Four Factors to Watch in the Housing's Rebound

For the past year, more U.S. housing markets have had the feel of a blowout flea-market sale.

Prices were low and financing—while hard to get—was cheap for those who could get it. Once it was clear prices had found a bottom, bidding wars broke out as buyers competed over a shrinking supply of homes to get a good deal.

That sent prices up—sharply, in many markets—and for a while, buyers didn’t much mind. Falling interest rates made it possible for buyers to offer slightly higher prices without raising their monthly ownership costs.

But now, mortgage rates are up by a full percentage point over the past four months, and affordability has taken a hit, prompting concerns about a short-term “soft patch” as buyers and sellers adjust. Here’s a look at four keys to the housing puzzle:

1. Housing became less affordable in a short span. Typically in a recovery, sales pick up and then prices follow. But the current recovery has been “flip-flopped,” said Ivy Zelman, chief executive of Zelman & Associates Inc., a research and advisory firm. “We’ve had pricing accelerate out of the box” as builders took advantage of rising demand and low interest rates while adding little in the way of new construction. “That’s not typical of an upturn.”

Now, with prices up by double-digits from one year ago, rising rates have been “almost like a red light on the frantic price inflation,” said Ms. Zelman. A Zelman report last week showed that new home orders in August rose by just 1% from one year earlier, compared to year-over-year gains of 11% in July and 25% during the second quarter. “I hear more often now from builders, ‘We pushed prices too far,’” she said. “Consumers got sticker shock.”

2. Inventories are still depressed. Demand is only part of the equation of course, and some real-estate agents say the biggest drag on sales continues to be the lack of homes for sale. While the number of listings in August was up by 20% from the beginning of the year, the supply of homes for sale is below the already-depressed levels of one year ago. “There’s just not enough inventory to justify price declines,” said Ms. Zelman.

Buyers are also being pickier today because they’re looking for a home that they can live in for a long time, said Jim Klinge, a real-estate agent in Carlsbad, Calif. “Buyers want the right house,” he said. “They’ll pay more for it, and they’ll pay a higher rate.” But if it’s not available, they’ll wait.

Data tracked by John Burns Real Estate Consulting shows that in the vast majority of the nation’s 20 top markets, demand exceeds supply. In Phoenix, new-home sales are being hindered by a lack of supply, said Mike Orr, a housing analyst at Arizona State University in Tempe, Ariz. “There’s not any new homes in the places where people want to live,” he said. “People are frustrated.”

3. This should help quiet the bubble talk. Earlier this year, some worried that the housing market was back in a bubble. Any cooling down should soothe those worries. “I was more scared of the market at the beginning of the year than I am right now, because I knew that was not sustainable,” said Greg Markov, a real-estate agent in Phoenix, a market at the center of the home-price rebound over the past year.

“People were behaving irrationally, and it set us up for more ups and downs,” said Glenn Kelman, chief executive at Redfin, the real-estate brokerage.

While incomes have been growing at roughly 1% a year, home prices have been rising much faster—by around 12% nationally. Some of this happened because home prices had fallen below their traditional relationship with incomes. But a 12% pace of growth was “simply too high and not sustainable,” said Chris Flanagan, a mortgage analyst at Bank of America Merrill Lynch in a recent report.

4. How smooth a hand-off? As rising prices ease investors out of more markets, there will be less competition for some homes, slowing the pace at which prices are going up. The key going forward is how well owner-occupant, mortgage-dependent buyers are able to pick up the slack from investors, especially in an environment where rates are rising.

Unemployment is still high, especially among younger workers who would normally be first-time home buyers. Mortgage credit remains tight, and many borrowers may already have high debt loads or irregular incomes that make them marginal candidates for a loan anyway.

When interest rates normalize, “any future improvement in housing will be entirely dependent on the jobs picture,” said Jeffrey Otteau, chief executive of Otteau Valuation Group, an appraisal firm in East Brunswick, N.J. The key, he adds, is how many jobs are being added “and are they part time temporary contract workers at the bottom of the income ladder or are they the high paying jobs we need to sustain a housing recovery?”

The answer to that question will go a long way towards clarifying how fast housing heals.

The answer to that question will go a long way towards clarifying how fast housing heals.

Story by Nick Timiraos of The Wall Street Journal

New Housing Scam Emerges; California Homeowners Beware.

If you're applying for the $2 billion state-run program that helps struggling borrowers, remember, the process should be free from start to finish.

Related: Are mortgage-aid programs too little, too late?

State officials have noticed an emerging scam: Callers say they will help homeowners apply for Keep Your Home California benefits for fees of up to $900. The calls are happening statewide.

Applying for the program is free.

California, one of the hardest-hit states in the U.S., launched Keep Your Home California last year to help folks who’ve lost their jobs, seen their companies move away, or watched their home equities plummet from price-boom highs. The idea is to catch them up on mortgage payments, help them relocate after a short sale and cut their principal, by far the most controversial part of the program.

So far, it's helped about 12,000 borrowers, reflecting more than $200 million in aid. Read some of their stories here.

Officials with Keep Your Home California, a program run by the California Housing Finance Agency, encourage Californians to call 888-954-5337 instead of taking phone calls from solicitors about the program. You can also visit keepyourhomecalifornia.org.

Article by:

Written by

Lily Leung

12:56 p.m., March 7, 2012
Updated 1:10 p.m.

Sacramento: When estate vaues rise again, tax bills liely to rise faster

When real estate values rise again, tax bills likely to rise faster

By Loretta Kalb
lkalb@sacbee.com

Published: Tuesday, Aug. 23, 2011 - 12:00 am | Page 1B

Hundreds of thousands of Sacramento-area residents have experienced one upside of falling real estate prices: lower property taxes.
When the market recovers, however, their tax bills could rise much faster than they fell.
That's because the normal limits on tax increases established by Proposition 13 no longer apply as long as a property's assessment remains below its maximum taxable value, generally its last sales price plus annual inflation.
In good times, Proposition 13 allows the assessed value of a property to rise by no more than 2 percent a year – even though the actual market value may have gone up much more. There are no such limits on properties worth less than taxable value.
How much could taxes rise?
That's not a question people are in hurry to ask. Home prices in the region are about 50 percent below the peak of 2006, and most resales in the Sacramento market are bank-owned or short sales. Recovery still seems out of reach.
Real estate sales data so far signal that property taxes will likely go down again, or remain flat, for the 2012 tax cycle, said John Solie, assistant assessor for Sacramento County.
When taxes do rise later this decade, the shock to owners will depend on the pace of recovery. In a slow upswing, owners might not notice, at least, not right away.
Over time, however, the shift to higher taxes is likely to produce a slew of appeals, assessors say.
"After the last recession we were going into a real estate market that was increasing 10 to 20 percent a year," Yolo County Assessor Joel Butler said. "People really felt it, and they talked to us about it.
"This recession is so different than anything we've ever experienced. I don't see us coming out like a lion, as we did last time."
In the 1990s, when the real estate market took a long dive, nearly a third of all Sacramento County properties had lowered assessments.
This time, the share exceeds 40 percent in Sacramento County, and it's still climbing.
Already in the four-county region – Sacramento, Yolo, Placer and El Dorado – the volume of reduced-tax properties exceeds 300,000.
"This is pretty unprecedented for property taxation since Proposition 13 passed, in any number of ways," said El Dorado County Assessor Karl Weiland.
"We've had three (significant) years of negative values," he said. "That has never happened."
Weiland said he believes assessors will take a conservative approach in restoring taxable values.
"This has been a topic of discussion among all assessors," Weiland said. "We're simply trying to formulate some idea as to how we're going to deal with this.
"Everybody is scratching their heads and saying, 'OK, we've dealt with the decrease in values, and we've followed the market down. Now we've got to figure out how we follow the market up."

Read more: http://www.sacbee.com/2011/08/23/3854636/when-real-estate-values-rise-again.html#ixzz1VzEh0010

If you live in the Greater Sacramento and surrounding areas, and would like a current estimate of value on your property, email us with your address, and we will be happy to send you copy based on Metrolist.  (same stats that appraisers use)

 We are always on the lookout for the latest news on Short Sales.  One thing is for sure, working with an experienced team can make the difference!   We have been working with Short Sales throughout our Real Estate career since 1994.

(Original Article from http://abclocal.go.com/kfsn/story?section=news/business&id=8264936)

FRESNO, California (KFSN) -- California realtors are calling on lenders to do more to prevent families from going into foreclosure. This after a recent survey found more than half of Central Valley realtors characterized closing short sale transactions as "difficult" or "extremely difficult."

