, there is still a danger that even the revised regulations may contain a point-of-sale provision. If you would like to submit testimony to the SWB, please click here for background and instructions.

Information compliments of the California Association of REALTORS®

Tips for a Larger Tax Refund

No one ever wants to pay more taxes than necessary, but this year it's even more important to save every penny you can. Here are some tips that can help you get a larger refund:

Property Tax Deduction for Non-Itemizers: Before 2008, only people who itemized their deductions could deduct property taxes. For 2008, individuals who do not itemize can deduct up to $1,000 of property tax on a joint return or $500 on a single return.

Driving Deductions: The IRS increased the cents-per-mile deduction for business-related driving expenses from 50.5 cents to 58.5 cents from July 1, 2008 through December 31, 2008. They also increased the rate for deducting medical and moving driving-related expenses from 19 cents to 27 cents for that same time period.

Disaster Losses: Casualty losses (i.e. like those from storm or fire damage) are normally deductible only to the extent they exceed 10% of AGI. For 2008, casualties in federally declared disaster areas can be deducted without having to abide by the 10%-of-AGI rule, which raises the amount that is deductible.

Capital Losses: Review your portfolio and note all your realized losses for 2008. You can write these off against capital gains and you can have a net loss of up to $3,000 deductible against your salary and other ordinary income. What's more, any excess can be used to offset gains or can be deducted in 2009 or later years.

Retirement Plan Contributions: You can make tax-saving contributions to retirement plans for 2008 through April 15, 2009.

Charitable Donations: Not only can you claim deductions for money and items you donate to a charity, you can also claim deductions for expenses you incur on a charity's behalf (i.e. driving costs, printing costs, long distance phone call costs, etc.).

Make sure you take time to go through your records carefully so you receive the biggest refund possible. And if you are looking for a great tax professional to help you, please let me know and I'll be happy to recommend someone.

Information compliments of Diversified Capitol Mortgage

Considering Moving to the East Bay? ~ Do you want to Buy or Sell a home?

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Visit my website at http://pamwinterbauer.com

Protect Your Credit During the Holiday Season

With the economy slowing and holidays just around the corner, many consumers may be looking to credit cards to help them get through the heavy shopping season. While that may be a good short-term solution, you want to make sure you don't overlook the long-term impact on your credit rating. After all, the actions you take today could hang over your head for years to come--and may make it tough for you to get the home loan or car loan you want in the future.

To help you make sure you manage your credit cards--and your credit score--during the upcoming holiday spending season, follow these steps:

Double-check your card limits. Many credit card companies today have started lowering credit limits. That means you have less credit available, but it also may mean that your credit score is about to take a hit. That's because approximately 30% of your credit score is based on the amount you owe in relation to your available credit. So, if a credit card company cuts back your limit, you may find that you're suddenly almost maxed out. That's not a good sign for your long-term credit score rating.

Ask, pay down, or move around. If some of your credit limits have changed or are nearly maxed out, you can take a few steps to help alleviate the problem. First, consider simply asking for a higher limit to your card...not necessarily to use up with spending, but to allow more unused credit line to be available and therefore boost your credit score. You can also pay more money to the cards that are near the credit limit, if you can. Or, if you have cards with little to no remaining credit line, transfer some of the larger balances onto the cards with lower balances. That'll give you a more... well... balanced financial picture.

Leave home without it. One of the best tips for the holiday season is to: make a budget, identify specific items, and then leave home without your credit card. Instead, bring just enough cash to purchase the items on your list. That will help you resist the urge to impulse buy, and keep your credit card balances lower.

Pick a card... not just any card. If you can't bring cash, make a credit card plan. Identify specific items that you'll pay for on specific cards. By making a plan and spreading your purchases to different cards, you won't overspend and you won't risk running up one or two cards that are near the credit limit, which will hurt your credit rating.

Resist card offers at the counter. Retailers are famous for offering "savings" when you open a credit card. But those savings often don't outweigh the long- and short-term negatives. For one thing, opening a new account--or multiple accounts in a short period of time--can negatively impact your credit score. In addition, consumers often spend more than planned when a new card is suddenly available. So this holiday season, resist the temptation.

