Tax deductions: Enjoy them while you can

Given the general tenor in Washington these days, there’s no telling which tax breaks will survive and which will disappear. Already some tax perks are gone. Remember Schedule L? On that now-defunct form, taxpayers could claim above-the-line deductions (that is, no itemizing necessary) for certain disaster losses, sales taxes paid for the purchase of a new car, and a limited amount of property taxes. Those benefits are not available on your 2011 return. Read entire story

3 must-knows before backing out of purchase contract

Q: I have a contract on a home to purchase, but I have changed my mind. Can I back out prior to the closing without any penalty or repercussions?

A: That, as it so often does, depends. First: the formalities. Depending on your state, it's highly likely that the real estate purchase contract you signed offers some sort of an out, with conditions. In some states, these are known as contingencies -- basically, contractual provisions that allow the buyer to back out of the deal within a set number of days.  Read entire article...

Rate on 30-year mortgage stays at record 4.09 pct

Fixed mortgage rates hovered at record lows for a third straight week. They are likely to fall even further now that the Federal Reserve said it would shuffle its holdings to drive down long-term interest rates.

The average rate on the 30-year fixed mortgage was unchanged at 4.09 percent this week, Freddie Mac said Thursday. That's the lowest rate seen since 1951.

The average rate on the 15-year mortgage ticked down to 3.29 percent. Economists say that's the lowest rate ever for the loan.

Mortgage rates tend to track the yield on the 10-year Treasury note. One day after the Fed's announcement, the yield on the 10-year note touched 1.74 percent Thursday. That's the lowest level since Federal Reserve Bank of St. Louis started keeping daily records in 1962. Read full story...

Seller Resources when selling a home FSBO

On this link, you can access the Washingotn Seller Disclosure Statement, Lead Based Paint Disclosure, Sale Timeline Tracker, and much more:

Seller Resources

Washington State's Housing Market

On this link, you can get the market reports for Washington State housing.

Click here to visit WSU's site on Washington Center for Real Estate Research

Closing Costs when you sell your home

Do you know what your closing costs will be and what you will net after the sale of your property?

When you show up at escrow to sign all your closing documents, the closing agent (escrow company) will have a Preliminary Settlement Statement that will show all the debits and credits for your sale, and on the bottom of the first page, there will be a net proceeds that says "Cash (to or from) Seller. If you owe more money than what the property is selling for, then you will have to bring money to the closing.  However, most sellers receive cash from the sale of their property.

You should always find out ahead of time what your approximatet net will be by calling the escrow company you used when you bought the home, or any reputable company that you plan to use to close the sale. They will give you an approx. net proceeds workout at no charge.  If you have listed through List4FlatFee.com and are offering a 3% buyer's agent commission (the amount is up to you when you list), then you will obvioulsy have that amount come out of your proceeds.  Other costs include Washington State real estate property excise tax of 1.75%, title insurance and your side of the escrow fee. The two latter items you can get a quote from your escrow company.

Miscellaneous fees include loan pay off from your lender, fed ex fees, reconveyance fees (usually around $140), prorated association dues, if any and of course your actual loan if there is one.

The above information is approx. and you are advised to contact a licensed escrow company to obtain actual amounts so that you won't be surprised when you go into sign all your closing documents.

Research looks how mortgage delinquencies affect credit scores

How much impact does a short sale have on FICO® Scores? How about a foreclosure? Since I frequently hear these questions from clients and others, I thought I’d share new FICO research that sheds light on this very subject.

The FICO study simulated various types of mortgage delinquencies on three representative credit bureau profiles of consumers scoring 680, 720 and 780, respectively. I say “representative profiles” because we focused on consumers whose credit characteristics (e.g., utilization, delinquency history, age of file) were typical of the three score points considered. All consumers had an active currently-paid-as-agreed mortgage on file. Read full story...