For Richer or Poorer

Repairs and TRID

An agent called us very concerned the other day.  She said that after a walk through, she had a last minute repair request and was worried that it would affect her close date. 

There is much misinformation and mistaken commentary around this point.  Any changes other than APR, a prepayment penalty (never happens), or a loan product change (rarely happens) will not require a 3 day review. 

The following circumstances do not require a reissue and a 3 day review of a Closing Disclosure (CD):

• Unexpected discoveries such as a broken fridge or a missing stove, even if they require a seller credit.
• Most changes to payments made at closing including real estate commission, taxes, and utilities proration, and the amount paid into escrow.
• Typos found at the closing table.

Constant communication between the borrower, agents, and lender can help ensure a smooth transaction and mitigate any possible delays. 

 

For Richer or Poorer                                                 What zip code are you married to?

In the Sacramento area, we have 90 zip codes, all of which offer different benefits for living in them.  In this latest article published by the Business Journal, they rank areas by their affluence. The factors measured are earned income, investment income, home equity, among other factors.  This article could be of particular interest to buyers that are relocating to the area and may surprise area residents as to what zip codes have a leg up on others.  To access the article –CLICK HERE.

 

Funny Real Estate Photos

The owner of this site has collected some incredibly funny photos of real estate listings.  Whether it was an agent in a rush or that the owner insisted their listing stand out from the crowd, these photos are memorable (but not in a good way) – CLICK HERE.

To Be or Not To Be?-That is the question.

To Be Successful, Learn From the Best

Some of the most successful people in history share their lessons – CLICK HERE.

3 Home Improvement Projects that Last a Lifetime

Thinking of remodeling your home? Before you splurge on a finished basement or a new kitchen, make sure you choose a home improvement project that will add to your home's lifetime value. Check out Remodeling Magazine's 2015 Cost vs. Value report for projects with the highest ROI. Three home improvement projects we like:

To Read This Article Please Click Here!

To Discuss Purchasing a Home Give Team Easterbrook a Call or Email!

916-850-6050

easterbrookteam@spmc.com

Ask for John or Patty!

John Easterbrook

NMLS#226555

916-224-7653

Patty Aguon

NMLS#994635

916-833-5063

Removing Disputed Credit Accounts

With home prices and interest rates at historic lows, many people are looking to take their first step into homeownership. In today’s challenging economy, many first-time homebuyers struggle with credit challenges. One often-seen challenge is accounts on credit reports that have already been rectified. These are accounts that have been settled by the homebuyer, but have not been removed from their credit report by the creditor. 

These outstanding accounts on your credit report can cause roadblocks in purchasing your dream home. If you have any questions on home financing, and how Sierra Pacific Mortgage  can help you purchase your dream home, contact one of our mortgage loan originators today.

Get on the phone with the creditors. Demand a letter stating that the accounts are no longer in dispute. Its not easy. Insist on talking with a manager if they won’t do it for you. One other thing, you must have the borrower on the phone with you initially. They can usually authorize you for 24 hours. John Easterbrook

(916) 224-7653
john.easterbrook@spmc.com
Licensed – NMLS # 226555

TRANSFERRING TAX BASE FOR OVER-55 BUYERS CAN SAVE LOTS OF MONEY

Knowing the tax laws can allow homebuyers and the Realtors® that assist them to make a move confidently and to save lots of money. California Propositions 13, 60, and 90 can positively affect people over 55 years of age.

Proposition 13:

Under Proposition 13, the value of a home, for property tax purposes, is reassessed to the new market level (the new purchase price) whenever a change in ownership occurs. This usually results in higher property taxes.

Prop 60:

Proposition 60 allows a transfer of base-year value of the principal residence sold of a senior citizen (55 and older) to a replacement dwelling of equal or lesser value within the same county.

Prop 90:

Proposition 90, enacted in the November of 1988 in California, and otherwise known as the “local option law”, provides an avenue for property tax relief to owners 55 and older who sell their principal residence and purchase a replacement home of equal or lesser value in another county.

The County Assessors will require a copy of the tax bill from the other county and a copy of the applicant’s birth certificate to be included with the application. Also, include a copy of the grant deed for the new purchase and a copy of the closing statements of both sale and purchase.

SUMMARY OF ELIGIBILITY REQUIREMENTS:

The seller of the original residence, or a spouse residing with the seller, 55 years of age or older, as of the date that the original property is transferred.

The replacement property must be of equal or lesser “current market value” than the original.

The tax base year of the original property cannot be transferred to the replacement dwelling until the original property is sold, BUT (and this is the cool part) the replacement property must be purchased or newly constructed within two years (BEFORE OR AFTER) of the sale of the original property. This allows the property owner to take advantage of a low market, like the one we’re in, and sell when things are selling more briskly or vice versa. This just means that the homeowner will be taxed on the new property at the assessed rate until the sale is made on the original property and the proper paperwork is filed with the county. The owner must file an application within three years following the purchase date or new construction completion date of the replacement property.

This is a one-time-only filing. Proposition 60/90 relief cannot be granted if the claimant, or spouse, was granted relief in the past.

Proposition 60/90 relief includes (but is not limited to): single family residences, condominiums, units in planned unit developments, cooperative housing, corporation units or lots, community apartment units, mobile homes subject to local real property tax, and owner’s living premises which are a portion of a larger structure.

The taxpayer is not eligible for the tax relief until they actually own AND occupy the replacement dwelling as their principle residence.

If the buyer is moving to another county, it is essential that you call the co-operating County in question, to verify that they are currently accepting the value transfer under Proposition 90, and what their requirements are. If you have any questions, the property tax office in Sacramento for all counties in California may be reached at (916) 445-4982.

New FHA High Balance Conforming Loan Limits

As of October 1, 2011 the FHA High Balance Conforming Loan Limits will be dropping. The below loan limits reflect the new surrounding area’s loan limits. These new loan limits will be in effect from October 1, 2011 to December 31, 2011.

NEW FHA High Balance County Conforming Limits

Sacramento County	$474,950
El Dorado County	$474,950
Placer County	$474,950
Solano County	$400,200
Stanislaus County	$276,000
Yolo County	$474,950

Do you have another county you would like to know the new loan limits for, or have questions on how these new limits will effect you? Contact me and I would love to answer your questions!

John Easterbrook (916) 224-7653 john.easterbrook@spmc.com Licensed – NMLS # 226555

Fiscal Cliff Impact on Real Estate & Mortgage Industry

Debt Forgiveness Law Survives

The real estate and mortgage industry can breathe a sigh of relief with the final fiscal cliff deal bringing back The Mortgage Debt Relief Act, a popular tax break on mortgage insurance premiums and debt forgiveness for borrowers who go through a short-sale or some other type of debt reduction. Read More

M.I. Deduction Survives for Most

The fiscal cliff deal preserved a tax deduction for the premium cost of mort­gage insurance on homeowners with an adjusted-gross in­come of under $100,000. Read More

Housing a Sweet Spot for Housing Recovery

U.S. home sales and prices are poised to rise in 2013, solid­ifying a recovery that began last year after a half-decade slump that was the deepest since the Great Depression, according to analysts and economists surveyed by Bloom­berg. Read More

 

John Easterbrook

(916) 224-7653
John.Easterbrook@spmc.com
Licensed – NMLS # 226555