Brad Garbutt

Fine Points Of Homebuyer Tax Credit Discussed

Brad Garbutt — Fri, 13 Nov 2009 23:31:16 +0000

An enrolled agent from Southern California once again spoke with local Realtors about the extension and expansion of the federal tax credit for homebuyers. Earl M. Salter, said this tax free credit not only applies to first-time buyers but homeowners who have owned and lived in their personal residence for 5 consecutive years during the last 8 years (Long-time Residents). First-time buyers and long-time homeowners must have a home under contract by June 1, 2010 and close escrow before August.

Additionally, the new law raises the income limits (Adjusted Gross Income or AGI) from $125,000 to $145,000 and for married couples filing jointly from $225,000 to $245,000. To qualify for the tax credit, long-time residents can buy the replacement property now and sell their current principal residence or keep it as a rental property. The credit is up to $8,000 for first-time buyers and $6,500 for married long-time residents or $3,250 for married filing separately.

Other important details include having to repay the credit if you sell within 3 years. The tax credit can be used immediately for closing costs if the loan is a government-backed loan such as FHA. Otherwise, the buyer can wait until filing their 2009 tax return for the credit. Ammending the 2008 return is another option but due to processing time, Earl said it’s better to wait and file for the credit with the 2009 return.

The bill, H.R. 3548, is called the Workers Homeownership and Business Assistance Act of 2009. More details of the bill will be released once the technical details are worked out and published by the federal government.

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL ESTATE PROFESSIONALS REAL LIVING

CORNER OF COURT AND PLACER IN REDDING

QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE

E.A. Discusses Tax Implications of Short Sales

Brad Garbutt — Thu, 12 Nov 2009 16:56:26 +0000

Enrolled Agent, Earl M. Salter, addressed members of the Shasta Association of Realtors regarding what sellers of over-encumbered homes should expect from the IRS. Homeowners in this predicament should consult with an accountant or enrolled agent prior to pursuing a short sale. It is a viable option for those that took out a purchase money loan to buy the home originally. However, if the property was refinanced or is not the primary residence of the homeowner, selling short could create unwanted income tax liability.

Earl said 95% of the time a property owner has no tax liability if the property was their personal residence and the loan was taken out to purchase the property. These loans are referred to as “non-recourse loans”. A homeowner should make sure their lender will issue a 1099C after the transaction closes. If the lender will not provide this debt forgiveness form, the lender could pursue the loss for up to 10 years. Some lenders are selling these debts to collection agencies which will pursue the homeowner for the amount forgiven. Earl said a good indicator a 1099C will not be issued is when the loan has been sold to investors.

In the event a homeowner is not provided a 1099C, bankruptcy may be the only option to get out from under the debt. To add insult to injury, the IRS may consider any debt forgivness income and tax the “gift” accordingly. The same will happen if a borrower successfully negotiates a loan modification with a principal reduction.

Anyone considering a short sale should consult with a tax professional before determining a course of action. Failure to do so could result in unexpected tax consequences. Contact me if I can be of help.

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL ESTATE PROFESSIONALS REAL LIVING

CORNER OF COURT AND PLACER IN REDDING

QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE

GMAC No More-Rebranded ‘Real Living’

Brad Garbutt — Wed, 11 Nov 2009 19:31:38 +0000

The GMAC brand is no more as Brookfield, the parent company of GMAC Real Estate, re-branded the entire franchise to Real Living. Real Living, according to a corporate profile summary, “emerged in 2002 as the largest, independently- owned company in the Midwest and the seventh largest real estate brokerage”. The Ohio-based brokerage established themselves as a “lively consumer-focused brand” utilizing Internet technologies to assist consumers in the decision-making process.

Here are accolades from industry watchers:

Inman News-2005 most innovative Franchise Broker of the Year
REALTOR Magazine-2006 Most Productive Agents in the Nation
Entrepreneur Magazine-2006 Top New Franchises
Web Marketing Association-2007 Standard of Excellence Award
Swanepoel Trends Report-2008 Most Promising New National Brand

Real Living is built on family, innovation and results according to the news release. Prior to being acquired by Brookfield, a Canadian firm, Real Living had 2,500 agents operating from 120 offices in 20 states. Real Living also offers:

home financing
title services
relocation services
auctions
home warranties

Real Living was one of the first companies to invest heavily in the Internet to “provide more functionality and features for home buyers and sellers, and more streamlined marketing and online tools for agents and brokers”.

