Terry Osburn, Broker Associate

Per Christina Stratton, Private Mortgage Banker:

TAX CREDIT OVERVIEW

Who Gets What?

First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

What are the Income Caps?

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

What is the Maximum Purchase Price?

Qualifying buyers may purchase a property with a maximum sale price of $800,000.

What is a Tax Credit?

A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.

How Much are First-Time Homebuyers (FTHB) Eligible to Receive?

An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is Eligible fort FTHB Tax Credit?

Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible.

This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How Much are Current Home Owners Eligible to Receive?

The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?

No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property?

Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed.

According to the IRS, factors that would demonstrate the ownership of the property would include:

1. Right of possession,
2. Right to obtain legal title upon full payment of the purchase price,
3. Right to construct improvements,
4. Obligation to pay property taxes,
5. Risk of loss,
6. Responsibility to insure the property, and
7. Duty to maintain the property.

Are There Other Restrictions to Taking the FTHB Credit?

Yes. According to the IRS, if any of the following describe a homebuyer's situation, a credit would not be due:

They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from "step-relatives.")
They do not use the home as your principal residence.
They sell their home before the end of the year.
They are a nonresident alien.
They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?

Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.

If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?

Yes, provided that the child meets the other requirements for the tax credit.

This information from Christina Stratton. If you need a loan now or in the future give Christina a call or email her. Her information is below:

Christina M. Stratton
Private Mortgage Banker 1
Private Mortgage Advisors, LLC
An Affiliate Of Wells Fargo Home Mortgage
MAC A0394-011

925-627-3025 Tel

christina.m.stratton@pmahomeloans.com

www.ChristinaStratton.com

Terry (DRE #01255032)

Pet Emergency Preparedness (PEP)

Did you know that the Contra Costa Animal Services Department has instituted a Pet Emergency Preparedness operation for emergency response?

You can also become pet CPR /1st Aid trained .

After what happened in New Orleans became a wake up call across the country. Pets have needs as well.

In California it is not matter if, it is WHEN we have another earthquake, or another firestorm or flood etc and to be ready to assist in evacuation and saving of pets and assisting those in need.

Go to the link above and read about what emergency services are available, how you can become involved, how to get pet CPR trained and be prepared to help not only yourself but your community in the event of emergency or disaster.

DRE #01255032

November, 4 2009 10:15 AM

News on the homebuyer tax credit...the House of Representatives has approved legislation that would extend and expand the credit. The House vote comes after the Senate voted yes on Monday night, and while there is more work to be done, word has it that an agreed upon bill should reach President Obama for his signature by the end of this week.

Under the proposal, individuals with income up to $125,000 a year and couples earning up to $225,000 would be eligible for the credit. The extension would cover homes under contract by April 30th and closed by June 30th, 2010. And as we had also predicted, the tax credit will be expanded to non-first time homebuyers as well. There are a few tweaks for non-first time homebuyers - the credit is reduced from $8000 to $6500, and they must have owned a home for at least five of the past eight years. Remember - this is still NOT final, and even if it is approved, it could contain further changes.

Stay Tuned!

Per Christina Stratton, PMA

christina.m.stratton@PMAhomeloans.com 925 627 3025

As Christina has stated NOTHING IS FINAL until signed and there still could be changes.

By the way, Christina is an excellent loan officer , if in need for someone to assist with your home loans and financial planning! http://localism.com/neighbor/cstratlend

DRE License # 01255032

Homeowners if considering selling and you would like a more detailed breakdown of your home value in todays market please contact me.

Shows trend of sales over the past year.

Facts and TrendsTM
Published Oct. 2009
Location : Martinez/Pacheco (Area 56)
Number of Homes For Sale vs. Sold vs. Pended (Jul. 2008 - Sep. 2009)
Price Range: $0 - $1,099,999
SQFT Range: 0 - No Limit
Single Family Home

	1 month	1 year	15 months
	Aug 09	Sep 09	% Change	Sep 08	Sep 09	% Change	July 08	Sep 09	% Change
For Sale	99	100	1%	137	100	-27%	153	100	-34.6%
Sold	35	29	-17.1%	37	29	-21.6%	27	29	7.4%
Pended	39	49	25.6%	31	49	58.1%	38	49	28.9%

All reports presented are based on data supplied by Contra Costa, Bay East, MLSListings, San Fransisco MLS, Metrolist and BAREIS MLS. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

Facts and TrendsTM
Published Oct. 2009
Location : Martinez/Pacheco (Area 56)
Avg Price For Sale & Sold (Jul. 2008 - Sep. 2009)
Price Range: $0 - $1,099,999
SQFT Range: 0 - No Limit
Single Family Home

	1 month	1 year	15 months
	Aug 09	Sep 09	% Change	Sep 08	Sep 09	% Change	July 08	Sep 09	% Change
Avg. Active Price	454	460	1.3%	476	460	-3.4%	471	460	-2.3%
Avg. Sold Price	306	325	6.2%	381	325	-14.7%	424	325	-23.3%

All reports presented are based on data supplied by Contra Costa, Bay East, MLSListings, San Fransisco MLS, Metrolist and BAREIS MLS. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

Facts and TrendsTM
Published Oct. 2009
Location : Martinez/Pacheco (Area 56)
Months of Inventory based on Closed Sales (Jul. 2008 - Sep. 2009)
Price Range: $0 - $1,099,999
SQFT Range: 0 - No Limit
Single Family Home

	1 month	1 year	15 months
	Aug 09	Sep 09	% Change	Sep 08	Sep 09	% Change	July 08	Sep 09	% Change
Months of Inventory (Closed Sales)	2.8	3.4	21.4%	3.7	3.4	-8.1%	5.7	3.4	-40.4%

All reports presented are based on data supplied by Contra Costa, Bay East, MLSListings, San Fransisco MLS, Metrolist and BAREIS MLS. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

DRE License #01255032

Below is Facts and Trends for the past year for Concord Single Family Homes up to $599000.

If you want a breakdown more specific to your home and neighborhood , give me a call or email me.

You can see the inventory has dropped considerably.

Understand there are neighborhoods that command more in purchase price than others. Obviously is relative to condition of home.

Facts and TrendsTM
Published Oct. 2009
Location : Concord (Area 57)
Number of Homes For Sale vs. Sold vs. Pended (Jul. 2008 - Sep. 2009)
Price Range: $0 - $599,999
SQFT Range: 0 - No Limit
Single Family Home

All reports presented are based on data supplied by Contra Costa, Bay East, MLSListings, San Fransisco MLS, Metrolist and BAREIS MLS. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

Facts and TrendsTM
Published Oct. 2009
Location : Concord (Area 57)
Avg Price For Sale & Sold (Jul. 2008 - Sep. 2009)
Price Range: $0 - $599,999
SQFT Range: 0 - No Limit
Single Family Home

All reports presented are based on data supplied by Contra Costa, Bay East, MLSListings, San Fransisco MLS, Metrolist and BAREIS MLS. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

Facts and TrendsTM
Published Oct. 2009
Location : Concord (Area 57)
Months of Inventory based on Closed Sales (Jul. 2008 - Sep. 2009)
Price Range: $0 - $599,999
SQFT Range: 0 - No Limit
Single Family Home

All reports presented are based on data supplied by Contra Costa, Bay East, MLSListings, San Fransisco MLS, Metrolist and BAREIS MLS. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

DRE LICENSE #01255032