Stay active. If you have older cards that you don't use, make sure you keep them active. For one thing, some of those older cards help establish a longer history of positive credit. For another, the available credit on those older cards can help keep your credit score higher because it improves your overall debt-to-credit ratio. To keep those cards active, make sure you charge one or two items on them throughout the year... like, say, when you go shopping for the holidays. Then, pay them off when the bill comes in.

Always pay on time. Your payment record is a very large part of your credit score, so it's crucial that you have an idea how your holiday shopping will impact your credit card bills and that you make a plan to pay those bills on time. If you have trouble for any reason, contact your card companies right away to work out a plan that helps you pay down your debt... and save your credit rating from a huge hit.

Information compliments of Wendy Tannenbaum

Medical Identity Theft

With identity theft on the rise these days, most of us are already taking steps to protect ourselves. But did you know that there's now a growing form of identity theft known as "medical identity theft" that can not only devastate victims' finances, but also compromise their health, too. According to Joy Pritts, JD, author of Your Medical Record Rights, here's what you need to know.

What is Medical Identity Theft? Medical identity theft occurs when criminals access victims' medical records. Since medical records contain a person's social security number and credit card information (if bills have been paid via credit card), criminals can open accounts and make fraudulent charges. However, criminals also gain access to victims' health insurance policy information and medical histories, and they can create forged health insurance cards to sell to people who are uninsured and need expensive medical treatment. A person who buys a fake health insurance ID card would then seek treatment using the victim's name and policy number, and then disappear, leaving the victim with the bills to pay.

Why Should You Be Concerned? Victims of medical identity theft not only have to repair their credit and convince credit agencies and service providers that bills are fraudulent, they also have to correct inaccurate medical information that becomes part of their health records. Victims could be denied life insurance or individual health insurance if their record shows treatments that they did not have. In addition, victims could receive treatments or medicines that could be harmful to them on the basis of inaccurate content in their medical records.

Steps to Take if You Suspect a Medical Identity Theft
1. Read all bills and "Explanation of Benefits" statements from your insurance company to verify they are for treatment you received.
2. If a bill or statement refers to treatment you did not receive, contact the employee in charge of investigating fraud at your insurance company and at the medical facility involved and explain the situation. Follow up with a letter sent via registered mail with return receipt once again explaining the situation, asking for any bills to be voided, and asking that your medical record be amended to state that you did not have this health problem or receive this treatment.
3. Report the identity theft to the police department and state's attorney general's office.
4. Contact the health care providers you use, explain the situation, ask if the erroneous information has been added to the providers' records, and if so, ask them to correct the records.
5. Report the fraud to the major credit bureaus and set up fraud alerts. Also, request free copies of your credit reports to make sure no new fraudulent accounts have been opened. * 6. Review your medical records every few years to make sure there are no errors.

To learn more about your medical record rights, visit http://ihcrp.georgetown.edu/privacy/records.html.

Turning Back the Hands of Time

The sun is about to set on another season of Daylight Saving Time. In case you hadn't noticed, Daylight Saving Time (DST) began earlier last spring and ran longer into this fall. But, alas, all good things must come to an end...and this year Daylight Saving Time ends Sunday, November 2nd.

The extra month that we enjoyed was actually the result of the Energy Policy Act, which was enacted by Congress back in 2005 and first went into effect last year. Originally, the bill was written to extend Daylight Saving by two months, but some very verbal opponents fought the change. Farmers say that DST has a negative impact on their livestock in general--as it is tough for them to adapt to the time change, and they consequently produce less milk, eggs, etc. Because DST is not followed uniformly around the world, airlines claim that it might mean many missed international flight connections. Additionally, TV and Cable stations argued that they would lose viewers and advertising revenue, simply due to less time spent in front of the television because of more time spent outdoors in daylight.

So a compromise of one additional month of DST was reached. However, Congress did retain the right to revert back to the old dates if the change proves to be widely unpopular, or if the energy savings aren't significant.

Why is Daylight Saving Time Longer?
Despite the concerns listed above, Americans overwhelmingly like Daylight Saving Time. There is simply more sunlight in the evenings to enjoy the outdoors and get things done. Additionally, there may be emotional benefits, as we typically feel better with more daylight.
Plus, additional hours of daylight can help save energy on a national scale. Less electricity is needed, as fewer lights are turned on as early in the evening...and with energy costs so high, even a small amount of savings is very welcome.

And brighter is safer - studies have shown that the DST shift reduces traffic accidents. An increase in accidents in the dark mornings is more than offset by the evening decrease in accidents, due to the increased visibility gained with more sunlight. Halloween is also arguably safer. Child pedestrian deaths are four times higher on Halloween than any other night of the year. By extending Daylight Saving Time, however, trick-or-treaters are able to spend an extra hour gathering treats while it's still light out. Candy manufacturers are happy too, as they've lobbied for years to have DST extended through Halloween.

A study by the US Law Enforcement Admin also determined that crime is consistently lower during DST, with violent crimes down as much as 10% to 13%. For many crimes, like mugging, darkness is a factor--so more light in the evening hours reduces these types of crimes.
Falling Back... Manually

Since DST has been extended, you'll want to double-check all of your electronic devices and confirm that the time is correct. Although you may be accustomed to your computer and maybe even your digital clock in your car automatically updating, the recent change of dates for Daylight Saving Time may require that these devices be manually changed, as they now may NOT be ready to update to the correct time on the correct date!

So keep an eye on your electronic devices and remember to change your clocks on Sunday, November 2nd as we turn back the hands of time once again!

What's Your Mother's Maiden Name?

What's up with your mother's maiden name? Passwords are crucial to accessing your personal accounts and information. The problem is: We all have so many accounts that we worry more about remembering our passwords than we do about making sure they actually protect our data from hackers. So we end up using passwords like our mother's maiden name or child's first name. But even if you add a few numbers to the end, those types of passwords are easy to break. And that means your data isn't safe.

The tips below can help you avoid the most common password pitfalls and even implement a few new ideas that will make your passwords easy to remember...and hard to break!

Strength Training ~ A well-protected password is not only unique, but also hard to guess. How do you do that? It's pretty simple really. Just follow this advice:
Use a random string of characters. That means no sequential letters or numbers. None.
Make it looooong. The longer the better--even up to as many as 10 to 14 characters.
Switch things up. Use a combination of upper and lower case letters, along with a few numbers mixed in the middle or end.

Don't use substitutes. Using "@" for "a" or "1" for "I" may look good to you, but most hackers are smart enough to break those substitutes rather quickly.

Avoid easy targets like words straight out of the dictionary or things like family names and birthdays.
Multiplication Facts ~ Most of us cheat when it comes to passwords. We have trouble remembering our passwords, so we come up with two or three that we can remember and use them everywhere. But you should avoid the temptation. The fact is, once a password is compromised, all of your accounts are vulnerable. There's no way around it, you need to a way to create and remember multiple passwords--a different one for each account!

Sure-Fire Technique for Memorable, Unique Passwords ~ For all the advice above, good passwords come down to two things: they're easy for you to remember, and they're hard to break. Implementing the tips above can make your passwords hard to break, but what about remembering them--especially if you have a unique password for every account?

Here's a sure-fire tip to help!
1. Think up a phrase. Instead of a common word or family member name, think up a unique phrase that only you know. For example, you may think up something off the wall such as "I Like Short Hair Too."
2. Make it an acronym. In our example, "I Like Short Hair Too" would become ILSHT.
3. Add Complexity. Remember those substitutes you're not supposed to use with dictionary words? Well, you CAN use them with your acronym. For example, "I Like Short Hair Too" can become "1 Like $hort Hair 2" which makes: 1L$H2. You can also use upper and lower letters to make it 1L$h2. The point is to be creative, but in a way that you can easily remember it.
4. Make it unique. A password is only really unique if you use it for one account and one account only. So you can't just use 1L$h2 for every account. And, in reality it's still too short. Here's the key to the whole process: Mix in additional letters and numbers that are unique to each account. For example, if you're logging into a "gmail account" you can use the "gm" and "@cct" (for acct) to make: 1L$h2gM@cct. Then, for a Netflix account, you may use: 1L$h2Nf@cct.

Of course, these are just examples. You'll want to be creative and think up your own acronym and ways to add unique characters for each account. And then keep that little secret to yourself so no one will be able to guess your account passwords.

Follow these simple steps and you'll have passwords that are tough to break, unique to every account, and easy to remember!

Considering Moving to the East Bay? ~ Do you want to Buy or Sell a home?
Do you have clients with needs in the East Bay?
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Great News for Buyers as Entry Level Housing Affordability Rises!

