Deed-For-Lease program

One new foreclosure avoidance option is Fannie Mae’s Deed-For-Lease program, announced November 5, 2009. Remember, this option is only available after a borrower has exhausted all other options including a short sale!

Fannie Mae Servicing Guide Announcement 09-33 introduced the Deed-for-Lease Program (D4L), allowing qualified borrowers (or tenants) with properties transferred through deed-in-lieu of foreclosure (DIL) to remain in their home by executing a lease in conjunction with a DIL.

Summary

* With the D4L program, servicers should follow their regular process – in accordance with Fannie Mae’s workout hierarchy – in considering a borrower for a DIL.

* If a borrower is eligible for a DIL (as determined by the servicer), the servicer should notify Fannie Mae if the borrower may also be eligible for the D4L program based on an initial screen of predetermined eligibility criteria.

* Fannie Mae, or its designee, will take the steps necessary to further verify the property and borrower eligibility, determine the rental rate, and, if appropriate, execute the lease agreement.

* To qualify for D4L, the occupant of the property must have the ability to pay market rent (not to exceed 31 percent of his or her monthly gross income).

* The D4L agreement will be contingent on successful completion of the DIL.

For official details please visit their site: https://www.efanniemae.com/sf/servicing/d4l/

President signs federal tax credit extension

President Obama today signed a bill extending and expanding the Federal Tax Credit for Home Buyers. The bill passed the U.S. House of Representatives yesterday and the U.S. Senate late Wednesday.

The tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to receive a tax credit of up to $8,000, while existing homeowners will receive a reduced credit of up to $6,500. Existing homeowners will be eligible for the $6,500 if they have lived in their current residences for at least five years. The bill also will increase the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers, to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000.

Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

NEARLY $3 MILLION SETTLEMENT FOR HOUSING DISCRIMINATION

NEARLY $3 MILLION SETTLEMENT FOR HOUSING DISCRIMINATION
The U.S. Department of Justice has obtained a record $2.725 million settlement against Los Angeles apartment owners for alleged rental discrimination. In a lawsuit brought in August 2006, the Justice Department claimed that Donald T. Sterling and others engaged in discriminatory practices, such as refusing to rent to African-Americans, Hispanics, and families with children, refusing to rent to non-Koreans in Koreatown buildings, misrepresenting the availability of rental units, and preparing internal reports of tenants’ racial profiles.

Under the name of Beverly Hills Properties, the defendants in this lawsuit own and manage about 119 apartment buildings containing over 5,000 apartment units in Los Angeles County. Their agreement to pay $2.725 million is the largest monetary settlement the Justice Department has ever obtained for rental housing discrimination. The bulk of the money will be placed in a fund to pay tenants harmed by the defendants’ discriminatory practices. The defendants must also take certain measures to ensure non-discriminatory practices, such as obtain fair housing training and monitor their employees’ compliance with fair housing laws over the next three years. For more information, the Justice Department’s press release is available at http://www.justice.gov/opa/pr/2009/November/09-crt-1187.html.

Call-for-Action on Homebuyer Tax Credit

Call-for-Action on Homebuyer Tax Credit

We are calling all of Team NuVision members, clients, guests, and friends to support requesting extension of the First-time Homebuyer Tax Credit beyond its November 30th expiration date.

Call 1-800-961-3302 and, when prompted, enter “999999999″ for the PIN number and home zip code to be connected to your legislator’s office.

Let’s do it gang!

-Rudy L. Kusuma
Your REALTOR® Of Choice
www.RudyLK.com

California cracks down on mortgage fraud

California cracks down on mortgage fraud

SACRAMENTO

October 12, 2009 5:27am

• New laws supposed to protect homeowners

• ‘Helps crack down on abusive lending practices’

California now has new laws that are supposed to prevent homeowners and homebuyers from mortgage fraud.

Legislation to increase protections for consumers in the lending market and provide law enforcement with more tools to crack down on deceitful mortgage practices was signed into law Sunday by Gov. Arnold Schwarzenegger.