I am excited about the opportunity to join an innovative company among the most productive in the business. Look for our new real estate signs around Redding/Shasta County in the weeks and months ahead!

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL ESTATE PROFESSIONALS REAL LIVING

CORNER OF COURT AND PLACER IN REDDING

QUARTER CENTURY OF LOCAL REAL ESTATE EXPERIENCE

What If I Stop Paying My Mortgage?

Brad Garbutt — Sun, 08 Nov 2009 19:53:54 +0000

Many homeowners across the nation, particularly those that owe more than their home is worth in today’s market, are asking themselves this question before making their monthly mortgage payment. Here is a time line of what to expect:

Expect your lender to report your missed payment to credit bureaus by the first day of the following month.
The late payment knocks down your credit score by up to 200 points assuming this is the first missed payment.
Your other creditors will take note of your nosediving credit score and either raise your interest rates or cancel your credit account or at least lower your credit limit.
If your credit limits are lowered, this triggers and increase in something known as the utilization rate, which lowers your credit score even more. This will impact your score for up to 7 years with the greatest impact occurring the first two years.
Your lender will contact you to see what is going on. If no payments are made within 90 days, your lender may refuse any future payments unless you have contacted them beforehand and a course of action is agreed upon.
The foreclosure process generally begins once four payments have been missed. The process takes 4-5 months start to finish if the lender pursues the foreclosure vigorously under a deed of trust.
You will be thrown out of your home. Some will offer cash for keys, others will hire an attorney to do an eviction. With the backlog of foreclosures these time frames may be extended by several months.

If you want to keep your home, call your lender and discuss loan modification options before you miss any payments. You may also be able to deed the property to the lender and rent it back under a new program for loans held by Fannie Mae and Freddie Mac. Seeking the advice of a real estate attorney may be in order before you decide a course of action. Contact me if you have any questions.

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL ESTATE PROFESSIONALS GMAC

CORNER OF COURT AND PLACER IN REDDING

QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE

Racial Discrimination Is Alive and Well

Brad Garbutt — Fri, 06 Nov 2009 22:28:45 +0000

Beverly Hills Properties was just hit with a $2.725 million dollar fine from the U.S. Department of Justice for housing discrimination. According to an article from the California Association of Realtors, a lawsuit brought in August of 2006 claimed Donald T. Sterling and others engaged in discrimantory practices including refusing to rent to African-Americans, Hispanics, and families with children.

In Koreatown buildings, apartment owners refused to rent to non-Koreans. The real estate firm manages about 119 apartment buildings with over 5,000 units in the Los Angeles area. They allegedly misrepresented the availability of units and kept internal reports of tenants’ racial profiles.

The settlement is the largest ever obtained for rental housing discrimination. In addition to the fine, the defendants must take action to ensure non-discrimantory actions in the future including fair housing training for employees and monitoring their compliance with fair housing laws for the next three years.

The bulk of the settlement monies will be placed in a fund to pay tenants harmed by the defendants’ discriminatory practices. A great outcome considering how difficult it is to uncover these acts and prosecute violaters.

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL ESTATE PROFESSIONALS GMAC

CORNER OF COURT AND PLACER IN REDING

QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE

Buy A Home With Nearly Nothing Down, Again!

Brad Garbutt — Thu, 05 Nov 2009 18:12:56 +0000

Lenders are always searching for ways to help buyers leverage their good credit to buy homes. Wayne Barni, local loan broker with ChoiceOne, reviewed a loan program dubbed CHF Access. This program uses an FHA first mortgage which requires a 3.5% downpayment and a 3% second mortgage that can be used toward the downpayment or closing costs. Essentially, the borrower can get in for 0.5% downpayment. Here are some details:

Downpayment can be a gift from a family member
2nd mortgage has a 15 year term at 8.25%
Seller may contribute up to 6% of purchase price for closing costs
Both first and second are fixed-rate loans
No prepayment penalty on either loan
Maximum loan amount is $417,000
Maximum income for Shasta County residents is $66,840
Loan for primary residence only
Loan can be used for FHA approved condos, manufactured housing and single family homes
Not limited to first-time buyers
Buyers OK 2 years after bankruptcy or 3 years after foreclosure
Buyers must take online homebuyer education course

Credit scores play a role so not everyone will qualify. Buyers should have credit scores at or above 620. Some lenders will raise the bar further to 640. Borrowers may be able to make some adjustments to their credit score by following the advice of a good loan officer.

