My Thoughts on The HERO Program

What the HERO Financing Program is

HERO is an energy efficiency financing program that has partnered up with local governments to make energy efficient, water efficient, and renewable energy products more "affordable" (highlighting the quotes) for homeowners.

HERO finances 100% of the cost to purchase and install those products, offering fixed interest rates and payment terms up to 20 years. 

The repayment of HERO Financing is included in the property tax bill. If the property is sold before the HERO Financing is paid in full, the remaining payments will be passed on to the new property owner.

The truth about it

Cities and counties across Southern California are promoting the HERO program with the intent of helping homeowners lower their utility bill and stating that it will increase the value on their homes.  However, that IS NOT always the case.

Here is a real example of the bill that a homeowner in Fontana will have to pay starting 2015 after the installation of new windows on his 963 sqft home:


At the end of the 20 years, this homeowner will be paying almost 3 times the cost of this installation and in reality, his utility bill did not decrease enough to justify the higher tax bill.  You can judge for yourself, is it really worth it?.

Also, it is a proven fact that the property loses desirability if you decided to sell it.  Buyers are VERY reluctant to assuming these type of loans. Plus, at the end of the day, such improvements are not adding any value to the home unless they are completely paid off.

My suggestion is to run the numbers before you agree to anything.  Just make sure that the savings are greater than what you will be paying in property taxes.

If you want to know what renovations add the most value to your home, I'm here to help!

Tax Relief Expires on 12/31/2013 - Riverside, CA Real Estate

Homeowners in Riverside, CA or the Inland Empire can still benefit from the Mortgage Debt Relief Act and avoid any tax liability when doing a short sale, but they have to act NOW.

Before this Act, many homeowners often had their outstanding home mortgage cancelled by their lender. However, they did not understand that this cancelled debt was considered taxable income by the IRS. This law is set to expire at the end of 2013, so debt cancelled in 2014 or later will be considered income in the year received.

No house + extra taxes = double pain

How Short Sales Work

Sometimes, rather than trying to take back a home, a lender will allow a borrower to sell the house for less than the mortgage amount. This is called a “short sale”.

Here is a quick example:

Let's pretend you lost your job and can't keep up the payments on your home in Riverside, CA. You still owe $300,000 on your mortgage, but the house value has dropped to $275,000. If the bank agrees to a short sale, you would sell the house, pay the commission and other closing costs – let's say it's $15,000 – and turn the remaining $260,000 over to the bank. If the bank then forgives the $40,000 gap between this $260,000 payment and the $300,000 mortgage balance, the forgiven $40,000 would show up as cancelled debt on a special form sent by the lender called Form 1099-C. This $40,000 is usually considered taxable income.  
But, thanks to those tax law changes, when a short sale through 2013 involves a principal residence, the cancelled debt is not considered taxable income.

Back to Work Program

We got some great news a few months ago when the Federal Housing Administration decided to reduce the waiting period for a homeowner to qualify for a new FHA loan after a short sale, bankruptcy or foreclosure. Now Riverside homeowners could buy again in as little as 1 year as long as the guidelines are met. 


This information is brought to you by your Riverside CA Realtor: Catalina Castaneda. Specializing in homes and real estate in Riverside CA and the entire Inland Empire.

37324 Vista View Drive - Yucaipa, CA Real Estate - Home for Sale

37324 Vista View Drive Yucaipa, CA 92399 Great Custom Built Home in Yucaipa

Price : $695,000.00 Bedrooms : 3 Bathrooms : 3.00 Square Foot : 4,662 Lot Size : 1 sq.ft. County : San Bernardino Property Type : Single Family Year Built : 1990 MLS Number : IV14018048 click for more information and pictures Property Description Custom built home on over half acre in prestigious Hidden Meadows division of Yucaipa. Location is close to parks, walking and biking trails and horse trails with tons of California Oak trees surrounding. This area is quality living at its best. From every room in the house, enjoy sitting with mountain views. Light and bright home with open floor plan. Master wing/suite with retreat is located on first floor. Master bath has jetted tub and lots of amenities. Guest bedrooms with small retreat and bath is located on second floor. Kitchen is open to the living room area with large built in full wet bar. Indoor laundry, 5 car garage, RV parking, circular driveway, built in barbecue. Two exterior entertaining areas, library with wood floor/loft. Find out what your home is worth in this HOT market, get a FREE valuation by going to www.valuemyhome4free.com. To receive automatic emails with new listings like this one, please visit our website www.CatalinaRiversideHomes.com and sign up with your search criteria. This information is brought to you by your Riverside CA Realtor: Catalina Castaneda. Specializing in homes and real estate in Riverside CA and the entire Inland Empire. Features List • 5 Car Garage • Mountain View • RV Parking

Equal Housing Opportunity.

6526 Marlo Way - Riverside, CA Real Estate - Home For Sale in Great Neighborhood

6526 Marlo Way Riverside, CA 92506 Home in One of The Best Neighborhoods of Riverside

Price : $405,000.00 Bedrooms : 3 Bathrooms : 3.00 Square Foot : 1,834 County : Riverside Property Type : Single Family Year Built : 1978 MLS Number : IV14018164 click for more information and pictures Property Description LOCATION!LOCATION!LOCATION!! Backs up to the Gage canal off Victoria and Maude. Large over-sized lot with RV access and large pool and spa. Poly district. Single story home, open floor plan. Recessed lighting, brick fireplace in living room, Granite kitchen, laundry room with 1/4 bath attached and direct read access to pool off of laundry. Master suite includes bath and 2 closets with sliders to pool and patio area. Large mature trees in rear with plenty of rear and side yard. Great home for entertaining. Find out what your home is worth in this HOT market, get a FREE valuation by going to www.valuemyhome4free.com. To receive automatic emails with new listings like this one, please visit our website www.CatalinaRiversideHomes.com and sign up with your search criteria. This information is brought to you by your Riverside CA Realtor: Catalina Castaneda. Specializing in homes and real estate in Riverside CA and the entire Inland Empire. Features List • Pool & Spa • Recessed lighting • Granite Countertops • Fireplace • RV Parking

Equal Housing Opportunity.

You Could Be Saving Up to $300 on Your Mortgage Payment Right Now - Riverside, CA Real Estate

 New Home Values Help Homeowners Shed the Extra PMI Payment

 

 Homeowners who bought when the economy began to sink may now have enough equity to cancel private mortgage insurance thanks to home values increasing in 2013.   Home price gains of 20 to 30 percent in Riverside and San Bernardino areas has helped lift housing prices in some places to the 78 percent loan-to-value threshold to cancel PMI or refinance. 

Home prices increased so rapidly across Riverside County and the Inland Empire in Southern California in 2013 that consumers who are currently paying private mortgage insurance on their home loans may have enough equity to shed the extra PMI payment.

The fee is included onto the monthly mortgage payment for those who bought their homes with less than 20% down payment.  This is a great opportunity to get rid of that fee and pad the pockets of Riverside and California homeowners who may have been hassling to stay afloat in an underwater economy.  The private mortgage insurance savings can add up to hundreds, and possibly thousands, of dollars a year.  It can represent between $100-$300 a month which can be used towards a new car, make home improvements, save money for the kids college or simply put aside towards retirement. 

As an example, if you bought your home in Riverside or the Inland Empire in January 2009 for $242,000 with less than 20 percent down, your current loan balance would be around $219,000 and could have appreciated to $282,76, which means a Loan-to-Value below 77.4 percent.

If you want to know if your Loan-to-Value is nearing 78 percent, you can get a free home valuation of your home by going to www.ValueMyHome4Free.com. 

Be PROACTIVE, you could be saving hundreds of money starting now!

This information is brought to you by your Riverside CA Realtor: Catalina Castaneda. Specializing in homes and real estate in Riverside CA and the entire Inland Empire.

New Year, New Goals - Real Estate in California

 

Buying or Selling a Home in 2014?

 

 

There's Still Time for New Year's Resolutions

 

The start of a new year is a popular time to make resolutions: promises to yourself to achieve specific goals and objectives. Financially speaking, you might want to pay off debt, build up savings, prepare for retirement or better manage your daily spending in 2014.

Those are good goals to have, and if you're a homeowner or intend to become one this year, your house might give you some great ways to bring your goals to fruition.

Whether it is upgrading to a bigger home or downsizing to lower the monthly expenses, this is a great time for buyers and sellers in Riverside, CA and Southern California to jump into the real estate market while interest rates are still affordable.

The tax season is almost here, have you decided how to wisely invest your tax refund?  Start looking for your next house by searching on our website www.CatalinaRiversideHomes.com. 

You can also get a free home valuation of your home by going to www.ValueMyHome4Free.com.

This information is brought to you by your Riverside CA Realtor: Catalina Castaneda. Specializing in homes and real estate in Riverside CA and the entire Inland Empire.

Se retira el castigo de 3 años para volver a comprar casa!

Excelentes noticias para todos aquellos que recientemente pasaron por una venta corta, bancarrota o un embargo hipotecario!

Siempre y cuando su crédito este mejorando y puedan demostrar que estaban pasando por una situación económica difícil cuando eso sucedió, pueden comprar casa nuevamente en tan sólo 1 año, en lugar de 3.

Si Ud. Esta dentro de ese grupo,  contacteme inmediatamente para empezar su proceso de precalificacion y encontrar su próxima casa en Riverside!

www.CatalinaCasasRiverside.com

Esta informacion fue ofrecida por Catalina Castaneda, su realtor en Riverside CA.  Especializandose en casas y real estate de Riverside CA y todo el Inland Empire.