Crazy Day of Trading

Yesterday, if you aren't aware of how volatile the market was, a big error occurred.  Someone pushed the wrong button on a sell order and the market just went haywire.  The fixed it, but boy, what a ride.  Today, we are currently down 3 basis points for the day, but were much higher this morning.  There was an alert to lock today, however, if you aren't closing escrow in the next to weeks or so, floating may prove to be the best option.

Your Eyes, Ears and Voice in Mortgage Finance,

Jeff Eisenberg
http://www.somloans.com/
http://www.loanmanjeff.com/
jeff@somloans.com
661.964.2600

Loan Modifications and the ramifications to your credit

Below is a link to an article that explains how a loan modification will effect your credit scores.  Very Interesting.


Loan Modifications & Credit - It’s All In The Code

Posted using ShareThis

Jeff Eisenberg
Broker/Owner
Southern Oaks Mortgage
http://www.somloans.com/
http://www.loanmanjeff.com/

Assembly Bill No. 183 - California Tax Credit $10,000 for First-Time Buyers

This information is taken right from the California State Franchise Tax Board or this link:  http://www.ftb.ca.gov/individuals/New_Home_Credit.shtmlGeneral

Information: These tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011. Additionally, these tax credits are available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010. The purchase date is defined as the date escrow closes. Taxpayers may apply for the tax credits if they have entered into a contract before May 1, 2010, as long as escrow closes on or after May 1, 2010.


These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over.

The total amount of allocated tax credit for all taxpayers may not exceed $100 million for the New Home Credit and $100 million for the First-Time Buyer Credit. However, since many taxpayers will not be able to utilize the entire tax credit, the legislation specifies that the $100 million cap for the New Home Credit will be reduced by 70 percent of the tax credit allocated to each buyer and the $100 million cap for the First-Time Buyer Credit will be reduced by 57 percent of the tax credit allocated to each buyer. For example, if a taxpayer is allocated $10,000 for the New Home Credit, the $100 million cap for the New Home Credit will only be reduced by $7,000. If a taxpayer is allocated $10,000 for the First-Time Buyer Credit, the $100 million cap for the First-Time Buyer Credit will only be reduced by $5,700. The 70 and 57 percent reductions do not impact the amount that can be claimed by the taxpayer.

We will allocate the tax credits on a first-come, first-served basis.

Only one tax credit is allowed per taxpayer. If a taxpayer qualifies for both tax credits, the law specifies that we will allocate the amount under the New Home Credit.

Taxpayers will not be eligible for either tax credit if any of the following apply:

The taxpayer was allowed a 2009 New Home Credit.

The taxpayer is under 18 years old. (A taxpayer who is married as of the date of purchase will be considered to be 18 if the spouse/registered domestic partner (RDP) of the taxpayer is 18 or older on the date of purchase.)

The taxpayer or the taxpayer’s spouse/RDP is related to the seller.

The taxpayer qualifies as a dependent of any other taxpayer for the tax year of the purchase.

New Home Credit: A qualified principal residence, for purposes of the New Home Credit, must:

Be a single family residence, either detached or attached. This can be a single family residence, a condominium, a unit in a cooperative project, a house boat, a manufactured home, or a mobile home. A home constructed by the taxpayer is not eligible since the home has not been "purchased."

Have never been occupied. Sellers must certify that the home has never been occupied in order for a taxpayer to receive an allocation of the credit.

Be eligible for the California property tax homeowner’s exemption.

Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.

Tax credit allocation:

A Certificate of Allocation will not be issued if:

The seller does not certify the home has never been occupied.

We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.

We receive the application or reservation request after the total tax credits available have been allocated.

FTB's determination may not be protested or appealed.

First-Time Buyer Credit: A qualified principal residence, for purposes of the First-Time Buyer Credit, must:

Be a single family residence, either detached or attached. This can be a single family residence, a condominium, a unit in a cooperative project, a house boat, a manufactured home, or a mobile home. A home constructed by the taxpayer is not eligible since the home has not been "purchased."

Be eligible for the California property tax homeowner’s exemption.

Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.

A first-time buyer is any individual (and the individual’s spouse/RDP, if married on the date of purchase) who did not have an ownership interest in a principal residence, either in or out of California, during the preceding 3 year period ending on the date of the purchase of the qualified principal residence. If the buyer is married on the date of purchase and either the buyer or the buyer's spouse/RDP had an ownership interest in a principal residence during the preceding 3 year period, the buyer does not qualify for the First-Time Buyer Credit even if the spouse/RDP is not going to be on title.