For more details, give me a call or drop me an email. Wayne can be reached at 530-224-6707.

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL ESTATE PROFESSIONALS GMAC

CORNER OF COURT AND PLACER IN REDDING

QUARTER CENTURY LOCAL SALES EXPERIENCE

Redding Home Prices Dip In October

Brad Garbutt — Tue, 03 Nov 2009 18:33:28 +0000

For most of this year, Redding home prices have hovered around $135 per square foot but dipped to $129 in October. These averages are for Redding only and do not represent Anderson, Shasta Lake or Shasta County. The average home price dropped accordingly to $212,988, about $30,000 less than the 2nd quarter average of $244,718.

On a more positive note, the number of homes sold is up from last year. The majority of sales are for homes priced under $250,000. Of the 195 homes sold in September, 145 were priced under a quarter million.

This week, there are 1424 active home listings, 497 homes in escrow, 126 bank owned homes for sale, 241 sellers trying sell short and 1659 closed escrows year-to-date. The number of Shasta MLS member agents has declined from nearly 1200 at the peak in 2006 to 865 today.

Interest rates remain at about 5% for a 30-year fixed-rate loan. FHA remains one of the most popular loans for first-time buyers. Investors are also buying distressed properties to be fixed up and rented or rehabbed and resold. A few buyers are buying up and down or relocating due to job opportunities elsewhere.

The federal tax credit has been cited with helping sales this year and efforts are underway to extend the program into Spring of 2010.

Contact me if you have any questions regarding buying or selling in today’s market.

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL ESTATE PROFESSIONALS GMAC

CORNER OF COURT AND PLACER IN REDDING

QUARTER CENTURY LOCAL SALES EXPERIENCE

What Will A Million Get You In Redding? 832 Santa Cruz!

Brad Garbutt — Wed, 28 Oct 2009 17:00:07 +0000

Quite the value, relatively speaking! For starters, this Street of Dreams home sits on a ridge overlooking Redding, the valley and the beautiful western range. Featured last year on the cover of FROM HOUSE TO HOME magazine, this sprawling estate is situated in the gated community of Standford Hills on the northwest boundary of Redding.

The main residence, nearly 4400 square feet of elegant living space in all, includes a home theatre, 4 bedrooms, 3 baths, office and 2 half baths. Travertine flooring, marbled columns framing the arched entryway, multi-dimensional architectural ceiling designs combine to create interesting focal points. Slab granite counters with tumbled travertine back splashes grace the island kitchen with professional grade stainless steel Thermador appliances.

The master suite includes a huge walk-in closet, sauna, whirlpool tub, honey-glazed cabinetry topped with honed granite counters and shower with glass block wall divider. There is also a generous laundry room with walk-in pantry and a 3-car attached garage with 2 additional storage rooms. Step out onto the large covered patio overlooking tropical palm trees, rock lounges and infinity pool. Vacation in the luxurious backyard that resembles a tropical paradise! The rolling hills above the Sacramento River serve as a backdrop for this exquisite abode.

Follow the pathway past the babbling brook to the detached 830 square foot guest house. Used as an artist studio by the previous owner, no expense was spared in the construction of this cottage on par with the main residence. Find a fully contained living space with slate flooring,huge picture windows, wired for sound, a bedroom with separate walk-in closet, full bathroom and a kitchen that would make gourmet cooks feel at ease. Attached is an over-sized 2-car garage and separate storage room with access from the securely gated parking area. Exit the slider to the private multi-tiered trellis-covered patio with hand-crafted river rock fireplace. Wander past the trampoline area to the fire pit overlooking Redding and river canyon to the south and the South Cascade Range including Mount Lassen to the east.

Purchased new in 2005 for $1.5 million, the previous owner added the guest home, garage and additional landscaping. Nearly $2 million invested, agressively priced at $995,000 or $191/square foot! Contact me for a private showing.

