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The 2010 New Home Credit and First-Time Buyer Credit begins May 1, 2010

Applying for the 2010 New Home/First-Time Buyer tax credits: Applications must be faxed after escrow closes. Application if the 2009 form is used will be denied.  If the 2010 application is received before May 1, 2010, or it is received before escrow closes it will be denied.  Click on the links below for more information:

2010 Reservation Request for New Home Credit Form

First-Time Buyer Frequently Asked Questions

FTB Publication 3528 - New Home Credit

It has been a while since I've posted to our blog, however I came across an article I wanted to share that answers questions about the housing crisis.  I found it to be very imformative.

http://www.american.com/archive/2008/may-june-magazine-contents/your-guide-to-the-housing-crisis

Daily Real Estate News | June 26, 2007

5 Reasons Why Going Green is Growing
More than that 41 percent of the 300 U.S. real estate investment trusts (REITs) are actively pursuing energy efficiency and green building upgrades. What's more, another 27 percent plan to do so, according to an analysis by Progressive Investor, a monthly newsletter that guides investors and advisers toward sustainable investments.

Progressive Investor says the following is driving the trend:

• Rising energy and water costs. Developers and building owners are feeling the crunch of high energy and water costs, which, according to the Building Owners and Managers Association, constitutes 28 percent of operating costs for downtown office properties and 30.4 percent for suburban properties. They see the quick payback and cost savings in energy efficiency and other green building upgrades.

• Building green no longer costs more. Turner Construction's 2005 Green Building Market Barometer shows it costs a mere 0.8 percent more for basic Leadership in Energy and Environmental Design (LEED) certification, easily recouped through lower operating costs.

• Client preference. More clients and tenants are showing a preference for green buildings, which have been proven to increase productivity, retain employees, and lower absenteeism. The combination of reduced operating costs and more satisfied occupants translates into 3.5 percent higher occupancy rates, 3 percent higher rents, and a 7.5 percent increase in building value, says the McGraw-Hill 2006 SmartMarket Report.

• Attention-getting. Corporations with sustainable business policies are building highly visible green headquarters including Bank of America, Toyota, Goldman Sachs, Hearst, IBM, JPMorgan Chase, and Herman Miller. The Freedom Tower, which replaces the World Trade Center, will be LEED-certified.

• Increasing mandates. Nine states and 40-plus municipalities have passed legislation mandating LEED-certified buildings.

— REALTOR® Magazine Online

The State of California is working hard to protect borrowers from illegal and improper lending practices while still making sure that people get the credit they need to live the American Dream. Prospective homebuyers and other borrowers need to do their part by being careful about the lenders they select. Educating yourself about the techniques that dishonest lenders use will help you avoid becoming a victim of predatory lending.

The term “predatory lending” is used to describe a variety of deceitful, fraudulent or unfair credit practices, including:

• Steering borrowers towards interest rates that far exceed the lender’s risks.
  
• Charging excessively high fees and commissions.
  
• Persuading a borrower to repeatedly refinance a loan in order to charge high points and fees each time the loan is refinanced (“loan flipping”).
  
• Misrepresenting the loan’s terms and conditions.
  
• Requiring high-cost credit insurance (“packing”).

Unscrupulous lenders who use these tactics often target vulnerable populations such as low-income borrowers and seniors.

PROTECT YOURSELF FROM PREDATORY LENDING PRACTICES

Shop Around

• Compare the interest rates and the total costs of loans offered by several banks and credit unions in your area.
  
• Ask lenders for names of other customers you can contact to see if they are satisfied with their experience.
  
• Check for consumer complaints against lenders you are considering by visiting our Web site at www.corp.ca.gov or by contacting your local Better Business Bureau.
  
• Don't take the first loan you are offered.

Use Caution

• Be wary of lenders who contact you first, through mail, e-mail, door-to-door sales or telemarketing solicitations.
  
• Be suspicious of lenders or brokers who guarantee loan approval regardless of your credit history.
  
• Beware of offers that are “only good for a short time."
  
• Steer clear of lenders who resort to high-pressure sales tactics.
  
• Be wary of promises to refinance the loan to a better rate in the future.
  
• Watch out for "hidden" terms, such as penalties for early pay-off of the loan.
  
• Avoid "balloon" payments—some loans keep monthly payments down by requiring a big payment at the end of the loan term.
  
• Make sure the monthly payments are well within your monthly budget.

Ask Questions

• Ask your lender exactly what is being offered—you have a legal right to know the total cost of the loan, the annual percentage rate, the monthly payments and how long you have to pay back the loan.
  
• Have all fees and points explained to you before applying for a loan.
  
• Always ask questions until you understand everything.

Before You Sign on the Dotted Line

• Make sure that you have received, read and understand all required disclosure documents.
  
• Check to see if the loan terms quoted to you match your loan documents.
  
• Before you sign the loan papers, have a lawyer, family member or friend go over them with you.
  
• Never sign a document with blank spaces; all spaces should be filled in before you sign.
  
• The bottom line: If you have any doubts, don't sign!

If you or someone you love is considering a reverse mortgage, I suggest you get all the facts to make an educated decision.  The following link with be very helpful to you:

http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea13.shtm

Many of my clients have questions regarding disclosures that must be made.  It's simple....if you even think to yourself....does it need to be disclosed?  The answer is simply "yes".  Disclose, Disclose, Disclose.  The following is a link that may help answer many of your questions.  If you cannot find an answer, please let me know and I will get the answer for you.

http://www.dre.ca.gov/pub_disclosures.html

"If the market value of your property as of January 1, 2007, was below the total assessed value as shown on your 2006-2007 annual property tax bill, your property may qualify for a temporary assessed value reduction."

http://assessor.countyofventura.org/