The percentage of households that could afford to buy an entry-level home in California is up at 44 percent in the first quarter of 2008, compared with 26 percent for the same period a year ago, according to the CALIFORNIA ASSOCIATION OF REALTORS®. This is great news for move up buyers as well as first time buyers looking to take advantage of the low interest rates.

First-time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including taxes and insurance was $2,260for the first quarter of 2008. The minimum income required with 10 % down would be approx. $67,000.

Interest rates are low, inventory is high and it is a great time to get into the market and start to increase your personal wealth.

For detailed information you can view the article in it's entirity at the C.A.R. website.

Considering Moving to the East Bay? ~ Do you want to Buy or Sell a home?
Do you have clients with needs in the East Bay?
Please give me a call if you have questions about the East Bay Real Estate market.
I can be reached at 925 824-4878 or Toll Free 877 876-8889 or you can visit my website at http://pamwinterbauer.com

Ever wonder what these words really mean?

In today's market there are an abundance of properties for sale. Some of these properties are being sold by sellers; some are short sales, REO/bank owned and pre-foreclosures. Here is a list the definitions of each and what it means to you as a buyer and the choices you make when looking at homes.

• Regular Sale ~ a sale where the seller has equity in the property, the buyer and seller will the negotiate price and terms of the sale. The seller is required to provide Transfer Disclosures according to California Law and statute. There is sense of urgency with the seller to negotiate and move on.

• Short Sale ~ a short sale is the sale of real property where the fair market sale price is less than the loan(s) on the property. A short sale means the seller's lender is accepting a less than the existing loans on the property. Just because a property is listed with short "sale terms" does not mean the lender will accept your offer, even if the seller accepts it. Many of these properties have been trashed, are in ill repair and are sold their present "as is" condition (what you see is what your get) without any repairs to the property. The property may not meet your lenders standards to obtain your loan. There is not much flexibility and room to negotiate price.

If there are two loans, there could be a problem. The first mortgage lender's position is protected by the second lender, unless the second lender does not want to foreclose. The first lender will need to give something to the second to gain cooperation.
The process for lender approval can take as long as 5 months. There is no guarantee the lender will approve of the sale. Statistics show over the last six months that only 20 % of these sales have closed.

• REO/Bank Owned Property ~ REO is an acronym for a real estate owned property that has been foreclosed on or repossessed by banks or lenders. These properties are sold in "as is" condition (what you see is what you get) without any repairs or warranties, in ill repair and some have been trashed. There are no disclosures on the property. The property may not meet your lenders standards in obtaining your loan. Not much flexibility and room to negotiate price. The process for bank approval can be anywhere from 3 - 10 days.

• Pre-Foreclosure Property ~ a property where the homeowner has fallen behind in their payments or when a Notice of Default (NOD) has been filed against the property by the lender. May not have much flexibility in negotiating. These properties may be regular sales or potential Short Sales.

• Auctions ~ Many properties that have been turned over to auction houses have been bank owned properties that did not sell or in some instances they can be builder closeouts. The condition varies depending where the property came from. When the auction is all said and done there is a 5-10% fee paid to the auction house in addition to the find bid price. These properties are all "as is" sales without inspections or warranties and may not meet your lender's standards in obtaining your loan.

• New Construction ~ Most builders are cooperating with your Realtor in today's market. It is important to take your Realtor accompany you on the 1st visit to the new development to register you. Your Realtor will represent you in the negotiation process so you obtain the best price and builder upgrades for your price.

(Copyright © 2008 By Pam Winterbuaer All Rights Reserved.)

Considering Moving to the East Bay? ~ Do you want to Buy or Sell a home?
Do you have clients with needs in the East Bay?
Please give me a call if you have questions about the East Bay Real Estate market.
I can be reached at 925 824-4878 or Toll Free 877 876-8889 or you can visit my website at http://pamwinterbauer.com

What you need to know about the market

The economic downturn is causing some Baby Boomers to downsize or postpone retirement, but they still are in no hurry to pay off their mortgages, according to the annual “Affluent Boomers at 60” survey from Oaklandbased Bell Investment Advisors. Historically, most seniors paid off their mortgage before retiring. Not so today. More than 55 percent of those surveyed who currently hold a mortgage don’t intend to pay off their loan until their 70s, if then. That could change if the economy worsens or the slowdown is prolonged. One in four Baby boomers already are changing their retirement plans and 40 percent are “downsizing” their lifestyles. More than one quarter (28 percent) have lost a job in recent months or know someone over age 60 who has. As a result, 22 percent say they are cutting down on charitable contributions, 21 percent are changing vacation plans, 18 percent are reducing the amount they are saving, and 11 percent are postponing retirement entirely. Sixty-nine percent say the economy is causing them to change to a more conservative investment strategy. The survey included equal numbers of men and women born in 1948, all of whom reported investable assets of $1 million or more.

The rapid rise in gas prices is causing similar lifestyle changes on America’s highways and byways, particularly those leading to and from the suburbs. The U.S. Dept. of Transportation reported that American drivers reduced the number of miles they drove in March by 4.3 percent over the same month a year ago. Now, Coldwell Banker says 81 percent of the agents it surveyed said their clients increasingly are looking to urban housing as a way to cut commuting costs. A third study by CEOs for Cities, a government-business coalition, said higher gasoline prices will push new housing developments closer to the urban core in many U.S. cities and cause home values to decline in those suburbs where there are few transit options for commuters.

The percentage of American households headed by homeowners experienced its most significant decline in two decades at the end of the first quarter of 2008, according to the U.S. Census Bureau. Only 67.9 percent of households were headed by homeowners, down from a record 69.1 percent achieved in 2005. Renter households increased from 30.9 percent to 32.2 percent, erasing gains achieved in recent years. The jump in renter households was not unexpected: it simply happened far faster than anticipated. The Joint Center for Housing at Harvard University projected the number of renters would increase by 1.8 million between 2005 and 2015. Instead, the housing market decline and subsequent dramatic rise in foreclosures pushed 1.5 million additional households into rental housing between 2005 and 2007 alone. Not surprisingly, rents have increased by about 11 percent and vacancy rates have fallen in many urban markets over the same period.

Compliments of the California Association of Realtors

Summertime Food Safety Tips

Summer-time is one of the best times of year to enjoy fresh fruits and vegetables, especially those that aren't available year-round. Recent salmonella outbreaks like those in last year's spinach crops or this year's tomato crops are an important reminder about handling food properly.

The Centers for Disease Control (CDC) notes that there is no way for consumers to detect salmonella since it can't be smelled, tasted, or seen. Here's what they recommend to reduce the risk of exposure during this latest outbreak:

Check the Type ~ Since April 16, more than 220 people from twenty-three states have contracted salmonella poisoning from tainted tomatoes. As a result, the Food and Drug Administration (FDA) is advising people to eat only cherry tomatoes, grape tomatoes, tomatoes sold with the vine still attached, and tomatoes grown at home since these tomatoes are not associated with the outbreak.

If you have raw red plum, Roma, or round red tomatoes, which are the tomatoes associated with the outbreak according to preliminary data compiled by the FDA, the best thing to do is either throw them away or return them to the store where you purchased them.

Wash, Wash, Wash ~ One of the best ways to protect yourself is to wash all produce, including organic produce, with cold running water. You should scrub your produce gently with a vegetable brush, or you can use your hands if you don't have a brush. Make sure you remove outer layers of cabbage and lettuce. And make sure you wash fruit, too, even if you don't eat the peel.

In addition, wash your hands with soap and water before handling food and also wash cutting boards, counters, and utensils to avoid cross-contamination. When you are preparing fresh vegetables, make sure you avoid any kind of contact with raw meat. And don't forget to refrigerate sliced up fruits and vegetables.

Ask Your Waiter ~ If you eat out, ask your waiter what the restaurant has done in response to the outbreak. Several restaurants...including chains McDonalds, Burger King, and Taco Bell, among others...have stopped serving tomatoes, but it's always wise to double check. Keep in mind that ketchup and cooked sauces are not affected since cooking tomatoes at 145 degrees kills salmonella. Don't hesitate to ask your waiter to leave tomatoes off a sandwich or salad if the restaurant hasn't removed tomatoes from its menu. Note that if you remove the tomatoes once your order comes, the food could still be contaminated.

Make the Call ~ Salmonella poisoning typically resembles the flu, and symptoms usually appear 12 to 72 hours after infection and include abdominal cramps, headache, fever, diarrhea, nausea, and vomiting. If you suspect that you've contracted a case of salmonella poisoning, call your local health department. Reported cases help the CDC and FDA track the source of salmonella.

