Bank Owned Property - Open House Saturday Only!

REO Bank Owned property.

This lovely 4 Bedroom home has New Carpet, New Paint, New Dishwasher, New Range/oven, and New Microwave. This home also contains and upgraded kitchen with Granite countertops and Tile floors. The family room contains a a fireplace. Formal Dining Room and Living Room with cathedral ceilings. Bedrooms have ceiling fans. The backyard has block wall, covered patio, relaxing above ground spa and no rear neighbors. Located in a low tax area and in a nice neighborhood this home contains a 3 car tandem garage with storage cabinets. The bank priced this one to sell!


Call 1-800-385-9140 ext 2096 for proper forms to make offer.

POSSIBLE INCREASE TO THE CONFORMING LOAN LIMITS

On January 24, 2008 House Speaker Pelosi (D-CA), House Minority Leader Boehner (R-OH), and Treasury Secretary Paulson announced a bipartisan deal on an economic stimulus package. After heavy lobbying by C.A.R. and NAR, included in the House economic stimulus package is an increase in the loan limit for Fannie Mae, Freddie Mac, and FHA.

There is still not a clear consensus on how high the GSE conforming loan limit increase will be. There have been rival press releases, with Speaker Pelosi saying the cap would be at $729,750 and Minority Leader Boehner saying the cap would be at $625,000. Either way, the GSE loan limit would be increased to 125% of a Metropolitan Statistical Area (MSA), with the cap either at $625,000 or at $729,750. As of now, no legislative language has been formalized or released, so C.A.R. is unable to have a definitive GSE cap figure.

Additionally, the FHA reform included in the stimulus package is expected to be permanent, including an increase in the FHA loan limit to $729,750, and a decrease from the current 3% downpayment required; however, at this time we have not heard whether it will be reduced to 1.5% or 0%. The GSE loan limit increase would be temporary, most likely only until the end of 2008. In the meantime, C.A.R. will continue to lobby for permanent GSE reform which would include an increase in the conforming loan limit for high-cost areas, such as California.

The House is expected to vote on the economic stimulus package on January 29, 2008 and the Senate has expressed their interest to introduce and vote on their version of an economic stimulus package shortly thereafter.

Tax Break for Mortgage Debt

President Bush signed into law a new measure giving tax breaks to homeowners who have mortgage debt forgiven. Under preexisting law, the debt forgiven by a lender, such as for short sales and refinances, was generally taxable to the borrower as debt discharge income. With the passage of the Mortgage Forgiveness Debt Relief Act of 2007, a taxpayer does not have to pay federal income tax on debt forgiven for a loan secured by a qualified principal residence.
This tax break applies to debts discharged from January 1, 2007 to December 31, 2009. Qualified principal residence indebtedness is debt incurred in acquiring, constructing, or substantially improving the residence (up to $2 million for refinances).
For purposes of calculating capital gains, any debts discharged excluded from income under the new law must be subtracted from the basis of the taxpayer’s principal residence (but not below zero). However, taxpayers may generally exclude from capital gains income up to $250,000 (or $500,000 for married couples filing jointly) for properties owned and used as their principal residence for at least two of the last five years.
This is great news for homeowners who have gone through either a short sale or deed-in-lieu of foreclosure. Prior to this act, not only did the homeowner not have enough equity to sell their home and took a big hit on their credit score, but they were taxed on the differential between what they owed on the house and what it sold for (because it was treated as income). Now they can at least know that Uncle Sam will not come after them to pay taxes on that differential.
For a copy of the Mortgage Forgiveness Debt Relief Act of 2007, go to http://www.govtrack.us/congress/bill.xpd?bill=h110-3648.

Special Alert - Suprise Fed Cut

Fed Surprises with Deepest Cut since 1984
The Federal Reserve surprised everyone Tuesday with an emergency intersession rate cut of .75%, the deepest cut in the Fed Funds Rate since 1984. The Fed Governors are acting in direct response to recent reports that the country is on the brink of recession.
If you have credit cards, auto loans, HELOCs, or an Adjustable Rate Mortgage, the Fed's decision to cut this key interest rate is great news. For long-term mortgage rates however, this could signal the beginning of the end for the lowest 30-year home loan rate borrowers have experienced since 2005.
Let's look at the impact of a few recent Fed Funds Rate cuts and the corresponding impact to home loan rates to see what this could mean for you:

Period

Period Fed Funds Rate Cut Impact to Home Loan Rates January to June 2001 Down 2.25% Rose 0.10% October to December 2001 Down 0.75% Rose 0.45% May to August 2003 Down 0.25% Rose 0.78%

Rates are predicted to be cut again when the Federal Reserve meets at the end of this month. Many believe Tuesday's action was taken because of a dramatic downturn in the stock market, where the Dow dropped 464 points, the worst single day drop since September 11, 2001. Since the Fed's announcement, the Dow has recovered much of those losses but volatility is likely to remain a consistent theme throughout the week.
If you are waiting for long-term mortgage rates to fall further from here, don't count on it. Your best chance to lock in the lowest mortgage rates since 2005 is now. Getting your application in process will allow you to capture a rate near all time lows and, with many experts predicting home values could continue to decline, waiting could kill your chance to capture a great rate if your home doesn't appraise.
This is an unprecedented market and things are moving fast. Regardless of your current mortgage, please give me a call so that we can review your current financial situation in light of these market movements.