The following illistration was provided by the California Association of Realtors to show first time home buyers the tax savings over a five year period. If your currently renting and considering whether to buy or not, this may clarify the benefits between renting and buying in 2009.
Tax Benefits of Owning Versus Renting
Existing tax laws allow homeowners to itemize and deduct the mortgage interest and property taxes from their taxable income. In addition, for First-Time Buyers purchasing a home between Jan. 1 and Nov. 30, 2009, the Homebuyer Tax Credit substantially elevates the tax benefit of buying a home this year. For example, consider two households earning the same income-$48,900 a year-which is also the minimum income needed to purchase the statewide entry-level home price of $248,000. The household that purchases a home (First-Time Buyers) at this price along with the prevailing market factors will give that household a tax deduction of over $15,800 in the first year of ownership as well as the one-time tax credit of $8,000 at that home price. The other household that continues to rent (Renters) will most likely only be eligible for the IRS Standard deduction of $10,900, less than that of their home buying counterparts without even factoring in the $8,000 tax credit. In the first year, the taxable income for the First-Time Buyers is roughly $5,000 lower than that for the Renters, and the difference in the tax liability totals over $8,700 in favor of the First-Time Buyers, mainly due to the Homebuyer Tax Credit in 2009.


Buying a home is one of your most important financial decisions. You want to make the right choice - an informed decision is the best decision. Using a FREE Listingbook Account gives you an advantage to finding the perfect home at the right price. Listingbook will provide you with the best service possible. Don't you deserve it?
Thank You for taking the time to read my blog. If your interested in signing up for a Free Listingbook Account Please click on this link.
http://valenciahomesforsale.listingbook.com/?&page=buying

Home Buyers can uses this FHA Loan Checklist to Prepare for a Smooth Application Process.
Before you start the FHA loan process, be prepared to provide some information to your loan officer. Have it ready now to save time later.
FHA loans are ideal for someone who does not have a lot of cash on hand. The downpayment can be as low as 3.5%, and the buyer may be able to finance some of the closing costs into the FHA loan. There is a Mortgage Insurance Premium (MIP) that must be paid, both at settlement and as part of the monthly payment. This can be stopped when the borrower has 20% equity in the house.
Another misconception that has floated around quite a bit is that a buyer using an FHA loan does not need a home inspection. This is bad advice that has unfortunately been passed on quite a bit, sometimes by real estate agents. There is a conditional appraisal, meaning the appraiser has specific items in the house that they have to look at to determine if the house meets certain standards. This would include peeling paint (there can't be any peeling paint in the house), loose and missing railings and electrical systems. The conditional appraisal is no substitute for a home inspection, and NEVER has been. The appraiser skips over many potential defects that a home inspector would probably find. Because it was becoming such a problem, several years ago FHA required an addendum be added to FHA contracts on the importance of getting a home inspection.
There are various types of FHA/HUD loans. The most common type is called the 203B, which can be used for a 1 to 4 family residence. Another is the 203VET, which is for U.S. military veterans only. VA loans have strict credit standards that some veterans might not qualify for, but they may still get some benefit of being a veteran through this type of loan. One more type is the 203K, which allows the borrower to finance repairs to the property along with the purchase price. This is more complicated, but it's a great loan for fixer-uppers.
One last requirement from FHA is that the borrower must live in the house. This loan program is not set up to help investors. It is there to help give people a home to live in. If the building is a 2, 3 or 4 family residence, the borrower would have to live in one of the units.
Click the link below to see information on Freddie Mac's FHA 203 (k) Rehabilitation Mortgages. http://www.freddiemac.com/sell/factsheets/pdf/fha203k_rehabilitation_mortgage_244.pdf

With the 2009 first time home buyer tax incentives it doesn't make sense to rent in Santa Clarita! First time home buyers buying in the Santa Clarita Valley have an opportunity to take advantage of the tax credits, the low interest rates, and low home prices, all which will put them in a position to gain equity when this market turns.
If your considering to purchase a home in the Santa Clarita Valley, Jennifer & Gary Ricco at Keller Williams VIP Properties are excited to fill you in on some details about the new special tax incentives you should take advantage of, here in 2009!
