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Over the past several weeks I have been asked about several recent media stories surrounding the real estate and mortgage market. 

The most asked about topic has been the expiration of the $8000 Federal Tax Credit. And yes, what you have heard is correct; it is set to expire on November30, 2009. Effectively, that means that unless you are in escrow now your purchase will likely close after the expiration date.  Will it really be gone? 

From all the data I have seen, the credit has contributed to the stabilization of the real estate market and itseems very doubtful to me that congress and the administration will let it expire.  Every trade group that has anything to do with housing is actively lobbying for it to be extended.

Another critical piece of the housing market stabilization, especially here in the Bay Area has been the “temporary”increase in the “high cost area” conforming loan limit to $729,500.  Yes, you heard me right, “temporary”.  Without going into all the legislation that brought it about, the $729,500 loan limit was made as a “temporary” limit and will expire at the end of the year. 

Again, this been instrumental for stabilizing housing in the Bay Area market and every trade group is lobbying for the increase to be maintained.

In a blog a few months ago I spoke about the

Theplan, which is free to the buyer, provides up to $1,500 per month, for six months, to help make their mortgage payments in the event of a lay-off. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months.  This program, which to dateas issued hundreds of policies, is set to expire 12/31/09. 

If you plan on closing a purchase transaction before the end of the year, talk to your REALTOR® for details.

In another blog post earlier this year I shared with you a warning about “foreclosure rescue” and “loan modification”scams.  One of the warning signs was if the person or organization offering the assistance wanted fees up front.

Currently, the California Department of Real Estate is investigating over 1300 complains and has issued hundreds of“cease and desist” orders.  Most of the scams include the payment of advance fees. 

This legislation, which was effective the day it was signed by the Governor, prohibits the collection of advance fees from anyone offering loan modification or foreclosure rescue or forbearance as a service.  Keep in mind “all persons” includes real estate agents or brokers and attorney’s. Advance fees cannot be collected, period.

And, good news for those that have mortgage loans in excess of $1million. According to an article in Forbes magazine the IRS issue a memo that concluded that a taxpayer can deduct interest on the first $1.1 million of a home mortgage--$100,000 more than earlier legal findings allowed.  The article quoted Kaye Thomas, a tax lawyer who publishes a tax guide at www.fairmark.com who stated “the affected homeowners could save $3,000 a year or more. Moreover, taxpayers can file amended returns for the past three years and claim thousands in refunds.” 

So, if this applies to you, I suggest you contact your tax preparer. 

If you have an interest in Bay Area Homes you will find what you are looking for at www.AboutBayAreaHomes.com.  Check out Quick Links on our homepage. 

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There you will find links for home search, listings for bank owned and short sales, home loans, market activity reports, home seller ideas, staging, my book "Let's Make a Deal, The Insiders Guide to Buying and Selling Real Estate" and more.  Of course I am always available to discuss your real estate or mortgage questions or concerns, just call, text or email me for a prompt response.