Mortgage Forgiveness Debt Relief Act extended to 2014 Is the Mortgage Forgiveness Debt Relief Act extended? People have been very worried with the expiration of the relief enacted in 2007 entitled “The Mortgage Forgiveness Debt Relief Act of 2007.” In fact, there are some thinking they may be looking to cancel short sales in progress and having to ask (or beg) their banks to reinstate their loans, help them keep their homes, or seek other remedies in order to avoid a foreclosure or short sale in this new year.

If one can not afford their mortgage debt, how can they afford a big tax bill in the form of “cancelled debt” or call the forgiveness of debt, income? Income? Ugh, the final insult for many facing foreclosure, short sale or loan modification in California. Some have called this short sale tax relief, or foreclosure tax relief. Families and individuals could be relieved of the obligation of taxation of this forgiven debt, called income , for their principal residence and up to 2 million dollars.

The mortgage forgiveness debt relief act has been a very important factor in a decision to short sale, foreclose or look into a bankruptcy. Read the IRS rules of The Mortgage Forgiveness Debt Relief Act and Debt Cancellation here. But YES! It appears to be extended through to January 1, 2014. It looks like it IS part of the fiscal cliff bill that was passed through the Senate and House today/tonight and is ready for the President’s signature.

You can read the PDF version of the “package” and see the following language: SEC. 202. EXTENSION OF EXCLUSION FROM GROSS INCOME OF DISCHARGE OF QUALIFIED PRINCIPAL RESIDENCE INDEBTEDNESS. (a) IN GENERAL.—Subparagraph (E) of section 108(a)(1) is amended by striking ‘‘January 1, 2013’’ and inserting ‘‘January 1, 2014’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to indebtedness discharged after December 31, 2012 Has California extended it’s Mortgage Forgiveness Debt Relief for 2013?

Not yet. Keep in mind the news tonight as it relates to this “fiscal cliff package” is for federal IRS tax purposes and does not apply to individual states , and at this time we do not know if California will extend their similar debt relief act, though they did extend the California provisions once before in 2010. See California’s Mortgage Forgiveness Debt Relief information here .

So stay tuned for that, I’ll keep you updated the best I can here as soon as there is any update on the state provisions of this act. If you are thinking of selling your home, need to do a short sale, or want information about options to avoid foreclosure for your Contra Costa home, call me! I serve the areas of Concord, Clayton, Walnut Creek, Pleasant Hill, Martinez, Antioch, Brentwood, Pittsburg, Bay Point, Lafayette, Orinda, Moraga, Danville, San Ramon and many other areas of Contra Costa and some parts of Alameda county.

I’m well versed in short sales and can offer you referrals to qualified attorneys, CPAs and tax professionals to answer your questions. Catherine Myers, Broker Associate Prudential California Realty Offices in Pleasant Hill, Walnut Creek and San Ramon DRE #01337828 Contact me online 925-683-2125 Keep in mind, that the information provided above is not designed to substitute for professional advice from a competent, experienced tax professional.

The information may be incorrect or your situation may be such that it does not apply to you. Be careful about relying on any internet source for information without also checking in with a professional that knows YOUR individual situation.

Contra Costa homes for sale: Selling QUICK! Contra Costa homes for sale: Selling QUICK! Contra Costa homes for sale Homes are selling QUICKLY in this brisk seller’s market. It’s an excellent time to sell to be sure! Inventory is so low, that most homes are getting multiple offers. The market is savvy though, so there is still a danger in over pricing, so it’s critical to carefully review the comparables and market trends.

It’s not enough right now just to look at “history.” History can tell a story, but can’t always predict what the future will hold. Appraisers remain a hurdle to overcome to any buyer with a loan. You’ll need to look at the sold comparables (history), try to verify as much as you can about the pending listings (current market activity) and look to the future in trending price and activity levels.

Make sure you check out the market trends for your city to see how the market looks. I can also provide custom reports for inventory levels, list vs. sale prices and just about any other trend you’d care to see! Let me know! Below are just a couple of charts that can show you the number of active listings, sold listings and pending listings. Where did our inventory go?

This low inventory is driving our market upwards now. Walnut Creek homes for sale Concord CA homes for sale

Rossmoor Homes for sale are HOT! Rossmoor Homes for sale are HOT! Rossmoor Homes for sale The housing “boom” we are experiencing now has definitely hit Rossmoor! Rossmoor is an active senior adult, 55+, planned community on the outskirts of Walnut Creek nestled into the hills between Walnut Creek and Lafayette. Beautiful is an understatement. Every time I enter the gates of Rossmoor I feel much like I did when entering a large resort in Hawaii!

Lush greenery, golf courses, club houses, hills, creeks, wildlife… what a tranquil setting! Usually the Rossmoor housing market is a bit calmer than it is now. Right now, we have less than a month of inventory on the market. Multiple offers is the norm now and cash is king. Especially in the co-ops where it is rare to find favorable financing. Co-ops also have their own requirements as to reserves and income in order to qualify for Mutual acceptance.

Have you been searching for Rossmoor homes for sale? Thinking of selling your home locally and moving to Rossmoor? I’m happy to help! I love helping folks achieve their dream in Rossmoor! Search Rossmoor homes for sale below! Call me if you have questions about buying or selling in Rossmoor! I work both inside and outside of Rossmoor. Call Catherine Myers with any questions (925-683-2125) , or if I can help you purchase a Rossmoor home or to sell your home to be ready for a purchase in Rossmoor.

The key is to be ready! Competition is fierce at the moment. Here are some housing statistics for Rossmoor in Walnut Creek. Inventory DOWN 76% from the same quarter in 2012. Average sold price is UP 19% from the same quarter in 2012. Average active price is UP 33% from the same quarter in 2012. Median price is $200,000 in Rossmoor. Average days on market is DOWN 63% from same quarter in 2012 (now only 20 days!) Search Rossmoor homes for sale in Walnut Creek

Wanted: Rossmoor coop for sale! Wanted: Rossmoor coop for sale! Or, a Rossmoor condo? Either way, I’m hot on the hunt for a 2 + bedroom coop or condo for my very nice client! T he Rossmoor real estate market is HOT right now . Most units are selling with multiple offers. Rossmoor is in Walnut Creek and is an exclusive, secure, active adult community for 55+ and up.

Golf, clubhouse, tennis, bocce and so much more is waiting for the residents of Rossmoor. Some listings are exclusively listed with one broker, unable to be shown by others. They sell in a day , typically in house. I would love to offer my buyer a chance with these sellers too! So if you are thinking of selling your Rossmoor coop or condo – call your broker and tell them to call me, or call me directly!

T his is NOT an attempt to solicit listings from other brokers. Merely looking for an opportunity for my buyer. Would love to talk with your broker. What are we looking for? Looking for a Rossmoor coop or Rossmoor condo ready for sale! My buyer would like 2+ bedrooms, updated, laundry in unit. Doesn’t have to be level-in, but most important is easy access to ground level patio or greenbelt out the back door for ease of doggie walking.

We’ve seen everything out there in the 200k-275k range, and we’ve lost out on some of those “exclusively listed” units that get sold in house. Don’t keep your Rossmoor home for sale secret in this steaming HOT seller’s market. It seems to be a long standing tradition and presumably works for many Rossmoor sellers, but if you are interested in my buyer, call me.

I’m happy to tour my buyer through with minimal hassle to you! Feel free to have your broker phone me for an appointment. If you hear of anything coming soon for sale in Rossmoor, won’t you let me know? Take a look at the Rossmoor housing market trends and see how this housing inventory has plummeted. Catherine Myers Prudential California Realty DRE License No 01337828 1954 Contra Costa Blvd Pleasant Hill, CA 94523 925-683-2125 The above is my opinion only on the feasibility and advantages (or not) of exclusive listings, and your mileage may vary.

ROSSMOOR HOMES FOR SALE

Proposition 60 in Contra Costa – transfer your tax base Proposition 60 in Contra Costa – transfer your tax base Proposition 60 in Contra Costa Important information for seniors thinking of a move. I can’t tell you how many times I’ve been called from those over 55 hoping to transfer their tax base from another county to Contra Costa . Alas, in the early 1990’s, Contra Costa repealed Proposition 90 and it has been dead since (and see below, it almost saw a 2nd life, but was shot down again.) Prop 90 is still alive in 8 California counties.

El Dorado, Alameda, Los Angeles, Orange, San Diego, Santa Clara, San Mateo, Ventura). Proposition 90 is known as a “local-option” law. California Counties each have the choice as to whether they participate or not. If a county has instituted Proposition 90, it means it will accept property tax transfers from another California county. Even if the county that the over 55 homeowner is moving from does not have a Proposition 90 rule, it’s ok, the homeowner is still eligible within the Prop 90 county they are moving to .

Many seniors are reluctant to move at all because though they may owe nothing, or next to nothing, on their longtime family home mortgages. Buying a new home may make their property taxes double, or even triple if they buy a new home today. With the run up in our property values across California, that may mean even if they buy a home of lesser market value. Learn more about Prop 60 in Contra Costa (for transferring your tax base with our county) and see below for which counties around the state participate in Prop 90 (which will allow you to move to a participating county and transfer your tax base) ________________________ As as aside, Proposition 60 in Contra Costa is a state law and exists in Contra Costa to do this same thing, but for those already in Contra Costa moving within Contra Costa.

Here’s an example: You buy a home in the 80’s for 300,000. Your property tax base at that time is an approximate 4000.00 per year. Now, that same house is worth 1,000,000 dollars. Your taxes are still in the 4000.00+ per year mark (this is an estimate as per Prop 13 it will increase a modest amount each year). If you sell your house for a million dollars, you can buy something for equal or lessor value and KEEP your 4000.00+ annual taxes!

How cool is that for those over 55? (Certainly, unless you buy a very small condo, it is near impossible to find a home in Contra Costa that would be selling for 300,000. ) Be sure to carefully read the process at the tax assessor website and call them if necessary as you don’t want to make a mistake on this and lose this important benefit. Of course the argument I hear is from younger buyers wondering why they are “penalized” for buying a home today, as their taxes are based on the current purchase price (not the old tax basis of their last home).

Under 55 buyers buy that same 800,000 home as above , they get the 9,000+ a year taxes. Contra Costa does this as an incentive for those retiring, and those scaling down after raising their families in the big homes, to stay in (or come to) Contra Costa. Though the county stands to lose property tax dollars, the county stands to gain significant sales tax revenue. _______________________ Here’s some information from the archives!

Prop 90 was “almost” reinstated in Contra Costa – but it was rejected, below is a blog post I published then. ** THIS WAS REJECTED in Contra Costa County ** (From 2007) So the big news now is that Gus Kramer, Contra Costa County’s Assessor, is thinking of reviving this Proposition in order to rejuventate our flailing real estate market. Home sales are said to be the worst in over 12 years.

Mr. Kramer wants to bring back Proposition 90 for an initial two years to (hopefully) bolster the Contra Costa real estate market by enticing an influx of over 55 (senior) home buyers. From the Contra Costa Times: “There are no guarantees that reinstating Prop. 90 will make a big difference, but it could. Kramer envisions a two-year sunset for Prop. 90, which is when forecasters expect the real estate market to regain its health.

If any problems occur in the meantime, supervisors could cancel the policy on short notice. With few downside threats and the potential for considerable benefits for county residents, we encourage Contra Costa supervisors to reinstate Prop. 90 homeowner assessment transfers from out of the county. It’s an experiment that deserves a try.” For more complete information about whether YOUR county accepts Prop 60 or 90, or if the county you are contemplating a move to is a Prop 90 county, PLEASE CALL THE LOCAL TAX ASSESSOR’s office in that county.

The information below is subject to change as more counties adjust to our changing market: TABLE I Counties which have adopted a Proposition 90 ordinance: Alameda San Mateo San Diego Orange Ventura Los Angeles Santa Clara El Dorado TABLE II Counties which have rejected implementing Proposition 90: Butte Merced San Bernardino Calaveras Modoc* Santa Barbara Contra Costa* Mono Santa Cruz El Dorado Monterey* Shasta Fresno Napa Siskiyou Inyo* Nevada Solano Kern* Placer Sonoma Lake Riverside* Stanislaus Madera Sacramento Trinity Marin* San Benito Tulare Mendocino San Luis Obispo Yolo Information courtesy of the California Association of REALTORS® 2005 Counties with an asterisk * previously had a Proposition 90 ordinance then repealed it.

All other counties listed in Table II never had a Proposition 90 ordinance.

