California Homeowners Bad News
California Homeowners
Senate-Passed Tax Legislation Bad News for Homeowners
Yesterday morning, the U.S. Senate, by a vote of 51-49, passed legislation that would change the face of homeownership in this country for decades to come. The House passed its own version of tax reform Nov. 16,2017.
A last-minute change to the Senate version would make up to $10,000 in property taxes deductible for the small number of homeowners who would still be itemizing. Previously, the Senate version had eliminated the property tax deduction entirely. The change aligns with the property tax cap set in the House bill. One difference between the two bills is that the Senate version retains the deductibility of mortgage interest payments on up to $1 million of indebtedness; the House version caps indebtedness at $500,000 (again, for the small minority still itemizing).
Now, members of the Senate and the House must meet to agree on a final bill. It’s not too late to make your voice heard.
Join us in telling your members of Congress that incentives for homeownership and the capital gains tax exclusion on the sale of a home MUST be protected. Read more 
California Home Mortgage Help
California home mortgage help
Recently Wells Fargo teamed up with Keep Your Home California’s principal reduction program, which offers California homeowners as much as $100,000 to reduce their mortgage principal and monthly payments.
Keep Your Home California is predicting that the participation of Wells Fargo will lead to many more California homeowners applying for mortgage assistance, and allow them to get the help they need. Read more
Vacant Homes Pose Insurance Risks
San Diego real estate market
California Insurance Commissioner Steve Poizner is encouraging California homeowners to review their homeowners’ policies and to consider their options regarding vacancy protection. According to Commissioner Poizner, vacant or unoccupied homes can leave the homeowner exposed to loss and liability that may not be covered by their insurance.
Homeowners’ policies are intended to insure occupied homes. Generally home insurance policies include exclusions for neglect or property abandonment on a home left vacant or unoccupied for a specified number of consecutive days. Vacant and unoccupied homes pose a higher risk for damage than occupied homes, so insurance companies insure these properties differently and usually at a higher price.
San Diego attorney
California Homeowners – Mechanic’s Liens
California homeowners lien
The California Constitution gives workers the right to record a mechanic’s lien for the value of labor and materials provided for the improvement of real property prior to filing an action against the owner of the property.
AB 457 (effective Jan. 1, 2011) requires that a mechanic’s lien and Notice of Mechanic’s Lien must now be served on the owner of the property (or on the construction lender of the original contractor if those parties cannot be served). If it is not properly served, as described in the statute, the lien is unenforceable. Read more
California Homeowners Reasons For Selling Their Homes
California home sales
According to a recently released California Association of Realtors report, 67 percent of all sellers in California did so as a result of difficulties related to meeting their mortgage obligation. Changes in family and employment status as well as adjustments to monthly mortgage obligations played significant roles in homeowners’ decisions to sell their homes in 2009. Read more
President Bush Signs Historic Housing Bill
This federal housing bill is a significant move in the right direction for California homeowners. It will aid in stabilizing our economy and help stem foreclosures, while also providing support to first-time homeowners.
The legislation will assist an estimated 400,000 homeowners facing foreclosure, many of whom reside in California, by allowing them to refinance their current mortgages with a Federal Housing Administration (FHA)-backed loan. The bill also will permanently increase FHA, Fannie Mae, and Freddie Mac loan limits in high-cost areas.
The bill permanently increases the conforming loan limit to $625,500. In February, the Economic Stimulus Act of 2008 was signed, temporarily raising the conforming loan limit in high-cost areas to $729,750 from $417,000 until December 31, 2008.
The new permanent loan limit of $625,500 will allow California homeowners to refinance their loans into safe affordable loan products and allow first-time home buyers to enter the market.
The new loan limits for Fannie Mae and Freddie Mac are the greater of either $417,000 or 115 percent of an area’s median home price, up to $625,500. The new FHA loan limit will be the greater of $271,050 or 115 percent of an area’s median home price, up to $625,500. Both new loan limits will be effective at the expiration of the economic stimulus limits on December 31, 2008.
More bill provisions:
- A temporary increase in mortgage revenue bonds to refinance subprime mortgages.
- New regulator for Government Sponsored Enterprises to restore investor confidence in GSE loans and help the market and economy stabilize.
- First-time home buyer tax credit, which allows first-time home buyers to receive a tax refund worth up to 10 percent of a home’s purchase price, up to a maximum of $7,500. The refund serves as an interest-free loan and the homeowner is required to repay it in equal installments over 15 years.
- Temporary raise in the loan limit for the Veterans Affairs home loan guarantee program to the same level as the economic stimulus limits until the end of 2008.
- Adjustment to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), allowing sellers to provide the non-foreign affidavit to a qualified closing entity and not just the buyer.
- The setting of minimum requirements for mortgage originators, which mandates fingerprinting of loan originators and establishes a nationwide loan originator licensing and registration system. The requirements do not apply to those only performing real estate brokerage activities unless they are compensated by a lender, mortgage broker, or other loan originator. States will have the ability to implement more stringent laws.
- The creation of a National Affordable Housing Trust Fund to help cover the cost of the FHA rescue plan for the first five years and develop affordable housing in subsequent years.
- The Treasury Department’s proposal to create a federal backstop program to insure the financial well-being of Fannie Mae and Freddie Mac.
- The FHA’s inability to insure loans that utilize a seller-funded down-payment assistance program. Down-payment assistance from family, employers and other nonprofits is still allowed.
- The Community Development Block Grant Programs’ $4 billion allotment for communities to purchase and refurbish foreclosed homes. San Diego downtown condominiums