Tax credit allocation:

A Certificate of Allocation will not be issued if:

We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.

We receive the application after the total tax credits available have been allocated.

FTB's determination may not be protested or appealed.

Applications: We will accept applications by fax only beginning May 1, 2010. Do not use the 2009 application. We will post more information by May 1, 2010.

Reservations: Taxpayers who qualify for the New Home Credit may, but are not required to, reserve a tax credit prior to the close of escrow. Reservations will become important as we near the $100 million cap for homes that may not close escrow before the cap is reached, as a reservation will "hold the taxpayer's place in line" until 2 weeks after escrow closes. To reserve a tax credit, the taxpayer and seller need to complete, sign, and fax to us a reservation request to certify that they have entered into an enforceable contract on or after May 1, 2010, and on or before December 31, 2010. A copy of the signed contract must be included with the reservation request. Taxpayers who reserve a tax credit still need to fax an application and a copy of the settlement statement within 2 weeks after the close of escrow. Taxpayers may not reserve a tax credit if the contract was entered into before May 1, 2010. We will post the reservation form and details about the process by May 1, 2010.

If you are only applying for the First-Time Buyer Credit, you will not be able to reserve the tax credit before escrow closes.

Claiming the tax credit:

The taxpayer must receive a Certificate of Allocation from us to claim the tax credit on their California personal income tax return. The Certificate of Allocation will state the maximum amount the taxpayer can claim listed by tax year.

The taxpayer should refer to the 2010 New Home / First-Time Buyer Credit Publication for instructions on claiming the tax credit (the publication will be available by December, 2010).

Special rules apply to married/RDP taxpayers filing separately, in which case each spouse/RDP is entitled to one-half of the tax credit, even if their ownership percentages are not equal. For 2 or more taxpayers who are not married/RDP, the tax credit amount will have already been allocated to each taxpayer occupying the residence on their respective tax credit allocation letter.

If the available tax credit exceeds the current year net tax, the unused tax credit may not be carried over to the following tax year.

The tax credit may not reduce regular tax below TMT.

The tax credit is not refundable.

Any disallowance of the tax credit may not be protested or appealed.
 
For more information, please email me at jeff@somloans.com
http://www.somloans.com/
http://www.loanmanjeff.com/

Interesting information regarding our economy and interest rates!

Thought this page in the paper was an interesting read!

---

The Signal
03 Apr 2010
From Jeff Eisenberg

Your Eyes, Ears & Voice in Real Estate Finance.

jeff@somloans.com

www.somloans.com

www.loanmanjeff.com

Short Pays!

Short pays can be a nightmare.  I just had a client who bought a short pay from a well known "Big Bank" and this is what happened......  The listing agent got the approval from the bank and this particular home had two loans, a 1st and a 2nd.  The approvals for both were sent over in an email to the agent, but the agent didn't see that the 2nd approval was right behind the 1st approval, so escrow has been trying to get this bank to send something in writing to show that the 2nd was approved as well.  The bank was tellling her that it would take 2 days to get an approval and 2 days to get it in writing.  We were already approaching the close date.  Finally, after much research, the bank said that the approval on the 2nd was sent weeks ago with the 1st approval.....My point here is that agents, escrow and the banks need to review all pages of items sent to them before creating havoc.  The agent should have noticed that approval on the 2nd in the first email, the bank should have known that it was in that email and we would have all been in a better place.  Nothing is worse than scrambling around trying to get things rushed the day or two before close of escrow.  So all I have to say is communication, communication, communication.......It would make all our lives so much easier!  One more tip for this banks is that they should have one contact person that handles everything regarding each property.  Instead, they have many folks getting involved and the more involved, the less each seems to know.....

The New Good Faith Estimate for 2010!

Okay, our wonderful Government just instituted a new Good Faith Estimate that all brokers and banks have to begin using as of 1/1/2010.  This estimate is supposed to help take any confusion out of the consumers mind and help them better compare one lender with another.  Hmmmm!  Not so sure that it will work.  Basically it lumps all the fees into one and holds the broker or lender to tolerance levels.  If the fees are more than 10% of what was quoted, the broker/lender will have to eat it.  They are making us quote fees that we have no control over, like escrow, title, etc., but we are still liably.  Okay, so this is what our government wants.  We also were told not to issue a good faith estimate unless we have all six of the following items:  borrower name, social security, loan amount, property address, income and value of the property.  So don't expect to get a written good faith estimate if you are just looking for a pre-approval without a property.  We can tell you or give you something in writing that will give you a rough estimate of the closing costs, but we can't give you an actual good faith until all 6 of those items have been given.

