1. Who is a First-Time Buyer? The bill defines a first time home buyer as anyone who has not owned a property/home/real estate for the past three (3) years.

2. How does the Tax Credit Work? The tax credit is received when you file your taxes the year after your home/real estate purchase. In other words, the first time home buyer does not receive any cash at the time escrow closes, nor does the 1st time home buyer receive any assistance with closing costs through the escrow. Instead it is added to any refund you would be due on your taxes in the year following your home purchase.

3. Can I Receive theTax Credit of $8,000 Even If I Owe No Taxes?: You, as a first-time home buyer, can still qualify even if you own little or no taxes. (more̷

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On February 18, 2009, President Obama announced his Homeowner Affordability and Stability Plan.  The plan has two components to it–one offers homeowners who qualify a plan that would refinance mortgages that are greater than the current market value of their home or condo into a more affordable monthly payment thereby reducing the possibility of a future foreclosure.

The second component offers homeowners a way to modify their existing mortages into a housing payment that would enable the borrower to stay in their home/condo and avoid possible mortgage default and/or foreclosure.

Beware of Foreclosure Rescue Scams–Help is Free! Let me preface by saying there are many scams out there that prey on troubled homeowners. There are people who purport to be experts in loan modifications and ask homeowners to pay for their services when you can obtain all the information and help you need for free.

This is one reason why I prefer to pass along the real source of information, so that you, the consumer, can determine after reviewing the eligibility requirements of each of these government sponsored programs whether you are a candidate for either one or the another.

The following web site explains in detail each of the programs–the Home Affordable Refinancing and Home Affordable Modification–eligibility requirements and the information you will need to gather before you contact your mortgage/loan servicer.

Go to:  http://www.makinghomeaffordable.gov/

If you would like to read the detailed report released by the U.S. Department of the Treasury on March 4, 2009:

See: http://www.ustreas.gov/press/releases/reports/housing_fact_sheet.pdf

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When you, the buyer, purchase a condo in a multi-unit/hi-rise building, you may not be aware of the unintended consequences that can arise due to your neighbor(s) defaulting on their mortgage(s) and/or condo/association fees. 

Depending upon how many homeowners in your condominium building are in default–those of whom have stopped paying their mortgages and association dues–will directly impact the condominiums reserves and the funds necessary to operate and maintain the integrity of the building.  As a result, the HOA (Homeowner’s Association) may have to vote to increase the association dues/and or propose a special assessment for each and every homeowner in the building to cover the short fall resulting from your neighbors’ defaulting on their loans and/or dues.  This problem can be compounded depending upon how many of the condos in the building are in default. (more̷

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Photo Courtesy of NBC.com
The buzz in home purchases/sales revolves around distressed properties these days–namely, REO’s or bank-owned homes. If there is one story that peaks a buyer’s interest, it is the REO home market. The reason is simple enough: the buyer believes that REO’s equal great deal or steal. But are bank-owned homes the real deal? Let’s take a closer look:

If you happen to be a first-time homebuyer or a novice in terms of the homebuying process, an REO (Real Estate Owned) home or bank foreclosure requires seeking the assistance of a knowledgable real estate professional.  At first blush, the pricing may look enticingly attractive.

In her article entitled “Foreclosure Sales And Pretend Pricing,” Kris Berg of The San Diego Home Blog writes that the “pretend pricing method or (PPM) is an entirely different and oft-mysterious approach to the whole conundrum of determining what the market value really is for a home.  Once a lender has foreclosed on a home, the PPM comes into play.”

Foreclosures are often priced 20-30% below a “regular sale”–that is a home that actually has equity in it and is not over encumbered or “under water”, so to speak. That said are REO homes real deals or not? Most home foreclosures are priced way under the market just to create hype. Welcome to the wild west side of the home pricing market. These properties will garner multiple offers with the final sales price often thousands of dollars above the original asking price.  Not only does this breed disappointment, disillusionment and frustration among buyers who are looking to own and occupy the property, but these homes typically will sell to the highest bidder who also has a large cash down payment. (more̷

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Below is a current list of foreclosures in the city of Irvine and surrounding cities in south Orange County.

If you would like a updated list of bank owned properties that are not included on this list, please contact me, and I will send it along to you.

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Photo of my very own  “I Voted” Sticker

Exercise Your Political Muscle and Vote!

Exercise is good for your body and mind. Exercising your political muscle strengthens your community and the nation. Your vote matters. Just do it!  

 Go on, get to the polls and vote!

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Photo courtesy of  The Truth About Mortgage
With the financial markets in turmoil, and with the luster lost in the real estate market, one wonders where the savvy buyer/investor is placing his/her dollars. If you remove gold bullion, and/or stashing your money under the mattress from the safe haven equation, I would say that the REO (real estate or bank-owned) market is currently vying for the home buyer’s/investor’s cash.

I’ve been tracking the REO market here in Irvine for my buyers and sellers. Buyers want to know that if they decide to purchase a home now that their investment is protected from a further market decline. They feel that if they focus on foreclosed properties, then they have, to some extent, a built-in cushion just in case the real estate market experiences further declines. Whether or not this perception proves to be true is still debatable. However, this is the buyer’s/investor’s view of the current state of the real estate market. (more̷

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Photo courtesy of Tim Larson of  Grey Clad Mystery

We all search for perfection in the real world. We look for the perfect person with whom we can bond. We look for the perfect culinary or wine-tasting experience. We look to catch the perfect wave.  We look to achieve the perfect SAT scores; well, you get the picture. We all strive toward that elusive dream of perfection in whatever it is that we deem important in our lives. 

Fast forward to the way in which buyers/consumers search for the perfect place to call home versus the way in which real estate web developers construct a real estate site. In his funny and illuminating article entitled Rethink Real Estate Search,  in Inman News, Marc Davison, of 1000 Watt Consulting points out that real estate internet sites are engineered by programmers–”guys and gals with 180 IQ’s–guided by folks who get their kicks from Excel.”

A programmer might construct a search by zip code, or create an application that includes home-value estimates that “can never be accurate, no matter how many Ph.D.s are thrown at them;” or create searches that are “cluttered by advertising;” or provide maps that are either “hybrid,” “satellite” or “list” views (”humans don’t search from space”), instead of speaking to what real people are looking for when they search for the perfect place to live.

And while it is true that statistical data has demonstrated that over 80% of buyers/consumers begin their search for the perfect home online, their home search continues off line, on the ground, and at the local level in conjunction with a real estate professional

(more̷

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Crystal Cove Historic District

We have some idyllic places just a short bike ride from Irvine, CA. One of these places is a throw-back to an earlier time–Crystal Cove State Park in Corona del Mar, CA. We had a pleasant, sunny afternoon strolling on the beach, catching some rays and cogitating how fortunate we are to live in this little piece of paradise.   

Back in the 1920’s Crystal Cove was transformed into “a paradise of the south seas” by a budding silent film industry, and small cottages were built and thatched with palms to reflect the exotic appearance of Tahiti or Hawaii.  Silent movies were filmed on location here as it was easily accessible by rail and much more affordable than shooting in a far off location. (more̷

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Photo Courtesy of Asiir 

You won’t want to miss one of the highlights of this summer by attending this free performance by the Pacific Symphony, sponsored by Target,  as part of their 2008 “Symphony in the Cities” concert series this Saturday evening, August 16th at 7:00 p.m. in Irvine’s Heritage Park.

It’s a great opportunity to hear our beloved Pacific Syphony, with Musical Director Carl St. Clair, while enjoying a picnic in the park with family and friends. And did I mention that it’s free! If you have children (nieces, nephews, friend’s/neighbor’s children) you definitely want to show up by 5:30 p.m. for the “musical playgound” in which the kids will participate and share in interactive and hands-on activities that include a conducting workshop and a chance to assist Maestro St. Clair during the concert. What an opportunity! It’s a sure bet to be a highlight of your summer experience here in Irvine. (more̷

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