Wells Fargo down payment assistance in Contra Costa Did you attend the Wells Fargo City Lift seminar? Do you qualify for the Wells Fargo down payment assistance program? Did you hear that Wells Fargo is providing up to $20,000 for down payment assistance for qualified buyers? This down payment assistance can help certain homebuyers (who meet certain criteria) to buy a home in Concord, Bay Point, Pittsburg, Brentwood and a couple of other East Bay cities.

Check out the Wells Fargo site . I can help you buy when you’re ready! Check out the video from local Channel 7 KGO News: The Wells Fargo LIFT programs invest in the future by supporting sustainable homeownership and neighborhood stability. 1 A collaborative effort sponsored by Wells Fargo and local nonprofit organizations, the programs offer: Down payment assistance for qualified buyers Financial education to help buyers prepare for homeownership Events to showcase area homes for sale Money may still be available for down payment assistance in your area.

Look for your city or neighborhood today.

Short sale tax relief deadline looming – is it too late to do a short sale? Short sale tax relief deadline looming – is it too late to do a short sale? Short sale tax relief deadline is looming! Is it too late to do a short sale to be sure you get the protections of both the State of California and Federal IRS tax forgiveness protections? Short sale tax relief is due to expire at the end of 2012.

Almost! If you are thinking of a short sale, now is the time! Most banks are approving their short sales within 4-5 weeks. Most buyers can close within 30 days after that date, so we are cutting them close. But, it’s not too late. Starting a short sale NOW is key to being done by the end of the year. We hope that the tax protections will be extended with the IRS before the end of the year, but with an election year, no one knows what will happen.

California state lagged behind the federal guidelines for several months the last time, so it’s possible there will be a period of time these two protection laws will not align. You still need to have a hardship of course. Banks look closely at the reasons WHY you are doing a short sale and aren’t too keen on “strategic defaults.” Call Catherine Myers, real estate broker as soon as possible to get started on a short sale now.

Besides the looming tax protection expiration, this is a good time of year to sell. As we get closer to November holidays and into December, the market in general will take a general slow down. Further, we’ve been talking a lot lately at the supply and demand of our housing inventory now. We are seeing multiple offers on almost everything we list, so NOW is the time to capitalize on the market conditions too.

Concord CA real estate market is HOT! Concord CA real estate market is HOT! It’s no secret that the local Concord CA real estate market is moving QUICKLY! We hear lots of people talking about how the market is “coming back” but I’m not so sure. I heard a few years ago, an economist talking about our housing market recovery as something of a “catfish recovery.” You know, catfish are at the bottom, but come to the surface, then back down.. up and down, up and down.

We’re not probably going to have straight line up to a recovery, just as we didn’t have a straight line down (thought it did feel like that in some cases!). Take a look at the numbers for the past year for the Concord CA real estate market. I can print reports like this for any of our local towns, just ask if you want to see one in particular. But I find this information so interesting.

Look at that! Inventory of homes on the market is DOWN 77% from this quarter of last year. Supply and demand anyone? Buyers are out! Record low rates are driving buyers to buy now, and some of the lowest housing market inventory we’ve seen for a while, has collided resulting in multiple offers and very aggressive buyers. I have some buyers searching Concord CA real estate, and they finally got THE ONE with an offer of 10% over the listing price, and very aggressive and favorable terms for the seller.

Remember, sometimes it’s not all price, sometimes terms are just as important to a seller. Want to stay for a month after we close? Sure! How’s free sound to you? Yup, you do what it takes. Appraisal continues to be an issue in Concord CA real estate and our surrounding areas, so some buyers may have to come prepared to make up the difference in cash if their home doesn’t appraise for the purchase price.

Certainly it is pushing values in some neighborhoods higher and higher. Check out the stats. What do you think of this so-called “recovery?” I have a full page to view other Contra Costa Housing Market statistics. Just click.

Landlords in foreclosure = tenants have rights in foreclosure Landlords in foreclosure = tenants have rights in foreclosure Landlords in foreclosure in California We’ve all heard the stories and read the headlines about landlords in foreclosure resulting in a lot of stress and uncertainty for their tenants. As tenants, do you have rights if your landlord is in foreclosure?

YES. You do, and if a new California law passes landlords may actually have a much larger responsibility of disclosure and may be subject to hefty fines for not disclosing they are a landlord in foreclosure. California is considering SB 1191 Residential Tenancies, notices of default. Here’s a recap: This bill would require certain landlords (offering property with one to four units) who have received a notice of default to disclose that notice to any prospective tenant prior to entering into a lease agreement for the property.

