Pederson Properties, Inc.

News reports that the federal government is backing away from its plan to permit eligible borrowers to monetize the first-time homebuyer tax credit are off the mark, a spokesperson for the U.S. Department of Housing and Urban Development says. "The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site," Lemar Wooley, a HUD spokesperson, told REALTOR® magazine on May 20, 2009.

Under the guidance that's under development, state agencies and other HUD-approved entities would be able to provide short-term bridge loans that households could use to help with their downpayment. The loans would be repaid with the proceeds from the households' federal tax credit.

The loans were announced on the opening day of NAR's 2009 Midyear Legislative Meetings in Washington, D.C., last week. In his announcement, HUD Secretary Shaun Donovan said guidance would be issued shortly. When the guidance is released, it is expected to cover eligible lenders and set parameters for loan terms and repayment.

Source: REALTOR® Magazine Online

Where Does Your Dollar Go??!!

Title Insurance: As a homebuyer, the term is probably familiar - but is it understood? What is your dollar actually paying for when you purchase a title policy??

Title insurers, unlike property or casualty insurance companies, operate under the theory of risk elimination. Title companies spend a high percentage of their operating income each year collecting, storing, maintaining and analyzing official records for information that affects title to real property. Their technical experts are trained to identify the rights others may have in your property, such as recorded liens, legal actions, disputed interests, rights of way or other encumbrances on your title. Before closing your transaction, the title company will proceed to "clear" those encumbrances which you do not wish to assume.

This theory is different from that of most other insurance where, for example, rates and anticipated losses are based on actuarial studies and premiums are pooled on the assumption that a certain number of claims will be made. The distinction is important: title insurance premiums are paid to identify and eliminate potential risks and claims before they happen. Medical and casualty insurance premiums, for example, are paid when you close the real estate transaction, while property, casualty and medical insurance require regular renewal premiums.

The goal of title companies is to conduct such thorough search and evaluation of public records that no claims will ever arise. Of course, this is impossible - we live in an imperfect world, where human error and changing legal interpretations make 100 percent risk elimination impossible. When claims arise, professional claims personnel are assigned to handle them according to the terms of the title insurance policy.

The issuance of a title insurance policy is highly labor-intensive. It is based upon the maintenance of a title "plat," or library of title records, in many cases dating back over a hundred years. Each day, recorded documents affecting real property and property owners are posted to these title plants so that when a title search on a particular parcel is requested, the information is already organized for rapid and accurate retrieval. In California, most of the large counties have been converted to computer-based title plant systems which provide retrieval from remote locations, further speeding the process of delivering the title search to the customer. The investment is skilled personnel and advanced data processing represents a major part of the title insurance premium dollar.

Proper title plan maintenance, research, evaluation, and legal interpretations are the foundations upon which a title policy rests. That is where most of your dollar goes, and that is the source of your protection and peace of mind as a homeowner in California.

Material discussed is meant for general illustration and/or informational purposes only and is not to be construed as tax, legal or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary, therefore, please consult a professional for specific advice.

S10-31 [S3-02 (07/01)]

Sunrise, Sunset. Time has wings. Have you ever lost a loved one, whether a family member or friend? Do you have any regrets? Did you have any unfinished business with them? Is there anything you would have shared with them, but time was cut short? If so, then you are in good company.

The failure to communicate is a problem common to all of humankind in this journey called life, even with our cell phones, pagers, email accounts and access to the World Wide Web. Real, lasting communication seems to have gone the way of the lost art of pen-and-paper letter writing. In this post we encourage you to recover that lost art through lasting letters to loved ones (family and friends). Whether you choose to send these letters while you are alive, or incorporate them into your estate plan to be given after your death, they surely will be appreciate by your loved ones.

Memories. ..Remember. Memories are the mental motion pictures of our lives. And given proper encouragement they can be even more vivid, because they are real. Identify three favorite experiences you shared. Can you remember the sights, sounds and smells surrounding your memories of the experiences? Whether special occasions, rich family traditions or spontaneous special moments, bring these experiences to life by engaging the senses and explaining what they meant to you.

Appreciation. ..Thank and praise. It is a rare turtle that finds itself atop a fence post through its own efforts. How have your loved ones helped you, in ways large and small? Perhaps it was the sacrifice of your parent(s) who struggled to provide for your daily needs, usually ahead of their own? Or maybe it was your older brother who helped you with your school work, or taught you how to drive? Thank your loved ones for the investment they made in your life, then praise them for the qualities you admire in them.

