In July’s podcast we discuss the current market climate here in the East Bay for buyers as well as the $8,000.00 1st Time Home Buyers Credit.

New home buyers could be eligible for up to $18,000 in tax credits under new federal and state programs.

The federal American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time homebuyers. To qualify a home must be the principal residence of the buyers and be purchased before December 1, 2009.

Buyers must not have owned a principal residence during the prior three years and must have annual income of not over $75,000 for single taxpayers and $150,000 for married taxpayers.

The tax credit is 10 percent of the home’s purchase price up to a maximum of $8,000.
California lawmakers have approved a tax credit up to $10,000 for home buyers who purchase a new home between before March 1, 2010. They set aside $100 million for the tax credit. After 10,000 new homes are purchased the credit is gone so those wishing to take advantage of this program should act quickly.

The tax credit is good for 5% of the home’s price or $10,000, whichever is less and is for new homes only. Home buyers will receive the tax credit, in equal amounts, over 3-years. The tax credit applies only if the new home is your primary residence.

Unlike the $8,000 federal tax credit, the California state tax credit is not limited to first-time home buyers.
There also are no maximum income limitations so any buyer purchasing a previously unoccupied home can qualify for the tax credit.

Better still, the $10,000 state tax credit can be used along with the $8,000 federal tax credit for home buyers. So if you’re a qualified first-time home buyer, and you purchase a new home in California that costs more than $200,000, you’ll get $18,000 in tax credits.

Please contact us to discuss these two programs at  888-627-4399 x0

FULL REPORT ON THESE CREDITS AVAILABLE BY EMAILING INFO@DAVEANDCARLA.COM
(Please put - Tax Credit Report Request - in the subject line)

www.mlsEastBay.com

I’ve been fielding numerous calls from both clients looking to enter the home buying market as well as owners of properties here in the area wondering if, or when, they will be able to consider selling. The answer really depends on what type of property is being sold and what neighborhood it is located in. Some of Oakland’s neighborhoods with stood the current depreciation longer than others; therefore the devaluation has not been as drastic to this point.

Which areas and home types felt the hit first?
When discussing areas with the highest depreciation of value they tend to be the lower cost areas and neighborhoods that started to feel the slow down first. When looking at property types in more expensive areas of Oakland it was the condo market (starting with the smallest units first and moving up to the larger ones shortly thereafter).

Why did these homes and areas start dropping in value first?
When discussing which areas slowed first and why, you need to look at the lending market and the type of mortgage loans being sold to the public at the time. The zero down loans, 5% down loans and other loans being marketed to buyers who ordinarily would not be able to buy a home started to disappear. These loans tended to be a large majority of what was fueling the housing sales in these lower priced groups so when the loans began to dry up, these segments began to slow in sales.

When and why did the upper-end neighborhoods begin to slow in value?
The top three items that come to mind when I think of these contributors are as follows:
First, we have the media bombarding all of us over and over again with all the impending doom that was foretold as coming (a self fulfilling prophecy?). Second, stated income loans went away. A stated income loan is one in which you declare your income but do not have to prove it via traditional methods of bank verification. This type of loan is heavily used by investors, and self employed buyers (I know this first hand as a real estate agent because it was the catalyst for our last three home purchases). Lastly and probably the most aggressive is the market collapse and loss of portfolio wealth.

What caused some neighborhoods in the Oakland area that had larger more expensive homes start slowing down before others?
The answer to this question is relatively simple to goes back to the oldest adage in Real Estate about what the three most important factors are that drive value – “location, location, location”. Once buyers start to feel like they can be pickier, or that there is no hurry, they become more intent on buying a home that really fits all of their needs (not just some of their needs).   Therefore, buyers who would in some markets choose to sacrifice a level yard or perhaps sidewalks decide not to forego these requirements and start waiting for homes that meet all these potential wants.

Is there more to come – Will the market continue to fall?
The answer to this is most likely yes. Before I go any further with this info, I want to say that this is a great time to buy. Prices have certainly taken a majority of the total depreciation and combined with this, interest rates are truly at a historic low. These two situations combined have lined up to be the perfect storm for buyers to succeed in! Properties will most likely drop further, especially in the upper end sectors, but not nearly to the place homes have in the more aggressively impacted market segments (we can discuss why in a future blog). Another thing to note is that interest rates are predicted to go up in the next 12 to 18 months and when this happens it could counter any gains acquired by a buyer in that future market.

If you would like to discuss the purchase of a home in the greater Oakland area including the surroundings towns up the hwy 80 and hwy 580 corridors, we would be happy to help. We can be reached at 888-627-4399 x.0. You can also CLICK HERE to be direct to our VIP Buyers Page where you can fill out a request form to work with us as a VIP Buyer and gain access to hot properties not yet on the market before other buyers get a chance to see them.

Wachovia Savings and Loan ( a Wells Fargo Company) has unveiled a new program for mortgage holders that received their loans from World Savings Bank through the Pick a Pay Mortgage program.  A huge number of recipients of this program are now finding themselves under distress with regards to making the monthly payments on their homes and defaults on these mortgages are on the rise.  Word Savings owned these loans outright (rather than having sold the loans to secondary party investors), when Wachovia bought World Savings they bought these loans as well.  I have been able to have personal meetings with the Short Sale Home Division of Wachovia and can actually assist home owners that may have these loans sell their properties short of what they actually owe on the mortgage (short sale).  The best part of this scenario is that Wachovia is most likely willing to allow the short sale with minimal penalties to the home owner (and is actually encouraging home owners to take this route rather than foreclosure).   Contact us immediately for more information on this opportunity if you think you may have one of these pick and pay loans and are finding yourself under financial hardship.  Dave Higgins (888) 627-4399 x.0 Keller Williams Realty.  You can also go to THIS LINK and fill out the request form, we will contact you within 24 hours to see if we can be of service.

How would you like to save 20 to 30 percent off your current mortgage payment?
If you’re a homeowner who is behind in payments and facing foreclosure or with an adjustable rate mortgage and having trouble getting your loan modified there’s a way. It’s the Forensic Loan Audit. Here’s how it works:
Performed by mortgage industry experts the audits discover whether the Truth in Lending Act was violated in preparing your closing documents or whether lender adequately disclosed the terms of the loan. According to the act, even a small mistake in calculating the annual percentage rate could enable you to rescind your loan or get a lower interest rate through a loan modification.
Experts say loan modifications typically save homeowners 20 to 30 percent off their current monthly mortgage payment.
For more information on obtaining a Forensic Loan Audit in this area contact www.mlsEastBay.com proffessionals at QuickSafeLoanMod. They have partnered with Certified Financial Protection Group to provide this service. Certified guarantees to get a loan modification for their clients or they will refund all the client’s money.

   Homeowners who are behind in mortgage payments and in danger of losing their homes now have a new tool to help them. It is called Forensic Loan Audits. It also can help those with adjustable rate mortgages who are having trouble getting their loans modified.

Performed by mortgage industry experts the audits discover if a lender violated the Truth in Lending Act or made any errors while preparing closing documents or neglected to adequately disclose the terms of the loans. According to the Truth in Lending Act even a small mistake in calculating the borrower’s annual percentage rate could enable the homeowner to rescind the loan or get a lower interest rate through a loan modification..

Loan modifications typically save homeowners an average of 20-30% off their current monthly mortgage payment.

To offer Forensic Loan Audits in this area Realtors Dave and Carla Higgins have partnered with Certified Financial Protection Group. Certified guarantees to get a loan modification for their clients or they will refund all of the client’s money

For more information on obtaining an audit go to SaveMyHouse and watch the informational video from MSNBC