Even though you may have already submitted your taxes for 2009 you may be able to save even more on your California state taxes if you received a 1099 as a result of a Short Sale.
Yet another positive effort by California legislators to help the housing market with this new bill. The Sacramento Bee reports on this effort to get this bill into law before April 15th deadline.
“The bill being considered this week, Senate Bill 401, would cancel state tax obligations for forgiven mortgage debt through the 2012 tax year. The Assembly planned Monday to rewrite SB 401 from a bill regarding tax shelters to one that aligns much of California’s tax law with that of the IRS. That includes canceling taxes on forgiven mortgage debt and on recipients of federal renewable energy grants.”
Read more: http://www.sacbee.com/2010/04/06/2657410/california-expected-to-cancel.html#ixzz0kMw5Xs6U
Just when most buyers face the end of the $8,000 tax credit Governor Schwarzenegger has revealed a new incentive planned for May 1st that would give buyers up to $10,000.
The day after the federal government credit expires this new state credit would pick up where the federal one left off.
Details of the credit qualifications have not been finalized but the funding is coming from a $100 million dollar program crafted last year as reported by the Wall Street Journal.
Read article here
I decided to create an ongoing video update of the Santana Row neighboring area sales and will continue to do so on a quarterly bases to help you track sales activity along with financing terms used in the area. The video can be viewed on my youtube channel and can be viewed by clicking the video below.
A huge step was taken by our legislators last week by passing Sb 94 authored by Senator Calderon. A law that makes it illegal to charge up front fees on a loan modification. This law applies to everyone including attorneys and real estate brokers.
“Overall, Fitch’s expected losses for recent-vintage Option ARMs range between approximately 35%-45%, depending on the collateral quality of the underlying mortgage loans. In addition to expectations of higher defaults, severities have also contributed to higher expected lifetime losses. Fitch has observed that loss severities on Option ARMs have increased significantly to an average of approximately 60% from 40% a year ago. A key driver in the worsening severities is the fact that 75% percent of Option ARM loans are secured by properties located in California, Florida, Nevada, and Arizona, which have experienced average declines of 48% from second quarter-2006 to date. Even without further declines in home values, defaults on Option ARM loans are expected to soar as loan recasts occur, as these borrowers are unable to effectively refinance into alternative mortgage product.”
Incredible to see the long term aftermath continues with the exotic loan products the the very popular Option Arms in California. I feel for those homeowners who are facing the harsh reality of their decision to leverage it all on an option arm. I do sense that there will be a continued effort to mitigate this impending disaster.
Read Full Story Here
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