Women Homeowners Network of Santa Cruz

Entries from January 2010

FHA becoming HVCC Compliant on appraisals

January 16, 2010 · Leave a Comment

The recent changes in the Appraisal Industry have to do with FHA becoming HVCC compliant and implementing an appraiser independence and Appraisal Management Company format.  

The FHA has announced a series changes to be implemented by February 15th in Mortgagee Letter 2009-28, stating that “FHA Approved lenders have new responsibilities to ensure that FHA appraisers are ‘…compensated at a rate that is customary and reasonable for appraisal services in the market area…’” and “the fee for the actual completion of an FHA appraisal may not include a fee for management of the appraisal process or any activity other than the performance of the appraisal.” “AMC and other third party fees must not exceed what is customary and reasonable for such services provided in the market area of the property being appraised.” 

Appraisers are hoping this this FHA policy will help to keep appraisers fees reasonable and not so low that appraisers are forced to leave the profession for lack of compensation and inability to bring in a living wage. 

Also, locally it appears that market values throughout most neighborhoods in Santa Cruz county appear to be levelling out and stabalizing over the past 3-6 months.  This means that appraisers are no longer having to use “negative time adjustments” in our reports.

Posted by Kristina Campbell, Coast Home Appraisal, 831-247-7223

Categories: Appraisals · Real Estate Market Updates
Tagged:

Winter weed control in Santa Cruz

January 15, 2010 · Leave a Comment

Weeds have evolve to colonize bare soil

The first line of defense is organic matter, fertile soil is relatively weed resistant.  Compost is the best nutrient for all plants from small plants to enormous trees 

Secondly, especially in perennial beds, lay down a thick layer of organic mulch.  Use a weed whacker or pruner’s to cut the weeds to the ground if they are really tall, and then put down cardboard to smother out the crab grass, oxalis, and other persistent weeds.  One of our m embers suggested that Cosco has sheets of cardboard from in-between the pallets if you don’t want to tear up boxes. 

Ideally use mulch materials already at your home such as grass clippings, fallen leaves, pine needles, or even dried weeds that you have already pulled out.  Pine needles are also great for azaleas, hydrangea, rhododendron, and camellias, and for your strawberries and blueberries since they acidify the soil.  And slugs don’t like pine needles. 

Weed seeds can lie dormant under thick layers of soil and mulch so avoid tilling beds; just add organic matter on top. See there is a reason to not dig up that old soil. 

RoundUp alternatives are vinegar, rubbing alcohol, boiling water, and cabbage … cabbage???? Cabbage, Brussels sprouts and other cruciferous plants contain thiocyanate, a chemical toxic to newly germinated plants.  Blend those Brussels sprouts or a few cabbage leaves in the blender with water and pour in the cracks of you sidewalk to get those seedlings.

Vinegar and rubbing alcohol work on sunny days if you pour it directly on a weed.

Boiling water in the cracks works too, especially for established weeds and grasses, it is also recommended for poison oak and bramble roots, and is useful to rid an area of ants. 

Other odd ways for weed control, Nick at Iowa State says cornmeal inhibits seed germination and fertilizes as well with its 10 percent nitrogen.  He says just sprinkle it over the area before the growing season. 

My new favorite read for garden and household ideas, using things you have at home, is ‘Slug Bread and Beheaded Thistles’ by Ellen Sandbeck; a $10 humorous approach to gardening.

Categories: Plants and your garden
Tagged: ,

2010 Federal Tax Brackets and Thresholds

January 14, 2010 · Leave a Comment

It’s the time of year that people and businesses are focusing on filing their 2009 tax returns.  However, it’s never too late to get organized and plan for the future!  Studies show that individuals who plan for the future and remain organized save more money, not only as a function of their personal savings efforts,  but also in the form of reduced expenses related to income tax preparation and other financial planning services. 

By law, each year, the dollar amounts for a variety of tax provisions must be revised to match inflation.  As we all know that inflation was minimal in 2009 as compared to prior years, there are no significant changes in the specific provisions for 2010 as compared to 2009.  Following are some of the key items affecting 2010 tax returns (and which are due to be filed by April 15, 2011 for most people):

  • The personal and dependency exemption will remain the same as 2009 levels, at $3,650 per individual or dependent.
  • The standard deduction for married couples filing jointly, married individuals filing separately and singles remain the same as 2009 levels.  Specifically, the standard deduction for each is listed below:
    Married couples filing jointly – $11,400
    Married individual filing separately – $5,700
    Singles – $5,700
  • The federal tax rate thresholds for 2010 are increased slightly from 2009 levels.  That means that individuals will need to earn slightly more money before their tax rate increases from 15% to 25%.
  • The maximum earned income credit for working families with 2 or more children for 2010 is $5,028, up from $4,824 for 2009.  Further, the upper income limit to qualify for the credit for joint filers with 2 or more children is $43,415 for 2010, up from $41,646 for 2009.
  • The annual gift exclusion will remain consistent with 2009 at $13,000 per individual.

The above information is a summary of some of the key items that will affect taxpayers in 2010, and are subject to changes by the IRS.  As such, it is important to consult with a qualified tax professional when dealing with tax issues as the rules are complex and include numerous qualifiers and phase outs.

Categories: Tax Planning & Information
Tagged: , , ,

NEW FIRST TIME HOMEBUYER CREDIT

January 14, 2010 · Leave a Comment

Late in 2009, Congress passed The Worker, Homeownership and Business Assistance Act of 2009, which extended the First-Time Homebuyer Credit and expanded the credit to apply to more individuals.

Following are some of the key items that individuals should know with respect to the credit:

  1. To qualify, you must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010.  This means that second homes and vacation homes do NOT qualify.
  2. If you enter into a binding contract by April 30, 2010, you must close escrow on the purchase of the home before June 30, 2010 (this may prove difficult for short-sale and bank-owned properties).
  3. For purchases (see above) made in 2010, you have the option of claiming the credit on your either your 2009 or 2010 tax return.  This is great as it allows you to receive the benefit of the credit almost concurrent with the purchase.
  4. A reduced credit is now available for residents who have lived in the same principal residence for any five consecutive year period during the preceding eight year period that ended on the date the new home is purchased.  Additionally, to qualify under this provision, the settlement date for the new purchase must be after November 6, 2009.
  5. The maximum credit for long-time residents (see #4 above) is $6,500 for married couples filing jointly. For married couples filing separately, the maximum credit for long-time residents is $3,250 each.
  6. People with higher incomes can now qualify for the credit.  The new law raises the upper income limits for homes purchased after Nov. 6, 2009.  In order to receive the full credit, taxpayers must have adjusted gross incomes of $125,000, or $225,000 for joint filers.
  7. To claim the credit on homes purchased after Nov. 6, 2009, and all home purchases claimed on 2009 tax returns, the newly revised IRS Form 5405 must be used.  This form was revised in December 2009.  Failure to use the proper form may cause the credit to be denied.
  8. No credit is available if the purchase price of the home exceeds $800,000.
  9. The purchaser must be at least 18 years of age on the date of the purchase. 
  10. A dependent of another taxpayer is not eligible to claim the credit, even if over 18 years of age.

As a caution, the IRS has stated that there was much abuse of this credit during 2009 and as a result it plans to be critical of credits claimed on future tax returns.  To protect yourself and obtain the maximum credit for which you may qualify, it is important to consult with a qualified tax professional regarding the credit.

Categories: Tax Planning & Information
Tagged: