Friday, November 13, 2009
Wednesday, October 21, 2009
Foreclousures are more profitable than Loan Modification, per a new report
Mortgage companies are more likely to foreclose on homeowners than modify their loans because they make more money off foreclosures, argues a new report by a consumer advocacy group.
While homeowners, lenders and investors typically lose money on a foreclosure, mortgage servicers do not, says report author Diane E. Thompson, of counsel at the National Consumer Law Center. Servicers are the companies that manage the mortgages and collect payments.
"Servicers may even make money on a foreclosure," she writes. "And, usually, a loan modification will cost the servicer something. A servicer deciding between a foreclosure and a loan modification faces the prospect of near certain loss if the loan is modified and no penalty, but potential profit, if the home is foreclosed."
Thompson attributes this to a system of perverse incentives created by lawmakers and rulemakers in the market, like credit rating agencies and bond issuers. The private rulemakers typically dictate how a servicer can account for potential losses and profits. They hold enormous sway over securitized mortgages, which are owned by investors. More than two-thirds of mortgages issued since 2005 have been securitized, notes the report, using data from the industry publication Inside Mortgage Finance.
In those cases, the servicer is empowered to handle virtually all aspects of the mortgage, from collecting the monthly payments to initiating foreclosure proceedings. While they're obligated to do what's best for the ultimate owners of the mortgage -- the investors -- servicers have some latitude in deciding what course of action to pursue, be it a foreclosure or loan modification.
When a homeowner is delinquent on a mortgage that's been securitized, the servicer must front the late payment to the investors. When a home is foreclosed, the servicer is typically first in line to recoup losses. But if a mortgage is modified, the servicer typically loses money that isn't necessarily recoverable.
"Servicers lose no money from foreclosures because they recover all of their expenses when a loan is foreclosed, before any of the investors get paid. The rules for recovery of expenses in a modification are much less clear and somewhat less generous," she said.
That's part of the reason why the Obama administration created a $75 billion program to limit foreclosures. The money is to be distributed to servicers who successfully modify home loans, with the hope that the incentives to modify outweigh the incentives to foreclose.
Thompson's report outlines eight specific steps to reverse this trend. They include mandating that servicers attempt to modify a loan before initiating foreclosure proceedings and reforming bankruptcy laws so judges can modify distressed mortgages.
Wednesday, September 30, 2009
Tuesday, September 29, 2009
Residential Real Estate: Industry backs extension of $8,000 tax credit
According to a survey from the California Association of Realtors, nearly 40 percent of recent first-time homebuyers said they would not have purchased a home if the federal tax credit for first-time homebuyers was not offered, and 70 percent said it was either “very important” or “most important.”
The $8,000 credit is expiring Dec.1.
“It is clear that the federal tax credit for first-time homebuyers is working, as evidenced by the spike in home sales in recent months,” said CAR President James Liptak. “This tax credit is arguably the most successful strategy employed by the government’s efforts to stimulate the housing market.
“Because the tax credit has helped so many first-time buyers become homeowners, it is critical that Congress extends the credit beyond the Dec. 1 deadline and includes all buyers, not just first-timers,” he said.
“While affordability has improved in California over the past two years, it is still lower than affordability nationally. As a result, the tax credit is an even bigger factor in California compared with elsewhere in the country,” added Mr. Liptak. “Going forward, the credit will be even more important to the housing recovery.”
While the deadline is not until Dec. 1, buyers need to put in their offer by the end of September in order to qualify, according to the National Association of Realtors.
Sen. Johnny Isakson, R-Georgia, and Senate Majority Leader Harry Reid, D-Nevada, introduced Senate Bill 1678 extending credit to June 1, 2010.
***
Analysts are expecting another wave of foreclosures due to the readjustment of many option ARM mortgages.
An adjustable-rate mortgage is a mortgage loan where the interest rate on the note is periodically adjusted.
It can be adjusted for a variety of reasons including rates on one-year constant-maturity Treasury securities, the Cost of Funds Index and the London Interbank Offered Rate.
Adjustable rates take some of the risk from the lender to the borrower and tend to be used when unpredictable interest rates make fixed rate loans difficult to obtain.
Tuesday, July 28, 2009
Huge rise in number of new home sales in June. Another good news for US housing market
Sales of newly constructed single family homes went up by 11% in June to seasonally adjusted annual rate of 384,000 homes. (AP, Yahoo News) The gain over May is more than expected and it is the largest monthly gain over 8 years as buyers took advantage of low prices, interest rates and $8,000 first time home buyer credit.
Sales have risen for three straight months and this gain was much greater than expected by economists. However the new homes sales are 21% below the numbers of a year ago and median home sale price went down by about 6% in the month of June.
Last week, the National Association of Realtor reported that existing home sales increased by 3.6% in June. These are all encouraging news that the housing market is bouncing back. The median home sale price was down by 12% from a year earlier and also down about 6% from May. The lower home prices and interest rates are great news for first time home buyers as they are rushing to take advantage of the $8,000 tax credit.
There were 281,000 new homes for sale in June which represents 8.8 months of supply – the lowest since October 2007. This shortage is good news for home builders as they have significantly been affected by this housing recession as well. If the number falls to under 6 months supply, home builders would be comfortable to start constructions assuming the financial institution would start lending on construction projects.
Sales have risen for three straight months and this gain was much greater than expected by economists. However the new homes sales are 21% below the numbers of a year ago and median home sale price went down by about 6% in the month of June.
Last week, the National Association of Realtor reported that existing home sales increased by 3.6% in June. These are all encouraging news that the housing market is bouncing back. The median home sale price was down by 12% from a year earlier and also down about 6% from May. The lower home prices and interest rates are great news for first time home buyers as they are rushing to take advantage of the $8,000 tax credit.
There were 281,000 new homes for sale in June which represents 8.8 months of supply – the lowest since October 2007. This shortage is good news for home builders as they have significantly been affected by this housing recession as well. If the number falls to under 6 months supply, home builders would be comfortable to start constructions assuming the financial institution would start lending on construction projects.
Wednesday, June 17, 2009
Obama Proposes Regulation of Mortgage Products
By DIANA GOLOBAY
June 17, 2009 11:20 AM CST
President Barack Obama in a speech today unveils his administration’s proposals for sweeping regulatory reform including allowing increased authority for the Federal Reserve, dismantling the Office of Thrift Supervision and regulating certain aspects of mortgage lending.
The proposed regulatory overhaul aims to keep financial institutions honest, transparent and healthy while protecting consumers and the national economy.
“That’s our goal,” he says, according to prepared remarks. “To restore markets in which we reward hard work and responsibility, not recklessness and greed — in which honest, vigorous competition in the system is prized, and those who game the system are thwarted.”
He proposes the creation of new agency to look out for consumers, impose regulations on what kinds of loan products can be offered and how they’re presented. A regulator keeping an eye on the mortgage lending space would be able to hold mortgage brokers to higher standards, stamp out exotic mortgages with hidden, exploding costs, enforce reasonable disclosure of terms, and hold non-bank originators to the same standards.
The proposed overhaul includes sweeping changes to promote free and fair markets and close gaps and overlaps in the regulatory system within and between nations. These changes would bring the operation of financial firms within regulation, dismantle the OTS and require hedge fund advisers to register with the Securities Exchange Commission. They would also mean raised capital requirements among financial firms, regulation of credit default swaps and other derivatives and a requirement that loan originators retain an economic interest in the loans they sell.
The administration also proposes granting the Fed new authority to regulate bank holding companies and firms that pose systemic risk and to require these institutions to adhere to stronger capital and liquidity requirements. The proposals inlcude the creation of an oversight council composed of regulators from across the markets that will coordinate to identify gaps in regulation. The overhaul creates a “resolution authority” similar to what the Federal Deposit Insurance Corp. exercises in the insured banking sector.
