Real Estate Information Archive

Blog

Displaying blog entries 1-6 of 6

Will this be the new trend?

by Ashlie DuCros

Will we see a steady trend? Click on the link below... let me know your thoughts...

 

http://www.latimes.com/business/la-fi-home-sales31-2010mar31,0,6735242.story

 

For more information, please contact us at www.AshlieDuCros.com

Legislature extends homebuyer tax credit

by Ashlie DuCros

Legislature extends homebuyer tax credit

 SACRAMENTO, CA (AP) -- California lawmakers have voted to extend a $10,000 tax credit for first-time homebuyers.

The credit will apply to first-time buyers who purchase new or existing homes between May 1 and Dec. 31 of this year. It is for 5 percent of the purchase price, or up to $10,000.

The bill received bipartisan support in the Assembly and Senate on Monday and will be sent to Gov. Arnold Schwarzenegger.

The governor, who proposed the extended tax credit as part of his job-creation initiative, is expected to sign the bill.

California recently passed a tax break that capped the total credit available at $100 million on new homes purchased between March 1, 2009, and March 1, 2010.

The new bill increases that cap to $200 million and applies to new and existing home.

 

The Associated Press

Copyright 2010 / All Rights Reserved

U.S. households slowly regaining wealth

by Ashlie DuCros

U.S. households slowly regaining wealth

Americans' net worth rose 1.3% in the fourth quarter to $54.2 trillion, the Federal Reserve says. It marked the third straight quarter of gains.

 

Washington

Americans are recovering their shrunken wealth -- gradually.

Household net worth rose last quarter, mainly because the healing economy boosted stock portfolios. But the gain was slight. And it was less than in the previous two quarters.

The Federal Reserve said Thursday that net worth rose 1.3% in the fourth quarter to $54.2 trillion. It marked the third straight quarter of gains. Net worth had risen 4.5% in the second quarter of 2009 and 5.5% in the third quarter.

Net worth is the value of assets such as homes, checking accounts and investments minus debts such as mortgages and credit cards.

Even with the gain, Americans' net worth would have to rise an additional 21% just to get back to the pre-recession peak of $65.9 trillion. That illustrates Americans' vast loss of wealth from the worst economic downturn since the 1930s.

Growth in stock portfolios delivered the biggest boost to net worth in the October-to-December period. The value of stocks increased nearly 4% to $7.7 trillion. Higher home prices helped slightly. The value of real estate holdings edged up 0.2%.

During the recession, which began in December 2007, household net worth plunged as low as $48.5 trillion in the first quarter of 2009. Stock holdings and home values nose dived, and as Americans' net worth evaporated, they felt less inclined to spend.

For all of last year, consumer spending dropped 0.6%. This year, as wealth, the economy and financial conditions slowly recover, consumer spending is projected to grow around a modest 2.2%, according to the National Assn. for Business Economics.

 

NATION'S HOUSING

IRS tells homeowners how to get tax relief if a lender forgives part of their debt

Reduction of mortgage principal, usually considered taxable income, is expected to become more prevalent as the Obama administration and banks seek ways to prevent foreclosures.

With the Obama administration and private lenders actively considering mortgage-principal-reduction programs to help financially distressed homeowners, the Internal Revenue Service has issued an advisory to taxpayers who receive -- or seek to receive -- such assistance if it's offered.

The IRS gets involved in mortgage principal write-downs because the federal tax code generally treats any forgiveness of debt by a creditor in excess of $600 as ordinary taxable income to the recipient.

However, under legislation that took effect in 2007, certain home mortgage debt cancellations -- such as through loan modifications, short sales or foreclosures -- may be exempted from tax treatment as income.

Sheila C. Bair, chairwoman of the Federal Deposit Insurance Corp., recently confirmed that her agency was working on a new program to expand the use of principal mortgage reductions to keep underwater borrowers out of foreclosure.

Most major banks and mortgage companies have preferred monthly payment reductions and other loan modification techniques over cuts of principal balances, but a handful have made limited use of the concept.

One of the largest servicers of subprime home loans, Ocwen Financial Services of West Palm Beach, Fla., has strongly advocated principal reductions to keep people out of foreclosure, and claimed broad success with them. Ocwen President Ron Faris testified to a congressional subcommittee this month that borrowers with negative equity were as much as twice as likely to re-default after a standard payment-reduction loan modification than those who receive partial forgiveness on their principal debt.