Wisdom. ..With the death of every human being, a library of wisdom borne of experience disappears. What have you learned in life's classroom that you can share or spare your loved ones? What have you learned about growing up, growing old, faith, family and work? Remember: Unless you share what you have learned, and even unlearned, your loved ones are as likely to repeat your defeats as they are to repeat your success. And the tuition can be expensive in physical, emotional, financial and spiritual capital. Consider devoting a separate paragraph of your wisdom to the subjects you find most essential.

Conclusion. ..Whether your financial estate is large or modest, the most important estate you have in this life is not in your relationship to things, but to people. Take time today to write your lasting letter to loved ones. Long after any inheritance is spent, your letters will be priceless treasures, perhaps shared for generations to come.

Note: Nothing in this blog is intended or written to be used, and cannot be used by any person for the purpose of avoiding tax penalties regarding any transactions or matters addressed herein. You should always seek advice from independent tax advisors regarding the same. [see IRS Circular 230.]

It can be difficult to ponder our own mortality. That is just our human nature. Nevertheless, the clock is ticking for each of us. This blog post highlights some critical issues we all need to address while there is still time to make proper financial and legal plans.

The blog post following this one will encourage you to consider lasting letters as a means to enrich relationships with your loved ones (family and friends). Since letter writing has become a lost art, the mere fact that you make the effort will be remarkable. ..especially for all you bloggers!

Facing Facts. ..It has been said that there are only two certainties in life: death and taxes. Nevertheless, even these two certainties differ markedly in their respective degrees of certainty. Whereas taxes can be minimized, deferred or even legally avoided (but not evaded, as discovered by infamous gangster Al Capone), death awaits us all and is often preceded by a period of incapacity. Whether one is a prince or a proper, both incapacity and death can arrive without warning.

Therefore, it is essential that you make appropriate estate plans now to take care of your loved ones and your hard-earned assets before it is too late. In this post we will highlight some critical issues to address while there is still time to plan.

Incapacity Planning. ..Do you read the newspaper, listen to the radio or watch television? If so, then you know that accidents and dread diseases are part of our everyday human experience. We all believe such tragedies will befall someone else. But what if you made the headlines or the lead story? If you were incapacitated today, who would make your important personal, health care and financial decisions tomorrow? Would it be someone you appoint through proper legal instruments or someone appointed for you by a court? The choice is yours.

Long-Term Care. ..The number one fear of many Americans, particularly retirees, is running out of money before they die. This is understandable, given the volatile economy and the specter of nursing home costs. Although you cannot control the economy, you can protect your hard-earned assets from the cost of round-the-clock care in long-term care facility.

In fact, you may insure the option to have your long-term care provided in your own home, but only if you obtain such coverage through proper long-term care insurance contract while you are insurable. If you wait too long, your options may be very limited. In a worst case scenario, you could end up depleting your assets and be forced to resort to Medicaid, a program designed for the indigent. The choice is yours.

End-Of-Life Decisions. ..For many people, the line between preserving life and dying naturally is quite fine. In the end, according to the United States Supreme Court, every person has the right to define that fine line for him or herself. Where is that line for you?

Only by executing proper legal instruments can you determine the course of your health care treatment as you approach that fine line. Depending on your unique personal circumstances, you should consult your loved ones and your legal, medical and spiritual advisors regarding your wishes. Otherwise, your failure to address this ultimate end-of-life issue in your estate plan can potentially lead to family strife and poisoned relationships for generations. Again, the choice is yours.

Testamentary Transfers. ..You will never see a hearse pulling a U-Haul trailer. In short, you cannot take your worldly possessions with you beyond this life. What will be your legacy for a lifetime of work? Will the inheritance you leave be used wisely or dissipated by your heirs through squandering, divorces, lawsuits or bankruptcies? Have you considered protecting the inheritance through long-term discretionary trusts?

Will your lifetime of work be lost unnecessarily to the IRS? Each taxpayer may exempt up to $42 million from federal estate taxation under current law.* However, with proper planning, a married couple may protect up to $4 million. Single persons whose estates exceed $2 million may need to employ advanced legal strategies to preserve their assets from loss to estate taxes.

