Central Falls City Services Being Shut Down

Since 1980, only about 46 cities or towns in the entire U.S. have filed for bankruptcy protection. Central Falls could be number 47.

Central falls has roughly 19,000 residents and 15% unemployment.  The state took over Central Falls last year following the uproar of every teacher being fired from the High School.

Negotiaitions are being held with labor unions and retirees. Cuts are being made throughout the budget, including:

• At the community center, the subsidized lunch for seniors is no longer being served.
• The pool has been drained.
• Health screenings have been cancelled.
• The locks to the building were changed last week.
• The public library has been closed.

Overall, Central Falls faces $80 million dollars in unfunded pension and benefits obligations and an estimated $25 million in deficits over the next five years.

Congress to make a decision on ending mortgage interest deduction.

For more than 80 years, the federal government has helped families become home owners and made home ownership a cornerstone of the U.S. economy by including deductions such as mortgage interest and property taxes in our tax code.

But as Congress debates ways to reduce the national deficit, those deductions are now at risk for repeal. If eliminated, the outcome would mean increased taxes for you – $3050 on average, and up to a 15% decrease in your home’s value. A devastating double whammy to any home owner!

To find out just how much a repeal of the mortgage interest deduction would cost you, take a moment to review your federal tax form Schedule A (if you are filing a tax form 1040) and look at line 10. That line shows the deduction for your home mortgage interest. What do you think your tax bill would look like if that deduction disappeared?

From a sales standpoint, the mortgage tax deduction is the biggest advantage of home ownership.  Imagine what would happen to the already tired real estate market if this was repealed?  Think of how many people would consider renting as a lifelong option.  

Then think of the domino effect reducing the number of homeowners will have on the overall economy.  Appliance, furniture, flooring and dozens of other businesses rely on new homeowners and existing home owners to update and maintain their homes.  If the majority of these homes were rental units the optional purchases would disappear.

Mortgage rates fell again yesterday and Greece's financial woes are right at the center.

What is influencing the rates right now:

Greece is on the cusp of disaster.  The quandary is that bailout funds must be provided to Greece very soon, regardless of whether Greece agrees to the conditions or not.  A Greek default will have disastrous consequences across Europe particularly among banks holding Greek debt.

The weekly jobless claims report indicated a drop in first-time filings for unemployment benefits, yet continued to stay above the threshold that suggests an improving job market. 

Housing starts over the past month were improved more than analysts’ expectations.  This is good news, yet much of the gain was in the multi-family homes category which simply reflects the fact that fewer people own their own homes and need rental property.

Current 30 year mortgage rate – 4.5%

Bank of America has taken heat for foreclosing on wrong houses, but this one is a little different. This house doesn't have a mortgage with any bank!

Naples, FL – Warren and Maureen Nyerges, originally from Cleveland, Ohio decided to call Florida their new home and shelled out $165,000 cash, to buy a home in Naples.

Four months later a Bank of America processor came knocking at the door.
The couple told Bank of America officials the house was paid in full. But, the bank wasn't hearing any of it and told the couple to get a lawyer.

Bank of America filed a foreclosure claim against the couple, so the the Nyerges took the bank to court. The couple won, and then asked Bank of America to pay for more than $2,000 attorney fees. A judge ruled in their favor, but the bank never paid up.

The Nyerges say they called many times over, visited the bank and even wrote a letter to the president of Bank of America, but they got no answers, and more importantly, no money.

According to reports, the Nyerges, their lawyer, two sheriff's deputies and moving company workers, went to a local Bank of America branch to take possession of furniture inside the bank to settle the debt. An hour later, the bank wrote a check for more than 5-grand to satisfy the original debt and additional costs and fees.

Bank of America has apologized to the couple saying, "We apologize to Mr. Nyerges that there was a delay in receiving the funds.

No, Bank of America is just sorry another major embarrassing mistake went public.

84 Single Family Homes Closed in Rhode Island Last Week.

 How many in your town or neighborhood? What was the sold price to list price ratio? How many days on market?

Click here to see the list!

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Forget Puxatony Phil for letting Rhode Islanders know whether Spring is here. All you have to do is check out the lines at the numerous seasonal ice cream stands throughout the state.  We weep in the Fall when they close, and we wait all Winter long for the smell of a freshly pressed waffle cone.  That, my friends, is what Spring is about in Rhode Island!  Today we feature one of these landmarks…Sundaes Ice Cream on Oaklawn Ave. in Cranston. 

Just ask Isabella and Ava Zito if the season has turned. Camera shy mom Natasha admired from the side. 

And of course they stopped for ice cream in coats and layers.  Hey, it's New England after all.

You Can Rent Your House for 14 Days of Tax Free Rental Income

Another little known tax benefit of owning a home is that the owner can rent it out for up to 14 days during the year and pay no tax at all on the rental income. In contrast, a renter who sublets his or her rental must pay income tax on all the rental income he or she earns.

Click here for the complete list of tax benefits for home owners.

Deductions From Day One to Know

Single Family Sold Homes Double from Last Week

It was a welcome sight to see the number of sold single family homes in Rhode Island jump from the 60's to a much more normal 153.  Was the unseasonably harsh winter to blame? When we see what sells now, generally speaking these homes went into pending about six weeks ago.  Nothing like 12" of snow to make one put off that open house tour!

Click here for a pdf of all Rhode Island single family homes sold last week.