But what are the tax implications when your lender essentially says: OK, we recognize that you're underwater, maybe you're thinking about walking away, and we're going to write off some of what you owe to keep you in the house?

IRS guidance issued March 4 spelled out step by step how financially troubled and underwater borrowers can qualify for tax relief when a lender agrees to lower their debt. Here are the basics, should you be considering a short sale or loan modification involving principal reduction.

First, be aware that the federal tax exclusion only applies to mortgage balances on your principal residence -- your main home -- and not on second homes, rental real estate or business property. The maximum amount of forgiven debt eligible under the law is $2 million for married taxpayers filing jointly and $1 million for single filers.

But there are some potential snares: Your debt reduction can only be for loan amounts that you've used to "buy, build or substantially improve your principal residence." This includes refinancings that increased your total mortgage debt attributable to renovations and capital improvements of your house. But if you used the proceeds for other personal purposes, such as to pay off credit card bills, buy cars or invest in stocks, the mortgage debt attributable to those expenditures is not eligible for tax exclusion.



When your lender forgives all or part of your mortgage balance, the lender is required by law to issue you an IRS Form 1099-C, a "Cancellation of Debt" notice, which is also sent to the IRS. The form shows not only the amount of debt discharged but the estimated fair market value of the house securing the debt as well.

A few other noteworthy features of the IRS rules: If you've been foreclosed upon or you do a short sale and lose money in the process, don't claim a tax loss on your federal filing. The IRS will turn you down. However, if you go to foreclosure and your lender agrees to cancel all or part of the unpaid mortgage balance as part of the deal, then you can file for an exemption from the IRS.

What if your lender reduces the debt on your house but you continue to own the property and live in it? There's a tax wrinkle in the fine print: The IRS will require you to reduce your "basis" in the house -- your "cost" for tax purposes -- by the amount of the forgiven debt. But that's not likely to be a big concern for most homeowners digging their way out.

Finally, if you want to claim the debt-forgiveness exemption, download IRS Form 982 at www.irs.gov and attach it to your return for the year in which the debt was forgiven. And don't assume that this tax code benefit to homeowners will be around forever. It expires at the end of 2012.

Distributed by the Washington Post Writers Group
For more Information please visit www.AshlieDuCros.com or Ashlieducros@mailpcr.com 714-743-9778

Do you owe as much or more than your home is worth?

by Ashlie DuCros

 Dear Home Owner,

 

  • Do you owe as much or more than your home is worth?
  • Are you behind in payments or facing foreclosure?

These are common questions that we are asked EVERY day. Our Short sale team of experts are here to handle all of the interactions with your lender(s) so that you may lower your stress and start planning for the future.

 **Here are some benefits of our short sale program**

 -Your property is sold “AS IS” condition which means you make no repairs!

 - No Equity is required for us to negotiate a short sale on your behalf

 -We will put together your hardship package to submit to your Lender(s)

 -You will be working with a team of specialists who are compassionate to your   situation and understand what your are going through

 Our team of expert staff knows the foreclosure process, timelines and options so that you can be confident that you are making the right choice.

All this is at NO CHARGE to you as the homeowner! To discuss the short sale process and your options, please contact our office to set up a FREE no obligation consultation. We are here to provide you with options! Feel free to contact our office at (714)743-9778 or simply login to www.ADshortsales.com

 

 

Thank you,

 

Ashlie DuCros

 

Ashlie DuCros

Pre-foreclosure specialist

Dre # 01451478

Direct 714-743-9778

Email: AshlieDuCros@mailpcr.com

Website: www.AshlieDucros.com

City

# of Active Homes on Market

# of Homes in Escrow

Yorba Linda

255

175

Brea

70

68

Fullerton

275

288

Anaheim Hills

141

91

Newport Coast

143

41

Irvine

503

495

Placentia

108

80

Orange

306

264

Tustin

164

188

Corona Del Mar

161

40

Villa Park

47

9

North Tustin

63

27

Displaying blog entries 1-6 of 6

Syndication

Categories

Archives

Contact Information

Ashlie DuCros & Associates
Coldwell Banker Previews Global Luxury
21580 Yorba Linda Blvd.
Yorba Linda CA 92887
714-743-9778
Fax: 714-849-5489