Financial regulators missed the forest for the trees, so to speak, in focusing on individual firms outside the context of the whole system. As a result, some institutions grew so large and significant as to signal far-reaching shockwaves through the system if one firm were to fail. Obama proposes requiring regulators to consider the stability of the whole financial system when addressing individual institutions.
“We should not be forced to choose between allowing a company to fall into a rapid and chaotic dissolution or to support the company with taxpayer money,” Obama says. “That is unacceptable. There is too much at stake.”
Thursday, May 21, 2009
Residential solar energy the top investment
Residential electricity rates have grown by an average of 25% over the last 6 years. This is one reason that residential solar energy is growing rapidly. The new 30% federal tax credit has created a dramatic boost to the residential solar energy market. Falling solar panel prices have also added to the financial incentives. In some locations, with combined federal, state and local incentives, the payback on the initial residential solar energy investment can be as short as 6-10 years. Since the beginning of 2009, residential solar energy installations have grown by 50%.
residential solar energy
The economics of residential solar energy
With electric utility rates increasing substantially every year, estimates are that the average homeowner will spend over $100,000 in the next 25 years on electricity. With costs that high it makes sense to turn that expected cost into an investment that yields numerous dividends. Returns on a residential solar energy system can be as high as 20-25%. This figure reflects the lower cost of investing in a solar energy system now - combined with the increase in value to your home. According to the National Appraisers Institute, the value of your home increases 20x the annual savings in electricity. So if you save $1,000, your home value increases $20,000 without increasing property taxes.
Net-Metering and feed-in tariffs
Most residential solar energy systems will be connected to the grid through a meter enabled for net-metering. This means that when your solar panels are generating more power than you are using, the excess power will be fed back into the grid and your meter will actually spin backwards. Your electric utility will give you credit for the energy you generate, deducting money from your bill. In some locations that are using feed-in tariffs, the utility company is required to pay consumers up to 300% more for the power generated. While feed-in tariffs are not currently widespread, you can see the impact they have on consumer demand for residential solar energy. Ask your solar installer if there are feed-in tariffs working in your area.
Residential solar energy - types
Solar photovoltaics - solar panels
When most people think of residential solar energy, they think of electricity and solar panels. Residential solar panel installation can be completed relatively quickly by trained solar installers after an initial consultation and signing of contracts and rebate paperwork. Solar panels can be placed on the roof of your residence or garage, or elsewhere on your property depending on space requirements and shading.
Residential solar hot water heating
The most cost efficient way to implement residential solar energy is through a solar water heater. Because most household energy is used to heat water for showers or laundry or dishwashing, having the sun heat your water for free is a great way to save money. Solar water heaters don't create electricity - they simply collect the heat from the sun and store it in a tank for later use. Solar heating works the same way the hose in your backyard works when it's exposed to a few hours of sunlight. The water gets very hot - typically rising 10 degrees per hour of sunlight. These systems are also fairly simple mechanically. The solar installer who implements these types of residential solar energy systems has a background in plumbing.
Solar water heating is also a great way to heat your pool and spa.
Residential solar energy - hot air
Another extremely simple use of solar energy for your home is a solar hot air collector. A solar collector made out of thin metal and painted black is fastened to the side of the home and air is circulated through it with a fan. Check out the video of the professionally manufactured solar hot air collector made out of used soda cans on the DIY solar page.
Residential solar energy - for cooling
Yet another efficient use of solar energy for your residence is for cooling. A solar attic fan is inexpensive, simple to install and requires no energy to operate. It can significantly lessen the air conditioning required to cool your home in summer by lowering the temperature around 10 degrees.
Residential solar energy - Lighting
Solar lights are inexpensive and simple to install. Solar lighting is a great way to get started with solar energy. There are many different types of solar lights for your garden, pool, or to enhance security. Solar lights are unique because there are no wires and can be placed in remote areas that lack existing power sources.
Passive solar design
Residential solar energy advocates are always quick to emphasize the benefits of passive solar design. Passive solar is truly free energy. Its as simple as it gets
Wednesday, May 6, 2009
12 Personal Finance Lessons To Be Learned From This Recession
12 Personal Finance Lessons To Be Learned From This Recession
Bill Shrink Guy
Everyone I know is sick of this recession, and sick of hearing about this recession. For one, the media’s attention to the global financial situation is depressing. But as many have pointed out, we are in this situation because of our own devices. On the individual level, poor financial and debt management, have exacerbated outside factors such as the housing market collapse and high rates of unemployment. For others, indiscriminate consumer debt has led to a number of individual crises. But in such a climate, there is a lot that can be learned. While it would have benefited everyone to know this several years ago, here are twelve personal financial lessons that can and should be learned during this recession.
Learn How to Plan Ahead
It’s no secret that poor planning contributed to why so many people are currently in untenable financial situations. Don’t Panic. Figure out where you are at, where you want to be and put in place a realistic plan for getting there. The majority of businesses without plans in place before they start operations do not succeed. So if you are serious about creating a way to get ahead, or even just caught up, this step could not be more necessary. Unique circumstances will come up and cause you to stray from your plans temporarily, but structure is necessary in order to monitor your progress, and stay focused.
Learn From Past Mistakes - Then Put it Into Practice
Americans have an average of $10k in credit card debt. In order to identify how you came to be where you are at specifically, take a look at your spending for the last year (or even several years). Then locate what percentage of spending went to each type of expense. Chances are, the figures will be surprising and maybe upsetting at first when, for instance, you realize how much you spent going out to dinner or on entertainment. Figure out a realistic percentage that you would like to reduce your less-than-necessary expenses by, and then work this into your plan. The sense of urgency caused by the current recession can be an impetus to your learning about, and consequently fixing, poor money management practices.
Learn to Understand, Hate and Attack Debt
Prioritize debt. Snowball. Pay off your highest interest rate first. Basic advice, right? The problem is that people have been regurgitating this theory for years, but most do not put it into practice. Paying off debt can be an arduous task, but it can also be quite rewarding. This step requires individuals to plan out their debt and then follow through with attacking it. A plan may seem difficult to stick to at first, but after several accounts are paid off, you’ll be surprised to see how quickly the remaining debt is repaid with more money being allocated to principal in subsequent months. One byproduct of this exercise should be a new understanding of debt – and you will probably learn to avoid credit cards like the plague.
Learning to Distinguish Want vs. Need
After figuring out much money you’ve unnecessarily spent in the past, this should come naturally. I’m not suggesting that you should never go out to eat or splurge on anything ever, just that you implement a higher level of self control. For instance, the term “special occasion,” should have a greater meaning once you decide to get serious about your finances. When you condition yourself to realize that spending $100 on cocktails and dinner when you go out for your third cousin’s coworker’s birthday will mean that you are able to spend $100 less the next month on your aggressive debt repayment, you’re on the right path. In short, consider the opportunity cost of your spending.
Learn to Save – Even if You Start Small
The oldest piece of financial advice relates to saving: put an emergency plan aside (6 – 9 months worth of expenses) should you lose your job. But, does it make sense to service a savings account with a 2-3 % yield, when remaining credit card debt rates of up to 29%? Yes, because it is not wise to forgo saving entirely in order to repay debt. Instead of spending less on debt repayment, save in the form of cutting out extra expenses. The problem for many people is that they live month to month and they don’t develop healthy saving habits until they are in their thirties or forties. Contributions to a savings plan should be recognized as the first of your necessary monthly expenses, so that money saved will never be thought of as money that can be spent. Even if your savings rate starts small, you can always increase in the future.
Learn to Monitor Your Expenses
Scrutinize your current bills – cell phone, internet, credit cards, et cetera. I’d suggest to continually call your service providers to find out if there are better deals available, or if they can do something special for you. These days, customers have more power than ever; for instance, try suggesting that you will go elsewhere if vendors are not able to sweeten existing deals. Using leverage to get a better deal is a time-honored tenet of this more or less ‘free market’. Companies know that it is more cost-efficient to keep an existing client than it is to get new customers, and using this in your argument with customer service may be a way to get reduced pricing, or extra free services.