A violation would allow the tenant to void the lease or be punishable by a minimum financial penalty of two months’ rent. I deal with tenants all the time in homes that are in default. Often the owners were working with the bank to modify their loans, and most I know, have done all the right things but due to circumstances i.e. a job change, relocation, new marriage, or other personal/family issues have forced them to make a move.

Often they were able to keep up the mortgage payments on the rental despite them owing more on their monthly mortgage than the rents will bear, until circumstances changed. For some, that change may have been in the form of a job loss, a new baby necessitating time off work, increase in loan payments, a loan reset, or simply a denial of a modification request.

Right now, tenants in California do have substantial rights when facing landlords in foreclosure and very often a lease will survive a foreclosure unless the new owner will be moving into the home. There have been quite a few times I’ve facilitated the short sale to an investor who elected to keep the same tenant in place. Win-win for all. Here’s an article for more information about Landlords in Foreclosure: California considers hefty fines for landlords who hide default.

This is important as there are many investors in Contra Costa facing default on their tenant occupied properties. Contra Costa short sales include many tenant occupied homes.

Contra Costa short sale tax relief may be continued Contra Costa short sale tax relief may be continued Contra Costa short sale tax relief extended? As many know, if you conducted a short sale, or lost your home in foreclosure you will receive a 1099 from your banking institutions reporting to the IRS and state tax agencies the amount of debt they cancelled on your behalf.

Cancelled debt can be considered income for tax purposes and can certainly pose quite a hardship to many already hard hit borrowers who have lost their homes. One of the most often asked questions has been about Contra Costa short sale tax relief. In 2007, federal lawmakers passed HR 3648, The Mortgage Debt Relief Act to offer relief and a possible exemption to some borrowers facing cancellation of debt income due to the short sale or foreclosure of their homes.

Further, in California, state lawmakers adopted SB 401 meant also to “forgive” the tax owed for cancellation or forgiven debt income. It is important you discuss with your CPA or tax attorney as to whether these two tax relief acts may help you if you are looking to conduct a Contra Costa short sale or if you’ve foreclosed in Contra Costa (or expect to).

There are certain guidelines and very specific forms you must file with your taxes for the tax year you saw the forgiven debt, and for which you received your 1099 (in other words, DO NOT IGNORE the 1099 you get from your lender just because you think you’re exempt from the taxes). Read the IRS site directly for more information on the 2007 Mortgage Forgiveness Debt Relief Act and Debt Cancellation Contra Costa short sale mortgage tax relief – IRS information.

Right now, this debt relief act is set to expire at the end of this year (2012). As of August 22, 2012, word is that an extension of the mortgage debt tax relief act has passed the senate committee and is awaiting final full Senate approval soon. The extension of the tax relief act would provide the tax protections for one more year, through 2013. From the LA Times earlier this month: Here’s some encouraging news for financially stressed homeowners across the country: The Senate Finance Committee has approved a bipartisan bill that would extend the Mortgage Forgiveness Debt Relief Act through 2013.

Why is this important? Several reasons: The debt relief law spares homeowners who receive principal reductions on their mortgages from being hit with hefty federal income taxes on the amounts forgiven. Without it, millions of owners who go through foreclosure or leave their homes following short sales would experience even more financial stress. California has had a similar law on the books, also set to expire this year we hope to hear too to be extended.

Stay tuned on California’s SB401 tax relief updates. Back in 2010, I wrote about the state’s tax relief bill and quoted: Governor Arnold Schwarzenegger today signed SB 401 by Senator Lois Wolk (D-Davis), legislation that will bring much of our state tax policy in line with federal policy while specifically providing greater tax relief to struggling California homeowners who have sold their homes as short sales or modified their mortgage loans.

This bill will also assist companies that are developing new renewable energy projects in the state that are financed by economic stimulus grants received through the American Recovery and Reinvestment Act (Recovery Act). You can read more about SB 401 at the State Franchise Tax Board: Mortgage Forgiveness Debt Relief California As always, consult with your tax professional for any questions and for clarification as to whether you qualify for these important short sale tax protections.

If you are looking to avoid Contra Costa short sale tax in 2012, there is still time if you contact me right away.