Patty McMillen's Blog

You’re probably up to your next by now in forms and paperwork as the April 15th income tax deadline approaches.  Maybe you’ve already completed your taxes, paid your bill, or awaiting your refund check.  Either way, now is the perfect time to revisit the extended and expanded Home Buyer’s Tax Credit.

Why?  Because now, as you calculate your tax bill or refund, you can finally see in real terms just how beneficial a tax credit of up to $8,000 can be to your bottom line.

REMEMBER:

1. You don’t have to pay it back (as long as you stay in your qualified home for at least 36 months).

2. If you qualify for the credit, you can still apply it to this year’s taxes, even if you have already filed your returns, or save it for 2010 tax returns.

3. This is a true tax credit, not a deduction.  If you qualify for a full credit, there will be an actual dollar-for-dollar reduction of up to $8,000 on your tax bill now or in 2010.

4. You must be in contract by April 30, 2010 and closing by June 30, 2010, so don’t wait!!!!

Why order a natural hazards report… it lessens the liability of you trying to read a map to see if the property is on a fault line or in the earthquake zone, wildands area or flooding.  If you have a company do the disclosure they are now responsible for the accurate information. Most Natural Hazards companies carry insurance in case they report incorrectly.  Their job is to accurately report information contained in the government records… but remember they don’t look at parcel maps or survey maps… bottom line they assume the responsibility for accuracy not you.

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..

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.

A client asked me if his attorney could handle his exchange…The answer is NO if your attorney has provided you any nonexchange related legal services within the to year period prior to the exchange.

Homebuyer’s dreams to come true!  If you have never used this program I urge you to give it a try.  I recently helped a single mother with one child get into a home with this program.  The program is designed to help low income families finally make a move to purchase their own home.  My client is a working mom and has been in her job for eight years and could never afford to purchase until now.  The city provides a second for the down payment and the first is through a local lender that has been approved through the city..I personally used Ginny Richards with Mission Hills Mortgage..excellent job!  The house has to qualify for the purchase so it’s my recommendation that you don’t even look at fixer uppers, they just have to many problems to try to get passed.  If you have a willing seller/ buyer then I recommend checking this program out.  It’s a lot of work but well worth the effort of seeing that someone deserving of a new home.

I have been noticing that most of the homes that have been foreclosed on have had a loan modification before the foreclosure.  I would be curious to see if anyone else is seeing this.

US News states that lenders are still foreclosing on about four homes for every short sale that goes through.  Well know wonder since it takes the banks 6 months to respond to an offer.  Most buyers get tired of waiting or the agent just gives up.

Mendocino County has released many notices asking its residents to help save water. If you would like to do your part but don’t quite know how, I have provided 15 of the easiest tips to help you become a pro!  Share these tips with your family and friends as they are very easy and just take minor adjustments to your lifestyle. Using these EASY tips could potentially save you thousands of gallons of water a year!

1. For cold drinks keep a pitcher of water in the refrigerator instead of running the tap. This way, every drop goes down you and not the drain.

2. Water your lawn and garden in the morning or evening when temperatures are cooler to minimize evaporation.

3. When washing dishes by hand, don’t let the water run while rinsing. Fill one sink with wash water and the other with rinse water.

4. Use a broom instead of a hose to clean your driveway and sidewalk and save water every time.

5. Shorten your shower by a minute or two and you’ll save up to 150 gallons per month.

6. Adjust your lawn mower to a higher setting. A taller lawn shades roots and holds soil moisture better than if it is closely clipped.

7. Use a water-efficient showerhead. They’re inexpensive, easy to install, and can save you up to 750 gallons a month.

8. Use a commercial car wash that recycles water.

9. Turn off the water while brushing your teeth and save 25 gallons a month.

10. Turn off the water while you wash your hair to save up to 150 gallons a month.

11. Turn off the water while you shave and save up to 300 gallons a month.

12. When you give your pet fresh water, don’t throw the old water down the drain. Use it to water your trees or shrubs.

13. While staying in a hotel or even at home, consider reusing your towels.

14. When you are washing your hands, don’t let the water run while you lather.

15. Aerate your lawn at least once a year so water can reach the roots rather than run off the surface.

Should you have any suggestions of your own I would love to hear them! Please comment on my post so that I may share your tips with other!

Regards, Patty