Learn to Stay on Course
When I first started to cut debt aggressively about a year ago, I found myself able to dramatically reduce my monthly bills and pay down debt at a rate that I never could have imagined. The problem was once I paid about half of my debt down, I found myself at a plateau. It was only after realizing that I had replaced my old expenses with new ones did I start making ground again. My once super-frugal approach to eating out and playing golf only about twice a month became more lax, and this was putting a damper on my ability to repay debt at my preferred rate. It took an evaluation of my recent expenses to see how I had strayed from my plan and to figure out how to get back on it. This is extremely important to keep in mind: be careful not replace some unnecessary expenses with others.
Learn to Take Responsibility
Personal finance is all about being responsible and taking initiative: no one will do these things for you, and learning to manage your finances is not something that you just wake up with one morning. It is every individual’s responsibility to monitor their bills and make sure they are not incurring any unnecessary fees with their banks or credit card companies, and also to monitor their credit score closely. And, if necessary, to repair their own credit. For those that own their own home, now is a great time to refinance and a good credit is imperative to improve your rates; for those looking to buy, knowing what your credit report says is only the first step in understanding what type of interest rate you will likely get. And, of course, the better your credit is, the better your interest rate will be.
Learn How to Get Organized
To those who are not used to monitoring and managing their finances closely, this may sound like a lot of work. But once you get a system in place, it should only take about one hour per week to stay on top of everything. This will include: making sure that credit card due dates are not changing, that rates are not increasing, monitoring activity to your charge accounts, tracking the progress of your overall debt-to-income, and making sure you are always getting the best deals possible. These of course, are just a few of the examples.
Learn to Become Competitive and Creative
One of the most important things to take from a recession is that nobody can not just coast by anymore. For those seldom challenged in the workplace, it would make sense to improve your skill set, continue education, and network now. The medium- to long-term for many, still remains uncertain. For those that have fallen prey to our generation-high unemployment rates, it’s time to reevaluate your previous career and at least start considering other alternatives. In today’s changing and evolving marketplace, dynamic individuals are those which succeed.
Learn to Become a Deal Hunter
While the housing market deflated, prices in most other industries have dropped in the last year as well. If you are serious about improving your personal financial wherewithal, try thinking about buying new as a way to replace old, not to satisfy want. Even better, think about buying slightly used as a way to replace the old. The ‘replacing’ aspect is key. If you need a newer vehicle, try finding a fleet rental and you will be blown away by the potential savings. Even in industries where consumers don’t traditionally haggle for prices, deals can be found with retailers looking to unload stock.
Learn to Diversify
Where is your money going every month, and from where is it coming in? Cash? Currencies market? CDs? Commodities? Residual income? Profit-sharing? Trust fund? Is it possible for you to create a second income stream? In these uncertain times, individuals with contingencies and fall back plans usually fare the best. Think of the old saying, “don’t put all your eggs in one basket”. Always be on the lookout for producing additional income-generating opportunities. For some this might mean getting a part-time job, or taking on freelance work. My parting advice: be wary of get rich quick schemes on Late Night TV.
Bill Shrink Guy
Everyone I know is sick of this recession, and sick of hearing about this recession. For one, the media’s attention to the global financial situation is depressing. But as many have pointed out, we are in this situation because of our own devices. On the individual level, poor financial and debt management, have exacerbated outside factors such as the housing market collapse and high rates of unemployment. For others, indiscriminate consumer debt has led to a number of individual crises. But in such a climate, there is a lot that can be learned. While it would have benefited everyone to know this several years ago, here are twelve personal financial lessons that can and should be learned during this recession.
Learn How to Plan Ahead
It’s no secret that poor planning contributed to why so many people are currently in untenable financial situations. Don’t Panic. Figure out where you are at, where you want to be and put in place a realistic plan for getting there. The majority of businesses without plans in place before they start operations do not succeed. So if you are serious about creating a way to get ahead, or even just caught up, this step could not be more necessary. Unique circumstances will come up and cause you to stray from your plans temporarily, but structure is necessary in order to monitor your progress, and stay focused.
Learn From Past Mistakes - Then Put it Into Practice
Americans have an average of $10k in credit card debt. In order to identify how you came to be where you are at specifically, take a look at your spending for the last year (or even several years). Then locate what percentage of spending went to each type of expense. Chances are, the figures will be surprising and maybe upsetting at first when, for instance, you realize how much you spent going out to dinner or on entertainment. Figure out a realistic percentage that you would like to reduce your less-than-necessary expenses by, and then work this into your plan. The sense of urgency caused by the current recession can be an impetus to your learning about, and consequently fixing, poor money management practices.
Learn to Understand, Hate and Attack Debt
Prioritize debt. Snowball. Pay off your highest interest rate first. Basic advice, right? The problem is that people have been regurgitating this theory for years, but most do not put it into practice. Paying off debt can be an arduous task, but it can also be quite rewarding. This step requires individuals to plan out their debt and then follow through with attacking it. A plan may seem difficult to stick to at first, but after several accounts are paid off, you’ll be surprised to see how quickly the remaining debt is repaid with more money being allocated to principal in subsequent months. One byproduct of this exercise should be a new understanding of debt – and you will probably learn to avoid credit cards like the plague.
Learning to Distinguish Want vs. Need
After figuring out much money you’ve unnecessarily spent in the past, this should come naturally. I’m not suggesting that you should never go out to eat or splurge on anything ever, just that you implement a higher level of self control. For instance, the term “special occasion,” should have a greater meaning once you decide to get serious about your finances. When you condition yourself to realize that spending $100 on cocktails and dinner when you go out for your third cousin’s coworker’s birthday will mean that you are able to spend $100 less the next month on your aggressive debt repayment, you’re on the right path. In short, consider the opportunity cost of your spending.
Learn to Save – Even if You Start Small
The oldest piece of financial advice relates to saving: put an emergency plan aside (6 – 9 months worth of expenses) should you lose your job. But, does it make sense to service a savings account with a 2-3 % yield, when remaining credit card debt rates of up to 29%? Yes, because it is not wise to forgo saving entirely in order to repay debt. Instead of spending less on debt repayment, save in the form of cutting out extra expenses. The problem for many people is that they live month to month and they don’t develop healthy saving habits until they are in their thirties or forties. Contributions to a savings plan should be recognized as the first of your necessary monthly expenses, so that money saved will never be thought of as money that can be spent. Even if your savings rate starts small, you can always increase in the future.
Learn to Monitor Your Expenses
Scrutinize your current bills – cell phone, internet, credit cards, et cetera. I’d suggest to continually call your service providers to find out if there are better deals available, or if they can do something special for you. These days, customers have more power than ever; for instance, try suggesting that you will go elsewhere if vendors are not able to sweeten existing deals. Using leverage to get a better deal is a time-honored tenet of this more or less ‘free market’. Companies know that it is more cost-efficient to keep an existing client than it is to get new customers, and using this in your argument with customer service may be a way to get reduced pricing, or extra free services.
Learn to Stay on Course
When I first started to cut debt aggressively about a year ago, I found myself able to dramatically reduce my monthly bills and pay down debt at a rate that I never could have imagined. The problem was once I paid about half of my debt down, I found myself at a plateau. It was only after realizing that I had replaced my old expenses with new ones did I start making ground again. My once super-frugal approach to eating out and playing golf only about twice a month became more lax, and this was putting a damper on my ability to repay debt at my preferred rate. It took an evaluation of my recent expenses to see how I had strayed from my plan and to figure out how to get back on it. This is extremely important to keep in mind: be careful not replace some unnecessary expenses with others.