The bills are supposed to:

• Strengthen California’s reverse mortgage laws by providing senior homeowners with greater consumer protections when considering reverse mortgage agreements,

• Make it a felony to commit fraud in connection with a mortgage application. and

• Promote responsibility and accountability in the real estate market.

“Fraudulent mortgage practices have become more prevalent as a result of the national foreclosure crisis that negatively impacted California’s housing market and economy,” says Mr. Schwarzenegger. “This legislation helps crack down on abusive lending practices by giving law enforcement the tools to effectively investigate mortgage fraud crimes and provides Californians with greater consumer protections to promote homeownership in a safe and accountable environment.”

Specifically, the bills signed are:

• AB260 by Assemblyman Ted Lieu, D-Torrance will enact the Higher-Priced Mortgage Loan Law which would codify a fiduciary duty for mortgage brokers, authorize California’s mortgage regulators to apply specified federal mortgage lending laws and regulations to their licensees and cap prepayment penalties and yield spread premiums on higher-priced loans.

SB 36 by Sen. Ron Calderon, D-Montebello to establish standardized licensing requirements for all individual loan originators who offer or negotiate residential mortgages.

• SB 239 by Sen. Fran Pavley, D-Santa Monica to make it a felony to commit fraud in connection with a mortgage application. This bill makes individuals who engage in mortgage fraud guilty of a public offense punishable by imprisonment in the state prison or in a county jail up to one year. The bill also provides law enforcement with the necessary tools to make it easier to obtain a search warrant for real estate records and documents believed to contain evidence of mortgage fraud.

• AB 329 by Assemblyman Mike Feuer, D-Los Angeles to establish the Reverse Mortgage Elder Protection Act of 2009 to provide senior homeowners with greater consumer protections to ensure that they are fully informed about the consequences of entering into a reverse mortgage agreement. Specifically, the bill requires lenders to provide prospective borrowers with a clear and informative written disclosure statement and a written checklist pertaining to the risks and suitability of a reverse mortgage, prior to borrower attending loan counseling.

• SB 237 by Sen. Ron Calderon, D-Montebello to create a registration program for appraisal management companies (AMCs) and prohibits any person or entity from acting in the capacity of an AMC without first obtaining a certificate for registration from the Office of Real Estate Appraisers.

• AB 957 by Assemblywoman Cathleen Galgiani, D-Livingston to mandate that buyers of foreclosed homes would have the choice of using a local escrow office to handle the transaction. It also prohibits a seller of residential property from requiring the buyer to use an escrow service company or purchase title insurance chosen by the seller and would also prohibit a seller of residential property from, without good cause, disapproving the use of a title or escrow company chosen by the buyer.

• AB 1160 by Assemblyman Paul Fong, D-Cupertino to require mortgage loan documents to be translated into the language the verbal negotiations were conducted. Mortgage documents would be translated into Spanish, Chinese, Tagalong, Korean and Vietnamese languages.

Source for this article: http://www.centralvalleybusinesstimes.com/stories/001/?ID=13305

C.A.R.’s 2010 Housing Market Forecast released

C.A.R.’s 2010 Housing Market Forecast released

The median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 this year, according to C.A.R.’s “2010 California Housing Market Forecast,” presented today at CALIFORNIA REALTOR® EXPO 2009 in San Jose. Sales for 2010 are projected to decrease 2.3 percent to 527,500 units, compared with 540,000 units (projected) in 2009.

“California’s housing market continued its strong sales rebound this year, resulting from the continued pace of distressed properties coming to market,” said C.A.R. President James Liptak. “This follows two years of double-digit sales declines in 2006 and 2007. Looking ahead, we expect sales to moderate to a more sustainable pace.”

“After experiencing its sharpest decline in history, we expect the median price to rise modestly next year,” Liptak added. “2010 will mark the beginning of the ‘new normal’ for California’s housing market. This ‘new normal’ likely will feature a steady stream of sales driven by distressed properties in the low end of the market, coupled with moderate home-price appreciation.”

