Los Angeles Business Journal 

Foreclosed homeowners could owe ‘tens thousands of dollars’ to lenders
Facing the possibility of foreclosure, California homeowners may be hit with more than just losing their homes.  Due to a loophole in state law, they also can be sued by their lender.  To prevent this, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) is sponsoring Senate Bill 1178 by State Sen. Ellen Corbett (D-San Leandro), which will extend anti-deficiency protection for consumers who have refinanced their original mortgage loans and now are facing foreclosure.

MAKING SENSE OF THE STORY FOR CONSUMERS

• Currently, if a homeowner defaults on a mortgage used to purchase his or her home — known as a “purchase money mortgage” — the homeowner’s liability on the mortgage is limited to the property itself.  Unfortunately, the original law did not extend the purchase money protection to loans that refinance the original purchase debt, even if the refinance only was to obtain a lower interest rate.
  
• Californians who refinance a property currently do not have protection if they default on a mortgage greater than the property’s value. Called a “deficiency” liability, under current California law, the lender can sue the former homeowner for the amount of the deficiency even after taking back the property.  
  
• Recent years of low interest rates and aggressive marketing campaigns by lenders have induced tens of thousands to refinance mortgages.  Few homeowners realized that by refinancing their mortgage, they were forfeiting their protections and now are personally liable.
  

Family Recycles Home for $100,000by Amanda Wills
Published on June 9th, 2009

After tearing down their 2,250-square-foot home in Danville, Calif., Mike and Tricia Barry walked away with more than just a clean slate. The couple received a $100,000 tax write-off as well.

  Photo: Jim Stevens/McClatchy Newspapers

After deconstruction, the only items left to throw away were the asbestos-ridden drywall and the stucco exterior.    

 Instead of tearing down the home and sending it to a landfill, the Barrys opted to have the home deconstructed piece by piece and recycled into new homes.

 California Deconstruction and Building Materials ReUse Network hauled the excess material to organizations such as Habitat for Humanity and Corazón, which builds homes in northern Baja California, Mexico.

 According to The Seattle Times, “nearly everything that made up the house — wood, windows, appliances, flooring, roofing and even the nails — went to nonprofit organizations.”

 “I’d say 80 to 85 percent of the Barry house was reused,” says Gerald Long, of Corazón. “Even the copper plumbing was recycled, the bricks were saved and all the interior fixtures were saved.”

 Habitat for Humanity has found a way to keep thousands of tons of surplus construction materials out of the waste stream, while also raising money for homebuilding through its Habitat ReStores. ReStores sell salvaged building supplies and appliances across the U.S. and Canada.

 “Our primary goal is always to raise money for more homebuilding, but at the same time, we’re able to keep tons of potential trash out of the landfills,” explains Kevin Campbell, Habitat for Humanity’s director of building industry relations. “And the rule of thumb is that every dollar in sales equates to about one pound of debris being saved from the landfill.”

Experts have reached a consensus and recommend consumers avoid these varieties of plastics–identified by a triangle and number on the bottom of most containers–for the following reasons:

• #3 Polyvinyl Chloride (PVC) commonly contains di-2-ehtylhexyl phthalate (DEHP), an endocrine disruptor and probable human carcinogen, as a softener.
• #6 Polystyrene (PS) may leach styrene, a possible endocrine disruptor and human carcinogen, into water and food.
• #7 Polycarbonate contains the hormone disruptor bisphenol-A, which can leach out as bottles age, are heated, or exposed to acidic solutions. Unfortunately, #7 is used in most baby bottles and five-gallon water jugs and in many reusable sports bottles.

*Source: http://www.thegreenguide.com/

During the launch of the stamps, Halo will be donating a million meals to animal shelters around the country. 

Beginning April 30 you can purchase the stamps at your local post office.  You can also pre-order the stamps online.

For all of the particulars click on this link: 

http://www.stampstotherescue.com/

NO MORE STATE TAX ON FORGIVEN DEBT

“Qualified principal residence” indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence.  It includes both first and second trust deeds.  It also includes a refinance loan to the extent the funds were used to payoff a previous loan that would have qualified.

The tax breaks apply to debts discharged from 2009 through 2012.  Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.
 
Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions.  Most notably, taxpayers who are bankrupt are exempt from debt relief income tax.  Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.

For more information about mortgage forgiveness tax consequences, go to California Franchise Tax Board’s Mortgage Forgiveness Debt Relief Extended webpage and the Internal Revenue Service’s Mortgage Forgiveness Debt Relief Act and Debt Cancellation webpage.  The full text of Senate Bill 401 is available at www.leginfo.ca.gov.

1. Effective insulation – to ensure even temperatures throughout the home
2. Energy efficient windows – to help keep heat in during winter and out during summer
3. Tight construction and ducts – to reduce drafts, moisture, dust, pollen, and noise and to improve indoor comfort and air quality
4. Efficient heating and cooling systems – to improve home comfort and use less energy
5. Efficient products – such as light fixtures and appliances with an energy-efficiency designation.

“Next time you’re in the post office, ask the postal clerk for an envelope to recycle your cell phones, PDAs, MP3 players, ink jet cartridges, digital cameras, and small electronics. The post office provides this free service, and all you have to do is peel the label of this 6-inch by 5.5-inch envelope and drop in your mail box.”

This is a pretty easy way to go green, but think of the impact if we all did it!

On May 8, Realty World Selzer Realty will be participating as a team in the event.  This year our team has elected to support the Humane Society For Inland Mendocino County and the Boys & Girls Club with our donations and pledges.  We would love to have you join us either in body or spirit!  Please give either Nancy or Sharron a call to find out how you can participate.

 

Californians have a brief window of opportunity to receive up to $18,000 in combined federal and state homebuyer tax credits. To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive. Buyers who are not first-time homebuyers may use the same timeframes to receive up to $16,500 in combined tax credits if they are long-time residents of their existing homes as permitted under federal law, and they purchase properties that have never been previously occupied as provided under California law.
Under the federal law slated to soon expire, a first-time homebuyer may receive up to $8,000 in tax credits, and a long-time resident may receive up to $6,500, for certain purchase contracts entered into by April 30, 2010 that close escrow by June 30, 2010. Additionally, under a newly enacted California law, a homebuyer may receive up to $10,000 in tax credits as a first-time homebuyer or buyer of a property that has never been in tax credits as a first-time homebuyer or buyer of a property that has never been occupied. The new California law applies to certain purchases that close escrow on or after May 1, 2010 (see Cal. Rev. & Tax Code section 17059.1 (a) (4)). California law generally allows buyers of never-occupied properties to reserve their credits before closing escrow, but buyers seeking to combine the federal and state tax credits will not be able to satisfy the timing requirements for such reservations (see Cal. Rev. & Tax Code section 17059.1 (c) (1) (A)). Other terms and restrictions apply to both tax credits.