Seize the Days

Have you noticed? There haven't been any recent entries for Sur Real Estate of Mind...

In mid-September it was announced that Community Financial Resource Center and LATMAP (Los Angeles Teachers Mortgage Assistance Program), the organization/program through which I created this blog would have to temporarily suspend its programs due to the current economic and financial hardships that have threatened the existence of many organizations, companies and households. :(

Since I was the lone writer of this blog this page became inactive as well. I have now sought out new career opportunities and will not be with the aforementioned organization when/if they reinstate their programs at the beginning of next year. I have also left the "world of homeownership counseling" all together and will now be working as a commodities broker (basically working with foreign currency, gold, precious metals, futures, options, cotton, stock indices, etc.)for a firm in downtown Los Angeles while simultaneously running a t-shirt design company, Wake Up Tokyo. It may seem like a leap from homeownership counseling to investing, but I've always wanted to pursue a career in investing and thus, the "loss" opened up an opportunity. And the t-shirt company seemed like a given considering my art background.

This blog was my "baby" of sorts - my first attempt at blogging, and I felt we had a good run. I am pleased with how far it went and the impact it made. Thanks for reading!

Signing off...

Costco Realty?

Wait A Sec...Costco Realty?

Some people are Starbucks junkies, others are devout Mac users, many are followers of the House of O aka Oprah and then there are those, like me, who are campaigning that Costco be recognized as it's own religion...ok maybe it's not that serious. But Costco is one of my favorite places to shop. Have you ever been to one? They have everything there. The prices are great for what you get. And let's not forget to mention the food. Not only can you snack while you shop (they have loads of samples), but you can pick up a juicy hot dog and soda with unlimited refill for $1.50 on your way out. So, imagine my surprise when my co-worker Veronica Lopez tells me that Costco has it's own mortgage and realty service. So, I had to do my own investigation...

• Looks like Costco real estate services are actually through LendingTree

• "Costco Member Benefits" that offer a Costco Cash Card at closing, lower rates, approved lenders, and "loan offers in minutes".

• Work with one of their affiliated Realtors and receive a $2,000 cash incentive

I guess they're not much different then other discounted realtors...

EDIT: So I was thinking to myself, "If Costco does real estate, then Wal-Mart surely does!?" Well, they only do commercial properties...

Housing Bill: What It Means for Buyers

Housing Bill: What It Means for Buyers
by Hassan Nicholás

As you may or may not know a Housing bill, the Housing and Economic Recovery Act of 2008, was signed into law about a month ago, on July 30^th. We’ve received some questions about it from some of our “viewers” so we’d figure we would put together a summary of what this new bill means for first-time home buyers. Incentive for this legislation came out of the need for more foreclosure prevention measures.

The tax credit feature of the loan is the only segment of the bill specifically aimed at first-time home buyers.

• Under bill, first-time home buyers (defined as not having owned a home in the last three years) will be eligible for a tax credit of 10% of the purchase price up to a maximum of $7,500.

• Income limitations. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 would qualify for the full $7,500 tax credit. The tax credit phases out for higher incomes.

• You are only eligible if you bought after April 8^th of this year and before July 1, 2009

• It’s only a one-time tax credit

• The money is repaid after over 15 years, in which you make $500 payments per year starting the two years after you buy the house

• If you take the full $7,500 credit your income tax bill will increase by $500 a year for 15 years.

• If you sell the house before then you pay Uncle Sam the remaining balance

Essentially, the government is giving you an interest free loan to be added to your disposable income.

Property tax deductions were modified for all homeowners.

• Single filers who pay property taxes increase their standard deduction by $500, $1,000 for couples filing jointly.

• You can’t increase the standard deduction by more than the property tax bill. Example: You’re married and filing jointly you get an $800 deduction if you pay $800 in property taxes, not a $1,000 deduction.

As current law has it, you can deduct property taxes from federal income tax only if you itemize deductions on Schedule A. The new twist will benefit those, like retirees, who own their houses outright and therefore don’t pay any mortgage interest or people who just don’t have enough deductions to itemize on Schedule A.

FHA Program Updated

• FHA loan limit increased from 95% to 110% of the median home price in the area

• The cap set at 150% of the GSE limit, currently $625,000

• Home buyers required to put minimum 3.5% down

Seller-Paid down payment assistance,prohibited.

Additional

• The new bill will require licensing and registration of all mortgage brokers.

• Mortgage lenders are now required to present home buyers and owners looking to refinance with disclosures within three (3) days of applying for some loans. Disclosures must also be required no later than seven (7) days before closing, allowing borrower to loan shop for more favorable terms. Lenders will also be required to inform borrowers of the maximum mortgage payment possible under the loan (Wow, think how that alone could have saved many homes.)

So there you have it. Remember that there is more to the Bill, as it applies to distressed homeowners primarily. As far as how it could affect potential home buyers I hope that I outlined the main points. I would also advise you do more research.

News Wire: Charitable Down Payment Assistance Programs...Gone

News Wire: Charitable Down Payment Assistance Programs...Gone

by Hassan Nicholas

OK, so...remember that entry I wrote about the legitimacy of charitable down payment assistance programs? I had my suspicions and it appears I wasn’t the only one. Recently the Department of Housing and Urban Development aka HUD announced a rule intended to exclude “quid-pro-quo” down payment assistance programs. The popular program permitted FHA borrowers to receive cash gifts/contributions, directly or indirectly, from the seller. By charging a service fee popular charitable assistance programs such as Sacramento-based Nehemiah Foundation and others went around a loop hole that prohibits contributions and gifts from the seller. Now that it’s banned it has hurt the business and aspirations of many real estate agents and home buyers. Even with prices still falling in many areas, the quality (availability) and quantity (the amount) of assistance offered for first-timers has decreased substantially. All the more signs that spell out an economic slump that hasn't ran it's course yet.

Edit:

Even with the passing of the Housing Bill, charitable down payment assistance programs are not going down without a fight. Here is a statement released by AmeriDream that I stumbled upon,

"Last night, Congress introduced bipartisan legislation, H.R. 6694 that would reauthorize and reform charitable downpayment assistance. This bill would remedy a harmful provision in the new housing law which limits homeownership opportunities for low and middle-income Americans. The legislation, sponsored by U.S. Reps. Al Green (D-TX), Gary Miller (R-CA), Maxine Waters (D-CA), and Christopher Shays (R-CT) reauthorizes and reforms charitable downpayment assistance funded in part by sellers, which has helped over one million families and individuals become homeowners since 1999. The program was eliminated by legislation signed by President Bush on July 30, 2008.

The Green-Miller-Waters-Shays plan would re-authorize and reform non-profit downpayment assistance and secure it as an allowable source for FHA borrowers. The bill seeks to ensure that providers of the downpayment assistance operate in a transparent manner to guard against conflicts of interest. The bill also includes language to ensure that FHA maintains its financial stability by permanently authorizing the Secretary to assess higher premiums to higher risk borrowers."

OK, so what this means is that supporters of these types of programs are attempting to pass a bill that will counter the provision outlined above. And word is, it will more than likely not be voted until 2009.