Barbara Miller
We are proud to announce PMZ’s Barbara Miller has been named honoree of the “Stanislaus County Outstanding Woman Award” for 2010. Barbara will be honored on March 13 at the Stanislaus Counity Commission for Women’s annual dinner with several other award recipients. Congratulations to Barbara for her recognition!
Stanislaus women’s commission to recognize 17 as outstanding – The Modesto Bee, February 28, 2010
The Federal government’s best deal for home buyers is no longer a best kept secret. Founded in 1949 to spur home sales and development in rural areas, the US Department of Agriculture’s direct and guaranteed rural housing loans today are just about the only place in America you can get a mortgage with no money down at competitive rates.
As more and more suburban and exurban buyers figured out how to qualify and an infusion of stimulus funds made more direct and guaranteed loans available, the program doubled its volume last year, making 27,871 loans for the year. Stimulus money paid for 84,021 loans. More
Central Valley and Bay Area Real Estate Information and Services at PMZ.com
Lodi, CA — On January 6th, PMZ’s own Rose Marie Mendonca and Pam Harmon were honored for their contributions to the real estate community during a luncheon at the Woodbridge Country Club. The Lodi Association of Realtors is an organization serving the Realtor community, with over 2,200 members.
Harmon was honored as the 2009 “Realtor of the Year”, an award given to an agent who exemplifies ethics, principals and good real estate practices among her fellow Realtors and clients.
Serving the Central Valley for the past two decades, Pam has worked tirelessly to help her clients realize their dream of home ownership. And has given herself to many charitable organizations, including working on the Modesto Gospel Mission Board of Directors, the LAR’s “Master’s Club”, in addition to various other local service clubs.
Pam was surprised and honored to receive this distinction. “It’s very humbling to be recognized by your peers for such an honor. Having the respect of my colleagues, and being recognized for my passion for real estate means a great deal.”
Surrounded by family, friends and her real estate team, Pam’s recognition for years of tireless service to her clients, community and agents was an honor that came as a pleasant surprise. “I was so excited to have my friends and family be a part of this with me. I love what I do, and it means so much to be honored for doing what I love.”
Rose Marie Mendonca was inducted into the LAR’s Hall of Fame during the event. A longtime Realtor, Mendonca was honored for her decades of service to her profession, and one of the true trailblazers in Central Valley real estate.
Mendonca has been serving San Joaquin County real estate for just shy of 35 years. During that time, she has been honored with many distinctions. But this honor means a little extra.
“I am grateful my accomplishment have been acknowledged” Mendonca stated. “I’m also glad I’m still around to enjoy it! Mike (Zagaris) wrote a wonderful letter congratulating me. Having him and my fellow agents in attendance was a great feeling.”
The Hall of Fame Award has been given traditionally to retired or semi-retired agents. Rose Marie is neither of those, which she felt made the honor that much more special.
“I was so glad to have been given an honor like this as an active agent. I guess that means my peers feel that I deserve this honor. It feels great!”
Rose Marie Mendonca and Pam Harmon honored by the Lodi Association of Realtors at a luncheon on January 6, 2009.
Despite the economy’s improvement and prodding from Congress, banks don’t seem ready to open their purse strings just yet. Nationally, mortgage approval standards are tightening. The data comes from a quarterly survey the Federal Reserve sends to its member banks. The Fed asks senior bank loan officers around the country whether “prime” residential mortgage guidelines had tightened in the last 3 months. For the period July-September 2009:
Just one bank said its guidelines had loosened. Combine the Fed’s survey with recent underwriting updates from the FHA and from Fannie Mae and it becomes clear that mortgage lenders are much more cautious about their loans than they were, say, 2 years ago. Today’s borrowers face a host of hurdles including:
In other words, mortgage rates may stay low into 2010, but that won’t matter to homeowners that don’t meet minimum eligibility standards. With each passing quarter, that list gets smaller. Therefore, if you’re on the fence about whether now is a good time to buy a home, remember that, along with an increase in mortgage approval standards, home values are rising, too. Acting sooner is probably better than acting later.
Homebuyer Tax Credit Update!
On November 6, 2009, President Obama signed a bill to extend the tax credit for first-time homebuyers (FTHBs) through June 30, 2010. The bill also opens up opportunities for others who are not buying a home for the first time.
To learn what the new tax credit means to you and your clients, take a look at the concise overview below.
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.
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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.
In addition, you may be able to benefit from additional housing related provisions, including the following:
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Tax Incentives to Spur Energy Savings and Green Jobs
This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.
Landmark Energy Savings
This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.
Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing
This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 
to increase energy efficiency, including new insulation, windows, and frames.
Expanding Housing Assistance
This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.
As always, if you have any questions about your specific situation or would like to discuss how you may benefit from this program, please call or email me. I’ll be happy to sit down with you.
“Your Partner In Success!”
