My Pinole Real Estate

I’m gratified to report that late this afternoon, Gov. Schwarzenegger signed Assembly Bill 183, the Homebuyer Tax Credit legislation, into law. His actions today are the result of our efforts in Sacramento over the last several weeks as members and our team in the capital worked for the bill’s passage before it landed on the governor’s desk.

AB 183 will provide $200 million for home buyer tax credits, allocating $100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. The eligible taxpayer who purchases a qualified personal residence on and after May 1, 2010, and on or before Dec. 31, 2010, or who purchases a qualified principal residence on and after Dec. 31, 2010, and before Aug. 1, 2011, pursuant to an enforceable contract executed on or before Dec. 31, 2010, will be able to take the allowed tax credit. The credit is equal to the lesser of 5 percent of the purchase price or $10,000, in equal installments over three consecutive years. Under AB 183, purchasers will be required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).

The positive impact of the federal home buyer tax credit is clear. Nearly 40 percent of first-time home buyers said they would not have purchased a home if the federal tax credit for first-time home buyers was not offered, according to C.A.R. research conducted last year.

The state’s previous home buyer tax credit program was so successful that it ran out of tax credits by the end of June 2009, eight months before it was set to expire and just as housing markets appeared to be turning a corner. Unlike last year’s legislation, AB 183 adds a tax credit for the purchase of an existing home by a first-time home buyer.

AB 183 will significantly contribute to the effort to stimulate jobs-creation within California’s housing market by helping to incentivize first-time home buyers to purchase homes that have been abandoned, foreclosed upon and returned to the lender, or have been sitting on the market for extended periods of time. It is these homes that will require substantial rehabilitation by the new owners, which will in turn generate a tremendous increase in jobs and accessory purchases connected to home improvement activities.

Steve Goddard
2010 President
CALIFORNIA ASSOCIATION OF REALTORS®

I just got another scam in the mail. This one is for people who currently live in and are paying their property taxes on their primary residence.  These people are offering to make sure you are getting the $7,000 deduction on your property taxes for a $59 fee. Please do not be fooled. These forms are available online on the off chance that you are not already receiving the deduction. However, it is highly likely that if you are living in your primary residence that you already have this deduction.

This job is responsible to coordinate, implement and manage sports and fitness activity programming
at the Pinole Sports and Fitness Center which is a joint use facility with the school district. This is a
relatively new program and offers exciting possibilities for an enterprising and innovative person. Current
programs include fitness classes; teen and adult drop in sports; Tiny Tots and youth sports classes;
summer sports camps; and family fitness days. The program is open weekdays after 6pm, weekends
and school holidays.

Responsibilities include developing and coordinating sports and fitness programs; managing part-time
contract staff; communicating and collaborating with the public, community and school district; marketing;
volunteer management; safety procedures; fee collection; and budget management.

Must have a minimum of 2 years in coordination experience, preferably with an emphasis on sports
and fitness and staff management experience preferred. 15 - 20 hours per week. Flexible hours
and will include weekday evenings and weekends. Part-time, hourly contract position. Pay starts at
$20/hour.

To Apply: Send a cover letter and resume to:
Pinole Recreation Department, 635 Tennent Ave., Pinole, CA 94564.

For additional information, contact Recreation Director Amy Wooldridge at (510) 724-9062
or awooldridge@ci.pinole.ca.us.

Amy Wooldridge
Recreation Director, City of Pinole
(510) 724-9062 office
(510) 390-0776 cell
635 Tennent Avenue, Pinole CA 94564
awooldridge@ci.pinole.ca.us

Be aware that there are many people sending letters to home owners offering to reduce their property tax bill for a fee. This is unnecessary! The Office of the Assessor is proactively reviewing property values and is reducing tax bills based on currently declining values. YOU DO NOT NEED TO PAY ANYBODY!

Home owners can go to the office and request a review or can download the request from the website www.cccounty.us/assessor or can call the Public Service Division at 925/313-7400.

A short sale is when an owner owes more on their home than the home will sell for on the open market but needs to sell regardless. The seller must obtain permission from the lender(s) to sell the home for less than the market value. The lender may or may not agree to forgive the portion of the loan not repaid at the time of the sale. A short-sale is typically a pre-foreclosure activity.

The seller should obtain a short sale package from their lender. Sellers should also check to see if the lender will forgive the debt and agree not to come after them when the short sale has occurred. If the lender will not agree to forgive the debt without recourse, a foreclosure may be a better option financially. Even if you are in the process of a loan modification with your lender, you may want to list your home simultaneously to obtain a short sale. You may  not like the modification terms the lender gives you in which case you will have a jump on the short sale process. Until you receive an approval from the bank, you are not in contract and can cancel the purchase should the loan modification meet with your approval.

Short sales have notoriously taken a long time to complete; a waiting period of 60-90 days has been typical for a response from the lender. Some lenders such as Wachovia are streamlining the process. Hopefully other banks will follow. There is some direction from the current administration to encourage banks to shorten their process. A lender will typically conduct a broker price opinion (BPO) and an appraisal to determine the market value of a home in short sale. Provided the offer is in line with current sales, the bank will likely agree to the short sale.

Again, the seller must determine if a short sale is financially better than a foreclosure. The IRS website has some very specific definitions which will help you determine if you will be responsible for the debt. Typically, if you are short selling your primary residence, you will be fine. If you are short selling an investment property and you either have your original purchase loan or you can prove you are financially insolvent, you may not be on the hook for the debt. Please make sure to check with a financial advisor. As a general rule, your long term financial health will recover faster from a short sale rather than with a foreclosure.