February 2008 
There are 6 blog entries for February 2008.
IRS Allows Non-Taxable Debt Forgiveness
Friday, February 29th, 2008 at 9:31pm. 679 Views, 0 Comments.
If you are a seller facing foreclosure and attempting a short sale transaction, you could end up having a significant chunk of what you owe "forgiven" by your lender. Until recently, this forgiven debt was treated as income (and part of still can be) and you could expect to receive a 1099 form for the amount that was forgiven.
Obviously, for someone facing foreclosure this is just another problem to deal with as they attempt to bail themselves out of a tough situation. Luckily, the IRS recently changed the law to stop the taxation of forgiven debt in a short sale situation, however this only applies to the first loan. On many properties, there is a first and second loan, so any amount forgiven on a second loan is still taxable as income.
Fed Interest Rate Cuts Don't Necessarily Mean Lower Mortgage Interest Rates
Thursday, February 28th, 2008 at 1:40pm. 571 Views, 0 Comments.
Some may have a perception that when the Fed meets and lowers interest rates, then that means mortgage interest rates are going to go down too. However when you look at the dynamics of our economy you see this is not always the case.
A good example is the recent cuts that the Fed has announced in recent months. The last cut was a whopping 3/4 point, but as we see this did not cause mortgage interest rates to go down...in fact they went up. Just a month or so ago the 30 year fixed interest rate was around 5 3/8%, now it's about a full percentage point higher...which is a HUGE swing. To put it plain and simple, Fed rate cuts actually hurt mortgage interest rates much of the time.
Whats happening is that when the Fed lowers the prime rate, this causes…
Lake Merritt Makeover
Tuesday, February 26th, 2008 at 6:16pm. 694 Views, 0 Comments.
Oakland will begin construction this summer on a major makeover of Lake Merritt, including downsizing 12th Street to make room for a park, and bike and pedestrian paths at the south end of the lake.
The City Council this week approved most parts of the historic renovation of Oakland's beloved "central park," but residents are contesting the planned removal of 224 trees, which would be replaced with new ones. They also object to plans for replacing a grassy knoll with a parking lot to serve customers of a new restaurant at the lake's boathouse.
City leaders say most people who use the lake want the changes, despite the grumblings of some.
The changes are being paid for with money from Measure DD, the $198 million park-improvement bond that voters…
Fannie Mae and Freddie Mac (Conforming) Loan Limits Raised Temporarily
Thursday, February 21st, 2008 at 3:44pm. 602 Views, 0 Comments.
So you heard that H.R. 5140 became a law 1 week ago on February 13th and will temporarily raise the $417k conforming limit until the end of 2008.
You ask, what are the details, what is the timeline and what does it mean for you and your clients? Let's take a look together...
The biggest issue is in the details. The law states the new conforming limits that Fannie Mae and Freddie Mac can purchase as 125 percent of the median home price of an area or a maximum of 175 percent of the current 2008 conforming limit which is $729,750.
The first step to be taken to implement the changes is determining the median house prices. The Secretary of Housing and Urban Development (HUD) has 30 days to publish median house prices; this places the…
A Living Trust Is A Good Idea
Monday, February 11th, 2008 at 5:58pm. 686 Views, 0 Comments.
When there is a death in the family, a properly planned estate can help avoid a lot of the issues and headaches involved with transferring or selling the property of the deceased person. When it comes to real estate, perhaps the most important document that you want to have is called a Living Trust.
A Living Trust is a document which specifies without question who the property is to be passed to in the event that the current owner passes away. With a Living Trust, there is a Trustor, a Trustee and Beneficiaries. The Trustor is the owner of the property when the document is created, the Trustee is the person who is responsible for making sure the elements af the trust are adhered to, and the beneficiaries are the individual(s) who is to receive the…
Getting the Clutter Out When Selling
Wednesday, February 6th, 2008 at 7:25pm. 600 Views, 0 Comments.
Sometimes sellers need to list their house while they remain living there, and this is fine but the selller must be able to remove much of their personal belongings from the home. This means minimizing pictures and the like, as well as excess furniture.
In general it's easier to sell a home when it is vacant, because it allows the seller to prepare the home with only one thing in mind...selling it. There's no need for personal belongings or clutter when the house is vacant, and it's allows greater access because appointments don't have to be made in order to see the home. When you make it easy for other agents to show the home, it helps the odds of getting it sold quickly.
The Oakland Real Estate Market is HOT
I'm happy to say, that there is definitely a significant increase in activity compared to this time last year. Multiple offer... Add Comment Read MoreShort Sale Debt Cancellation Set to Go Away
Originally, when you did a short sale you were taxed on the amount that you were forgiven by the lender. This was a seri... 13Comments Read MoreChanges To FHA Mortgage Insurance Premium
The Federal Housing Administration recently announced an increase in the upfront Mortgage Insurance Premium. Mortgage insuran... 4Comments Read More