2010 looks to be an interesting year for the mortgage industry.  Loans may take a bit longer at closing because escrow companies are required to rectify any tolerances over that 10% mark and that could delay closing.  For more information on this topic, please contact me at 661.964.2600 or email me at jeff@somloan.com.

Jeff Eisenberg
Southern Oaks Mortgage, Inc.
http://www.somloans.com/
http://www.loanmanjeff.com/
www.twitter.com/loanmanjeff

My latest 6 minute right to the point video - With Bill Clingen

Please click on the link below to watch my 6 minute video with Bill Clingen, an Asset Protection Advisor who talks about life insurance.

http://www.youtube.com/watch?v=PtNUnAZj940

Stay tuned for next month's video, there will be an exciting topic, I promise!

Jeff Eisenberg
Southern Oaks Mortgage, Inc.
http://www.somloans.com/
http://www.loanmanjeff.com/
www.twitter.com/loanmanjeff

Check out my new Video Series

Jeff Eisenberg's 6-minute Right to the Point Video Series......   http://www.youtube.com/watch?v=RJcGNb_T8dE

Great information is on its way......stay tuned.

Jeff Eisenberg
President
Southern Oaks Mortgage, Inc.
http://www.somloans.com/
www.twitter.com/loanmanjeff
http://www.loanmanjeff.com/

Upcoming "Maximizing Your Assets" Panel Discussion with the Experts

On Dec. 19th at Union Bank in Newhall at 9:30 am to 11 am, I will be having a Panel Discussion with Bill Clingen - Asset Protection Specialist, Robert Mansour, Esq. -Estate Planning Attorney, Brad Polak - CPA and none other than myself - Jeff Eisenberg - Mortgage Consultant & Advisor.  We will cover various topics that will relate to issues and concerns in our respective fields in the coming year 2010.  This is not one to miss.  To reserve your seat, please call 661.964.0200 or go to http://www.maximizingyourassets.com/ to register.


Jeff Eisenberg
President
Southern Oaks Mortgage, Inc.
http://www.somloans.com/
http://www.loanmanjeff.com/
www.twitter.com/loanmanjeff.com

Tax Credit for 1st-time Buyers Extended!!!

Tax Credit for Homebuyers




First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.



Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.



Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.



Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.



What are the New Deadlines?



In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.



Tax Credit Versus Tax Deduction



It’s important to remember that the tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.



Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!



Higher Income Caps



The amount of income someone can earn and qualify for the full amount of the credit has been increased.



Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible



Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.



Maximum Purchase Price



Qualifying buyers may purchase a property with a maximum sale price of $800,000.



------------------------



Remember, the new tax credit program includes a number of details and qualifications. For more information or answers to specific questions, please call or email me today.

jeff@somloans.com
http://www.somloans.com/
http://www.southernoaksmortgage.com/
http://www.loanmanjeff.com/
www.twitter.com/loanmanjeff

Mortgage Backed Securities having a GOOD day!

We are up about 44 basis points on the MBS for the day.  We've seen two price improvements throughout the day.  Rumor has it that the government will extend the $8000 tax credit and also make it available to people who already own, but are moving up.  We'll have to see how that pans out, but at least we are moving in the right direction.

For more information, call Jeff Eisenberg  661.964.2600 x 104
http://www.southernoaksmortgage.com/
http://www.somloans.com/
http://www.loanmanjeff.com/  for my  book
www.twitter.com/loanmanjeff

Voted Best in Valencia 2009 for Loan Agent

Press Release


FOR IMMEDIATE RELEASE

Southern Oaks Mortgage Receives 2009 Best of Valencia Award

U.S. Commerce Association’s Award Plaque Honors the Achievement

Southern Oaks Mortgage is located at 25000 Avenue Stanford, Suite 95 Valencia, CA 91355 Jeff Eisenberg, Broker - 661-964-2600 jeff@somloans.com www.somloans.com

WASHINGTON D.C., June 8, 2009 -- Southern Oaks Mortgage has been selected for the 2009 Best of Valencia Award in the Loan Agents category by the U.S. Commerce Association (USCA).