For additional pictures of this unique, private estate offering, click here:

http://www.visualtour.com/shownp.asp?sk=13&t=2034343

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL ESTATE PROFESSIONALS GMAC

CORNER OF COURT AND PLACER IN REDDING

QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE

New Credit Score Threshold-620

Brad Garbutt — Fri, 23 Oct 2009 22:03:53 +0000

Fannie Mae is once again setting the ground rules for mortgages they will purchase from lenders and starting in a few weeks, borrowers better have a credit score at or above 620. This will apply to conventional loans as well as FHA and VA loans insured by the government. Additionally, if you want the best rate and terms, you’ll need a credit score around 720 or higher. This applies to purchases and refinances.

Gregory Karp, reporter for the Chicago Tribune, offered a few tips for borrowers:

Avoid mortgage brokers unless you need “hand holding”. New appraisal rules make shopping a loan difficult for brokers plus there are additional fees to be paid for the broker’s services. The rule limiting mortgage brokers revolves around the appraisal-lenders can not accept an appraisal from commissioned brokers. Thus, a loan broker would have to order a new appraisal for every lender the loan is presented to. Costly and inefficient-according to the author.
Shape up your credit. Getting a loan approved today is the most difficult its been in decades. Pay bills on time and pay off as much debt as possible. The formula for calculating credit scores is secret, but these two items account for the largest part of your credit score. He also recommends you not close old credit card accounts and keep your credit usage as small as possible. Check your credit report for errors at: www.annualcreditreport.com
Apply for a fixed-rate mortgage-One of the main reasons for the real estate crash is the increased usage of adjustable rate loans. They were easier to get, but many borrowers ended up choking once the payments started adjusting leading to foreclosures. Fixed rate loans will not have payment variations due to interest rate changes.

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL ESTATE PROFESSIONALS GMAC

CORNER OF COURT AND PLACER IN REDDING

QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE

Shasta County Real Estate Fraud Cases Discussed

Brad Garbutt — Thu, 22 Oct 2009 22:51:08 +0000

Robert Angulo is the investigator recently assigned by the DA’s office to handle real estate related crimes. Robert spoke to a group at the Shasta Association of Realtors weekly meeting Wednesday. The real estate fraud unit has been up and running for just a few months and is already handling 31 cases. Here is a summary of cases being investigated or prosecuted:

Property management company being operated by individual that does not have a real estate license or a trust account to handle tenant deposits and rent. This case goes to trial in November.
Another property manager that committed grand theft, embezzlement and grand theft from an elderly person. Amount lost was reported at $40,000.
Person creating false deeds. This person first created a deed to get the property out of his name and into the name of his girlfriend because he was incarcerated and didn’t want his neighbor, with whom he had disputes, to take his property. He later created another deed to put his name back on the property. He used false identification to get the documents notarized. This is a felony.
Florida loan modification firm took $2,700 from a county property owner for loan modification services but did nothing. Robert found out the Florida Attorney General was already involved in prosecuting this firm so no action will be taken locally.
Craigslist-Nigerian scam artists are using properties advertised for sale on Craigslist to create rental ads. Potential tenants are baited with really nice homes for cheap rent if they would just wire the funds to the scammer. Of course the home is not for rent and the money will be lost once sent. If it’s too good to be true, it’s probably a scam.

Robert also did a cross-check of all the property management companies in the phone book and found 8 that were being operated without a real estate licensee. In fact, most of the real estate fraud investigated thus far involved unlicensed individuals.

He also encouraged those in attendance to contact his office if anyone hears of someone being victimized by fraudsters or sees an ad for loan modification services that require an upfront fee or if our clients have strangers knocking on their door asking about the home for rent or asking them to leave because the bank has foreclosed. These are all scams that are happening here and elsewhere across the state and country.

Robert can be reached at 530-245-6350 or rangulo@co.shasta.ca.us.

bradgreps@yahoo.com

530-224-6767 or 530-941-7492

BRAD GARBUTT

REALTOR/BROKER ASSOCIATE

REAL ESTATE PROFESSIONALS GMAC

CORNER OF COURT AND PLACER IN REDDING

QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE