First-Time Home Buyer Tax Credit: 6 Things to Know
February 17, 2009 06:19 PM ET
While the proposed $15,000 home-buyer tax credit died in negotiations between the House and the Senate, the $787 billion stimulus bill that President Barack Obama signed into law Tuesday includes a similar--albeit smaller--measure designed to help revive the real estate market. Here are six things you need to know about the freshly-enacted $8,000 first-time home buyer tax credit.
1. Eight grand, new buyers: The tax credit included in the economic stimulus legislation is much narrower than the $15,000 proposal. This credit is equivalent to 10 percent of the purchase price of the home--although it's capped at $8,000--and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.
2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.
3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.
4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.
5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.
6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)
Thursday, February 26, 2009
Friday, February 20, 2009
Buying bank owned REO's properties
Buying Bank Owned Properties (REO)
So you’d like to buy a bank owned property?
You’ve watched the late-night infomercials and you’re ready to do the bank “a favor” and take a problem off their hands. Plus, you expect to make "a killing" in the process. Sounds great and it might just happen, but first you should take a look at some facts and get prepared.
REO vs. Foreclosure
An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. You see, most foreclosure auctions do not even result in bids. After all, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. That is why the property ends up at a foreclosure or trustee sale.
Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney's fees and any costs association with the foreclosure process. In order to bid at a foreclosure auction, you must have a cashier's check in your hand for the full amount of your bid. If you are the successful bidder, you receive the property in "as is" condition, which may include someone still living in the property. There may also be other liens against the property.
Since what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property "reverts" to the bank. It becomes an REO, or "real estate owned" property.
REO Properties For Sale
The bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner’s association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property.
A bank owned property might not be a great bargain. Do your homework before making an offer. Make sure that the price you pay (if you’re successful) is comparable to other homes in the neighborhood. Consider the costs of renovation, including time to complete them. Don’t get caught up in a ‘bidding war’ and pay over market value. It’s an old myth that “foreclosures” are a bargain.
How Banks Sell REO's
Each bank/lender works a little differently, but they all have similar goals. They want to get the best price possible and have no interest in "dumping" real estate cheaply. Generally, banks have an entire department set up to manage their REO inventory.
Once you make an offer to purchase, banks generally present a "counter-offer." It may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible. You should plan to counter the counter-offer.
Your offer or counter-offer will probably have to be reviewed and approved by several individuals and companies. Even once an offer is accepted, the bank may insert wording like “..subject to corporate approval with 5 days."
Property Condition
Banks always want to sell a property in "as is" condition. Most will provide a Section 1 pest certification, but not unless you include it in your offer and negotiate the point. They will allow you to get all the inspections you want (at your expense), but they may not agree to do any repairs.
Your offer should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unanticipated damages that the bank will not correct.
View Banked Owned (REO) Properties in Long Beach
Even though you agreed to “as is," always give the bank another opportunity to make repairs or give you a credit after you’ve completed your inspections. Sometimes they’ll re-negotiate to save the transaction instead of putting the property back on the market, but don’t take it for granted.
Banks do not want to see a lot of proprietary disclosures; they are exempt from the California Seller’s Transfer Disclosure Statement (TDS-14). If there are real estate agents involved, either representing you or the bank, those agents are required to provide you their disclosure statements.
Most banks will not provide financing on their REOs but it doesn’t hurt to ask. Especially if the property has extensive damage and you are purchasing it "as is."
Making an Offer
Before making an offer, have your agent contact the the listing agent and ask the following:
Are there any inspection reports?
What work has the bank agreed to?
Is there a special "as is" form?
How long does it take the bank to accept an offer?
How does your agent deliver the offer?
Offers are usually FAXED to the bank. The listing agent needs your originals. There is no formal presentation. Keep in mind: nothing happens evenings and weekends (banks are closed)
Since there is no face-to-face presentation to the bank, provide the listing agent with a pre-qualification or better yet, a pre-approval letter and buyer biography. Make your offer easy to accept.
Hopefully these tips will manage your expectations. Remember that REO's sell at pretty close to full market value and are not the deals presented on late night television.If you need additional information please call me at 562 715 8476.If you looking for some very good buys in Long Beach, click here and I will send you my"Best Buys" list in the Long Beach araea.
View Bank Owned(REO) Properties in Long Beach
So you’d like to buy a bank owned property?
You’ve watched the late-night infomercials and you’re ready to do the bank “a favor” and take a problem off their hands. Plus, you expect to make "a killing" in the process. Sounds great and it might just happen, but first you should take a look at some facts and get prepared.
REO vs. Foreclosure
An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. You see, most foreclosure auctions do not even result in bids. After all, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. That is why the property ends up at a foreclosure or trustee sale.
Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney's fees and any costs association with the foreclosure process. In order to bid at a foreclosure auction, you must have a cashier's check in your hand for the full amount of your bid. If you are the successful bidder, you receive the property in "as is" condition, which may include someone still living in the property. There may also be other liens against the property.
Since what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property "reverts" to the bank. It becomes an REO, or "real estate owned" property.
REO Properties For Sale
The bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner’s association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property.
A bank owned property might not be a great bargain. Do your homework before making an offer. Make sure that the price you pay (if you’re successful) is comparable to other homes in the neighborhood. Consider the costs of renovation, including time to complete them. Don’t get caught up in a ‘bidding war’ and pay over market value. It’s an old myth that “foreclosures” are a bargain.
How Banks Sell REO's
Each bank/lender works a little differently, but they all have similar goals. They want to get the best price possible and have no interest in "dumping" real estate cheaply. Generally, banks have an entire department set up to manage their REO inventory.
Once you make an offer to purchase, banks generally present a "counter-offer." It may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible. You should plan to counter the counter-offer.
Your offer or counter-offer will probably have to be reviewed and approved by several individuals and companies. Even once an offer is accepted, the bank may insert wording like “..subject to corporate approval with 5 days."
Property Condition
Banks always want to sell a property in "as is" condition. Most will provide a Section 1 pest certification, but not unless you include it in your offer and negotiate the point. They will allow you to get all the inspections you want (at your expense), but they may not agree to do any repairs.
Your offer should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unanticipated damages that the bank will not correct.
View Banked Owned (REO) Properties in Long Beach
Even though you agreed to “as is," always give the bank another opportunity to make repairs or give you a credit after you’ve completed your inspections. Sometimes they’ll re-negotiate to save the transaction instead of putting the property back on the market, but don’t take it for granted.
Banks do not want to see a lot of proprietary disclosures; they are exempt from the California Seller’s Transfer Disclosure Statement (TDS-14). If there are real estate agents involved, either representing you or the bank, those agents are required to provide you their disclosure statements.
Most banks will not provide financing on their REOs but it doesn’t hurt to ask. Especially if the property has extensive damage and you are purchasing it "as is."
Making an Offer
Before making an offer, have your agent contact the the listing agent and ask the following:
Are there any inspection reports?
What work has the bank agreed to?
Is there a special "as is" form?
How long does it take the bank to accept an offer?
How does your agent deliver the offer?
Offers are usually FAXED to the bank. The listing agent needs your originals. There is no formal presentation. Keep in mind: nothing happens evenings and weekends (banks are closed)
Since there is no face-to-face presentation to the bank, provide the listing agent with a pre-qualification or better yet, a pre-approval letter and buyer biography. Make your offer easy to accept.
Hopefully these tips will manage your expectations. Remember that REO's sell at pretty close to full market value and are not the deals presented on late night television.If you need additional information please call me at 562 715 8476.If you looking for some very good buys in Long Beach, click here and I will send you my"Best Buys" list in the Long Beach araea.
View Bank Owned(REO) Properties in Long Beach
Thursday, February 19, 2009
Live in Long Beach , Eastside & Circle Area
Eastside & Circle Area Homes
The infamous Recreation Park and CSULB are steps away from the classic homes in a neighborhood that is next to the beach, Belmont Shore, a 18 hole golf couse.The homes located in this area are extremely diverse.You will see Cailifornia Bunalows, Spanish Style and hugh beautiful mansions thruout this unique area.
The neighborhood streets are lined with beautiful Palms, Magnolia and Elm trees.This area is very family oriented where you will see homes and lawns in the highest condition.This will prove to be an future asset to you as a home owner. Location, location, location!
If you are looking for an unique area to live and raise a family you will have to consider this part of Long Beach.You will be impressed with this area on all aspects.
Use our FREE Long Beach MLS to find the Long Beach home that is right for you in the Eastside & Circle area of Long Beach.
Feel free to contact me at (562) 715-8476, I will be happy to send you my
"Best Buys List" in the Eastside and Circle Areas.
*www.csulb.org
Wednesday, February 4, 2009
Wrigley Real Estate Homes
RickSkarboSellsLongBeach.com
Rick Skarbo (562) 715-8476
Rick Skarbo (562) 715-8476
Wrigley Neighborhood-Best Buys
Click Here to view Current Listings in Wrigley
Wrigley is a district in Long Beach, CA, which derives its name from William Wrigley, the owner and founder of the famed Wrigley Spearmint Gum Empire in Chicago. It was one of the first communities established in Long Beach. The original subdivision pattern was established in 1905. The area is developed throughout on a gridiron street pattern.
The district is bounded on the north by Interstate 405, on the south by Pacific Coast Highway, and on the east by Long Beach Boulevard. Pacific Avenue also goes through the area with commercial strip land uses. The Los Angeles River and the Interstate 710 make up the western boundary.
The neighborhood has a community park, Veteran's Park, convenient access to local freeways, Blue Line light rail transportation and the new Wrigley Marketplace shopping district - an innovative joint venture between Long Beach and the Metropolitan Transportation Authority. The center combines neighborhood-serving retail with a modern park and ride facility for light rail commuters.
Special Events
Each December, the Wrigley Neighborhood plays host to the Daisy Avenue Christmas Parade, which has been an annual tradition since 1953. The parade goes down Daisy Avenue, starting at Pacific Coast Highway and going to Burnett in the same area as the Daisy Avenue Greenbelt.
In 2006, the mature fir trees that lined the Daisy Avenue Center median, extending from Pacific Coast Highway four blocks north to Hill Street, were not lighted for the Christmas season. The electrical system had deteriorated. The Wrigley Association Daisy Avenue Christmas Tree Lane organization intends to raise enough money this year to put in a new electrical system and purchase energy-efficient LED lights for the trees.
Holiday displays are set up on the median beneath the trees. All of the displays are being spruced up for the 2007 event by a team of volunteers who having been working on them almost every Saturday since February of this year. Residents of Daisy Avenue often participate by decorating their own homes.
Locals call the area "Daisy Avenue Christmas Tree Lane". Motorists line up for the traditional holiday drive around the avenue's median. Local residents walk with their children. Sometimes, Santa is there to hand out candy canes on weekends.
On entertainment nights, children rock-out with the Blue Steel band which is made up of Long Beach police officers, dance in the streets with traditional cloggers and ballet folkloric dance groups and sing along with the International Children's Choir.
The Wrigley Association is a neighborhood association dedicated to improving the lives in the Wrigley area of Long Beach.
The general meetings are held on the first Monday of each month at 7:00 P.M. at the Veteran’s Park Social Hall, 101 East 28th Street. (If the first Monday is a holiday, meeting will be held on the second Monday of the month). Child Care and parking are free.
Feel free to contact me anytime at (562) 715-8476 and I will send you my "BEST BUYS LIST" in the Belmont Heights area. Or go to my FREE LONG BEACH MLS to see some of the best homes for you.
External Links
Tuesday, February 3, 2009
Belmont Heights Real Estate
RickSkarboSellsLongBeach.com
Rick Skarbo (562) 715-8476
Rick Skarbo (562) 715-8476
Belmont Heights-Best Buys
Click Here to View Current Listings in Belmont Heights
Belmont Heights
Belmont Heights is a neighborhood in the south-east portion of the city of Long Beach, California, bordering the Pacific Ocean and the more commercial community of Belmont Shore. It is primarily residential but has a mix of local businesses and entertainment within a short walking distance for most residents. Belmont Heights' borders are Ocean Boulevard (and Livingston Drive) to the south, Redondo Avenue on the west, 7th Street to the North, and Nieto Avenue to the east.
Feral Parrots
Belmont Heights is most easily recognizable by its large population of feral parrots. In between Redondo Avenue and Livingston Drive along Ocean Blvd, amongst the palm trees, this large population of birds can be seen and heard by people for many houses. Some consider these animals to be a nuisance due to their rather vocal and loud sounds. However, the residents of Belmont Heights have grown to accept them as part of their community.
Local People
Residents of Belmont Heights meetup online using the community website www.MyBelmontHeights.org and in person at Fremont, one of the local elementary schools.
Local Schools
The following schools are part of the Long Beach Unified School District.
- Elementary Schools
- John C. Fremont Elementary School, 4000 East 4th Street
- Lowell Elementary School, 5201 East Broadway
- Horace Mann Elementary School, 257 Coronado Avenue
- Middle Schools
- Jefferson Leadership Academies, 750 Euclid Avenue
- Will Rogers Middle School, 365 Monrovia Avenue
- High School
- Woodrow Wilson Classical High School, 4400 E. 10th Street
If you need additional information, please feel free to contact me anytime at (562) 715-8476 and I will be happy to send you my "BEST BUYS LIST" of all the best picks in the Belmont Heights area. Or use our Free Long Beach MLS to find the right home for you!
Monday, February 2, 2009
Live in beautiful Naples Island
RickSkarboSellsLongBeach.com
Rick Skarbo (562) 715-8476
Rick Skarbo (562) 715-8476
Naples - Best Buys
Naples is a neighborhood of Long Beach built on a series of islands located in Alamitos Bay. Naples consists of three separate islands, divided by canals which open into the bay. The streets on the island have Italian names. The center of Naples features a large fountain which serves as a popular meeting spot.
Location
The major thoroughfare in the Naples area is 2nd Street, connecting to the Pacific Coast Highway (PCH), the closest major street to the east accros the bay.
The Long Beach community of Belmont Shore is to the west of Naples via 2nd Street, Belmont Park is to the north via Appian Way. There is no bridge to the Peninsula to the south across Alamitos Bay. The city of Seal Beach is to the east along the PCH.
Activities
Gondola Tours
Long Beach offers singing gondolier trips through the romantic canals of Naples. Long Beach is only one of six places in the Western United States where tourists may ride in a gondola.
Christmas Boat Parade
One very popular Christmas-time event in Naples is the "Naples Island Christmas Boat Parade", with groups of decorated boats going through the canals of Naples and around Alamitos Bay past Belmont Shore. The parade has been held since 1946.
Education
Naples residents are zoned to Long Beach Unified School Districtschools:
Buy your next home in Belmont Shore
RickSkarboSellsLongBeach.com
Rick Skarbo (562) 715-8476
Rick Skarbo (562) 715-8476
Belmont Shore-Best Buys
Click Here to view Current Belmont Shore Listings
Belmont Shore is a region of Long Beach (California) that's buzzing with shoppers, residents, visitors, beach-goers and the nautical crowd.
Probably more loved than nearly any place you'll find, there's this loyal fan-base that even after living in Belmont Shore, then moving away, they still long for and fondly remember the seaside community.
Who cares if the relaxing little beach town of Belmont Shore is really a part of the City of Long Beach? Residents once tried to make it a separate city and only relinquished their claim after Long Beach promised them a pier.
In addition to the city shutting down a couple streets for the summer safety of kids who flock to the little sandy beach shown above, they also don't mind closing the streets for events such as the annual holiday parade in December, Dine & Stroll food events outdoors, a doggie parade...you name it. While busy 2nd Street is the thoroughfare easily connecting Pacific Coast Highway and other cities with downtown Long Beach (Convention Center, Performing Arts, Pine Avenue, Arts District, Shoreline Village, Aquarium of the Pacific, Queen Mary, Port of Long Beach cruises, etc.), sometimes Belmont Shore just goes for it and closes the street.
Restaurants offer lots of festivity. Ethnic foods, Italian, college influence in youthful energy at night, and Long Beach's gay population all add to this quirky, very unorthodox community that includes many athletes, beach lovers, dog lovers, shop owners and home owners or renters with some nice little cottages or larger waterfront digs near the beach. Then there's Belmont Shore's most prized possession, it's pier. This is the city that would have been...if not for the lack of money and a generous offer from a neighbor called "Long Beach". At one time Belmont Shore had to choose what it would do. The options were get a pier and be annexed, or have no pier. They wanted that pier so much, their history changed with the consensus among the majority that it was worth the sacrifice.
Belmont Shores Links:
- Activities
- 2nd Street
- Belmont Shore Beach
- Belmont Brewing Co.
- Belmont Pier / Sunset
- Belmont Plaza Pool
- Belmont Shore Photos
- Boats on the Bay
- Belmont Pier Fishing
- Volleyball sand courts
They got their pier and life is pretty good in Belmont Shore, for the most part, anyway. Just like the good ol' days, Belmont Shore closes its beachfront street, Bayshore, in the summer so that beach-goers are safe from the traffic that pours into their area. Overlooking Naples and the Long Beach peninsula, this small bay area is popular for sunbathing, swimming and learning how to sail the Sabot boats invented here decades ago.
Also a hit is popular 2nd Street, an approximate four-block long shopping region of cute stores, eateries, banks, photo labs and even two Starbucks.
Beyond the bend of the 2nd Street/Livingston/Ocean stoplight, Belmont Shore loses ground to downtown. The close-knit communal feeling fades as buildings loom larger and tower over Ocean Boulevard downtown. That's where Queen Mary, Aquarium of the Pacific, Shoreline Village and the new Pike redevelopment area beckon travelers to explore a whole new phase of Long Beach.
Give yourself an hour or two for enjoyment and exploration of Belmont Shore. But watch your parking meter carefully if you park in front of one. Traffic tickets come like clockwork, and arrive usually the minute your meter expires.
During the year many great homes in Belmont Shore are available.Feel Free to call me anytime at (562) 715-8476 and I will send you my "BEST BUYS LIST" Or use my FREE LONG BEACH MLS to see some of the homes available in the Shore!
Click Here to View Current Belmont Shores Listings
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