Archive for August 31st, 2008
Ventura County Real Estate Doing’s for Week Ending August 30, 2008
August 31st, 2008 Categories: Weekly Real Estate Activity In Ventura County
Summer is slipping by, the football season has just started and we are blessed to have so many outlets to view and do in this area that it makes living here a great pleasure.
But I suspect if one dislikes sports it could be just the opposite.
However there is a bright side even if you do not like sports. There are outlets available to drown out politicians. That is worth something.
There has been positive news regarding the economy and real estate in particular.
Most news bits are now stating that it appears that the worse is behind us. Shortly almost everyone will be shouting from the roof tops of how good real estate is and then the cycle of gloom and doom will reappear.
A never ending cycle isn’t it.
Banks however are in the crossed hairs of the Federal Reserve. The Federal Reserve has indicated some displeasure with banks regarding interest rates and it is now taking the unusual steps of trying to find out why interest rates are not lower.
With all of the cuts exercised by the Reserve mortgage rates have not come down and this action by the banks exacerbates the mortgage problem. One has the feeling that banks are going to brought to task and will have to answer some questions.
Unfortunately this means more government intervention. Banks have not been cooperating. I suspect that will change.
However people do become their own worse enemy.
Reported in the Los Angeles Times (Sunday, August 30,2008) “Sites hawking fake documents facilitate loan fraud”, by Kenneth Harney, outlined people utilizing Craiglist and a number of other internet outlets subscribing the use of their bank accounts to help borrowers exaggerate assets in their loan applications.
The article addressed this by noting that people with good credit and income rent their names and asset verifications for home purchase by unqualified buyers. They charge upward to $ 7,500 or more for their financial identification.
Ventura County:
County listing continue to decline, sales are increasing, days on the market is tending to lessen and the variance between list price and actual sales price is stabilizing but is still high.
What this means is that either asking price is still too high or sellers are opting to take less just to get out from underneath.
Refer to http://www.venturacountyretalk.com/2008/08/10/sizzlefizzlesizzle/ and you will see that the base is about set.
Looking at a year to year comparison (following chart) one can see the significant drop in prices that has occurred over the last 2+ years. This will abate shortly and as noted in the above reference it appears that prices will bounce once the year 2004 average price is achieved.
If you are potential seller I would suggest that (if you can) you WAIT. You will be glad that you did. If you can wait for a year or two you most certainly be glad that you had.
| Currently 2 Comments »
Mortgage Tax Relief……Up To $ 2,000,000 May Not Be Taxable
August 31st, 2008 Categories: Taxes, Taxes and Taxes
The Mortgage Forgiveness Debt Relief Act of 2007 may allow up to $2,000,000 debt forgiveness on a principal residencefor married couples (it is $ 1,000,000 for a married person filing seperate) for a limited time period.
If your mortgage debt is partly or entirely forgiven for the years ending 2007, 2008 or 2009, you may be able to claim this special tax relief.
Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, may qualify for this relief.
The debt must have been used to buy, build or substantially improve your principal residence and must have been secured by that residence.
Debt used to refinance qualifying debt is also eligible for the exclusion, but only up to the amount of the old mortgage principal, just before the refinancing.
Debt forgiven on second homes, rental property, business property, credit cards or car loans do not qualify for this special tax-relief provision. In some cases, however, tax relief based on insolvency or other special provisions of the tax law may be available.
A form 1099-C will be issued if your debt is reduced or eliminated. By law, this form must show the amount of debt forgiven and the fair market value of any property given up through foreclosure.
If you have debt or mortgage relieved for the years 2007, 2008 and 2009, do talk to your attorney, CPA or tax preparer to determine the impact on your individual tax liability and explore any mitigating options that you may have.
Source of information: Tax and Business Strategies, September 2008.
Your comments are welcomed.
| Currently Comments Off
