Time Is Moving Along for First Time and Repeat Buyers

The Southern California Home Buyer's Fair will be taking place March 13 and 14 at the Los Angeles Convention Center. It's a great start for the keys to homeownership, if you're free to go that weekend. However, the $8000 tax credit for 1st time buyers will be ending in April 2010, and will be extended only to complete your escrow if you have signed a contract at that point in time. Per the IRS site, the credit

• Applies only to homes used as a taxpayer's principal residence.


• Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.


• Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

And, although this new proposal by Gov. Schwarzenegger is still "up in the air", to continue encouraging homeownership among Californians, the Governor will propose to extend and expand the $10,000 homebuyer tax credit to include the purchase of existing homes in addition to new residences for first-time homebuyers. The buyer must not be a dependant and must be purchasing a home that does not belong to a relative. Under the Governor’s proposal, the Franchise Tax Board will extend the credit to buyers who purchase homes until $200 million dollars in tax credits have been granted.

PLEASE, if you're thinking of buying this year, do not assume that the $8000 tax credit will once again be extended as it was at the end of 2009. Many Congressional members were not in favor of this extension for various reasons. Californians may benefit from the additional proposal, however, that is unknown as of yet.

If you want to buy, start taking action now. If you need loan options, I will be happy to refer you. Remember, for purposes of these programs, a 1st time buyer is one who has not owned property in the last 3 years.

Please contact me if you are ready to proceed--remember, rates are still low.

For more information on buyer programs, go to http://www.juliahuntsman.com/.

Quick Fact: More Single People Buy Real Estate

Many developments have taken place in just the last 10 years:

According to National Association of Realtors in Dec. 2009, the percentage of U.S. homes bought by married couples has declined in the last decade.
Married couples bought 60% of homes last year, down from 68% in 1999. Single women purchased 21%, up from 15% in 1999, and single men bought 10%, up from 7%.

Fewer people are buying detached single family homes, but more people are buying in the suburban neighborhoods.

Today, 90% of the buyers are searching online first--up from 37% 10 years ago.

But, unchanged is the median age for homebuyers--it's still 39 (did Jack Benny do this survey?) And neighborhood qualify, affordability and convenience to work location are still the top buyer priorities. And 8 out of 10 surveyed consumers believe owning a home is an investment in their future.

Foreclosure Timeline in California

If your loan was obtained between 2003 and 2007, and you meet certain other guidelines, your timeline (for a non-judicial foreclosure, the most common in California) from the first day of the pre-foreclosure period up through the Notice of Sale, will be about 152 days.

The Notice of Default may be filed 30 days after the lender contacts the borrower to explore options avoiding foreclosure for the borrower.

Three months after the NOD is filed, the Notice of Trustee's Sale may be recorded and then published over a period of 3 weeks. The borrower has 5 days prior to the sale to cure the default, which means catching up on the entire debt, and all other interests and costs. On Day 152 of this timeline, the lender may sell the property to the highest bidder at public auction.

If the seller is contemplating selling, there is a minimum of 4 months at the time the NOD has been filed. Since many sellers are in a short sale position and would need to list their property, find an eligible buyer, submit their entire financial package to the lender and obtain the lender's approval, 4 months is not enough time since the standard bank approval time is still around 90 days.

If the homeowner is experiencing financial distress and is now starting to not pay the mortgage, they need to immediately recognize their situation and allow for 6 to 8 months in which to get their property listed and sold, if that is to be the course of action. Most people do not want to sell, and make the mistake of hanging on too long until they lose the house through foreclosure. This is usually the worst course of events from which it takes longer to recover in terms of credit eligibility and future mortgage eligibility. Credit is checked for rental applications, insurance, and employment, so the distressed homeowner may be affected in many other ways.

If an owner is in bankruptcy, or has surrendered the property, the initial 30-day notice requirement does not apply.

For other owners not in the 2003-2007 loan origination period, the original foreclosure timeline applies, which is about 121 days total.