Learn to Take Responsibility
Personal finance is all about being responsible and taking initiative: no one will do these things for you, and learning to manage your finances is not something that you just wake up with one morning. It is every individual’s responsibility to monitor their bills and make sure they are not incurring any unnecessary fees with their banks or credit card companies, and also to monitor their credit score closely. And, if necessary, to repair their own credit. For those that own their own home, now is a great time to refinance and a good credit is imperative to improve your rates; for those looking to buy, knowing what your credit report says is only the first step in understanding what type of interest rate you will likely get. And, of course, the better your credit is, the better your interest rate will be.
Learn How to Get Organized
To those who are not used to monitoring and managing their finances closely, this may sound like a lot of work. But once you get a system in place, it should only take about one hour per week to stay on top of everything. This will include: making sure that credit card due dates are not changing, that rates are not increasing, monitoring activity to your charge accounts, tracking the progress of your overall debt-to-income, and making sure you are always getting the best deals possible. These of course, are just a few of the examples.
Learn to Become Competitive and Creative
One of the most important things to take from a recession is that nobody can not just coast by anymore. For those seldom challenged in the workplace, it would make sense to improve your skill set, continue education, and network now. The medium- to long-term for many, still remains uncertain. For those that have fallen prey to our generation-high unemployment rates, it’s time to reevaluate your previous career and at least start considering other alternatives. In today’s changing and evolving marketplace, dynamic individuals are those which succeed.
Learn to Become a Deal Hunter
While the housing market deflated, prices in most other industries have dropped in the last year as well. If you are serious about improving your personal financial wherewithal, try thinking about buying new as a way to replace old, not to satisfy want. Even better, think about buying slightly used as a way to replace the old. The ‘replacing’ aspect is key. If you need a newer vehicle, try finding a fleet rental and you will be blown away by the potential savings. Even in industries where consumers don’t traditionally haggle for prices, deals can be found with retailers looking to unload stock.
Learn to Diversify
Where is your money going every month, and from where is it coming in? Cash? Currencies market? CDs? Commodities? Residual income? Profit-sharing? Trust fund? Is it possible for you to create a second income stream? In these uncertain times, individuals with contingencies and fall back plans usually fare the best. Think of the old saying, “don’t put all your eggs in one basket”. Always be on the lookout for producing additional income-generating opportunities. For some this might mean getting a part-time job, or taking on freelance work. My parting advice: be wary of get rich quick schemes on Late Night TV.
Friday, May 1, 2009
Tax Credit for New Home Purchase
Tax Credit for New Home Purchase
This tax credit is available for qualified buyers who on or after March 1, 2009, and before March 1, 2010, purchase a qualified principal residence that has never been occupied. The buyer must reside in the new home for a minimum of two years immediately following the purchase date.
We will accept applications for allocation of credit by fax only (916.845.9754), starting March 1, 2009; however, we will not send notifications of credit allocation until we have developed procedures. Once we begin processing allocation applications, credits will be allocated on a first-come, first-served basis. We will update this page as soon as we begin mailing credit allocation letters. We plan to begin mailing credit allocation letters no later than May 1, 2009. This delay is necessary to allow us time to develop a system to capture and verify the application information, allocate the credits, and send the credit allocation letters. Please be patient with us and do not send applications more than one time.
Tax credit amounts
California allocated $100,000,000 for this tax credit. Buyers must apply for credit allocation from us. Applications will be reviewed and credit allocations will be made on a first-come, first-served basis. Once $100,000,000 has been allocated, the tax credit will no longer be available. Please check this page for updates on the allocated and remaining credits available.
Total credit allocated: $0
Remaining credit available: $100,000,000
Note: The remaining credit amount displayed above only reflects allocations processed. This amount will be updated once we begin mailing credit allocation letters, which is expected to commence by May 1, 2009. This amount does not include applications that have been received, but not yet processed.
Applications for New Home Credit received, but not yet processed through 4/29/09
As of Total Applications received: Total Credit claimed:
3/4/09 173 $ 1,715,826
3/11/09 711 $ 6,987,515
3/18/09 1,188 $ 11,599,825
3/25/09 1,710 $ 16,647,498
4/1/09 2,624 $ 25,578,709
4/8/09 3,135 $ 30,559,124
4/15/09 3,589 $ 34,939,035
4/22/09 4,199 $ 40,879,872
4/29/09 4,880 $ 47,353,795
Graph that shows the figures in the table above
This reflects the total amount of credit reported on applications received as of the date indicated. This amount has not yet been verified and may include duplicate, incomplete, and invalid applications. This amount is provided for informational purposes and does not reflect the actual amount to be allocated. We will update the amount received, but not yet processed, on this webpage each Friday. As we approach the $100,000,000 limitation, we will update the reported amounts on a daily basis. Keep in mind, that all applications will be processed on a first-come, first-served basis, based on the date received by fax only.
California allows qualified new home buyers a total tax credit amount equal to either five percent of the purchase price or $10,000, whichever is less. Taxpayers must apply the total tax credit in equal amounts over three successive taxable years (maximum of $3,333 per year) beginning with the taxable year (2009 or 2010) in which the new home is purchased.
How to apply
* Within one week (seven calendar days) after the close of escrow:
o The seller must complete Part I of Form 3528-A, Application for New Home Credit, certifying that the home has never been occupied, and provide a copy to the buyer or escrow person.
o The buyer will complete Parts II & III of Form 3528-A.
o The escrow person on behalf of the seller and buyer will fax the completed Form 3528-A to FTB at 916.845.9754, and provide a copy to the buyer.
* Fax is the only delivery method that will be accepted and considered for credit allocation by FTB, as the date and time stamp on the fax will determine the order in which credits are allocated.
* Fax only one completed application per residence with all qualified buyers listed. Do not include information on nonqualified buyers. An incomplete application may delay or prevent credit allocation.
* Do not fax the application to FTB before escrow closes.
* Do not fax the application to FTB more than once. We will process the applications in the order received as quickly as possible.
* Escrow companies should only send one application per fax transmission.
* The buyer keeps a copy of the completed Form 3528-A for their records.
* The Form 3528-A is now available online as a fillable form. Simply fill in all required information, print the form, and sign. If you fill out the form by hand, please print numbers as clearly and neatly as possible using CAPITAL LETTERS and staying between the lines. The faxes can be very hard to read.
Application processing
* The buyer will receive notification of credit allocation from us.
* An allocation of credit will not be issued if:
o The home has been previously occupied.
o The application is not received within one week after the close of escrow.
o The application is received after the total credits available ($100,000,000) have been allocated.
Requirements of the credit
* The home must be a "qualified principal residence" as defined under California Revenue and Taxation Code Section 17059(b)(1). The home must:
o Be a single-family residence, whether detached or attached.
o Never have been previously occupied.
o Be occupied by the taxpayer for a minimum of two years.
o Be eligible for the property tax homeowner’s exemption under California Revenue and Taxation Code Section 218.
* For over three successive taxable years, the total credit allocated among owners that occupy the home must not exceed $10,000. (Multiple qualified buyers that occupy the home will be allocated credit based on the amount paid and their percentage of ownership.)
* Any credit that reduced tax on a tax return must be repaid if the buyer does not occupy the home for at least two years immediately following the purchase date.
* FTB may request documentation to ensure buyers have complied with the requirements of the credit.
Claiming the credit
* The buyer must receive an allocation of credit from us to claim the credit. The credit allocation letter will state the amount they can claim listed by tax year.
* The buyer should refer to Publication 3528 (available by 12/2009) for instructions on claiming the credit.
* The buyer must claim the credit on an original timely filed return, including returns filed on an extension.
* Special rules apply to married/RDP (Registered Domestic Partners) taxpayers filing separately, in which case each spouse is entitled to one-half of the credit, even if their ownership percentages are not equal. For two or more taxpayers who are not married/RDP, the credit amount will have already been allocated to each taxpayer occupying the residence on their respective credit allocation letter.
* If the available credit exceeds the current year net tax, the unused credit may not be carried over to the following year.
* The credit is not refundable.
Definitions
Purchase date:
The date escrow closes.
