Property Tax Reassessment… update!

You must file between July 1, 2009 - September 15, 2009 to be eligible!

After that date, you’ll have to wait until next year to file again!

for more info visit:

http://www.assessor.saccounty.net/DeclineinValueReassessments/SAC_ASR_DF_Decline_Value

Real Estate Market Update:

Most families can now afford a house.
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) recently reported that 59 percent of households in California could afford to purchase an entry-level home in the state during the fourth quarter of 2008. The affordability rate is the highest level this decade.

MAKING SENSE OF THE STORY FOR CONSUMERS

· The minimum household income needed to purchase an entry-level home at $248,030 in California in the fourth quarter of 2008 was $48,900, based on an adjustable interest rate of 6.02 percent and assuming a 10 percent down payment. First-time buyers typically purchase a home equal to 85 percent of the area’s prevailing median price. The monthly payment including taxes and insurance was $1,630 for the fourth quarter of 2008.

· At $48,900, the minimum qualifying income was 42 percent lower than a year earlier when households needed $83,700 to qualify for a loan on an entry-level home. Recent decreases in home prices and mortgage rates have brought affordability into better alignment with income levels of the typical California households, where the median household income is $59,160.

The housing bailout: Do you qualify?
In recent weeks, the government, both on a federal and state level, have announced new tax credits for home buyers, housing stabilizations plans, and the like. Due to the various requirements for each program, some home buyers and/or homeowners may be confused about whether or not they qualify.

MAKING SENSE OF THE STORY FOR CONSUMERS

· The goal of the “Homeowner Affordability and Stability Plan” is to help homeowners remain in their homes. For a loan to qualify for modifications, lenders would need to bring the monthly mortgage payment down to 38 percent of a borrower’s monthly income. The government would then match further reductions until the debt-to-income ratio is 31 percent. The deductions could come in the form of a lower interest rate or reduced principal. For homeowners who pay their mortgage on time, the write down could be as much as $1,000 of the loan each year, for five years.

· The government will help homeowners who owe between 80 percent and 105 percent of their home’s value, and have been unable to qualify for refinancing because their home has negative equity. This could help as many as 14.8 million homeowners. However, only mortgages owned by Fannie Mae or Freddie Mac are eligible, which excludes many homes in high-cost areas, such as California .

· As with all refinances, it is important that homeowners have their mortgage paperwork, proof of current income, and assets readily available. A representative with the Mortgage Bankers’ Association advises homeowners to wait until March 4 to contact their mortgage lender or servicer, when more details and guidelines are due.

· The recently signed “American Recovery and Reinvestment Act of 2009” increases the first-time home-buyer credit from $7,500 to $8,000, and removes the requirement that the credit be paid back if the buyer stays in the home for at least three years. It also extends the expiration date for the credit from July 1 to Dec. 1, 2009. Home buyers must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009, to be eligible for the $8,000 credit.

Mortgage News:

This week’s Mortgage Update contains information about

• Eligibility requirements for the Obama administration’s new housing plan
• A state foreclosure moratorium
• Jumbo mortgages.

Mortgage rescue eligibility still being finalized.
A day after President Obama unveiled his $75 million foreclosure prevention program, administration officials yesterday said they were still determining which homeowners should qualify.The administration is developing a standard for lenders to use in evaluating applicants that seeks to exclude homeowners who are not in real need or are too far behind in their payments to be saved. Officials have set some conditions for eligibility, including requiring that borrowers’ mortgage payments consume more than 38 percent of their income and that the property be a primary residence.

Government officials are working to finalize details before a self-imposed March 4 deadline when the program will go into effect and lenders are likely to be flooded with calls.

The program is aimed at stemming the tide of foreclosures as predictions mount that another wave of risky loans could begin defaulting later this year as a deepening recession makes it more difficult for borrowers to afford their homes.

The administration’s effort includes several elements, including a refinancing initiative for borrowers with little equity in their home. A separate loan modification program gives lenders incentive payments to keep borrowers in their homes rather than foreclose on the properties.

A chief goal of the loan modification program is to address complaints of consumer advocates that borrowers are often turned away by lenders when they seek help before becoming delinquent on loans. The plan includes extra incentive payments for lenders that reach “at-risk” homeowners and modify their loans before they become delinquent.

State foreclosure moratorium has wide loopholes.
As part of the state’s budget, Gov. Schwarzenegger signed into law a 90-day moratorium on California home foreclosures. The moratorium is for own-occupied homes where the first loan was recorded between Jan. 1, 2003 and Jan. 1, 2008. However, the law also enables state regulators to grant loan servicers exemptions, allowing them to foreclose if the lenders have a mortgage modification program in place that meets certain criteria.

Jumbo mortgages, jumbo headaches.
Jumbo mortgages — loans higher than the conforming loan limit of $729,750 in high-cost areas – are ineligible for government backing, and thus excluded from nearly all mortgage modification and refinance programs.

Jumbo mortgages also require borrowers to pay slightly higher rates than conforming-loan borrowers, leading some borrowers to pull from their savings or retirement accounts to buy-down their mortgages and bring them below the $729,750 limit.