Landlord Law Requires Disclosure

Landlords have a legal responsibility to disclose to a potential tenant if there has been a Notice of Default filed on the property.   


Over the years I have had a lot of working experience with both landlords and tenants.  What I have found is that some landlords feel disclosure is not necessary if their intention is to catch up the payments and reinstate the loan.  Their attitude is that it is unnecessary to inform the potential tenant since they are planning to catch up the payments and to keep the property.  Unfortunately, as most of us know, financial stress can lead to one-sided thinking and that is why this law has been established.


Under current law, if the landlord has received a Notice of Default,  it must be disclosed to the potential tenant, in writing ,before the tenant enters into a contract with the landlord. If the Notice of Default has been rescinded, then no disclosure is required. This law applies to any single family residence and residential units with one to four units.

Landlords in default should know that the law also states that if a landlord violates this disclosure law, the tenant can elect to void the lease. If voided, the tenant can recover one month’s rent or twice the amount of actual damages, whichever is greater, plus all prepaid rent, as well as any other remedies available. If the lease is not voided and the foreclosure sale has not occurred, the tenant may deduct one month’s rent from future amounts owed. The written disclosure notice as provided by statute must be in English, Spanish, Chinese, Tagalog, Vietnamese, and Korean. 

It is also important to note that a property manager will NOT be held liable for failing to provide the written disclosure notice unless the landlord has given the property manager written instructions to deliver the written disclosure to the tenant.

NancyPuder is the broker and owner of Signature Properties, a unique company that specializes in both Real Estate Sales and Property Management on the CentralCoast.  You may contact Nancy at Nancy@NancyPuder.com or (805)710-2415.  She always enjoys hearing from you!

 

 

 

 

The Big Question

 

What does it mean when we hear that home sales are up?  That is the big question from homeowners who purchased their home before the recession and are now thinking of selling.  Many are confused because the media reports upward trends one week and the seemingly same numbers fall the next.

 

 

Homeowners who have been waiting to sell their property are wondering if now is the right time to move forward.   They want to know is if their home value has increased to the point where they can regain at least some of the equity that they lost during the recession.

 

The truth is that it's been a rollercoaster ride for the past year or so, but most professionals in the real estate industry agree that the overall trend is a positive one.  Investors are scrambling to buy right now, but price and location are still a major factor.  

 

It's important to recognize that the numbers reported through the media can be fooling for many reasons.  Figures are often based on national information and sometimes conflict with your own local activity.  Some numbers reference a small faction like new home sales which only represent 6% of the housing market.

 

What to make of all this?  The housing market will be directly affected by the economy.  My opinion is that we are stabilizing, but we do have a way to go before we see any huge increases in value. 

 

It appears that home values have increased on the Central Coast by 5-10 percent over the past few months.  It is yet to be seen, however, if the increase in home values will be sustained and continue to gradually increase throughout 2013.  

 

NancyPuder is the broker and owner of Signature Properties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome! 

 

 

 

2013 Real Estate Tax Update

If you are wondering what happened as a result of the fiscal cliff debate in Congress the past several weeks, here is the bottom line as it pertains to the world of real estate.

• Mortage Cancellation Relief was extended for through 1/1/2014.

• The deduction PMI or MIP (mortgage insurance premiums) for tax payers making below $110,000 is extended through 2013 and made retroactive to cover 2012.
 
• 15-year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012.

• 10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012. 

• Permanent Repeal of Pease Limitations for 99% of Taxpayers Under the agreement so called Pease Limitations that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high income filers.  These limitations will only apply to individuals earning more than $250,000 and joint filers earning above $300,000.  These thresholds have been increased and are indexed for inflation and will rise over time.  Under the formula, the amount of adjusted gross income above the threshold is multiplied by three percent.  That amount is then used to reduce the total value of the filer’s itemized deductions.  The total amount of reduction cannot exceed 80 percent of the filer’s itemized deductions.

• Capital Gains rate stays at 15 percent for those in the top rate of $400,000 (individual) and $450,000 (joint) return.  After that, any gains above those amounts will be taxed at 20 percent.  The $250,000/$500,000 exclusion for sale of principal residence remains in place.

• Regarding Estate taxes, the  first $5 million dollars in individual estates and $10 million for family estates are now exempted from the estate tax.  After that the rate will be 40 percent, up from 35 percent.  The exemption amounts are indexed for inflation.

Nancy Puder is the broker and owner of SignatureProperties, a real estate sales and management company in Arroyo Grande, CA.  You may contact Nancy at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!

 

 

 

 

All Short Sales Are Not Alike

 

The  real estate market is finally on an uptrend and buyers are enthusiastically back in the game. Many homeowners, though,  have mortgages that are still higher than the current value of the  home.  For those "underwater" homeowners who need to sell,  the short sale process is an option, but should be approached carefully.

