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12/21/2017

MCC Tax credit gone?

See what CalHFA is saying below…checking on GSFA now as well
MCC unsure maybe is gone...
wait for update
update is i 12/22/2017


MORTGAGE CREDIT CERTIFICATE TAX CREDIT PROGRAM
As a result of possible federal tax reform, please see below for important MCC reminders:

- As of November 17, 2017, a Mortgage Credit Certificate may not be used for credit qualifying purpose for any CalHFA first mortgage loan.

- All loans must be closed AND the complete MCC package must be submitted AND cleared of deficiencies by eHousingPlus on or prior to December 18, 2017 so MCC certificates may be issued prior to year-end. There is no guarantee that MCC certificates can be issued for any MCC package not meeting the deadline.

- Lenders may continue to reserve MCCs for non-credit qualifying purposes, but be mindful of the December 18, 2017 deadline.

- CalHFA first mortgage loans in which an MCC was used for credit qualifying purposes that have not closed by December 18, 2017 AND fail to meet the above deadline may be subject to re-underwriting and requalifying without the MCC

Due to the uncertain outcome of the tax reform legislation, CalHFA will not obtain any additional allocation for MCCs in the future. Please see the eHousingPlus system for remaining availability figures for CalHFA's MCC program.



12/20/2017

Tax Bill and Property Values



Tax Bill Passes

Not good for Residential Real Estate in high priced areas.
High Cost Homes are going to see price reductions.
Not sunny days ahead

I believe this will reduce number of sales to w-2 two family income earners from purchasing a home with sale price higher than one million dollars.
It will particularly squeeze values in Coastal Areas where prices from
one million to two and a half million dollars that Borrowers want the
tax credit to make it work financially.

This doesn't matter much to self employed borrowers who already pay little or no tax with allowable deductions


The act repeals the overall limitation on itemized deductions, through 2025.

Mortgage interest: The home mortgage interest deduction was modified to reduce the limit on acquisition indebtedness to $750,000 (from the prior-law limit of $1 million).
A taxpayer who entered into a binding written contract before Dec. 15, 2017, to close on the purchase of a principal residence before Jan. 1, 2018, and who purchases that residence before April 1, 2018, will be considered to have incurred acquisition indebtedness prior to Dec. 15, 2017, under this provision, meaning that he or she will be allowed the prior-law $1 million limit.

Home-equity loans: The home-equity loan interest deduction was repealed through 2025.


State and local taxes: Under the act, individuals are allowed to deduct up to $10,000 ($5,000 for married taxpayers filing separately) in state and local income or property taxes.
The conference report on the bill specifies that taxpayers cannot take a deduction in 2017 for prepaid 2018 state income taxes.  This part is pretty terrible. In California property taxes on a one million dollar home are about thirteen thousand dollars a year.

12/13/2017

New Tax SB2



New Recording Fee Goes into Effect January 1, 2018
The new legislation is effective January 1, 2018.
The following transactions are valid exemptions from the SB 2 fee:
a. Any sale transaction subject to documentary transfer tax.
b. A sale of residential property to be owner-occupied.
c. Any recording not related to real property.
There is a cap of $225 per transaction per parcel.
Refinance transactions are subject to the new tax.
All documents that are exempt from the tax must be labeled as such.

Law begins January First 2018
Valid exemptions from the tax fee are:
Any sale already paying the documentary transfer tax
A sale of residential owner occupied home
A recording of property that is not real estate

Refinance transactions are subject to the new tax.
All documents that are exempt from the tax must be labeled as such.
“A fee of $75 dollars shall be paid at the time of recording on every real estate instrument,
paper, or notice required or permitted by; law to be recorded, except those expressly
exempted from payment or recording fees, per each single transaction per parcel or real
property.”
In 2017, the California Legislature passed Senate Bill 2, The Affordable Housing and Jobs Act
which adds a new tax on certain recorded real estate documents. The Act states:
You can count on WRT to keep you up to date
on the latest changes affecting your transactions.


who voted for this tax?

not me
Our government is not good at issuing bonds that help the poor.
Let me know if you benefit from the Atkins Bill

SB 2, Atkins Bill known as the Building Homes and Jobs Act
the bill is "supposed" to go to: emergency housing, multifamily housing, farm worker housing, home ownership for very low and low-income households, and down payment assistance for first-time home buyers. Existing law also authorizes the issuance of bonds in specified amounts pursuant to the State General Obligation Bond Law. Existing law requires that proceeds from the sale of these bonds be used to finance various existing housing programs, capital outlay related to in-fill development, brownfield cleanup that promotes infill development, and housing-related parks.