Here are the new 2009 Tax Credit details.
#1 - $8,000 Federal Housing Tax Credit For First Time Buyers
#2 - $10,000 California State Tax Credit For New-Home Buyers
Here's how they work.
#1
The federal government passed legislation, included in the recent economic stimulus bill, that allowed for first time home buyers to receive an $8,000 tax credit when buying (closing on a home) anytime from January 1, 2009, through December 1, 2009. If your a first time home buyer or you've owned a home before, but not in the past three years prior to this purchase. There are some income limitations to be aware of in order to receive the full credit, such as, married couples purchasing can not make over $150,000 (modified adjusted gross income), and a single individual purchasing can't make over $75,000 (modified adjusted gross income).
The $8,000 does not have to be repaid. The first time home buyer(s) MUST use the home as their principal residence for at least 3 years, or the credit may be recaptured.
#2
Recently the California State Legislature approved a fund of $100,000,000 to be applied toward a tax credit available to anyone in California that purchases a new home that'snever been occupied previously. Simply put - brand new/new construction! The tax credit is $10,000, payable over 3 years, in the amount of $3,333, beginning with the tax year the home is purchased in.
The new home has to be purchased anywhere from March 1, 2009, through March 1, 2010. However you may not want to wait for this one! If the $100,000,000 gets exhausted prior to March 1, 2010 - then it's gone! It's first come first serve. The best part of this tax credit is that you don't even have to be a first time home buyer! The home does however have to be your primary residence, and you can't sell it for at least 2 years, or the tax credit will have to be repaid.
IF YOU'RE A 1ST TIME HOME BUYER, YOU'RE ELIGIBLE FOR BOTH THE $8,000 AND THE $10,000! THAT'S $18,000 IN TAX CREDITS FOR SOME OF YOU!
DON'T FORGET:MOST OWNERS ARE ABLE TO WRITE OFF THE INTEREST ON THEIR MORTGAGE OF THEIR PRIMARY RESIDENCE, AS WELL AS THE PROPERTY TAXES ON THEIR PRIMARY RESIDENCE! WITH ALL OF THESE TAX ADVANTAGES... YOU WOULD BE MAKING SOMEONE ELSE RICH IF YOU CONTINUE TO RENT?
Purchasing Real Estate is difficult in this market, finding a Realtor in Santa Clarita that has the skills and your best interest in heart shouldn't be. Through extensive and ongoing education, Jennifer & Gary Ricco have earned the CDPE Designation, given the market conditions many communities are facing, the need to understand distressed properties when purchasing or selling is no longer a luxury, this has become a requirement for every Realtor. Jennifer & Gary understand the full range of solutions and are ready to help you purchase your dream home. Go to Santa Clarita First Time Home Buyers.
Provided By Gary & Jennifer Ricco
25124 Springfield Court, Suite 100
Valencia, Ca 91355
Nine options when facing Foreclosure
1. Do Nothing - Homeowners behind in payments, in default, who do nothing, will lose their home to a foreclosure. Their credit history will be devastated. They won't quailify for a government loan for 5 to 7 years and they will have to disclose on all future loan applications if they have ever been foreclosed upon. Credit reports also disclose this damaging information anywhere from 7 to 10 years.
2. Payoff/Refinance - Completely paying off the entire loan amount plus any default amount and fees. Usually this is accomplished through a refinance of the debt. New debt is at a normally higher interest rate and there may be a prepayment penalty because of the recent default. This option is only available if there is equity in the home.
3. Reinstatement - Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.
4. Loan Modification - These are very difficult to quailify for, however you can utilize the existing mortgage company to refinance the debt or extend the terms of the loan. This may allow the homeowner to catch up at a more affordable level. To qualify, you must prove to the lender you have fixed the problem that caused the late payment. http://www.freddiemac.com/avoidforeclosure/plan.html
5. Forbearance - Lender may arrange a repayment plan based on the homeowner's financial situation. The lender may even be able to provide a temporary payment reduction or suspension of payments. You will be required to prove to the lender that you are able to meet the new payment plan requirements.