Qualified buyer:
A taxpayer who purchases a single-family residence, whether detached or attached, that has never been occupied, that is purchased to be the principal residence of the taxpayer for a minimum of two years, and that is eligible for the homeowner’s exemption under California Revenue and Taxation Code Section 218.
Qualified Principal Residence/New Home:
A qualified principal residence means a single-family residence, whether detached or attached, that has never been occupied and is purchased to be the principal residence of the taxpayer for a minimum of two years and is eligible for the property tax homeowner’s exemption.
* Types of residence: Any of the following can qualify if it is your principal residence and is subject to property tax, whether real or personal property: a single family residence, a condominium, a unit in a cooperative project, a houseboat, a manufactured home, or a mobile home.
* Owner-built property: A home constructed by an owner -taxpayer is not eligible for the New Home Credit because the home has not been “purchased.”
Contact us
Phone:
* 888.792.4900 (press 5)
* 916.845.4900 (not toll-free)
Email: wscs.gen@ftb.ca.gov
This is not a secure email address. Please do not send confidential information.
This tax credit is available for qualified buyers who on or after March 1, 2009, and before March 1, 2010, purchase a qualified principal residence that has never been occupied. The buyer must reside in the new home for a minimum of two years immediately following the purchase date.
We will accept applications for allocation of credit by fax only (916.845.9754), starting March 1, 2009; however, we will not send notifications of credit allocation until we have developed procedures. Once we begin processing allocation applications, credits will be allocated on a first-come, first-served basis. We will update this page as soon as we begin mailing credit allocation letters. We plan to begin mailing credit allocation letters no later than May 1, 2009. This delay is necessary to allow us time to develop a system to capture and verify the application information, allocate the credits, and send the credit allocation letters. Please be patient with us and do not send applications more than one time.
Tax credit amounts
California allocated $100,000,000 for this tax credit. Buyers must apply for credit allocation from us. Applications will be reviewed and credit allocations will be made on a first-come, first-served basis. Once $100,000,000 has been allocated, the tax credit will no longer be available. Please check this page for updates on the allocated and remaining credits available.
Total credit allocated: $0
Remaining credit available: $100,000,000
Note: The remaining credit amount displayed above only reflects allocations processed. This amount will be updated once we begin mailing credit allocation letters, which is expected to commence by May 1, 2009. This amount does not include applications that have been received, but not yet processed.
Applications for New Home Credit received, but not yet processed through 4/29/09
As of Total Applications received: Total Credit claimed:
3/4/09 173 $ 1,715,826
3/11/09 711 $ 6,987,515
3/18/09 1,188 $ 11,599,825
3/25/09 1,710 $ 16,647,498
4/1/09 2,624 $ 25,578,709
4/8/09 3,135 $ 30,559,124
4/15/09 3,589 $ 34,939,035
4/22/09 4,199 $ 40,879,872
4/29/09 4,880 $ 47,353,795
Graph that shows the figures in the table above
This reflects the total amount of credit reported on applications received as of the date indicated. This amount has not yet been verified and may include duplicate, incomplete, and invalid applications. This amount is provided for informational purposes and does not reflect the actual amount to be allocated. We will update the amount received, but not yet processed, on this webpage each Friday. As we approach the $100,000,000 limitation, we will update the reported amounts on a daily basis. Keep in mind, that all applications will be processed on a first-come, first-served basis, based on the date received by fax only.
California allows qualified new home buyers a total tax credit amount equal to either five percent of the purchase price or $10,000, whichever is less. Taxpayers must apply the total tax credit in equal amounts over three successive taxable years (maximum of $3,333 per year) beginning with the taxable year (2009 or 2010) in which the new home is purchased.
How to apply
* Within one week (seven calendar days) after the close of escrow:
o The seller must complete Part I of Form 3528-A, Application for New Home Credit, certifying that the home has never been occupied, and provide a copy to the buyer or escrow person.
o The buyer will complete Parts II & III of Form 3528-A.
o The escrow person on behalf of the seller and buyer will fax the completed Form 3528-A to FTB at 916.845.9754, and provide a copy to the buyer.
* Fax is the only delivery method that will be accepted and considered for credit allocation by FTB, as the date and time stamp on the fax will determine the order in which credits are allocated.
* Fax only one completed application per residence with all qualified buyers listed. Do not include information on nonqualified buyers. An incomplete application may delay or prevent credit allocation.
* Do not fax the application to FTB before escrow closes.
* Do not fax the application to FTB more than once. We will process the applications in the order received as quickly as possible.
* Escrow companies should only send one application per fax transmission.
* The buyer keeps a copy of the completed Form 3528-A for their records.
* The Form 3528-A is now available online as a fillable form. Simply fill in all required information, print the form, and sign. If you fill out the form by hand, please print numbers as clearly and neatly as possible using CAPITAL LETTERS and staying between the lines. The faxes can be very hard to read.
Application processing
* The buyer will receive notification of credit allocation from us.
* An allocation of credit will not be issued if:
o The home has been previously occupied.
o The application is not received within one week after the close of escrow.
o The application is received after the total credits available ($100,000,000) have been allocated.
Requirements of the credit
* The home must be a "qualified principal residence" as defined under California Revenue and Taxation Code Section 17059(b)(1). The home must:
o Be a single-family residence, whether detached or attached.
o Never have been previously occupied.
o Be occupied by the taxpayer for a minimum of two years.
o Be eligible for the property tax homeowner’s exemption under California Revenue and Taxation Code Section 218.
* For over three successive taxable years, the total credit allocated among owners that occupy the home must not exceed $10,000. (Multiple qualified buyers that occupy the home will be allocated credit based on the amount paid and their percentage of ownership.)
* Any credit that reduced tax on a tax return must be repaid if the buyer does not occupy the home for at least two years immediately following the purchase date.
* FTB may request documentation to ensure buyers have complied with the requirements of the credit.
Claiming the credit
* The buyer must receive an allocation of credit from us to claim the credit. The credit allocation letter will state the amount they can claim listed by tax year.
* The buyer should refer to Publication 3528 (available by 12/2009) for instructions on claiming the credit.
* The buyer must claim the credit on an original timely filed return, including returns filed on an extension.
* Special rules apply to married/RDP (Registered Domestic Partners) taxpayers filing separately, in which case each spouse is entitled to one-half of the credit, even if their ownership percentages are not equal. For two or more taxpayers who are not married/RDP, the credit amount will have already been allocated to each taxpayer occupying the residence on their respective credit allocation letter.
* If the available credit exceeds the current year net tax, the unused credit may not be carried over to the following year.
* The credit is not refundable.
Definitions
Purchase date:
The date escrow closes.
Qualified buyer:
A taxpayer who purchases a single-family residence, whether detached or attached, that has never been occupied, that is purchased to be the principal residence of the taxpayer for a minimum of two years, and that is eligible for the homeowner’s exemption under California Revenue and Taxation Code Section 218.
Qualified Principal Residence/New Home:
A qualified principal residence means a single-family residence, whether detached or attached, that has never been occupied and is purchased to be the principal residence of the taxpayer for a minimum of two years and is eligible for the property tax homeowner’s exemption.
* Types of residence: Any of the following can qualify if it is your principal residence and is subject to property tax, whether real or personal property: a single family residence, a condominium, a unit in a cooperative project, a houseboat, a manufactured home, or a mobile home.
* Owner-built property: A home constructed by an owner -taxpayer is not eligible for the New Home Credit because the home has not been “purchased.”
Contact us
Phone:
* 888.792.4900 (press 5)
* 916.845.4900 (not toll-free)
Email: wscs.gen@ftb.ca.gov
This is not a secure email address. Please do not send confidential information.
Wednesday, April 8, 2009
The Seven Stones of Simpler Living
The Seven Stones of Simpler Living
A greener life isn't about eco-friendly products. It's about finding the important things -- and setting them in balance.
by Chris Baskind
Seven stacked river stones.