12/06/2017

READY for Evacuation List

In light of all the fires and emergencies I want to share a list of plans in case you are seeing smoke


smoke filled sunset

Be READY for emergency evacuation
List of what to prepare NOW before asked to leave, and in the minutes you may have to leave your home.

To do today list:


  1. Get 10 cardboard boxes, or as many as fit in your car around your pets. Many places throw them away. They don't need to be perfect
  2. Put best linens or clothing in the bottom, add personal photographs, passports, cameras, laptop, important papers. 
  3. Pack your jewelry and small items that you treasure. Pack pet food for two days. Two outfits to wear.
  4. Keep your gas tank 3/4 full. Flashlight in the car. Couple bottles of water in the car.
  5. Have a family plan where to meet and out of state person to contact.
  6. Social media can be helpful to post your whereabouts, test your contacts and tell them which source you will use upon emergency
  7. Trim trees that touch your home and clean out any gutters of dry leaves.


When told to evacuate:



  1. Load the boxes and pets
  2. Shut all doors and windows but leave front door unlocked
  3. Pull down curtains and shove flammable furniture to center of rooms
  4. Turn off gas main
  5. Honk horn many times, ring neighbor's door bells
  6. Drive carefully away from smoke central
  7. Follow fire workers instructions
  8. There may be an evacuation center. 
  9. Evacuation center is a place to meet up with neighbors.
  10. Your cell phone may not operate. Power may be out.
  11. Don't go back until fire officials say all clear
  12. Do the best you can. Be kind. 
I have barns and fenced paddock for horses. I am willing to take horses for free and feed them as long as you need. I don't have trailers. Off Ortega Hwy in San Juan Capistrano contact me if you need help with large animals


The smoke is bad for health, it's not just trees burning, all types of chemicals are in the smoke.
If you have respiratory sensitivity of any kind, get farther away.  A wet towel over mouth and nose don't filter much.


Esté LISTO para la evacuación de emergencia
Haga una lista de lo que debe preparar AHORA antes de pedir que se vaya, y en los minutos puede que tenga que abandonar su hogar.

Para hacer hoy lista:

Obtenga 10 cajas de cartón, o tantas como quepan en su auto alrededor de sus mascotas. Muchos lugares los tiran. No necesitan ser perfectos
Coloque la mejor ropa de cama o ropa en la parte inferior, agregue fotografías personales, pasaportes, cámaras, documentos importantes.
Empaca tus joyas y pequeños objetos que atesoras. Empaque alimentos para mascotas por dos días.
Mantenga su tanque de gas 3/4 lleno. Linterna en el coche. Pareja botella de agua en el coche
Tenga un plan familiar donde reunirse y una persona fuera del estado para contactarse.
Los medios sociales pueden ser útiles para publicar su paradero, probar a sus contactos y decirles qué fuente utilizará en caso de emergencia.
Recorte los árboles que tocan su hogar y limpie cualquier cuneta de hojas secas.


Cuando se le dice que evacue:


Cargue las cajas y las mascotas
cierre todas las puertas y ventanas, pero deje la puerta frontal desbloqueada
abra las cortinas y empuje los muebles inflamables hacia el centro de las habitaciones
apagar el gas principal
Toca la bocina muchas veces, toca las campanas de la puerta del vecino
alejarse con cuidado de la central de humo
siga las instrucciones de los bomberos
Puede haber un centro de evacuación.
Centro de evacuación si es un lugar para reunirse con los vecinos.
Es posible que su teléfono celular no funcione.
No retrocedan hasta que los bomberos digan todo claro
Haz lo mejor que puedas. Se amable.


El humo es malo para la salud, no solo los árboles queman todo tipo de químicos en el humo.
Si tiene sensibilidad respiratoria de cualquier tipo, aléjese más. Una toalla mojada sobre la boca y la nariz no filtra mucho.