Patty McMillen's Blog

Deficiency judgment are only in certain circumstances.  A deficiency judgment may not be obtained when a property in foreclosure is sold through a non-judicial public sale or if the foreclosure relates to a purchase money mortgage.  The reason I’m giving this explanation is that.. beware if your seller has refinanced their loan or done a modification on their loan. The loan is now not purchase money.

Most foreclosed properties involve a non-judicial foreclosure.  This means it does not involve a court action.  When the deed of trust is initially signed, it will have a clause in it that says power of sale clause, which upon default allows a trustee to sell the property in order to satisfy the defaulted loan.  The trustee acts as a representative of the lender to make the sale.  Here in California the title companies serve as the trustee managing foreclosure sales. If the court is not involved there is no deficiency judgment.  If a judicial foreclosure happens the lender may recover a deficiency judgment in certain circumstances….I personally have not seen this happen but it could..

Sensible living is at the top of peoples minds these days..the idea of living well generally meant living large, or as large as you could afford.  Priorities for many home owners has changed, people are now focused on living comfortably and perhaps more prudently and efficiently than before.  Sustainable living more than ever!  People are wanting more eco-friendly materials, appliances and outdoor living, and more than ever wanting to stay within a budget.  We haven’t seen a lot of green building but it’s coming.  A new home in Ukiah is under construction now, all green & leed certified!

This is just a reminder to all parents interested in their child’s graduation that there is a scram (graduation) meeting at 7:00 at Ukiah High School.  This is a very important event for our children graduating this year for a successful sober graduation. Let’s show our children that we care and be there to attend the meeting.

I personally loved President Obama’s speech on clean energy.  He is committed to passing a energy and climate bill that lead’s clean energy and will be productive for the job industry…reducing our dependence on foreign oil will definitely keep our planet healthier! There were so many things that I loved about his speech…he seemed to talk from the heart with true conviction that we all need to work together to make things happen, wouldn’t this be a nice concept for once.

If your going to be purchasing a home this year, time is of the essence!  The deadline for Home Buyer Tax Credit is April 30, 2010. FHA guidelines are changing, seller will soon be able to give only 3% credits to buyers instead of the 6% credit.  I recommend anyone thinking of purchasing to do so before the April 30th deadline.

The 203K fix up loan is back…we use to do these loans about 10 years ago and they seem to be popular again now that we have so many foreclosures that need work.  A buyer (owner occupied) can get into a house with three and half percent down and add into the loan the cost to fix it up.  Your loan amount is based on the increased value of the home after improvements are made.  What a great way to get into a fixer upper and have the house look brand new before you move in.  If your interested in finding more about this process give me a call.

Homeowners can make energy-conscious purchases that will provide tax benefits when filling out ther tax returns for 2009.  The NEW law provides tax credits for making your principal residence more energy efficient and for buying certain energy efficient items.  The new law increases the energy tax credit to 30% of the cost of all qualifying energy-effieient improvements to existing homes.  It also raises the maximum credit limit to $l,500 for improvements placed in service in 2009 and 2010.  These improvements include adding insulation, energy efficient exterior windows, energy-efficient heating, air conditioning systems and more.  When filing your taxes asking your tax professional what you can deduct.

Great News!  If you were unemployed in 2009 but go a new job, moving expenses may be deductible, if you moved more than 50 miles away-and you don’t have to itemize to get it.  For the year of 2009, you can deduct the cost of getting yourself and your household good to that new area 50+ miles away, this includes 24 cents per mile for driving your own vehicle, plus parking fees and tolls.  Every tax break helps!

All funds from a sale of a property do not have to be reinvested..a taxpayer can choose to withhold funds or receive other property in an exchange, but it is considered boot and will be suject to taxes. I personally use an exchange company to handle exchanges for my clients they know what you can and cannot do.