New tax Bill Proposes Elimination of Certain Tax Deductions for California Homeowners – How Will It Affect You?

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Nicole Emanuel Real Estate – Coldwell Banker

(408) 410-2060

nicole.emanuel@cbnorcal.com

http://www.realestatebynicole.com

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Does Moving Up Make Sense?

Couple moving house

With prime home buying and selling season upon us, it’s a good time to ask yourself if a move up is right for you. Sometimes we talk with buyers that are considering a move but faced with the reality of a larger mortgage payment, find that its best for them to wait. Or some clients need to know what their home might sell for in order to decide if moving into a new home is right for them. There are many things to consider when deciding if selling your home and buying a new home is right for you. Whatever the case, we are here to help you decide whats best for you and your family.

Whether your family size is growing, you are running out of space or simply want to seize the opportunity to “move-up” to your next home, below are a few questions to consider as you weigh your options.

  1. Have you built substantial equity in your current home? Home equity can be defined as the value of a home, minus the amount of outstanding debt. Although equity does not generally develop in the first few years of home ownership, five or more years of home payments may create significant unrealized gains.
  2. Has your income or financial situation improved? Homeowners should consider their overall financial situation including current and future expenses in order to make an educated decision on price range for a new home. For example, an increase in salary may allow for an increased mortgage.
  3. Has your lifestyle changed? Lifestyle changes are one of the most common reasons people choose to move. Starting or adding to a family may require an extra bedroom or additional square footage, as well as a desire to live closer to work or family may provide the impetus for a move to a larger home.
  4. Is your current residence one that could potentially be rented out? For those homeowners who are ready to make a move but are concerned about purchasing a new home before the current property is sold, renting out the current residence may be a viable option. We also work with a variety of clients who decide they want to find a home to purchase before they sell their current home.
  5. Are interest rates attractive? A low interest rate means lower mortgage payments on homes of the same price. I’d be happy to refer you to a mortgage advisor should you need to check on interest rates.

No matter what you decide, you need an expert team to help you balance a concurrent purchase and sale transaction seamlessly. Nearly two-thirds of our client base is either moving up or downsizing and we have successfully assisted them with both sides of the transaction. If you want to discuss any of the questions above or have more to ask, don’t hesitate to give us a call or email! Nicole.emanuel@cbnorcal.com, (408) 410-2060.

$26 billion Foreclosure Settlement Could Mean Relief for Underwater Homeowners

If you are underwater on your home or were foreclosed upon between 2008 and 2011 there could be some relief coming your way according to an article from CNNMoney today. Federal and state officials have agreed to a $26 billion settlement of potential state charges of home seizures made without required paperwork and improper foreclosure practices based on robosigning by the five largest lenders in the country – Bank of America, JP Morgan Chase, Citigroup, Wells Fargo and Ally Financial.

About $17 billion will be used to reduce the principal for underwater homeowners and could mean a reduction for as many as 1 million people. While this is a start, the average reduction would be about $17,000, so might not go a long way in assisting those upside down on their mortgages. In addition, about 750,000 homeowners who are current on their mortgages will be able to refinance their loans to take advantage of the current record-low interest rates. About $1.5 billion will also go to homeowners foreclosed upon between 2008 and 2011 and who meet other criteria. They will be eligible to receive $2,000 for charges of robosigning.

Negotiations are underway to expand the current settlement to nine other servicers, potentially expanding the settlement to $30 billion.

It is important to note that even though a homeowner may accept settlement from the bank, it does not inhibit their ability to file criminal prosecution charges against the bank.