The USCA "Best of Local Business" Award Program recognizes outstanding local businesses throughout the country. Each year, the USCA identifies companies that they believe have achieved exceptional marketing success in their local community and business category. These are local companies that enhance the positive image of small business through service to their customers and community.

Various sources of information were gathered and analyzed to choose the winners in each category. The 2009 USCA Award Program focused on quality, not quantity. Winners are determined based on the information gathered both internally by the USCA and data provided by third parties.

About U.S. Commerce Association (USCA)

U.S. Commerce Association (USCA) is a Washington D.C. based organization funded by local businesses operating in towns, large and small, across America. The purpose of USCA is to promote local business through public relations, marketing and advertising.

The USCA was established to recognize the best of local businesses in their community. Our organization works exclusively with local business owners, trade groups, professional associations, chambers of commerce and other business advertising and marketing groups. Our mission is to be an advocate for small and medium size businesses and business entrepreneurs across America.

SOURCE: U.S. Commerce Association



CONTACT:

U.S. Commerce Association

Email: PublicRelations@us-ca.org

URL: http://www.us-ca.org

Should you shop your loan?

The answer is yes. In a competitive world, shopping your loan could very well save you thousands of dollars, if not more. But here is the catch; the lowest interest rate or the lowest fees doesn’t necessarily mean you are getting the best deal. Key factors could include: recuperation periods, type of loan, prepayment penalties, knowledge of loan products of mortgage professional and future plans. Also, shopping for loans could affect your credit score. Be very careful that when shopping, you don't give out your social security number because if you do, each lender will run your credit.  For more information on this topic, buy the book that is loaded with tips and tricks that will make or break your loan, Makers & Breakers: A Simple Guide to a Successful Mortgage Loan. It can be found at www.loanmanjeff.com or www.amazon.com. For more information about home loans, please call Jeff Eisenberg, President of Southern Oaks Mortgage, Inc. in Valencia at 661.964.2600.




Southern Oaks Mortgage, Inc. is a licensed Broker/Lender with

Dept. of Real Estate Lic#01458657, DRE (916) 222-0770

Reporting your rental properties on Schedule E

If you own rental properties, it’s very important to file a Schedule E with your personal tax returns. This reports the income or loss generated from your rental. This will help show proof that you have experience renting properties. Lenders typically like to see a two year history. Keep current rental contracts on file just in case the lender wants to see them. If you are renting out a home/condo and not reporting the rent on a Schedule E, then the lender cannot give you credit for the income to offset the debt you may show on your credit report, thus making it harder to qualify. For more information on this topic, buy the book that is loaded with tips and tricks that will make or break your loan, Makers & Breakers: A Simple Guide to a Successful Mortgage Loan. It can be found at www.loanmanjeff.com or www.amazon.com. For more information about home loans, please call Jeff Eisenberg, President of Southern Oaks Mortgage, Inc. in Valencia at 661.964.2600.

http://www.somloans.com/

http://www.loanmanjeff.com/

www.twitter.com/loanmanjeff

Southern Oaks Mortgage, Inc. is a licensed Broker/Lender with

Dept. of Real Estate Lic#01458657, DRE (916) 222-0770

Second Homes

Buying a second home is a dream for many folks. The true definition of a second home is a home that one can travel to that will provide a getaway from the daily grind. Well, that is my definition. A lenders definition relates to whether or not it makes sense to consider the other home a second home. The proximity to your current home is a major factor. Is this home near a beach, golf resort, ski resort, lake, river, snow or just considered a getaway city, like Palm Springs? If the answer to this question is no, then the lender will most likely consider it a rental property. For more information on this topic, buy the book that is loaded with tips and tricks that will make or break your loan, Makers & Breakers: A Simple Guide to a Successful Mortgage Loan. It can be found at www.loanmanjeff.com or www.amazon.com. For more information about home loans, please call Jeff Eisenberg, President of Southern Oaks Mortgage, Inc. in Valencia at 661.964.2600.

www.somloans.com
www.southernoaksmortgage.com
www.twitter.com/loanmanjeff

Southern Oaks Mortgage, Inc. is a licensed Broker/Lender with
Dept. of Real Estate Lic#01458657, DRE (916) 222-0770