6. Partial Claim - Obtain a loan from the lender for a 2nd loan to include back payments, costs and fees.
7. Deed in Lieu of Foreclosure - The property is given back to the bank instead of the bank foreclosing. Banks generally require the home be well maintained, all mortgage payment and taxes must be current. Most loan applications ask if this has ever happened.
8. Bankruptcy - This option can liquidate debt and/or allow more time. I have a business partner who is a qualified bankruptcy attorney that I can refer you to.
--Chapter 7 (Liquidation) To completely settle personal debt.
--Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3-5 years.
--Chapter 11 (Business Reorganization) A business debt solution.
9. Pre-foreclosure Short Sale - If your behind in mortgage payments & your property has equity, money left over after all loans and monetary encumbrances are paid, you may sell the home without lender approval through a conventional home sale to avoid foreclosure. In this case, the homeowner will get cash from the sale. When you owe more then the properties worth a Short Sale, also known as a pre-foreclosure sale, can be negotiated with your lender by your Real Estate Professional.
If you would like Foreclosure Assistance in Santa Clarita, call Jennifer & Gary Ricco for a FREE confidential consultation regarding any of these options. You can also call the 24 hour Santa Clarita Foreclosure Avoidance Helpline at 1(800) 805-2409 extension 2002 for recorded information.

Visit www.cdpenow.com to learn how our training & expertise can help you.
Q.I recently was asked by another Santa Clarita Realtor who's doing short sales, why they should change the listing status to "pending" in the MLS as soon as the seller accepted an offer on a pre-foreclosure short sale. This was confusing to them and they asked, "shouldn't the status be changed only after the offer is approved by the lender?"
A.With distressed properties, specifically with pre-foreclosure short sales, there should be no confusion about when the offer is "accepted." Whats important to understand is, the seller is still the legal owner of the property, and must be the first to accept the offer. However, the lender must be convinced there is a financial hardship and approve the short pay portion of the transaction, since it's being asked to take less than what's owed on the mortgage.
When the seller accepts an offer under these conditions and a contract is formed & ratified, the offer is "accepted." The only difference between a traditional sale and a short sale is the additional contingency: the lender's approval to accept less then whats owed.
Most MLS systems require listing brokers to change a listing out of "active" status upon the acceptance of any offer-including offers subject to lender approval, as in a short sale. Whether, and when, the listing status must be changed is a matter of MLS rules.
Regardless of what the MLS requires, though, the Code of Ethics Standard of Practice 3-6 requires that accepted offers be disclosed: "REALTORS® shall disclose the existence of accepted offers, including offers with unresolved contingencies, to any broker seeking cooperation."
Even if your MLS doesn't require the listing to be reclassified as "pending" or "under contract" upon acceptance of an offer in a short sale, if a cooperating broker contacts you about showing that listing to a prospect, you're required to disclose the accepted offer.
You should consult with your seller client about what else to disclose about the accepted offer. It is in the seller's best interest to disclose that the property is being sold as a short sale and that offer is contingent upon lender approval. This may encourage the cooperating broker to have their client submit a back-up offer. If another offer is submitted, it should be held as a back-up offer as in a traditional sale.
Foreclosure is a devastating financial and emotional process for a homeowner to go through, in 7 out of 10 cases they do so alone and without any professional guidance of any kind, which prolongs their financial recovery.
Through extensive and ongoing education, Jennifer & Gary Ricco of Keller Williams VIP Properties have earned the Certified Distressed Property Expert Designation. Jennifer & Gary Ricco have dedicated their time and effort to understanding the issues distressed homeowners are dealing with. They will educate you on the full range of solutions available to your situation and are ready to help.
The Distressed Property Institute, www.cdpenow.com (CDPE), believes that in almost all cases the best person for a homeowner in distress to speak with is a well-informed, licensed Realtor® that has the tools needed to help that homeowner find the best solution for their situation.
Experiencing financial distress is difficult for any family, the process of finding a real estate professional shouldn't be. Selecting a CDPE agent ensures you are dealing with a professional ready to address your needs.
Our Law Enforcement background will ensure your confidential information is safeguarded! www.santaclaritacertifieddistressedpropertyexperts.com
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