Scott Reiber

What Castaic home owners are eligible?

• The home buyer must be a California taxpayer.
• There is no limit on the income of the home buyer.
• The program is available to both existing homeowners and first-time home buyers.
• Current homeowners are eligible only if they buy a newly-built home.
• First-time home buyers are eligible whether they buy a newly-built or existing home.
• To be a first time home buyer, you cannot have owned a home anywhere in the world during the three years prior to buying your new home. If you're married, that applies to your spouse as well

How much can Castaic home buyers save?

• The tax credit is worth up to 5% of the purchase price of the home, or $10K, whichever is less.
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How do buyers of Castaic Ca. Real estate receive the tax credit?

• The payment is credited against the home buyer's annual CA state income tax.
• The total payment will be spread evenly over three years.
• If you qualify for the full $10K, you'd get up to $3,333 per year - but only if you pay at least that much in annual CA state income tax.
• If your CA state income tax is $4,000 a year, you get a $3,333 credit against that amount, effectively lowering your state income tax to $667.
• If you owe less than $3,333 per year in CA state income tax, you'll receive a tax credit only for that amount. The extra will not roll over into the following year's payment.
• The credit will begin to be applied to the tax year in which the home was purchased. If you buy your home in 2010, the tax credit will begin to be applied against your 2010 taxes.
• You cannot apply the tax credit to your 2009 taxes, even if you file your 2009 taxes after you purchase your home

How long to Castaic home owners have before it expirers?

• Buyers of existing homes must close escrow between May 1 and December 31, 2010 .
• Buyers of new homes can either:
• Close escrow between May 1 and December 31, 2010 , or...
• If they are unable to close escrows during that time, they can reserve a credit by entering into an enforceable contract between May 1 and December 31. They must then file the proper paperwork with the tax board and close escrow by August 1, 2011 .

Fannie Mae will make it easier for some struggling Castaic homeowners to buy houses in the future if they avoid foreclosure in the present.

Some of our troubled Castaic home owners who give up their homes by voluntarily transferring ownership by completing a short sale, where a home is sold for less than the amount owed, will be eligible in two years to apply for a new mortgage backed by Fannie.

The new policies from Fannie, a government-backed mortgage-finance company that together with Freddie Mac backs about half of the U.S. mortgage market, don't relax waiting periods for borrowers who go through foreclosure only short sales.

In 2008, Fannie lengthened that waiting period to five years from four.

To quality for the reduced waiting period, most borrowers will need to make a down payment of at least 20%, although some Castaic home buyers with extenuating circumstances, such as a job loss, will be required to put down just 10%.

The new rules are designed to make foreclosure alternatives more attractive to borrowers at a time when the Obama administration is ramping up its effort to encourage banks to consider alternatives such as short sales. That program sets pre-approved terms for short sales and offers financial incentives to borrowers and lenders to complete such sales.

Those who have missed payments prior to completing a short sale or who didn't face a hardship and simply took advantage of declining market conditions to buy a new home must wait three years before buying Castiac real estate. For more information on Castiac Short Sales go to http://www.two4onehomesforsale.com/ .

Castaic home owners beware don't count on any further extension of the home buyer tax credit if you plan on buying some Castaic Real estate. The credit expires at the end of April.

Congress initially passed a $7,500 tax credit for first-time home buyers two years ago. The credit had to be repaid over 15 years, and last spring, Congress extended the credit, expanded it to $8,000 and waived the repayment provisions. The extended credit had been set to expire in December 2009, and Congress extended it once more last fall. Also, a separate $6,500 tax credit was created for home buyers who already own a home.

Luckily home buyers in Castaic the California's legislature has created a separate $10,000 state tax credit.

But industry groups now say that the tax credit has run its course. "It's time for the housing market to stand on its own two feet," says a spokesman for the National Association of Realtors. A spokesman for the National Association of Home Builders says the group isn't "actively asking for an extension at this time."

Castaic home buyers who are close to a deal still have until next Friday to sign a contract to stay eligible for the credit. Contracts signed by April 30 have until the end of June to close.

The expiration of the tax credit will represent the removal of the second major government support to the housing market in as many months. So far, the mortgage market hasn't experienced any major hiccups Castaic short sale, foreclosure, and bank owned property are still selling in multiple offer. For more information on Castaic homes for sale please go to http://www.two4onehomesforsale.com/ .

Great news for Castaic home owners who have sold their homes through short sale.

According to the California associations of realtors homeowners will no longer have to pay California state income tax on debt forgiven in a short sale, foreclosure, or loan modification. Made law yesterday, Senate Bill 401 allows tax treatment of mortgage debt relief income with federal law. For debt forgiven on a loan secured by a "qualified principal residence," borrowers will now be exempt from both federal and state income tax consequences. The existing federal exemption is for indebtedness up to $2 million, the California exemption is up to $800,000 and forgiven debt up to $500,000. "Qualified principal residence" indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence. It includes both first and second trust deeds. It also includes a refinance loan to the extent the funds were used to pay off a previous loan that would have qualified. The tax breaks apply to debts discharged from 2009 through 2012. Castaic Californians home owners who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.

Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets. For more information go to http://www.two4onehomesforsale.com/ or give us a call.

Loan modifications that could make a difference to Castaic homeowners.

            Bank of America announced last week that it would begin cutting loan balances for distressed mortgage borrowers, it marked a sea change in the way lenders deal with seriously delinquent loans.

            Until now, big lenders and servicers, have only given principal reductions to a very small number of borrowers.

            But know there is a new kind of mortgage servicer, a specialty servicer, that is seeing success in avoiding foreclosures. They handle the worst-of-the-worst, loans at least 90 days late, and they commonly offer principal reductions.

            Of course, few mortgages end up in the hands of these servicers, and whether yours lands with one is really just the luck of the draw. But more loans are going 90 days late, and so business is booming.

What are servicers?

            Unlike the person who owns your mortgage, either the bank (rarely) or a group of investors (more common), mortgage servicers are the companies that handle the day-to-day administration of mortgages. They collect payments, maintain escrow accounts and confront borrowers about late payments. They also initiate the foreclosure process when borrowers default.

            Most servicer operations were set up in better times, when nearly everyone paid their loans regularly. But when the foreclosure crisis hit, they had to scramble to keep up with the added workload of managing non-performing loans.

           You must real know your stuff to get loan modification or short sales excepted on your Castaic, Ca. home by these services. Two 4 One Real Estate of Santa Clarita we have been very successful in helping Castaic home owners and resident of Santa Clarita. Our longest approval has been 27 days unheard in our industry. If you or someone you know is in trouble with their home please give us a call. http://www.two4onehomesforsale.com/