There have been lots of questions regarding the new tax to come on January 2013. This is a federal tax for some but not for all. The tax is sometimes called a “Medicare Tax” because of the tax are earmarked for the Medicare Trust Fund. The tax has the potential to increase taxes for owners who sell their primary residence and investors who sell investment property, so it is important for all owners of real estate and their advisors to have a basic understanding of how the tax will work.
The new tax is an additional 3.8% tax on “unearned income” whih is generally defined as interest, dividends, rents and capityal gains. The tax is only imposed to the extent the taxpayer’s adjusted gross income (AGI) is higher than $200,000 for an individual or $250,000 for a married couple.
There will be more information coming as we proceed to 2013.
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This executive home offer 3954 square feet with four bedrooms three baths on 3 acres, formal dining, master bedroom with fireplace & game room, two wells, 2500 square foot gambrell style barn with stall & concrete floors, excellent opportunity to own your own home $314,900.00
VA Home Loans are mortgages guaranteed by the US Department of Veterans Affairs and are available for all qualified Veterans, active duty personnel, certain reservist, National Guard members and surviving spouses of those missing in action or who have died in active duty. The Veterans Administration stands behind the loan with the lender. This guaranty reduces the risk for the lender, and as a result, allows the lender to reduce the overall cost of the loan in terms of rates, fees and closing costs. Lower costs translate into lower payments which makes it easier for home buyers to qualify and/or buy homes with higher loan amounts.
If you would like for information on homes that qualify, please give me a call at 707-467-3637
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Lake County is home to the cleanest air in California, achieving state standards for the past 22 years, as certified by Air Resources Board. In fact, Lake County made the Top l0 list of cleanest counties in the nation for a year-round particle pollution; in the American Lung Association’s State of the Air 2011 report, Lake County tied for No. 6 with Maui, Hawaii.
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U.S.D.A. Rural Development has partnered with a number of local lenders to help extend 100% financing opportunities to individuals and families living in rural areas. This unique program offers 30-year fixed-rate mortgage financing guaranteed by the U.S. government. Additional advantages under this program include the ability to finance closing cost and the required guarantee fees into one loan amount. With the added advantages under this program include the ability to finance closing cost and the required guarantee fees into one loan amount. With the added advantage of gifts, grants, and seller concessions also permissible under this program, potential home buyers can purchase a home in a USDA approved* neighborhood with no money down.
Reatly World Selzer Realty is the Top Office in Closed Listing Volume for the month of August, $5,391,599 in volume…26 closed Unit Sales.
2011 Chili Cook Off
We presented the “All American Chili” served with spicy popcorn on top…the Statue of Liberty and the American Flags were honoring 9/11. Let’s hope they move the date back a month, serving chili in 106 degrees is a bit much.
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A new program is offering financial assistance to first-time home buyers who are veterans or active duty military members. The Pentagon Federal Credit Union Foundation, a nonprofit national organization, is offering the assistance through its Dream Makers program. Active duty personnel, veterans, retired members of the military, and employees of the U>S> Department of Defense and the Department of Homeland Security may be eligible for a grant up to $5,000 to use on down payments and closing cost when buying their first home. The grants can be applied to a mortgage from any financial institution. You can look at the site at www.pentagonfoundation.org/dreammakers
Some sellers have misunderstood the new cancellation of debt income laws and believe they will not get a 1099 or will get a 1099 only for those amounts not covered by the debt relief laws. This is incorrect. The seller will almost always receive a 1099 when there is canceled debt. While the canceled debt may not be taxable, it still needs to be reported. Generally, the seller will not receive a 1099 only when the lender is not canceling the debt. For example, a second trust deed holder may agree to a short sale but will not agree to waive its right to pursue a deficiency judgment against a seller and therefore will not issue a 1099 because no debt has been canceled.
Can Lenders Recover the Deficiency?
In a short sale, a lender agrees to allow the sale of the seller’s property even though the lender will not be receiving the full amount the seller owes from the proceeds of the sale. The difference between the proceeds from the sale and the amount owed is a deficiency. The question naturally arises as to whether the lender can try to recover the deficiency from the seller.
Prior to Jan. 1, 2011 the only way to be sure that the lender would not be able to recover a deficiency from a seller was to have a clear language in the short sale agreement between the lender and the borrower that the lender would waive any right to pursue obtaining the deficiency amount from the seller. If there was not that language waiving the right to pursue a deficiency against the seller, the lender would likely be able to pursue the seller for the deficiency.
HOWEVER, in January of this year, Civil Code section 580e was added to California law, which states that when the first deed holder give written consent to a short sale on a residential one-to four unit property-investment or owner occupied-the lender is NO LONGER able to obtain a deficiency judgment against the seller. So now even if the first lender does not explicitly waive its deficiency right in its short sale agreement with the seller, the lender will be UNABLE to get a deficiency judgment.
The new law does not, however, pertain to second trust deed holders. Even if they approve a short sale, in the absence of clear language in the short sale agreement that the second will not pursue a deficiency judgment, the second trust deed holder may be able to pursue the seller for the deficiency amount. If the short sale goes thru then the second not holder would still need to sue the seller and obtain the deficiency judgment in court in order to place liens on any of the seller’s property or garnish his or her wages.