New $10,000 Tax Credit for New Home Buyers in California

California lawmakers approved a new budget that included a $10,000 tax credit for home buyers, the largest home-buyer incentive ever offered in US history to date. Here's what you need to know. The $10,000 tax credit is for any home buyers that purchase a new home between March 1, 2009 and March 1, 2010.
This is NOT limited to first-time buyers;
There is NO income limitation; and most importantly
You do NOT have to pay it back, as long as you remain in the home for 2 years.
The bill, however, only set aside $100 million for this tax credit, so after 10,000 new homes are purchased, the credit is gone – so don't wait. The credit CAN be utilized along with the new $8,000 first-time home buyer's credit made available by the new Stimulus Plan. This means that if you're a first-time home buyer, and you purchase a qualified new home in California that costs more than $200,000, you'll get $18,000 in tax credits that you do not have to pay back, if you're a first-time home buyer and you purchase a new home that remains your primary residence for three years.It's important to note that qualified home buyers will receive the tax credit, in equal amounts, over 3-years. If your tax credit is $7,500, you will receive a tax credit of $2,500 each year for three years. If your tax credit is $10,000, you will receive a tax credit of $3,333.33 each year for three years. Finally, there is no down payment requirement to receive the $10,000 tax credit, although you will likely have a down payment requirement to secure a mortgage in today's market, at least 3.5% if you use FHA financing. The good news is the Stimulus Plan also restored the higher maximum loan limits of $729,750 for FHA and conventional loans for 2009. This is largest home buyer tax credit ever offered in US history, let alone California. If you have even been thinking about buying a new home in California, give us a call before it's too late. Don't miss out on this great opportunity to buy the new home of your dreams.

Sincerely,

Jeff Eisenberg

Southern Oaks Mortgage, Inc.

661.964.2600

jeff@southernoaksmortgage.com

http://www.somloans.com/

http://www.loanmanjeff.com/

Buying a Home? New Appraisal Rules Could Impact You

In the last several years, significant changes have impacted financing for residential real estate. The issue I would like to bring to your attention today could impact the value that will be used to underwrite your loan.The Home Valuation Code of Conduct (HVCC), effective May 1, 2009, governs the way in which appraisals must be ordered for all residential real estate transactions, where the loans are sold to Fannie Mae and Freddie Mac.The purpose of this new regulation is to ensure that the value of the home - on which a mortgage is being issued - is arrived at both independently and objectively.While I have traditionally been able to order appraisals directly from local appraisers whom I know are familiar with the neighborhood or region, this legislation will prohibit this practice and will instead randomly assign an appraiser, potentially to someone not in the immediate area. The new legislation also eliminates my ability to discuss the property with the appraiser.As a result, the task of providing information that will help the appraiser arrive at an accurate value now falls upon the seller and the real estate agents involved.While your real estate agent may already be providing this assistance, I thought it would be appropriate to stress how important this becomes in light of HVCC.If any issues occur in arriving at a fair value for your home, I will work with you to resolve them. While I don't expect any problems, being prepared is always a best practice.
Sincerely,
Jeff Eisenberg
Southern Oaks Mortgage, Inc.
661.964.2600
jeff@southernoaksmortgage.com
www.somloans.com
www.loanmanjeff.com

Housing Starts and Possible Signs of Recovery!

Housing starts rose sharply to 17% in the month of May. Stocks and Bonds are teetering back and forth like a seesaw. When stocks go up, investors usually take money out of bonds and when stocks go down, they temporarily place them in bonds causing them to improve. Improved bond yeilds means better mortgage rates. As we speak, mortgage bonds are up 19 basis points for the day. Lets hope this continues as rates are getting closer to the high 4's compared to the mid to high 5's over the past week or two.

Visit my site: http://www.somloans.com/
http://www.loanmanjeff.com/
http://twitter.com/loanmanjeff
For all your Real Estate Finance needs!

Just Joined Twitter

http://twitter.com/loanmanjeff

This is my new Twitter blog. If so inclined, please follow. I'm going to be updating it daily (well hopefully if I can find the time between everything else) with current rates and programs available. I will also announce seminars and events that are happening in the industry.

Great News for Rates!

Looks like the Fed did it again! The announced that they will purchase 750 Billion dollars worth of Fannie Mae, Freddie Mac and Ginnie Mae Mortgage Backed Securities as well as an additional $300 Billion of US Treasuries. Wow, they have big pockets. Well this is good news for mortgage rates and we saw a .325 basis points to the fee improvement today. Rates are hovering around 4.5%. Many lenders decided to hold off on improving their rates today because they are already at their capacity of loans in their pipeline. The days ahead will surely be interesting.