When I was a kid, my parents would sometimes take us to a campground called Paradise Park. It was a little camp in the California foothills: a woodsy reserve dotted with old oak trees sloping down to a well-shaded river.
Most of the time, it wasn’t much more than a stream. But its bed was thick with well-worn river stones, testimony to uncountable seasons of floods and the persuasive nature of water. Over the centuries, the river had slowly carried away mountainsides, tumbling and cracking rock, reducing boulders into a rainbow of smooth, flat stones the size of a child’s hand. We’d spend hours picking through the best of them, finding the perfect rock to skip across the river. Invariably, we’d build little stacks of stones along the bank.
There’s something deeply satisfying about stacking stones. It’s a common motif in Zen gardens, which seek to create order out of nature’s seeming chaos. In doing so, they highlight the harmony and balance of our place in the world.
It’s not difficult to find a lesson in the stones for those of us trying to simplify our sprawling lives. We’ve chosen seven from the riverbed for you today — ideas that can help you live a lighter, healthier, more sustainable life. Stack them as you will.
Stone #1
Reduce your consumption
Anyone who thinks they can shop their way to greener living has been watching too much television. Sure, responsible consumerism matters. Every purchase is a choice. But the key to simpler, greener living is pretty straightforward: consume less. A simple way to cut back on unnecessary purchases is the One Week rule. Unless you have a real show-stopper, write down the things you need and sit on them for seven days. Stores are designed to encourage impulse spending, so staying away as much as possible is good news for your bank account. After a week, round up the items you still need and group them together with an eye toward combining as many trips as possible. Then stick to your list. While this all sounds very simple, you’ll quickly realize how chaotic our spending habits can be — and how much money you can save through better planning.
Stone #2
Reduce Your Waste Stream
We call it garbage; other nations might call it wealth. There’s no end to things we send to the landfill. Recycling helps, but the sheer volume of waste generated by the average household is overwhelming. From obsolete electronics to that mason jar you casually tossed in the trash last night, we’re flooding our landfills while robbing ourselves of things which might be put to another use. Start by thinking twice when you purchase something: Is whatever you’re buying too heavily packaged? Do you need it all? Think again before putting anything in a trash or recycling bin. Nobody expects you to become a packrat, but that jar could easily be repurposed as a water bottle or something to pack a snack. Food scraps belong in the compost heap. Maybe that cardboard, too. For some idea starters on keeping things out of the bin, check out this helpful list from No Impact Man.
Stone #3
Trim Your Energy Use
Energy prices have relaxed over the past few months as a direct result of the worldwide economic slowdown. But electricity, gasoline, natural gas, and heating oil still represent a hefty portion of the average family budget. Unless you’re fortunate enough to live in an area already invested in renewable energy, every unattended TV or flick of the light switch means you’re burning fossil fuels. That means you’re directly responsible for the air pollution and all the related consumables it took to bring that power to your wall socket. You’ll find hundreds of energy saving tips here on Lighter Footstep, and we’re posting more every week. Learn to weatherize; replace or retire inefficient appliances; consider more energy efficient lighting; and rearrange your living spaces so they take better advantage of natural heat, lighting, and cooling. Switch things off and pocket the change. You’ll probably enjoy the peace and quiet.
Stone #4
Prepare and Grow Your Own Food
If there’s one lost art in the past decade or two, it’s cooking real food. By “cooking,” we don’t mean warming up packaged food from the grocery store. We’re talking about preparing meals from fresh ingredients. That’s how our parents and grandparents did it. Admittedly, society has changed: With dual-income households and ever-expanding work schedules, it’s easy to fall back on processed meals and fast foods. And that’s a shame. Making a meal — whether it’s just for yourself or a whole family — is the one of the little rituals which forces us to slow down and be mindful of what we eat. It’s also healthier, and an enormous money saver. Not too handy in the kitchen? Take a class, or spend time cooking with someone you love. Real food needn’t be complicated. And consider growing some of what you consume. Even if you’re not blessed with the space to plant a garden, you can grow a satisfying crop of herbs and vegetables in modest containers.
Stone #5
Reduce Reliance on Automobiles
We love our cars. And why not? Virtually everything about modern living — particularly in the United States — assumes automobile transportation. Think how much blacktop and concrete there is within a hundred yards of you right now. Our cities sprawl across what used to be countryside. Stores and businesses which make provision for bicycles and mass transit are the exception, and we feel inconvenienced if there’s not plenty of parking within a few paces of wherever we travel. Dust off that bicycle or grab a backpack and get walking. Perhaps you could start by taking our Ten Mile Pledge. The more you park your car, the more money you’ll save and the healthier you’ll feel. Start small, establish new habits, and you’ll be surprised how much you can get done without burning a drop of gasoline.
Stone #6
Reduce your personal stress
It’s not an accident that virtually every one of our “simplicity stones” has a meditative component. You have to make time to prepare food, choose walking over a car trip, or even make a proper shopping list. This is a good thing, because it forces you to unburden yourself of something else. We are hopelessly overstimulated. Living a greener life is less about learning new things than letting go of the old. Think about all the tasks you do in a week that take longer than thirty minutes. Look most carefully at social obligations, hobbies — even the time you spend online. Have any of these become a chore? What could be jettisoned? It could be something as simple as dropping a social network, or a repetitive task which could be delegated to others. You could probably find a few extra hours a week in this manner. Don’t be in a hurry to fill them. Pick up a book, talk a walk, or putter in the garden. Light physical activity is a great way to trade stress for a little extra serotonin. If you’re doing a good job saving money, you might be able to afford that once-a-week massage. Now, at least, you’ll have time to fit it in.
Stone #7
Learn to give back
You’ve reduced your consumption. There are a few extra dollars in the bank. Your environmental footstep gets a little smaller from month to month, and you’ve managed reclaim some time from the chaos of your week. Now you’re ready to give back. It’s an encouraging sign that the very same people being pushed aside by a faltering economy are sparking a new surge in volunteerism. Perhaps it’s the old adage that adversity brings out the best in people. Or maybe something new is happening: a return to the ideals of community and service. How you join in is a personal decision. Teach your new-found skills to others, help people find jobs, or assist a faith or social group. As you learn to slow down and simplify, chances are that opportunities to serve will find you.
Seven stones — but, of course, there are more. What are some of the things that have worked as you seek to simplify your life? Share them with others by leaving a comment below.
A greener life isn't about eco-friendly products. It's about finding the important things -- and setting them in balance.
by Chris Baskind
Seven stacked river stones.
When I was a kid, my parents would sometimes take us to a campground called Paradise Park. It was a little camp in the California foothills: a woodsy reserve dotted with old oak trees sloping down to a well-shaded river.
Most of the time, it wasn’t much more than a stream. But its bed was thick with well-worn river stones, testimony to uncountable seasons of floods and the persuasive nature of water. Over the centuries, the river had slowly carried away mountainsides, tumbling and cracking rock, reducing boulders into a rainbow of smooth, flat stones the size of a child’s hand. We’d spend hours picking through the best of them, finding the perfect rock to skip across the river. Invariably, we’d build little stacks of stones along the bank.
There’s something deeply satisfying about stacking stones. It’s a common motif in Zen gardens, which seek to create order out of nature’s seeming chaos. In doing so, they highlight the harmony and balance of our place in the world.
It’s not difficult to find a lesson in the stones for those of us trying to simplify our sprawling lives. We’ve chosen seven from the riverbed for you today — ideas that can help you live a lighter, healthier, more sustainable life. Stack them as you will.
Stone #1
Reduce your consumption
Anyone who thinks they can shop their way to greener living has been watching too much television. Sure, responsible consumerism matters. Every purchase is a choice. But the key to simpler, greener living is pretty straightforward: consume less. A simple way to cut back on unnecessary purchases is the One Week rule. Unless you have a real show-stopper, write down the things you need and sit on them for seven days. Stores are designed to encourage impulse spending, so staying away as much as possible is good news for your bank account. After a week, round up the items you still need and group them together with an eye toward combining as many trips as possible. Then stick to your list. While this all sounds very simple, you’ll quickly realize how chaotic our spending habits can be — and how much money you can save through better planning.
