Unfortunately, a lot of homeowners are also choosing to forego the legal building permit process, trying to further save money.

Every building, occupied or unoccupied, has a set of building codes. Any changes that you make to your home must comply with those building codes, which means most home improvements, whether done by you or by a professional you hire, needs a permit. Depending on your locality, the home improvement that requires a permit could be as simple as installing a water heater.

Hire Someone to Get the Permit
The National Association of the Remodeling Industry (NARI) says hiring a contractor can actually save you money and time, even if all they do is handle the permit process. They also warn that a contractor that expects you to handle the permits is a contractor you don’t want to use.

Get the Permit Yourself
So how do you get a home improvement permit if you’re doing your own remodeling for your home for sale in North County San Diego? Submit a building plan for big projects or a description of the work for smaller projects. The plans are approved for a fee (if they comply with building codes). Building inspectors will look over the job while it’s in progress, after it’s finished or both, and make sure you used the right materials and techniques.

Cost of Not Getting a Permit
It may sound like a lot of trouble to go through, but the cost of not getting a permit can be a lot worse. For instance, if a potential buyer hires a home inspector to look over your property, the home inspector may see signs of your remodeling. They might then look for the permit record. Without one, you could lose the deal.

As well, home appraisers may look for permit records to see if a remodel changed the property value. If the work wasn’t covered by a permit, there’s a very real possibility of the escrow not going through.

If illegal home improvement is found, you might end up paying hefty fees for further inspections. You might even have to tear down sheet rock inside the house so framing, insulation and other interior work can be seen. In addition, you might have to tear out what you’ve done just so you can legalize the work and sell the home.

If you have a home for sale in North County San Diego and are thinking about sprucing it up to attract more buyers, a word of caution. Don’t skimp on the permits!

If you’re ready to sell your home, I can help. Call me now at 760-809-1788 or email me at CoastCondo@earthlink.net for more information.

Coastcondo@earthlink.net

To those who already own a home, Merry Christmas! The Workers, Homeownership and Business Assistance Act of 2009 didn’t just come with an extension; it came with improvements. Those in governmental positions of authority reasoned that if someone wanted to get a bigger home, they should get some kind of help too, thus further helping the overall real estate market.

If you own a home, you can now receive up to $6,500 in tax credits for buying one of the North County San Diego homes for sale. The actual wording is “$6,500 or 10%.” Here are a few of the important points you need to know:

Income Qualifications – Your modified adjusted gross income (MAGI) as a single taxpayer must be less than $125,000 ($225,000 if you file jointly). Partial credit may be received by those with a MAGI of less than $145,000 (single) and $245,000 (jointly).

Home Ownership Qualifications – You must have lived in the home you own for five consecutive years out of the past eight to qualify. You do not, however, have to currently own the home you’re using to qualify. The key terms are “five consecutive years” and “in the past eight years.” If you lived in your home for five years straight, but sold it two years ago, you are still eligible for the tax credit. If you’re filing jointly with a spouse, both you and the spouse have to qualify.

Cost Qualifications – The cost of the home doesn’t have to be more than the home you already own, but it does have to cost less than $800,000. As a side note, the government has put a definitive cap on the housing costs. If the home you’re looking at is a solid, non-negotiable $801,000, it isn’t eligible for the credit.

Purchase Date – The final date for the purchases to be secured is April 30, 2010. The actual closing date must be finalized before June 30, 2010.

Most couples move into a home thinking they will “eventually” get a bigger home once they have a family. Then the family comes along, the house is full and they can’t buy a larger home due to financial issues. The tax credit is a perfect opportunity for families to find North County San Diego homes that fit their expansion needs. Take a chance and look around; your dream home may be only a city block and $6,500 away!

If you’re looking to expand and take advantage of the tax credit, I can help. Call me at 760-809-1788 or email me at CoastCondo@earthlink.net for more information.

Coastcondo@earthlink.net

Job-loss mortgage insurance gives homebuyers a “fallback plan” should they ever lose that stable income. It’s a definite relief to many who want to buy North County San Diego homes for sale, but can job-loss mortgage insurance really help homeowners? Or, is it just another way to swindle the innocent out of hard-earned money?

What is it?
Job-loss mortgage insurance is exactly what it sounds like. Some insurance companies offer an insurance plan to help you pay your monthly mortgage payment should you lose your job. Although it’s been around for years, the big companies, such as Bank of America and GE Casualty, have begun picking it up in the past 10 years,.

How does it work?
Job-loss policies pay all or part of your mortgage payment if your job loss is involuntary, and some pay if you become medically unable to work. Policies vary depending on the provider, but most go into action after a month of unemployment. Most also have a wait period which means they won’t pay out during the first six months after you’ve purchased the policy.