Sal Valencia said, "You can't do anything if they aren't willing to talk, not willing to respond, even acknowledge you."
Valencia has been trying to short sell his Central Fresno home since August of 2009.
"At the time there was a lot of things that changed in our lives that we couldn't afford our home anymore," said Valencia.
Instead of going into foreclosure - he chose another alternative. A short sale -- where homeowners with a proven hardship negotiate an agreement with their lender to sell their home for less than what they owe. But so far - he's run into a number of man-made roadblocks.
Valencia said, "The most difficult part is the lack of communication."
Don Faught, California Association of Realtors said, "Californian's are being victimized by a process that should be helping them."
At a news conference outside Valencia's home - a group of Central Valley realtors said he's not alone - calling the short sale process "broken."
Fresno Realtor, Patrick Prince said, "The vast majority of properties we put through into contract, the buyer cancels and moves on to another property before we can get a short sale."
They say the problem is with the lenders slow response times, repeated requests for documentation and poor communication with their clients. Some realtors even said the lender foreclosed on the home before the short sale was completed.
Prince said, "I think the process is similar enough among all the lenders that it could be streamlined across the board."
They're now calling for reform. Demanding the lender appoint a single point of contact for each transaction -- speed up the approval process -- and stop foreclosure proceedings while negotiating a short sale. Solutions they believe will help thousands of homeowners who face foreclosure each year.
Valencia said, "I'd hate for someone to go through this. That's the only reason I'm here."

(Copyright ©2011 KFSN-TV/DT. All Rights Reserved.)

California pending home sales rise in June, distressed properties remain flat C.A.R. reports

For release:
July 20, 2011
California pending home sales rise in June, distressed properties remain flat C.A.R. reports
LOS ANGELES (July 20) – California pending home sales rose for the second consecutive month in June, while the share of distressed property sales was unchanged, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today. 
Pending home sales:
Pending home sales in California rose in June, according to C.A.R.’s Pending Home Sales Index (PHSI)*.  The index was 119.0 in June, an increase of 1.9 percent from May’s revised index of 116.8, based on contracts signed in June.  The index also was up 4.4 percent from June 2010.  Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
“Pending home sales have improved in the last couple of months and the next few months should bring continued gains,” said C.A.R. President Beth L. Peerce.  “So much depends on the direction of the economy going forward. As for the makeup of the market, distressed sales continue to be a significant part of the market with the split between short sales and REO sales varying greatly across the state.”
Distressed housing market data:

• The total share of all distressed property types sold statewide was unchanged in June from May’s revised 47 percent.  The share also was unchanged from a year prior.
• Of the distressed properties sold statewide, 19 percent were short sales, a decline from last month’s share of 20 percent and last year’s share of 21 percent.
• At 27 percent, the share of REO (real estate-owned) sales was unchanged compared with May, but was up from 25 percent reported in June 2010.
• Non-distressed sales made up the remaining share of home sales in June at 53 percent, unchanged from both previous month and year.

Multimedia:

• View a video of C.A.R. Chief Economist Leslie Appleton-Young discussing highlights of the June existing home sales and price report, which was released July 14.
• View a chart of pending sales compared with closed sales.
  
  # # #

Share of Distressed Sales to Total Sales
(Single-family)

Type of Sale	June-10	May-11	June-11
REOs	25%	27%	27%
Short Sales	21%	20%	19%
Total Distressed Sales	47%	47%	47%

 
Single-family Distressed Home Sales by Select Counties
(Percent of total sales)

County	June-10	May-11	June-11
Amador	44%	61%	51%
Butte	27%	44%	34%
Humboldt	20%	17%	29%
Kern	68%	66%	66%
Lake	62%	80%	86%
Los Angeles	47%	45%	47%
Madera	54%	85%	83%
Marin	20%	28%	26%
Mendocino	32%	51%	63%
Merced	53%	59%	64%
Napa	49%	43%	51%
Orange	33%	36%	35%
Riverside	69%	65%	61%
Sacramento	62%	65%	65%
San Bernardino	69%	69%	69%
San Diego	25%	29%	28%
San Luis Obispo	40%	40%	42%
Solano	66%	71%	72%
Sonoma	43%	48%	51%
Tehama	67%	62%	73%
CALIFORNIA	47%	47%	47%