Stone #2
Reduce Your Waste Stream
We call it garbage; other nations might call it wealth. There’s no end to things we send to the landfill. Recycling helps, but the sheer volume of waste generated by the average household is overwhelming. From obsolete electronics to that mason jar you casually tossed in the trash last night, we’re flooding our landfills while robbing ourselves of things which might be put to another use. Start by thinking twice when you purchase something: Is whatever you’re buying too heavily packaged? Do you need it all? Think again before putting anything in a trash or recycling bin. Nobody expects you to become a packrat, but that jar could easily be repurposed as a water bottle or something to pack a snack. Food scraps belong in the compost heap. Maybe that cardboard, too. For some idea starters on keeping things out of the bin, check out this helpful list from No Impact Man.
Stone #3
Trim Your Energy Use
Energy prices have relaxed over the past few months as a direct result of the worldwide economic slowdown. But electricity, gasoline, natural gas, and heating oil still represent a hefty portion of the average family budget. Unless you’re fortunate enough to live in an area already invested in renewable energy, every unattended TV or flick of the light switch means you’re burning fossil fuels. That means you’re directly responsible for the air pollution and all the related consumables it took to bring that power to your wall socket. You’ll find hundreds of energy saving tips here on Lighter Footstep, and we’re posting more every week. Learn to weatherize; replace or retire inefficient appliances; consider more energy efficient lighting; and rearrange your living spaces so they take better advantage of natural heat, lighting, and cooling. Switch things off and pocket the change. You’ll probably enjoy the peace and quiet.
Stone #4
Prepare and Grow Your Own Food
If there’s one lost art in the past decade or two, it’s cooking real food. By “cooking,” we don’t mean warming up packaged food from the grocery store. We’re talking about preparing meals from fresh ingredients. That’s how our parents and grandparents did it. Admittedly, society has changed: With dual-income households and ever-expanding work schedules, it’s easy to fall back on processed meals and fast foods. And that’s a shame. Making a meal — whether it’s just for yourself or a whole family — is the one of the little rituals which forces us to slow down and be mindful of what we eat. It’s also healthier, and an enormous money saver. Not too handy in the kitchen? Take a class, or spend time cooking with someone you love. Real food needn’t be complicated. And consider growing some of what you consume. Even if you’re not blessed with the space to plant a garden, you can grow a satisfying crop of herbs and vegetables in modest containers.
Stone #5
Reduce Reliance on Automobiles
We love our cars. And why not? Virtually everything about modern living — particularly in the United States — assumes automobile transportation. Think how much blacktop and concrete there is within a hundred yards of you right now. Our cities sprawl across what used to be countryside. Stores and businesses which make provision for bicycles and mass transit are the exception, and we feel inconvenienced if there’s not plenty of parking within a few paces of wherever we travel. Dust off that bicycle or grab a backpack and get walking. Perhaps you could start by taking our Ten Mile Pledge. The more you park your car, the more money you’ll save and the healthier you’ll feel. Start small, establish new habits, and you’ll be surprised how much you can get done without burning a drop of gasoline.
Stone #6
Reduce your personal stress
It’s not an accident that virtually every one of our “simplicity stones” has a meditative component. You have to make time to prepare food, choose walking over a car trip, or even make a proper shopping list. This is a good thing, because it forces you to unburden yourself of something else. We are hopelessly overstimulated. Living a greener life is less about learning new things than letting go of the old. Think about all the tasks you do in a week that take longer than thirty minutes. Look most carefully at social obligations, hobbies — even the time you spend online. Have any of these become a chore? What could be jettisoned? It could be something as simple as dropping a social network, or a repetitive task which could be delegated to others. You could probably find a few extra hours a week in this manner. Don’t be in a hurry to fill them. Pick up a book, talk a walk, or putter in the garden. Light physical activity is a great way to trade stress for a little extra serotonin. If you’re doing a good job saving money, you might be able to afford that once-a-week massage. Now, at least, you’ll have time to fit it in.
Stone #7
Learn to give back
You’ve reduced your consumption. There are a few extra dollars in the bank. Your environmental footstep gets a little smaller from month to month, and you’ve managed reclaim some time from the chaos of your week. Now you’re ready to give back. It’s an encouraging sign that the very same people being pushed aside by a faltering economy are sparking a new surge in volunteerism. Perhaps it’s the old adage that adversity brings out the best in people. Or maybe something new is happening: a return to the ideals of community and service. How you join in is a personal decision. Teach your new-found skills to others, help people find jobs, or assist a faith or social group. As you learn to slow down and simplify, chances are that opportunities to serve will find you.
Seven stones — but, of course, there are more. What are some of the things that have worked as you seek to simplify your life? Share them with others by leaving a comment below.
Wednesday, April 1, 2009
Where to Recycle Everything for Cash
Where to Recycle Everything for Cash
As you begin your spring cleaning, why not replace all that stuff you don’t need with a little extra cash?
Get Cash for Your Old Books
Check out Cash 4 Books. Enter the ISBN, supply your contact information, send the book, and expect payment within three days after they receive your books.
Get Cash for Your Old CDs
Check out PlayIC.com to swap or sell DVDs, CDs, and games.
Get Cash for Your Old Gadgets
VenJuvo.com helps you calculate your item’s worth and then buys it from you with two payment options—PayPal or check. (Site is temporarily down for updates. Will be back up shortly).
Second Rotation.com purchases mobile phones, gaming consoles, MP3 players, and other gadgets to resell them. You could earn over $150 for one item.
Get Cash for Your Old Sporting Goods
Visit usedsports.com to sell your assorted sporting equipment.
Get Cash for Your Old Ink Cartridges
Visit freerecycling.com. According to their list of qualifying ink jet cartridges, you can make up to $3.60 per item sent!
This is a donation but it surely helps the environment and less fortunate humans!
Where to Recycle Your Old Computer Monitor
Visit Computers with Causes, a site that gives donated computers to needy families. Just click on your state at the bottom of the page and fill out the form.
As you begin your spring cleaning, why not replace all that stuff you don’t need with a little extra cash?
Get Cash for Your Old Books
Check out Cash 4 Books. Enter the ISBN, supply your contact information, send the book, and expect payment within three days after they receive your books.
Get Cash for Your Old CDs
Check out PlayIC.com to swap or sell DVDs, CDs, and games.
Get Cash for Your Old Gadgets
VenJuvo.com helps you calculate your item’s worth and then buys it from you with two payment options—PayPal or check. (Site is temporarily down for updates. Will be back up shortly).
Second Rotation.com purchases mobile phones, gaming consoles, MP3 players, and other gadgets to resell them. You could earn over $150 for one item.
Get Cash for Your Old Sporting Goods
Visit usedsports.com to sell your assorted sporting equipment.
Get Cash for Your Old Ink Cartridges
Visit freerecycling.com. According to their list of qualifying ink jet cartridges, you can make up to $3.60 per item sent!
This is a donation but it surely helps the environment and less fortunate humans!
Where to Recycle Your Old Computer Monitor
Visit Computers with Causes, a site that gives donated computers to needy families. Just click on your state at the bottom of the page and fill out the form.
Thursday, March 26, 2009
Friday, March 20, 2009
Stephen Hawking to write children's books
It is extremely important to me to write for children. Children ask how things do what they do, and why. Too often they are told that these are stupid questions to ask, but this is said by grown-ups who don't know the answers and don't want to look silly by admitting they don't know.
read more | digg story
read more | digg story
Thursday, March 19, 2009
Federal Loan Modification Program
Federal Loan Modification Program
Do I Qualify?
• Only homeowners in good standing whose loans are held by Fannie Mae or Freddie Mac qualify.
• The property must be owner-occupied and the borrower must have enough income to make payments on the new mortgage debt.
• Borrowers can’t owe more than 105 percent of their home’s current value on their first mortgage. For example, if your home is worth $200,000 your first mortgage can’t exceed $210,000.
• Homeowners can’t take cash out during the refinancing to pay other debt.
• Borrowers have until June 2010 to apply for the program.
How do I know if my mortgage is owned by Fannie Mae or Freddie Mac?
• Call your current lender or mortgage or mortgage servicer. You can find the phone number on your monthly mortgage statement or coupon book.
• You can also contact Fannie Mae at 800-7FANNIE and Freddie Mac at 800-FREDDIE from 8 am to 8 pm EST. or, go to www.fanniemae.com/homeaffordable and www.freddiemac.com/avoidforeclosure and fill out the online request forms.
What borrowers qualify for the modification program?
• You don’t have to be behind on your mortgage payments to qualify. Delinquent borrowers and current borrowers who are at risk of imminent default are both eligible.
• The program applies to mortgages made Jan 1 or earlier. The mortgage payment including taxes, insurance and homeowners association dues must exceed 31 percent of the borrowers’ gross monthly income.
• The property must be the homeowner’s primary residence. It can’t be investor-owned, vacant or condemned. Home loans for single-family properties that are worth more than $759,750 don’t qualify.
• The program is voluntary, relying on a $75 billion subsidy to encourage mortgage companies to participate. Lenders must agree to reduce loan payments to 38 percent of a borrower’s monthly income. After that, the government and lender split the cost of bringing the payment down to 31 percent.
• Eligible borrowers will have to provide their most recent tax return and two pay stubs as well as an “affidavit of financial hardship” to qualify for the loan modification program. In the affidavit, applicants will have to cite the reasons behind their financial woes, such as job loss or a drop in income.
• Borrowers are only allowed to have their loans modified once. The program runs through Dec 31, 2012.
What if I’m in bankruptcy or in active litigation over my mortgage?
• That doesn’t necessarily keep you from qualifying for the modification program. And borrowers in active litigation can modify their home loans with waiving their legal rights.
What do I do to get help?
• For the modification program, call your lender or mortgage servicer to see if you’re eligible. For the refinance program, first find out if your mortgage is held by Fannie Mae and Freddie Mac.
How soon can I get help?
• Both the modification and refinancing programs start immediately. Properties would qualify for Fidelity Title's Online Discounted Erate
What if I don’t qualify for either program – is there any other way to get help with a mortgage?
• Contact your lender or mortgage servicer regarding other modification programs or refinance options. Alternatively, contact a local housing counselor to negotiate with your lender or servicer, to help locate other local resources like rescue grants or loans, or to facilitate a short sale or deed-in-lieu of foreclosure if staying in the home isn’t possible.
• A short sale is where homeowners sell houses for less than the amount owned on them and the lender then considers the debt paid off. A deed-in-lieu of foreclosure is where the borrower gives the property to the lender to satisfy a delinquent loan and to avoid foreclosure proceedings.
• Local housing counselors can be found at the U.S. Department of Housing and Urban Development’s Web site at www.hud.gov/offices/hsg/sfh/hcc/hcs.com
Do FHA, VA or USDA home loans qualify for modifications under Obama’s plan?
• Federal Housing Administration, Veterans Administration or the US Department of Agriculture are being modified under other programs.
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Do I Qualify?
• Only homeowners in good standing whose loans are held by Fannie Mae or Freddie Mac qualify.
• The property must be owner-occupied and the borrower must have enough income to make payments on the new mortgage debt.
• Borrowers can’t owe more than 105 percent of their home’s current value on their first mortgage. For example, if your home is worth $200,000 your first mortgage can’t exceed $210,000.
• Homeowners can’t take cash out during the refinancing to pay other debt.
• Borrowers have until June 2010 to apply for the program.
How do I know if my mortgage is owned by Fannie Mae or Freddie Mac?
• Call your current lender or mortgage or mortgage servicer. You can find the phone number on your monthly mortgage statement or coupon book.
• You can also contact Fannie Mae at 800-7FANNIE and Freddie Mac at 800-FREDDIE from 8 am to 8 pm EST. or, go to www.fanniemae.com/homeaffordable and www.freddiemac.com/avoidforeclosure and fill out the online request forms.
What borrowers qualify for the modification program?
• You don’t have to be behind on your mortgage payments to qualify. Delinquent borrowers and current borrowers who are at risk of imminent default are both eligible.
• The program applies to mortgages made Jan 1 or earlier. The mortgage payment including taxes, insurance and homeowners association dues must exceed 31 percent of the borrowers’ gross monthly income.
• The property must be the homeowner’s primary residence. It can’t be investor-owned, vacant or condemned. Home loans for single-family properties that are worth more than $759,750 don’t qualify.
• The program is voluntary, relying on a $75 billion subsidy to encourage mortgage companies to participate. Lenders must agree to reduce loan payments to 38 percent of a borrower’s monthly income. After that, the government and lender split the cost of bringing the payment down to 31 percent.
• Eligible borrowers will have to provide their most recent tax return and two pay stubs as well as an “affidavit of financial hardship” to qualify for the loan modification program. In the affidavit, applicants will have to cite the reasons behind their financial woes, such as job loss or a drop in income.
• Borrowers are only allowed to have their loans modified once. The program runs through Dec 31, 2012.
What if I’m in bankruptcy or in active litigation over my mortgage?
• That doesn’t necessarily keep you from qualifying for the modification program. And borrowers in active litigation can modify their home loans with waiving their legal rights.
What do I do to get help?
• For the modification program, call your lender or mortgage servicer to see if you’re eligible. For the refinance program, first find out if your mortgage is held by Fannie Mae and Freddie Mac.
How soon can I get help?
• Both the modification and refinancing programs start immediately. Properties would qualify for Fidelity Title's Online Discounted Erate
What if I don’t qualify for either program – is there any other way to get help with a mortgage?
• Contact your lender or mortgage servicer regarding other modification programs or refinance options. Alternatively, contact a local housing counselor to negotiate with your lender or servicer, to help locate other local resources like rescue grants or loans, or to facilitate a short sale or deed-in-lieu of foreclosure if staying in the home isn’t possible.
• A short sale is where homeowners sell houses for less than the amount owned on them and the lender then considers the debt paid off. A deed-in-lieu of foreclosure is where the borrower gives the property to the lender to satisfy a delinquent loan and to avoid foreclosure proceedings.
• Local housing counselors can be found at the U.S. Department of Housing and Urban Development’s Web site at www.hud.gov/offices/hsg/sfh/hcc/hcs.com
Do FHA, VA or USDA home loans qualify for modifications under Obama’s plan?
• Federal Housing Administration, Veterans Administration or the US Department of Agriculture are being modified under other programs.
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Monday, March 9, 2009
Thursday, March 5, 2009
Business Planning for 2009
As a business owner (your real estate business), you should consider the following questions while preparing your business plan for 2009. In the next few weeks I will be scheduling business planning coaching sessions that I encourage all of you to sign up for. Now more than ever the most successful agents rely on their business plans to guide them through these rough waters. Arrrrrrrrrrrrgh!
- How much do I want to net in revenue from real estate sales?
- How many listings and sales will it take?
- How many hours each day will I commit to “Lead Generation”?
- What is your marketing/prospecting budget?
- What is your technology budget?
- How much will I budget for education and training courses?
- How many agents will I add to my down line in 2009? What is my profit share plan?
- What other revenue streams will I add to my business plan?
- What are my goals and a plan for my personal life. Time block time for yourself! Even schedule your vacations for the next year
- How am I going to expand my internet presence?
- Who is my next hire and what do I have to accomplish before I can hire them?
- What systems from the “Millionaire Real Estate Agent” book (MREA) will I enact and when?
- What subject or system, pertaining to real estate, will I master in the next year?
- What is my 30, 90, 120, 180, 365 goal plan
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