For the latest information on the tomato salmonella outbreak, visit:
FDA: Link to FDA Information CDC: Link to CDC Information

Oh Nehemiah, what verse were you?

Can this be the same Nehemiah? Well let's see.

Buyers in todays market are looking for good solid financing that is close to 100% and provides help with downpayment and closing costs. Here is your Nehemiah!

Guidelines for this Nehemiah: This is a grant program that provides gift funds for downpayment and closing costs to qualified homebuyers.

The seller contributes 6% to the Nehemiah Program. The program grants up to 3% for down payment and 3% for closing costs. The cost of the program at closing is $599.00 to Nehemiah. Nehemiah does not underwrite the package. FHA 1st loan and underwriting guidelines. Propeprty must appraise, value to include 6%. Some lenders cap price if using program (wells 417K). Increasing value 6% over list price and lender will scrutinize appraisal.

Sounds like the best thing since sliced bread and subprime loans?

Are you safe? NOT

Tips To Keep Women Safe!!

1. Tip from Tae Kwon Do: The elbow is the strongest point on your body. If you are close enough to use it, do!

2. Learned this from a tourist guide in New Orleans. If a robber asks for your wallet and/or purse, DO NOT HAND IT TO HIM . Toss it away from you....chances are that he is more interested in your wallet and/or purse than you, and he will go for the wallet/purse. RUN LIKE MAD IN THE OTHER DIRECTION!

3. If you are ever thrown into the trunk of a car, kick out the back tail lights and stick your arm out the hole and start waving like crazy. The driver won't see you, but everybody else will. This has saved lives.

4. Women have a tendency to get into their cars after shopping, eating, working, etc., and just sit (doing their checkbook, or making a list, etc. DON'T DO THIS!) The predator will be watching you, and this is the perfect opportunity for him to get in on the passenger side, put a gun to your head, and tell you where to go. AS SOON AS YOU GET INTO YOUR CAR, LOCK THE DOORS AND LEAVE.a. If someone is in the car with a gun to your head DO NOT DRIVE OFF, repeat: DO NOT DRIVE OFF! Instead gun the engine and speed into anything, wrecking the car. Your Air Bag will save you. If the person is in the back seat they will get the worst of it. As soon as the car crashes bail out and run. It is better than having them find your body in a remote location.

5. A few notes about getting into your car in a parking lot, or parking garage:

a.) Be aware: look around you, look into your car, at the passenger side floor, and in the back seat.

b.) If you are parked next to a big van, enter your car from the passenger door. Most serial killers attack their victims by pulling them into their vans while the women are attempting to get into their cars.

c.) Look at the car parked on the driver's side of your vehicle, and the passenger side. If a male is sitting alone in the seat nearest your car, you may want to walk back into the mall, or work, and get a guard/policeman to walk you back out.IT IS ALWAYS BETTER TO BE SAFE THAN SORRY. (And better paranoid than dead.)

6. ALWAYS take the elevator instead of the stairs. (Stairwells are horrible places to be alone and the perfect crime spot. This is especially true at NIGHT!)7. If the predator has a gun and you are not under his control, ALWAYS RUN! The predator will only hit you (a running target) 4 in 100 times; And even then, it most likely WILL NOT be a vital organ. RUN, Preferably ! in a zig -zag pattern!

8. As women, we are always trying to be sympathetic: STOP . It may get you raped, or killed. Ted Bundy, the serial killer, was a good-looking, well educated man, who ALWAYS played on the sympathies of unsuspecting women. He walked with a cane, or a limp, and often asked "for help" into his vehicle or with his vehicle, which is when he abducted his next victim.

9. Another Safety Point: Someone just told me that her friend heard a crying baby on her porch the night before last, and she called the police because it was late and she thought it was weird. The police told her "Whatever you do, DO NOT open the door.

"The lady then said that it sounded like the baby had crawled near a window, and she was worried that it would crawl to the street and get run over. The policeman said, "We already have a unit on the way, whatever you do, DO NOT open the door." He told her that they think a serial killer has a baby's cry recorded and uses it to coax women out of their homes thinking that someone dropped off a baby. He said they have not verified it, but have had several calls by women saying that they hear baby's cries outside their doors when they're home alone at night.