Tony Frerking
Sr. Mortgage Consultant
PMZ Home Loans
1600 N. Carpenter Rd Ste. A-1
Modesto CA 95351
Methods of contact:
Direct: (209) 404-2200
Fax: (888) 345-2768
Contact Via Skype / Skype name = aplynow
Congress both extended and expanded the First-Time Home Buyer Tax Credit program Thursday. The White House says the President will sign it into law today. The up-to-$8000 tax credit’s expiration date has been pushed forward to spring, requiring homebuyers to be under contract by April 30, 2010, and to be closed by June 30, 2010. The program’s basic eligibility requirements remain the same:
The new law includes some notable updates, however. For one, the definition of “first-time home buyer” has been expanded to include most homeowners with at least 5 years in their current home. “Move-up” buyers like these are now eligible for IRS tax credits, but with a cap at $6,500. This means that you don’t have to be a true first-time home buyer to claim the “first-time home buyer tax credit”. Other eligibility changes include:
And remember, the First-Time Home Buyer program grants a tax credit as opposed to a deduction. This means that a tax filer would receive a cash payment of $2,000 from the U.S. Treasury if his “normal” tax liability totals $6,000 and he was eligible for all $8,000 available under the new law. The complete list of qualifying criteria is posted on the IRS website. Be sure to review it with a tax professional to determine your eligibility. Then mark your calendar for April 30, 2010. It’s 5 months away.
The housing market continues to steam forward. As reported by the National Association of Realtors®, the Pending Home Sales Index posted its 8th consecutive monthly gain in September. It’s the longest winning streak in the history of the index and Pending Home Sales are now at their highest levels since December 2006.
A Pending Home Sale is a home under contract to sell, but not yet closed. It’s the precursor to an Existing Home Sale. Trade group data shows that nearly 80 percent of “pending” homes close within 2 months. The majority of those remaining close within months 3 and 4.
When the Pending Home Sales Index rises, it tells us that market activity has picked up. September’s data confirms what we’ve been noticing since February — the Buyers Market is ending. With more homes under contract in the marketplace, homebuyers typically face one or more of the following:
1. Competitive, multiple-offer situations
2. Reduced purchase price leverage over sellers
3. Fewer seller concessions
Therefore, if you’re buying a home in the next several months, know that the 8-month run in Pending Sales will lead to a run in closed sales. It should result in higher home prices, too . Indeed, we’re already seeing it.
Brown Recommends 5 Tips to Avoid Being Scammed
Attorney General Edmund G. Brown Jr.
More information is available at the Attorney General’s special loan modification website: http://ag.ca.gov/loanmod/index.php
Mortgage rates are higher after the Federal Reserve released the internal notes of its September 22-23, 2009 meeting. Known as the ”Fed Minutes”, the report details the conversation and cross-currents that led to the Federal Reserve’s decision to vote “unchanged” on the Fed Funds Rate after its last meeting. The Fed Minutes are the lengthy companion to the more famous, succinct post-meeting press release. As a comparison:
The extra level of details is a big deal because Wall Street is perpetually in search of clues about what the Federal Reserve is going to do next. In the past week, multiple Federal Reserve members hinted that the Fed Funds Rate may rise as early as April 2010. Fed Chairman Ben Bernanke even alluded to it, too. The minutes revealed that the economy may improve even faster than was previously expected, too.
These acknowledgements are part of the reason why mortgage rates are up. Because the Fed Funds Rate rises to accommodate a growing economy, the prospect of economic recovery is drawing money into the stock market and away from mortgage-backed bonds. Less demand for bonds means a lower prices which, in turn, leads to higher rates.
For the seventh consecutive month, foreclosure activity in the U.S. was dominated by a tiny subset of states. As reported by RealtyTrac.com, more than half of September’s foreclosure-related activity occurred in just 4 states:
These states represent just 22.05 percent of the total U.S. population. Overall, foreclosures are up 29 percent from September 2008 and, while, the data seems negative, defaults are creating some interesting buying opportunities.
Foreclosed homes often sell at a discount as compared to non-foreclosed homes. Cheap prices, low mortgage rates and willing buyers have helped to spur home sales in many U.S. markets. In August, “distressed homes” accounted for one-third of all existing home sales. That said, buying foreclosures isn’t for everyone.
First off, foreclosed homes are often sold “as-is” and may be in perfect condition, or may be inhabitable. If the property falls into the latter category, it’s important to get estimates for the work needed to make the home livable. Suddenly, the home may not seem like such a “steal”. And, secondly, buying a home in foreclosure can be a 3-month process or more. For some people, this is just too long.
Buying a home in foreclosure is fundamentally the same as buying a “regular” home — there’s a contract and a closing. But most of the steps in between are different. Read the complete foreclosure report, plus take a peek at foreclosure heat maps on the RealtyTrac website. If you like what you see, talk to your real estate agent about what to do next.
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