Real Estate and Other Ramblings

Pending homes sales has risen over the last few months up about 6% since April and over 22% since April of 2009. This upward swing is good news for a failing real estate market.  The last couple of years have been horrible for home owners trying to sell their homes including Augusta Georgia homes for sale, without losing money and it has been very difficult on local realtors. Some realtors who were not busy have returned to old jobs or are fighting to stay alive in this market.

There have been good signs though that some of the worst is behind us. Markets are showing an increase in pending sales and the government has added incentives to try and lure the potential home buyer to get off the fence and make the purchase. The mortgage rates have stayed low and seem to be going even lower, which will help with purchases since the government tax credit has now expired. Having mortgage rates low will go along way in helping with the real estate market recovery and help the market to sustain itself without having to rely on government help.

Augusta Georgia has been affected just like any other city, but as the nation turns around the Augusta market will too. We have been fortunate that our market wasn’t affected as much as some of the other areas, though no one really escaped the downslide. If you are interested in buying or selling a home in Augusta, please let us know at www.augustalistingexpert.com. Augusta is a great place to live with great shopping and dining. It is also located on the Savannah River which adds to the laid back and the adventurer.

A new law in California enables borrowers to have a tax break whose mortgage debt was forgiven through modification of their loan, a short sale or even due to foreclosure. The bill (SB 401) was signed off by Governor Schwarzenegger just before April 15th, which is the tax deadline.

One thing this new law does is allows the majority of tax payers to not be required to include mortgage debt income that has been canceled up to $500,000 on their principal residence, or up to $250,000 for married individuals that have chosen to file separately. This is applicable for the dates 2009 through 2012.
Since the Federal Mortgage Forgiveness Debt Relief Act of 2007, is instituted through the tax year 2012, the California law comes in alignment with the federal law.

This law gives a needed tax relief to those that have lost their homes and can’t afford to pay more taxes. Added on to this anyone in California that had to sell their home on a short sale is allowed to exclude the amount that was still owed to the loan company from their taxes. This also applies to homeowners who have had loan modifications to lower their debt. We specialize in real estate in Tracy CA and would love to help you with your next purchase in Tracy California or any of the surrounding areas.

There are a few exceptions that you may need to be aware of. For example any debt forgiveness that is on a second home mortgage or business & investment property does not qualify. Also, and refinance loans that allow cash-out equity will not apply. For more information on California real estate please visit www.thesilveriateam.com.