“With distressed properties accounting for nearly one-third of the sales in 2010, inventory will be relatively lean, under six months during the off-season months, and a roughly four-month supply during the peak season,” said C.A.R. and Vice President Leslie Appleton-Young. “We expect the median price to decrease slightly through the remainder of 2009 and into next year, then rise before leveling off next summer. For the year as a whole, home prices are forecast to reach $280,000. The wild cards for 2010 include foreclosures, loan resets, the labor market, and the California budget crisis, as well as the actions of the federal government.”

More info:
http://www.car.org/media/pdf/econpdf/10-07-09Forecastexpo-FINAL.pdf

LOAN MODIFICATION ATTORNEYS UNDER INVESTIGATION

LOAN MODIFICATION ATTORNEYS UNDER INVESTIGATION

The State Bar of California has recently launched numerous investigations against attorneys for misconduct related to loan modifications. In a rare move, the State Bar has released the names of 16 attorneys under investigation, by opting to waive investigation confidentiality in favor of public protection. These attorneys have allegedly taken fees for promised services, but failed to perform those services or even communicate with their clients who face the possible loss of their homes. Their non-attorney staff may also be under investigation for unlawfully practicing law.

Not all attorneys engaged in loan modifications are unscrupulous. However, this announcement from the State Bar serves as a good reminder for home owners to be careful when dealing with attorneys and others for loan modifications. Scam artists may intentionally associate or affiliate themselves with attorneys in an attempt to lend credence to their fraudulent schemes. The list of attorneys currently under investigation is available at http://calbar.ca.gov/state/calbar/calbar_generic.jsp?cid=10144&n=96395.

Deferred Sales Trust (DST)

How the DST Works?

The DST is a tax deferral tool. You transfer property ownership to a dedicated trust, administered by a third party trustee. The DST sells the property to the buyer. The funds of the sale are disbursed by a third party administrator in DST payments, per the terms of your customized DST agreement.

The DST is a contract between you and the dedicated third party trustee to disburse DST payments to yourself, your trust, or your beneficiaries.

You do NOT pay taxes until DST payments begin, and only on the portion that is disbursed. The money in the trust can be invested, providing you with an income stream. Reinvestment of proceeds within the DST trust can fluctuate with the market, depending on your investment choices.

•IRS compliant tool, supported by the Estate Planning Team
•Alternative to 1031 Exchange
•Defers 1245 Depreciation Recapture
•Private Letter Ruling (Tax Code: IRC 453)
•Like an interest free loan from the IRS

I am inviting you to NuVision Real Estate Network tonight
for a presentation on DST and opportunities to ask questions
and see how DST may benefit you.

NuVision Real Estate Club
Tuesday, September 8, 2009
7pm – 9pm
Location: COLDWELL BANKER New Century
960 E. Las Tunas Dr, San Gabriel, CA 91776
Website: http://www.rudylk.com/real-estate-investors.html

DST Benefits.
•Provides income stream – Flexible income payments through an installment method negotiated in a customized DST contract.

•Defers capital gains tax – Defers taxes until receipt of installment note payments.

•Asset diversification and growth – Proceeds from the sale of your asset can be diversified among investments with the potential for capital appreciation and dividends within the DST.

•Income Flexibility – Installment note payments are disbursed to you, your trust, or your beneficiaries. Payments are secured by the Trustee of the DST, directly against DST assets.

•Like an interest free loan from IRS – With an IRS tax deferral, you can invest the money you would have immediately paid in taxes through your DST lifetime.

I am inviting you to NuVision Real Estate Network tonight
for a presentation on DST and opportunities to ask questions
and see how DST may benefit you.

NuVision Real Estate Club
Tuesday, September 8, 2009
7pm – 9pm
Location: COLDWELL BANKER New Century
960 E. Las Tunas Dr, San Gabriel, CA 91776
Website: http://www.rudylk.com/real-estate-investors.html

Why I Invest in VICTORVILLE

Top Reasons why I invest in Victorville – California:
(Other than POSTIVE CASFHLOW and
it’s located in California, the 7th largest economy in the world!!!)

From 2001 to 2006 Victorville’s population grew from 61,500 to 95,145, and reached the 100,000 mark in 2007.