 

If the mortgage is an FHA loan,  the  U.S. Dept. of Housing and Urban Development(HUD) requires a specific process be followed in order to be considered for a short sale.  The homeowner MUST be the one to  initiate the request.  The lender will then begin the process of "approval to proceed" with a short sale and this takes approximately 30-90 days.  During this period, the homeowner's situation is reviewed for other home retention options.

 

With FHA loans, you do not have to have an offer or a listing agreement to begin the process.  If  you are unsure if  you have an FHA loan,  simply call the customer service number on your most recent statement and they should be able to give you the information.  If you have decided to sell, let them know that you would like to begin the process of being accepted for a short sale.

 

The lender will then give you instructions on how to proceed.  In all short sale scenarios, a hardship letter will be required along with proof of income, recent bank statements and a list of expenses and other documentation that the lender will request.

 

It is important to work with a real estate agent who understands the short sale process and has successfully navigated sellers through the process of getting short sale approval.  Short sale approvals are NOT automatic and are sometimes denied.   The right Realtor can greatly increase your chances of getting your short sale approved.   In addition, the right Realtor can make all the difference in how much stress and time is involved on your part during this tedious process.

 

Nancy Puder is a Short Sale Expert and the broker and owner of Signature Properties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415.
Your calls are always welcome!

 

Act Now to Prevent Loss of Mortgage Deduction!

 

Whether you are a current homeowner or would like to be one soon,  you should know that Congress, as part of their negotiations on avoiding the "Fiscal Cliff," has made direct references to "closing loopholes" and "limiting deductions" as a way to raise revenues.  It is clear that the mortgage interest deduction (mid) is high on this list of revenue raisers.

 

It is important for the public to know that losing the mortgage interest deduction  (mid), would cost homeowners on the average, almost $4000 per year.  This disproportionately affects the middle class because a larger proportion of the middle class takes the deduction.  Almost 90% of homeowners who take this valuable deduction make less than $200,000 per year and are just an average middle class family.

 

In addition to taking away the biggest deduction that most homeowners have, I believe that it would also significantly stall the housing recovery.

 

We should all be concerned about losing this important tax deduction.  Please call (202) 224-3121 today and let Congress know that you do not want them to reduce or remove the mortgage interest deduction.  This should be done now and considered urgent.  You may also go to www.KeeptheMID.com for more information and to help get the word out.

 

Nancy Puder is the broker and owner of SignatureProperties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415. Your calls are always welcome!

 

 

 

 

Housing Expectations for 2013

 

With the new year approaching fast, many are wondering what to expect in the real estate market in 2013.  A long-awaited level of excitement has been building over the past several months and there is an undeniable renewed energy in the real estate market today.

 

Buyer confidence is definitely back and multiple offers are common on some of the most desireable properties.  Sellers are enjoying slight to moderate price increases and getting ready to put their homes on the market.

 

Mortgage rates remain extremely low and lenders have loosened some of the regulations on the "flipping" of homes which is great news for investors.

 

CoreLogic reported Monday that October prices increased  by 6.3 percent in October 2012, the biggest increase since June 2006 and the eighth consecutive increase in home prices.

 

All in all, I am expecting a great real estate market in 2013 with lots of new opportunities for buyers and sellers.  I'm not worried about what the government will decide about the "fiscal cliff" and I am quite optimistic about what 2013 will bring.  

 

If you are thinking of selling or buying,  it would be my pleasure to help you plan your stategy for a successful year in 2013. Just call or email me today.   I always enjoy hearing from you!

 

Nancy Puder is the broker and owner of SignatureProperties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!

 

 

 

2013 Law Helps Distressed Homeowners

A new law, effective January 1, 2013 will help to protect distressed homeowners from losing their homes.  The California Homeowner Bill of Rights is aiming to help avoid foreclosure wherever possible in an effort to stabilize California’s housing market.

 

Most of us have heard stories of a home being foreclosed upon while the homeowner was in the middle of a loan modification or short sale.  One of the reasons for this was that the bank representative and the foreclosure department were not communicating with each other at all.  The homeowner felt "safe" because they were communicating with the bank on a regular basis.  Unfortunately, because the different departments of the bank were not speaking to each other, the result was that the home foreclosed.

 

This  new law will generally prohibit lenders from engaging in this practice which is referred to as  dual tracking.  The best part of the new law, in my opinion, is that it provides for one single point of contact at the bank for borrowers seeking foreclosure prevention alternatives such as a loan modification, short sale or deed-in-lieu foreclosure. 

 

The new law generally pertains to owner-occupied properties with one-to-four residential units, with certain exceptions.  To view a more detailed discussion of the California Homeowner Bill of Rights, it is available at http://www.car.org/legal/miscellaneous-contacts/realegal-chart/2012-realegals/sept28revised/.

Assembly Bill 278 and Senate Bill 900 (codified as Cal. Civil Code §§ 2923.5 et seq.) (effective January 1, 2013).

 

Nancy Puder is the broker and owner of SignatureProperties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!