Conclusion. ..The process of preparing your estate plan is an extremely personal experience. To a large extent, it is not something you do yourself. Rather, you do it for the people you love.

* The future of this tax exemption is uncertain, at best.

Note: Nothing in this blog is intended or written to be used, and cannot be used by any person for the purpose of avoiding tax penalties regarding any transactions or matters addressed herein. You should always seek advice from independent tax advisors regarding the same. [see IRS Circular 230.]

State officials broke ground today on the first phase of the Lahaina Bypass project. State Transportation Director Brennon Morioka explains key projects planned for the 1^st phase that extends from Lahainaluna Road to the future Keawe Street Extension.

Phase 1A along Ikena Ave. is projected to provide traffic relief for the Lahainaluna Road corridor which presently serves three major public schools and residential subdivisions in Kahua Tract and Kelawea Mauka.

A two-lane bridge is proposed to cross over Kahoma Stream and an overpass will be added to allow the new highway to flow beneath the existing Lahainaluna Road profile.

Lt. Governor James "Duke" Aiona (middle) and George Kaya, the Governor's Maui Liaison (right, foreground) were on hand for the Groundbreaking Ceremony, marking the start of the Lahaina Mini-bypass project.

State Transportation Director Brennon Morioka said the completed bypass will provide the capacity to service West Maui well into the future.

"It's only a half a mile stretch of total project length but it's going to be about $50 million. We're going to be building a major bridge across Kahoma as well as making an overpass for Lahainaluna Road," said Morioka.

"Phase 1A, coupled with the widening of Honoapi'ilani Highway, will bring much needed congestion relief to the community immediately. The completed bypass will provide the capacity to service West Maui well into the future," he added.

The project is aimed at alleviating traffic and improving circulation in Lahaina town. Lt. Governor Duke Aiona listed a number of benefits he projects for the area.

"The numbers are pretty simple. In the last five years, the population on Maui has increased about 5%, but car registrations have increased by about 14%. So obviously, you've got more people on the road, and this is not something that is new, it's something that has been accumulating over the last 20 years since this project went into the planning phase," said Aiona.

"For one it will relieve traffic, it will help the economy (people will have more jobs), it will also help the economy with regards to transportation of goods and services to Lahaina, and quality of life in general," said Aiona.

The Reverend Earl Kukahiko performs the blessing at groundbreaking site located at the Ikena Street, Lahainaluna Road intersection.

Today's groundbreaking is for the first of several phases that will ultimately result in a 4-lane bypass highway spanning approximately 9 miles from Launiupoko to Honokowai.

Crews began preparing a detour route in December to allow the partial closure of Ikena Avenue between Lahainaluna Road and Kaakolu Street. The closure was required for mass excavation in Ikena Avenue and construction of the Lahainaluna Grade Separation structure.

Lt. Governor James R. "Duke" Aiona said that while population on Maui has increased about 5% in five years, car registrations increased about 14%. With more cars on the road, Aiona said, this project will help to alleviate traffic congestion in West Maui.

With the completion of this project, an alternate route down to the highway will be provided through the Keawe Street Extension to alleviate congestion at the Lahainaluna Road and Honoapiilani Highway signalized intersection.

Access to Kaakolu and Liloa Streets through Ikena Avenue will be maintained until around June 2009 when Ikena Avenue will be completely closed. Construction on the northern side of Kahoma Stream is anticipated in the Fall of 2009.

The Federal Highways Administration provided 80 percent matching funds on this $50 million design-build contract. Hawaiian Dredging Construction Company, Inc was selected for this phase of the project.

Phase 1A is expected to be completed in the Fall of 2011. ..

Photos By: Wendy Osher

Project Renderings. ..

Lahainaluna Road

<-- Existing Makai view

--> Proposed Makai view, grade separation structure

<-- Existing Mauka view

--> Proposed Mauka view, grade separation structure

Ikena Avenue

<-- Existing view towards Kapalua

--> Proposed view towards Kapalua

<-- Existing view towards Olowalu

--> Proposed view towards Olowalu

Kahoma Stream

<-- Existing view towards Kapalua

--> Proposed view towards Kapalua

<-- Existing view towards Olowalu

--> Proposed view towards Olowalu

Sources: MauiToday.TV & Hawaii.Gov