Cliff's Notes…on Real Estate

Redwood City, CA homes: Now that the summer has come to an end, I wanted to check in with you to see if you have any real estate questions I can help you with. I also want to briefly share with you how I recently helped a client achieve their dream.

Geoff and Tina were looking to buy their first home and wanted to live in a very expensive area. After they were pre-approved with their personal lender it was discovered they had great credit, but not the income to purchase a home in the neighborhood they wanted to live in. After a consultation with me and my Team, we showed them how they could still buy a home in the neighborhood they wanted to live, however, it was going to take hard work and a period of time for them to accomplish such a feat. Together we all came up with a workable plan that would not hinder Geoff and Tina’s lives. Like being tied down to their home and not able to enjoy life. The plan was conservative enough to allow Geoff and Tina to be constantly working towards their goal: moving to the area they wanted to live in. After two years we sold the home they purchased and fixed up for a substantial profit. The profit was not enough for them to get into the area they wanted but they could afford another neighborhood close by to their goal neighborhood. They did the same thing as before and purchased a home they could afford and fixed it up for the current real estate market. Two years later they sold this home, and once again made a hefty profit. Now they had the down payment, great payment history, and know how and we found a “fixer-upper” in the area they initially wanted to buy their home. Sure it took a few years but they got what they wanted and did it the way one does with attaining a dream with real estate. You can too. I can help you too.

If I can ever help you achieve a goal with your home, no matter how difficult it may seem, please call me. (You may use any of the contact numbers/email addresses below) My business is built on serving my clients needs-not just during a sale but before and after. And for any real estate-related questions, such as the name of a good electrician or an update on the houses for sale in your neighborhood, it is my job to help you. In other words you can count on me.

And if you know of anyone that is interested in buying or selling a home, pass their name on to me. I will treat them just as I have treated you.

Have a good day.

Your friend,

Cliff

Tags: buy a home, Buyers Tips, Cliff Keith and Team, cliffnotesonrealestate, homes for sale, plan to your goal, Redwood City

Redwood City, Ca: Governor Schwarzenegger on Monday signed SB 401 (Wolk) into law providing distressed homeowners with state tax exemption on debt forgiven in a short sale, foreclosure, or loan modification. Effective immediately, this bill generally aligns California’s tax treatment of mortgage debt relief income with federal law. For debt forgiven on a loan secured by a qualified principal residence, borrowers now will be exempt both from federal and state income tax consequences. The tax exemptions apply, with certain restrictions, to debts discharged from 2009 through 2012. Californians 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.

More details:

“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 payoff a previous loan that would have qualified.

The tax breaks apply to debts discharged from 2009 through 2012. Californians 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 about mortgage forgiveness tax consequences, go to California Franchise Tax Board‘s Mortgage Forgiveness Debt Relief Extended webpage and the Internal Revenue Service’s Mortgage Forgiveness Debt Relief Act and Debt Cancellation webpage. The full text of Senate Bill 401 is available at www.leginfo.ca.gov.

C.A.R. provides REALTORS® with many legal articles covering a wide range of topics of interest. Some of the new or newly revised legal articles available at http://qa.car.org/ are as follows:

. Homebuyer Tax Credit Chart 2010.
. Internal Data Exchange (IDX).

Tags: Cliff Keith and Team, Foreclosure, government, Redwood City, Short Sale, Taxes

Fast Facts:

Calif. median home price: February 2010: $279,840 (Source: C.A.R.)

Calif. highest median home price by C.A.R. region February 2010: Santa Barbara So. Coast $795,000(Source: C.A.R.)

Calif. lowest median home price by C.A.R. region February 2010: High Desert $122,580 (Source: C.A.R.)

Calif. First-time Buyer Affordability Index – Fourth Quarter 2009: 64 percent (Source: C.A.R.)

Mortgage rates – week ending 4/1/10 30-yr. fixed: 5.08 Fees/points: 0.7% 15-yr. fixed: 4.39% Fees/points: 0.6% 1-yr. adjustable: 4.05% Fees/points: 0.6% (Source: Freddie Mac)

Tags: banking, CAR fast facts, Cliff Keith and Team, cliffnotesonrealestate.com, Redwood City, san mateo county

Redwood City, CA: Redwood City’s deficit is currently at $3,600,000 and is expected to go up higher for the next few years.  The funds needed to pay this deficit are coming from an $18.7 million dollar City reserve fund.

 Are City workers overtime costs the culprit?  City payroll this year increased $1,500,000 or 2.7% compared to the Nation’s inflation rate of –0.4%.  To be fair to the City of Redwood City they have cut back on overtime costs from FY ‘08 to FY ’09 by just a tad over 1.5%

 It seem the big brew ha ha is over two City fire fighters, Patrick Cunningham (4^th highest paid City employee), and David Thielmann who both were paid over $100,000 in overtime pay above and beyond their average base pay of $106,646.  Fire captain Adrian Stuart Anderson earned over $60,000 in overtime pay above his base pay of $128,425.  No one is claiming fraud or being away at a “crap feast” like in San Francisco a couple of decades ago.  However, it appears these few fire fighters were on the job…ready to go.  IMHO, I hope they bought real estate with the extra money.

 Here are some other Redwood City employees’ salaries:

City Manager – Peter Ingram – $238,919

City Attorney – Stan Yamanmoto – $229,289

Police Chief – Louis Cobarruviaz – $213,874

Captains – $196,752 base

Sergeants – $153,837 base

Senior Building Inspector – Jerry Schell – $101,125

Senior Accountants:         Cecilia Lucas – $100,979

                                                   Rajesh Servak – $99,190

H.R. Representative – Ray Yvette Williams – $100,497

City Secretary – $64,013

City Custodian – $52,454

Maintenance worker – Steve Coleman – $68,388 base $32,809 OT – (he is the guy you see out there unclogging your sewer and fixing your water leaks.)

Landscapers – $62,804

Arborists -        Maria D’Agostino – $74,421

                              Jesus Angel – $95,796 base $21,635 OT

What do you think?   With our city working in a deficit, yet having enough funds in our reserve account to offset it, do we need to watch our nickels and dimes closer? Your comments are always encouraged.

Tags: Cliff Keith and Team, government, Redwood City, san mateo county, US economy

This week ended up with Mortgage Rate staying the same as they have been for the last 3 weeks. You can buy a conventional loan for under $5.0% now. Stability is good.

Did you know Townhomes are not considered the same as Condo’s by FHA? That means if you are trying to buy a home with FHA financing you may want to expand you search to include Townhomes.

Don’t forget Sunday is Valentine Day. If by chance you do forget…well you are dead meat. Good luck.

Tags: banking, Cliff Keith and Team, cliffnotesonrealestate, home for sale, homes, Redwood City, US economy