As reported by LA Times the measure, which is expected to be signed by Gov. Arnold Schwarzenegger, would waive California state taxes on mortgage debt that has been forgiven in a foreclosure or short sale. So far, the amount waived has been considered taxable income under California law. The measure passed Thursday would eliminate that tax when a bank agrees to accept less than what is owed on a home.
Schwarzenegger said “I will sign the measure when it reaches my desk. I want to give homeowners and businesses the relief they need. We want to be helpful in every way we can, so we will sign it.”
This is a big news for thousands of Californians whose homes were foreclosed on or sold at a loss. It also comes as a relief to thousand others who are going through this process and may lose their homes via foreclosure or short sales in the future. In California 1 out of every 195 housing units received a foreclosure filing in February 2010. (source RealtyTrac. See Chart below)
Californians can already claim the tax breaks on federal returns. Lawmakers passed the measure in time for people to take advantage of it by the April 15 deadline for filing tax returns.
With the plunge in the real estate market, many Californians have found themselves owing much more on their mortgages than their homes are worth. First American Core Logic reports that 37% of the homes in California were underwater in Q4 2009. (See chart below)
If you are a distressed homeowner and would like to explore different options available to you, call me at 408.905.6261 or email me at shashank@arcuslending.com.
After more than 4 years of discussions with various trade and consumer groups, HUD implemented the new Good Faith Estimate (GFE) on January 1, 2010 for San Francisco (SF) Bay Area borrowers. The goal was greater clarity and transparency for borrowers. I do not want to get into the details of every single field of this 3 page document, and make this a 10 page post. I would rather write about what I like about the New Good Faith Estimate form and what I don’t like. Here we go!
2. Create a great table setting backdrop. Once your theme is chosen, find a piece of fabric or ready-made tablecloth to create a backdrop. If you don’t have a matching tablecloth, cut a large square piece of fabric in a color that goes with your theme. In this photo, we have created a gold and silver theme and our base is a simple square cut of gold fabric draped diagonally across the table. This creates a perfect background to build on.
3. Layer upward. Once you have a nice base, you can put together your centerpiece and plate settings. Use a coordinating table runner. If you don’t have a fabric table runner, an easy solution is to use patterned construction paper (you can get great 12″x12″ scrapbooking pieces at the craft store) or even stylish wrapping paper that is cut to your table length. You can secure it to your tablecloth with small pieces of tape underneath. In this photo, we’ve used small framed mirrors as a centerpiece base for a shimmery effect. On top of the mirrors you can place a variety of things for decor. From candles to clear vases filled with ornaments or jars filled with gold or silver spray-painted branches. Fresh flowers from the store are also an elegant touch! Layer your place settings - with bowl in a small plate on top of a large plate. This stacking effect creates a formal, festive look.
4. Add some unexpected touches. This is the fun part! A great way to do something unique is to create personalized namecards for each table setting. In this example, we’ve used metallic silver sticker letters on study cardstock paper folded in half. Punch a hole on top and loop a coordinating ribbon through. On the back of each card is a hand-written inspirational quote - a great table conversation starter! Other fun touches are dropping a gold-wrapped chocolate in each wine glass as a mini-present, or dressing up the head chairs with small color-coordinating cushions for a softer, living-room style look.
Great news for homeowners and buyers in Contra Costa, San Mateo and San Francisco counties. Stated Income loans are now available for borrowers in these counties. This type of loan could specially be very useful for Self-Employed borrowers who find it difficult to document their “real” income via Tax Returns. Also, commissioned employees who have wide swings in their income could benefit from a program like this. Below are the highlights of the program:
What are the factors that impact your credit score?