Victorville issued more than 3,000 residential development building permits in 2006—surpassing the number of permits ever issued in one year.

Approximately 60,000 Victor Valley residents commute out of the area, creating an eager, ready workforce for new local companies.

The USA’s second longest commercial runway is at Victorville’s Southern California Logistics Airport (SCLA).

Victorville’s more than 90,000-acre Redevelopment Project Area is the largest redevelopment project area in California.  

Business-friendly, family-friendly Victorville boosts two municipal golf courses and 20 parks. Plenty of sport fields and teams for youth to adults.

Seven of Victorville’s public schools score above 800 on the State of California’s Academic Performance Index (API).

Learn more about Victorville at: http://www.victorvillecity.com

To get listings of homes for sale and
List of Bank Owned Properties in Victorville,
Please go to my website: http://www.HomeBuyersForm.com

IRS to mine payment data on mortgages

IRS to mine payment data on mortgages

The Internal Revenue Service (IRS) will study whether it should make greater use of data on mortgage-interest payments provided to it by banks. The program, which searches for inconsistencies between mortgage payments and income, is currently used to send notices to non-filers who it believes should have filed a return. It could be used to target for audits individuals who report less income than they paid in mortgage interest.

The move will expand a regional research project on mortgage interest to a nationwide level by December 2011. Initiatives such as these typically involve examination of a small number of tax returns to evaluate new enforcement strategies.

According to the Treasury inspector general, tens of thousands of homeowners who paid more than $20,000 in mortgage interest in 2005, the latest tax data available when the Treasury inspector general’s office began its audit last year, either didn’t file a tax return or reported income that appears insufficient to cover their mortgage interest and basic living expenses.

==

Source: Wall Street Journal Online
http://online.wsj.com/article/SB125176078680774177.html
By MARTIN VAUGHAN

WASHINGTON — The Internal Revenue Service will expand a program designed to catch tax cheats that searches for inconsistencies between mortgage payments and income.

After prompting from an IRS auditor, the agency will study whether it should make greater use of data on mortgage-interest payments provided to it by banks. The IRS currently uses such data to send notices to non-filers who it believes should have filed a return.

The data could also be used to target for audits individuals who don’t file tax returns, or who report less income than they paid in mortgage interest, according to a letter released Monday by the Treasury inspector general for tax administration.

The IRS move will expand a regional research project on mortgage interest to a nationwide level by December 2011. Such initiatives, called Compliance Initiative Projects, typically involve examination of a small number of tax returns to evaluate new enforcement strategies.

Howard Levy, a tax attorney with the Cincinnati firm Voorhees Levy, said mortgage-interest data might be the best source of information the IRS has on small-business owners, such as roofers or carpenters, who are paid in cash and don’t report all their income to the IRS.

“That [IRS Form] 1098 might be one of the few trails IRS could pursue to find out if there is income coming in,” Mr. Levy said.

One Republican lawmaker cautioned Monday that the IRS plan could snare taxpayers who have coped with job losses by borrowing or using savings or retirement accounts to make their house payments.

“We shouldn’t presume that these struggling families are tax cheats just because they continue to make their mortgage payments despite losing their income,” said Rep. Charles Boustany (R., La.), the ranking minority member on the House Oversight Subcommittee.

Highly paid former employees of investment banks who lost their jobs in the financial crisis but who, thanks to their savings, are still making their mortgage payments, could also draw scrutiny under the IRS plan, said Tom Ochsenschlager, vice-president for taxation at the American Institute of Certified Public Accountants.

The Treasury inspector general said in a Monday report that tens of thousands of homeowners who paid more than $20,000 in mortgage interest in 2005 either didn’t file a tax return or reported income that appears insufficient to cover their mortgage interest and basic living expenses.

The data for 2005 was the latest tax data available when the Treasury inspector general’s office began its audit last year.

Based on a sample of these returns, nonfilers and potential under-reporters identified by the inspector general could have owed a combined total of $1.4 billion in tax, penalties and interest, the auditor said.

Banks report data on mortgage interest paid by individuals to the IRS and to the homeowner, using IRS Form 1098.