*Note:  C.A.R.’s pending sales information is generated from a survey of more than 70 associations of REALTORS® and MLSs throughout the state.  Pending home sales are forward-looking indicators of future home sales activity, offering solid information on future changes in the direction of the market.  A sale is listed as pending after a seller has accepted a sales contract on a property.  The majority of pending home sales usually becomes closed sales transactions one to two months later.  The year 2008 was used as the benchmark for the Pending Homes Sales Index.  An index of 100 is equal to the average level of contract activity during 2008.
Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

Short Sales frustrating, but better than foreclosures

We found this great article via the California Association of Realtors.  Gives a great insight on what goes on behind the scenes as far as how the industry is making changes and streamlines in the  daunting process of a short sale.  If you have any further questions, or would like a private consultation, please feel free to contact us.

Yoli and Sharon,

Rebecca U. Cho, Staff Writer

Posted: 06/11/2011 08:01:10 PM PDT

Short sales have been anything but short in duration. As lenders grapple with the huge volumes of distressed properties and navigate the complex web of loan ownership created by bundling mortgages, transactions have stalled for months.
Real estate professionals and homeowners are frustrated - and the California Association of Realtors has been pushing to speed up the process. The trade group is working with lending institutions such as Fannie Mae to shorten the time brokers and agents must wait for approval on short sales.
Short sales, in which the lender agrees to accept the sale of a home for less than is owed on the property, help lenders and homeowners avoid foreclosures. And such transactions make up a significant portion of the housing market: 19 percent of total home sales in California were short sales in April, according to C.A.R. statistics on existing single-family homes.
Doug Shepherd, the president of the Inland Valley Association of Realtors, C.A.R.'s regional chapter, spoke on the present state of the short sales process and ongoing improvements in streamlining the process. Shepherd is also the owner of Shepherd Realty Group based in Riverside.
Q: Are short sales a relatively new type of transaction in real estate?
A: I started doing short sales in the early 1990s in the Inland Empire, the last time we had a real downturn, when they closed the Air Force bases around here and property values dropped. It occurs
often after a run-up on prices and when equities can't catch up. It's always been there. Q: Why are we experiencing big delays in short sales today?
A: Inefficiency and sheer volume. Because it's a national issue and the way mortgages are bundled today, who owns it? Bank of America services or collects payments on hundreds of thousands of loans in the United States. But they can make decisions on only 10 percent of loans. So on 90 percent of loans, people are making payments to BofA as the servicer, but someone else owns the loan. So it's this whole thing of who really owns the loan. Nine out of 10 times you're not talking to the decision maker.
Q: How has the short sales process been for real estate agents and Realtors?
A: It's very frustrating. And our national and state associations are trying to put forth some measures to help alleviate this. It's the time involved and the uncertainty. If I take five listings, it could be five different banks and each could have their own processes. So it's very inconsistent and time consuming. You can imagine you can open an escrow today and not see a paycheck until December or sooner. A buyer may say I don't want to wait anymore and you have to go out and find another.
Q: What kind of changes are the associations pushing for?
A: Fannie Mae and Freddie Mac are working with us. We're trying get a streamlined program or a consistent set of guidelines so a homeowner can say, "I can start this process, I know what to expect. I qualify or I don't."
Q: Do you see signs of improvement?
A: There's an online platform banks use now called Equator. It's streamlined, the homeowner or Realtor can go online and enter information rather than faxing over papers that get lost. Those kinds of things are speeding up the process for many institutions.
Q: What role are short sales playing in the housing recovery?
A: First and foremost they lessen the amount of distressed properties that are foreclosed on and come onto the community as vacant property. A homeowner in a short sale tends to maintain it before moving out. In a foreclosure, they may move out and get evicted and property may become a blight on the community, so it will pull down the community as well as the individual homeowner.
Another reason we want to do short sales is it's good for the homeowner, institution and community. It's good for the homeowner because it lessens the credit impact and allows them to be in control when they move and how they go about it. It's good for the institutions because they lose less money and don't have to take properties back. And it's good for the communities because the housing stock stays in a better condition

Read more: http://www.sbsun.com/business/ci_18256673#ixzz1Pvl8SvDW

Sacramento Realtor Association's Realtor of the Month!

Sharon Boatwright!




1. How long have you been a Member
of SAR?

Since 1996
2. What did you do before you were
in real estate?

I was employed by United Parcel
Service (UPS) for over 13 years and continue
to be a “Domestic Goddess.”

3. What do you like best about being
in real estate?

I have been a part of a team with
Yoli Manzo for over 13 years. I found it
helpful to come together as one for a
team concept. I also love the interaction
and relationships I have developed with
people from varied backgrounds and
cultures. Also, I enjoy knowing that I
am offering a service to help families’
dreams come true.

4. How have you adjusted to changing
market conditions in the past
couple years?

Education, education and more education.
I continually educate myself to
keep my skills sharp. I embrace change
and I stay ahead of the curve by education
through SAR and other industry
professionals. I love learning new and
exciting marketing ideas.

5. What have been some of your
favorite programs/committees/activities
at SAR?

Of course, SAR’s Leadership Academy.
I have also participated in CanTree,
Cultural Diversity Day, Master Club,
Lunch and Learns and SAR’s Real Estate
Finance Forum.

6. Why did you decide to join SAR’s
Leadership Academy?
I was highly encouraged by other SAR
Directors and past Leadership Academy
graduates to participate in this academy.
I have a new profound respect for
ALL benefits of SAR, leadership and staff.
The Leadership Academy has given me
an understanding of why we should
participate in our Association.

7. Technology has changed a great
deal in recent years – how have you
kept up-to-date?
Numerous classes provided through
SAR have allowed me to leverage
my time for clients and activities.
Technology has also allowed me to be
more efficient with my business and
use social media networking to conduct
business in today’s environment.

8. Words of wisdom for your fellow
real estate professionals?
“Maintain your HIGH Standards”

9. Hobbies or other activities?
I enjoy dates with my husband, Alex;
reading, movies, cooking, crafts, event
planning, spending time with my family
and activities with my church.

10. How long have you lived in
Sacramento?
Over 35 years

11. What are some of your favorite
places to visit?
Mexico, Hawaii and New York
12. What would you do if you weren’t
a real estate professional?
A profession that serves others...

13. What’s a good book you’ve read
recently?
“Getting to Happy” by Terry Mc Millian

14. What would people be surprised
to learn about you?
I was born and raised in Elmendorf,
Alaska. I have been married for over 26
years, raised two beautiful grown children
(Monniece and Alex). My husband and I
have also raised five foster children since
1990 and we own a catering company.

5 Real Estate Scams You Need to Know About

With so much predatory scammers around, we thought this was an excellent article to help you notice the red flags in all those "To Good to be True" offers.

Still in doubt? Feel free to contact us with any questions.

Yoli and Sharon
Your Favorite Real Estate Team.

Don't be duped by mortgage fraud. Here are a few common scams and the red flags you should look for in a transaction.

By Melissa Dittmann Tracey | August 2010

Mortgage fraud is pervasive: An estimated $4 billion to $6 billion in annual losses result from mortgage fraud, according to FBI reports. “An entire community can be damaged by mortgage fraud,” says Rachel Dollar, a lawyer from Santa Rosa, Calif., and editor of the Mortgage Fraud Blog. Mortgage fraud can lead to a spike in foreclosures, home values plummeting, and lenders raising their rates and fees to recover losses.

The crimes are often complex, involving several parties and occurring over multiple transactions. To protect you and your clients, educate yourself about mortgage fraud and be on guard for any warning signs in a transaction. You can start by reviewing these five scams, and then test your knowledge by taking our Mortgage Fraud Quiz.

1. The Foreclosure Rescue Scheme

The Scam: “Rescuers” promise cash-strapped home owners that they can save their home from foreclosure. The rescue, which involves paying upfront fees, can take multiple forms, such as the perpetrator obtaining a new loan on behalf of the owner or by having the owner sign over the home’s deed and then rent the home until they can repurchase it. Eventually, the home owner loses the home, either to foreclosure or the fictitious rescue company.

Red Flags: With foreclosure rescue programs, borrowers are often advised to sign over the title of their house to a third party, become renters of their home, not contact their lender, or send mortgage payments to a third party, according to Fannie Mae, which provides fact sheets on mortgage fraud.

2. Loan Documentation Fraud

The Scam: This fraud involves numerous schemes in which a borrower provides inaccurate financial information — such as about their income, assets, and liabilities — or employment status in order to qualify for a loan with lower rates and more favorable terms. Occupancy fraud is one growing area: Borrowers say they plan to live in the property when they actually intend to rent it.

Red Flags: Documentation may raise suspicion if the employer’s address is shown as a post office box, accumulation of assets compared to the person’s income appears too high or low, the new house is too small to accommodate occupants, the person has no credit history, or the application is unsigned or undated, according to Fannie Mae.

3. Appraisal Fraud

The Scam: A faulty appraisal — saying a property is worth more than what it really is — is connected to many types of mortgage fraud. It entails manipulating or overstating comparables, market values, or property characteristics in order to obtain a higher appraisal. The higher property appraisal, which generates false equity, is done by falsifying an appraisal document or using an appraiser accomplice to obtain the higher value.

Red Flags: Be skeptical of appraisals that are dated prior to the sales contract, list comparable sales that do not contain similarities to the property or are outside the neighborhood, the owner is not the seller listed on the contract or the title, or a third party participating in the transaction orders the appraisal, Freddie Mac warns.

4. Illegal Property Flipping

The Scam: This entails purchasing properties and reselling them at inflated prices. These scams usually involve faulty appraisals and inaccurate loan documents. The property is then refinanced or resold immediately after purchase for an inflated value. The home is purchased at a higher price, often by straw buyers working with the “flipper,” and eventually falls into foreclosure.

Red Flags: Some key things to look for are rapid refinancing of a property; the seller recently having acquired the title or acquiring the title concurrent with the transaction; an appraisal that comes in too high; a property that was recently in foreclosure being purchased at a much lower price than its sales price; or the owner listed on the appraisal and title not matching the seller on the sales contract, according to Fannie Mae.

5. Short Sales Schemes

The Scam: Borrowers owe more than the current value of their home so they fake financial hardship and no longer make their mortgage payments. An accomplice of the borrower then submits a low offer to purchase the property in a short sale agreement. The lender agrees to the short sale, unaware that it was premeditated. The property, after being purchased at the reduced price, is then often resold at the home’s actual value for profit.

Red Flags: The borrower suddenly defaults on the mortgage with no workout discussions with the lender, an immediate offer is made to a lender at a short sale price, the short sale offer is less than current market value, or a cash back is offered at closing to the delinquent borrower (disguised as “repairs” or other payouts, for example) and is not disclosed to the lender, according to Fannie Mae.

You can report instances of suspected mortgage fraud to Stopfraud.gov.

Free Short Sale Workshop This Wednesday.

Sharon Boatright, Yoli Manzo and Special Guest, Steve Beede, are hosting a Free and Informative Short Sale Workshop.

In the past, it was rare that a bank or lender would accept a short sale. However due to the overwhelming market changes, lenders have become much more negotiable when it comes to these transactions. Recent policy changes within many organizations have made the chances of getting a short sale approved even higher.

The following information describes the short sale process:
Home owners are "short" when they owe an amount on their property that is higher then the current market value.

A short sale occurs when a negotiation is entered into with the homeowner's mortgage company to accept less than the full balance of the loan at closing. A buyer closes the property and the property is "sold short"

At the class you will learn the Homeowner Consequences of Foreclosure vs. Shorsale.
As well as how the process works and receive a free list of all the items you will need to present your "Short Sale" request.

Seating is limited, so do email us for your reservation.
yoli.manzo@gmail.com or sharoninrealestate@gmail.com

Class is Thursday, July 22nd 2010, 6:30pm.
Remax Gold
9280 W. Stockton Blvd. #110
Elk Grove, CA 95758


Steve Beede, Attorney at Law, In 1994, Steve graduated law school and immediately formed his own firm specializing in real estate and business, BPE Law Group, which has since grown into one of the most respected firms in Sacramento handing cases nation-wide. In addition to leading his law firm and advising and representing clients world-wide, Steve is in demand as a seminar speaker, coach, and business consultant.

No More State Tax on Forgiven Dept in California

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.

Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.

For more information about mortgage forgiveness tax consequences, go to California Franchise Tax Board's Mortgage Forgiveness Debt Relief Extended webpage and the Internal Revenue Service's Mortgage Forgiveness Debt Relief Act and Debt Cancellation webpage. The full text of Senate Bill 401 is available at www.leginfo.ca.gov.