Maximum monthly benefits, what the policy covers and whether you have to be receiving unemployment benefits are just a few things to look over while researching providers. As usual with anything insurance, make sure you read the fine print.

Is it worth it?
A lot of financial advisors say not to bother with the job-loss mortgage insurance. Take the money you’d be spending on insurance and build a savings account to hold six months worth of payments. However, many first-time home buyers have depleted their reserve funds just to get the house, and may not have the money to put aside.

My advice to you…
If you’re interested in buying one of the North County San Diego homes for sale, but you’re worried about your job stability, look into job-loss mortgage insurance. Once you have the facts, policy information and coverage costs, figure it into your finances (payments for coverage vs. building a six-month fallback account) and decide what’s best for you.

If you’re looking for a beautiful home at a price you can afford, I can help. Call me at 760-809-1788 or email me at CoastCondo@earthlink.net for more information.

Coastcondo@earthlink.net

Beachfront Vacation Home

If you have vacation North County San Diego Real Estate, you may consider renting it out occasionally to cover some of the expenses. However, if you get something wrong, you can set off alarms with the IRS – something you definitely don’t want to do. So, if you’re thinking about renting out your North County San Diego Real Estate, here are a few things you need to know:

1.    If you don’t feel like claiming rental income on your taxes, you can’t rent the vacation home out for more than fourteen days in a year. Instead, you treat it as a personal residence and just deduct your mortgage interest and property taxes.

2.    If you want to be able to deduct your rental expenses, you can rent the home for more than fourteen days. However, if you do, you then step into the world of being a landlord. This also means you have to report the income gained from the rent. Once a landlord, you’ll have to keep track of how much you use the property for personal use and how often you rent it out, then figure the costs for each.

3.    If you rent the home out for more than fourteen days, but live in it more often than you rent, it’s still your personal residence. As a personal residence, you can take out rental expenses that are less than, or equal to, your rental income. So, if your yearly rental income is $20,000, you can claim up to $20,000 of your rental expenses on your taxes, but you can’t deduct your losses.

4.    If you rent the home more than you live in it, it’s a business. As a business, you can claim your expenses and, possibly, as much as $25,000 in losses per year.

5.    The IRS uses the term “personal use”, but personal use is a somewhat broad term. The days of personal use that go towards the “10% more than renting” can include any day that you or family members are using the house. Personal use also includes the time that a family member is renting the home from you, you rent it out for less than it’s worth or you donate the use of the house.

If you decide to rent out your vacation North County San Diego Real Estate, make sure you do you research, talk to your real estate agent, accountant or attorney and have all your t’s crossed and i’s dotted. If you’re knowledgeable, that vacation home may just pay for itself!

If you’re looking for a great vacation home or rental property, I can help. Call me at 760-809-1788 or email me at CoastCondo@earthlink.net for more information.

Coastcondo@earthlink.net

The hard truth is that placing blame doesn’t do anyone any good, especially those trying to save their North County San Diego homes. The truth is that it’s time to do what Americans have been doing since the country was founded – picking ourselves up off the ground, dusting off and working with what we still have. Thanks to new acts such as the “Helping Families Save Their Homes Act of 2009,” it’s even more possible to do that.

If you’ve been dealing with the possibility of foreclosure, you may have missed the news, so here are a few uplifting highlights that can make all the difference:

•    If you rent your North County San Diego home and the home is foreclosed upon, you have to receive a 90-day eviction notice. You can’t just be preemptively kicked off the property. As well, if you have a lease you have to be allowed to live on the property until the lease is up unless:

a)    the new owner wants to move in and make it his or her residence or
b)    state law says the lease can be terminated on notice.

Although three months doesn’t seem like a lot of time, that’s three months you wouldn’t have had in most states before the Act was passed.

•    Lenders and homeowners are now receiving incentives for successful loan modifications and refinancing under the Making Homes Affordable Program. According to the White House government website, “Servicers covering more than 75 percent of loans in the country have now begun modifications and refinancing under the Administration’s MHA Program.”

•    One of the biggest challenges to homeowners is finding out who owns the mortgages on their homes.  This can make it incredibly difficult to discuss refinancing or modification with the mortgage owner. Thanks to the Act, you have to be informed whenever your loan is sold or transferred to another party. Now, you always know who has control of your mortgage and who you need to talk to.

Dealing in the current real estate market can be hard. If you’re already struggling financially, it can be even harder. Try to keep abreast of the current laws that can help homeowners and families keep their North County San Diego homes!

If you can’t qualify for loan modification or refinancing, and are considering a short sale, I can help. Call me at 760-809-1788 or email me at CoastCondo@earthlink.net for more information.