Article by California Association of Realtors

A recent client of Sharon & Yoli's, a local teacher, recieves an AWARD

One of our favorite clients received a wonderful award as a teacher for going above and beyond, at a local Sacramento elementary School. Her award included a $1000 dollars of supplies from Office Max,Mrs Winquest also received her favorite leather desk chair! Congratulations Mrs Winquest,we are proud of you!

If you have a success story and would like to share it with your "Favorite Realtors". Please pass along to us story.

If you know anyone who needs to buy or sell real estate, please give them our contact information.

Another Sacramento King Ticket Give Away!

Hey Sacramento,

It's that time again! Another giveaway from your favorite Residential Real Estate Team, Yoli Manzo & Sharon Boatwright!

We are giving away a set of two seats to the Sacramento Kings game. They are playing the Golden State Warriors.



The game is Saturday, October 17th, 2009.

All you have to do, to enter is leave us a comment. If you "follow" our blog (see follow button to the right of our blog) you get your name entered twice!

We will announce the winner on October 15th, so be sure to check back, so that you can claim your tickets prior to the game. We will make arrangements with you to pick up your tickets. (You must be available to pick up your tickets)

Please tell a friend and or feel free to share this blog to others.
If you or someone you know is in need of a Realtor, we would be happy to offer our guidance and services. We have been going strong since 1994, and have been representing everyone, from 1st time buyers, to Short Sale sellers, and REO's.

Yoli and Sharon Annual Shopping Trip

It’s shopping time again with
Yoli & Sharon!
Your favorite Realtors! (Tell a friend!)
Join us for a day of Fashion, Shopping, Eating and Good Cheer!

Come take a ride with us to the world famous Union Square in San Francisco. We invite you to a wonderful day of pampering and shopping! Your trip will include: snacks, drinks, prizes, surprises, and round trip transportation. Very limited seating, so hurry and send your reservation today!

Date: Saturday, December 5th, 2009
Time: 8:00 am. till 8:00 pm. (traffic permitting)
Meet us at our office @ 7410 Greenhaven Drive #105, Sacramento Ca 95831
Cost: $35.00 (sorry, no refunds & due to the popularity of this event, seats will be reserved only when payment is received,
(we only have 50 seats!)
Checks can be made to
Manzo & Boatwright Partnership.
ReMax Gold
730 Alhambra Blvd. #150
Sacramento, CA 95816
Another Fabulous event by Yoli & Sharon!
Yoli Manzo (916) 997-6934
Sharon Boatwright (916) 825-4315
Www.yoliandsharon.blogspot.com

Sacramento Kings Game Giveaway

Hey Sacramento,

It's that time again! Another giveaway from your favorite Residential Real Estate Team, Yoli Manzo & Sharon Boatwright!

We are giving away two sets of two tickets (two different winners) to the Sacramento Kings 1st Pre-Season game. They are playing the Portland Trailblazers!



The game is Wednesday, October 7th, 2009 at 7:00 pm.

All you have to do, to enter is leave us a comment. If you "follow" our blog (see follow button to the right of our blog) you get your name entered twice!

We will announce the winner on October 6th, so be sure to check back, so that you can claim your tickets prior to the game. We will make arrangements with you to pick up your tickets. (You must be available to pick up your tickets)

Please tell a friend and or feel free to share this blog to others.
If you or someone you know is in need of a Realtor, we would be happy to offer our guidance and services. We have been going strong since 1994, and have been representing everyone, from 1st time buyers, to Short Sale sellers, and REO's.

Thanks again, for your continued support and stay tuned for information on our upcoming San Francisco shopping bus trip in December. (tickets to go on sale real soon!)

First Time Home Buyer Tax Credit to be Extended?

Lobbying intensifies to extend first-time home buyer tax credit
Trade groups for real estate agents and home builders are pressuring Congress to continue and even broaden the $8,000 credit, which is scheduled to expire Nov. 30.

By Kenneth R. Harney


Reporting from Washington - It's one of the biggest unknowns bugging would-be buyers of houses and condos this summer: Will Congress let the $8,000 nonrepayable tax credit for first-time purchasers expire as scheduled 14 weeks from now?

Or will the credit get a second life and be extended for six to 12 months, taking pressure off buyers, real estate agents and escrow companies?

That's an especially urgent matter if you're a buyer just starting to shop and you see entry-level prices bottoming out or rebounding in many local markets. The tax credit statute requires buyers to fully close on their purchases -- not just be in escrow -- no later than Nov. 30. This doesn't leave a lot of leeway for people who haven't yet decided on a specific house and who haven't nailed down financing.

The process of negotiating offers, signing sales contracts, applying for a loan and completing the closing can easily extend for two months -- or a lot longer if things get off track.

Given the rapidly approaching deadline, what's the likelihood that Congress will allow at least a little extra time? Here's a quick overview: Although Congress is on its summer break, most members of the Senate and House use part of the August recess to meet with and listen to constituents in their home districts.

This year, the two biggest housing trade groups -- the National Assn. of Realtors and the National Assn. of Home Builders -- are spending the month mounting intense lobbying campaigns to make the case for extending the credit and maybe even expanding it. The effort is targeted first at the districts of members of the two tax-writing committees -- House Ways and Means and Senate Finance -- but is expected to cover most other members as well, according to officials of the two groups.

Delegations of home builders and real estate brokers already have begun descending on district offices, delivering what Jerry Howard, president and chief executive of the builders association, calls "the hard economic facts" -- the numbers of houses sold in each Congress member's district that are attributable to the tax credit; the economic ripple effects on local businesses, manufacturers and service industries; new jobs and income; plus the additional tax revenue that all this activity will help produce for local governments.

On a national basis, according to economists at the National Assn. of Realtors, the credit will be responsible for 300,000 to 350,000 additional sales of houses this year. Each home sale generates about $63,000 in downstream "ripple effects" elsewhere in the economy, they say.

If you accept the numbers, which some analysts consider a stretch, this means the housing credit provides a powerful, immediate stimulus bang for the buck. Failure to extend what may be one of the most effective pieces of the Obama administration's 2009 stimulus legislation would cost jobs, economic growth and tax revenue, the housing groups contend.

There are some signs that Congress may be getting the message. Bills are pending in both houses to extend the credit for another year. Senate Majority Leader Harry Reid (D-Nev.), whose state has been among the worst hit by the housing bust, reportedly favors an extension of the credit. He was quoted to that effect by the Las Vegas Sun on Aug. 5.

Sen. Christopher J. Dodd (D-Conn.), chairman of the Senate Banking Committee, is cosponsoring a bill with Sen. Johnny Isakson (R-Ga.) that would raise the credit amount to a maximum of $15,000. Meanwhile, the Realtors and the builders are pushing not only for extension of the credit, but for broadening it to cover all home purchases in 2010.

But can any of this happen before the Nov. 30 deadline? The key complicating factor here is Congress' heavy load of higher-profile issues that will get attention before anything else in September and October. On top of that, a tax credit extension would cost billions in lost revenue -- a big negative when the federal budget deficit is in record red-ink territory.

In the end, however, given the political economics of the housing credit, the odds favor some sort of extension, probably later rather than sooner.

kenharney@earthlink.net

Distributed by the Washington Post Writers Group.

Investors Drive Foreclosure Prices Up.

Daily Real Estate News | July 21, 2009 | Share

Investors Drive Foreclosure Prices Up
Home shoppers in parts of the country with lots of foreclosures are finding it increasingly difficult to buy. Investors are bidding up prices thousands above the original asking price.

Federal legislation slowing the number of foreclosures is adding to the problem by reducing the number of homes on the market. For instance, in Las Vegas, one of the areas where the bidding problem is greatest, home inventories are down 10 percent since March, according to the Las Vegas Association of REALTORS®.

When a bidding war erupts, the problem is particularly difficult for traditional buyers because investors are usually cash purchasers. They can bid up a property without concern whether the appraisal will prevent them from getting a loan.

Experts say the problem is not unlike the situation at the height of the housing bubble.

"This market is about as abnormal as the hypermarket that we came out of a few years ago," says Jay Butler, director of the Realty Studies program at Arizona State University.

Source: The Associated Press, Jonathan J. Cooper (07/20/2009)

Both Sharon and I as well as our greater Sacramento Colleagues are experiencing this trend first hand. The Sacramento market is extremely competitive. We have been advising clients to view properties at least 5-10 thousand dollars under their price range, to all allow room for bidding.