Monthly Archives: April 2010

Business

Now That Tax Season is Here, Be Careful of Companies Offering Tax Relief

As tax day approaches, Attorney General Edmund G. Brown Jr. today urged Californians to avoid “phony tax-relief companies” that charge taxpayers up to $3,000 in up-front fees to reduce or eliminate back taxes owed to the Internal Revenue Service (IRS), but provide no actual relief.

“Every tax season, phony tax-relief companies emerge to exploit cash-strapped Californians who owe back taxes to the IRS,” Brown said. “Taxpayers should be on high alert, avoid paying up-front fees to these companies and never ignore notices from the IRS.”

Throughout the tax season, tax-relief companies advertise on the radio, television and internet promising help for taxpayers in distress. For an up-front fee ranging from $2,000 to $3,000, these companies claim to reduce or even eliminate tax debts to the IRS and stop back-tax collection.

However, soon after collecting up-front fees, these companies typically inform taxpayers that they do not qualify for a relief program or that the IRS has rejected their attempt to reduce or eliminate the back-tax debt. Often these companies never even contact the IRS directly. Rather than reduce or eliminate the amount owed in back taxes to the IRS, these companies increase taxpayers’ debt burden.

Brown offered the following tips to taxpayers who owe back taxes and are having trouble paying:

– Don’t ignore notices from the IRS. Call and ask about collection alternatives, as you may be eligible for a monthly payment plan. In some cases, it is possible to pay less than the total amount you owe.
– Don’t trust promises from companies that imply that you are “qualified” or “eligible” for an IRS program to resolve your back-tax debt. Only the IRS can make that determination.
– Don’t pay up-front or advance fees for tax-debt relief services.

Continue reading Now That Tax Season is Here, Be Careful of Companies Offering Tax Relief →

Real Estate

George Stephanopoulos’ Home Sells For $5.45 Million

George Stephanopoulos’s home in Washington’s Georgetown neighborhood, just listed in January, has sold for $5.45 million, about 14% less than the $6.35 million asking price.

The new anchor for ABC’s “Good Morning America” bought the five-bedroom home in 2006 with his wife, actress Alexandra Wentworth, for $5.2 million. The four-story brick home of roughly 5,600 square feet has a terrace and a private elevator.

Prior to his move succeeding Diane Sawyer, Mr. Stephanopoulos, 49 years old, helmed the ABC Sunday morning show “This Week” and, before that, advised President Bill Clinton. Ms. Wentworth’s films include the recent “It’s Complicated.”

The couple recently bought a 4,500-square-foot shingled home in the resort town of East Hampton, N.Y., for $3.5 million. He declined to comment. Giorgio Furioso of TTR Sotheby’s International Realty represented the couple.

Source: Wall Street Journal

John J. O’Dell
Real Estate Broker
Looking for real estate in Nevada County?
Search  at JohnOdellRealty.com

Real Estate

Help for Short Sales Start Today

April 5, 2010

A short sale, also known as a pre-foreclosure sale, is a solution to avoid foreclosure in which the bank allows a person (the homeowner or a third-party investor) to satisfy a loan by paying off a percentage of the loan amount

The Federal government has a program called Home Affordable Foreclosure Alternatives Program or HAFA

Starting today

  • Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
  • Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
  • Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
  • Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).
  • Uses standard processes, documents, and timeframes/deadlines.
  • Provides the following financial incentives:
    • $3,000 for borrower relocation assistance;
    • $1,500 for servicers to cover administrative and processing costs;
    • Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.
  • Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines. The policy may include factors such as the severity of the potential loss, local markets, timing of pending foreclosure actions, and borrower motivation and cooperation.

Further Requirements:

— Sellers must be unqualified for a loan modification under the Home Affordable Mortgage Program or be unable to afford the modification.

— The bank will set an acceptable value of the home upfront, based on an appraisal or broker’s price opinion.

— Lenders must approve or deny a purchase offer within 10 days of it being submitted.

— Once the bank approves a home for short sale, sellers may stop paying all related mortgage payments, and unpaid mortgage debt will be forgiven.

— These mortgage payments will not be shown as late on credit reports.

John J. O’Dell
Real Estate Broker
Looking for short sales or foreclosures
Go to JohnOdellRealty.com

Real Estate

Big Houses For the Comman Man

The upper price homes are coming down in price. Like the four bedroom villa with marble imported from Italy, a winery and a fruit orchard on 14 acres reduced in price from $4 million to $3.2 million.  Now this is a deal, since the seller states that $4 million is the amount of money he spent for the land and construction. So, if you happen to have $3.2 million in your wallet and you just need to spend it, here’s the deal for you.

This is a great video from the Wall Street Journal

Read the full story at Wall Street Journal Online

John J. O’Dell
Real Estate Broker
Searching for real estate in Nevada County?
Searching for short sales or foreclosures?
Find it on JohnOdellRealty.com

animals, Local Writers & Contributors

Pets, Allergies, and You

by Lisa J. Lehr

It’s spring!

While most people are busy doing little happy dances about the longer days and warmer, sunnier weather, allergy sufferers often have a different reaction: dread.

For people with year-round allergies to pets, however, spring just adds insult to injury. Tragically, allergies are among the most common reasons people give up their pets, and the misguided fear that a child may develop allergies prevents some people from having pets in the first place.

The good news is that this is all totally unnecessary. Some education about pets, people, and allergies will save a lot of pets from the animal shelter, and a lot of kids from the deprivation of growing up without pets.

Recently, numerous studies have found that kids who grow up in a home with dogs and cats actually have a significantly lower risk of developing common indoor and outdoor allergies. This means not only to cats and dogs, but also to dust mites, grass, ragweed, and Alternaria, a fungus found in the air.

Many studies have found lower rates of allergies and asthma among children who grew up on a farm and were around lots of animals, as well as among people who have continually owned a pet as compared to new pet owners or to people who had pets earlier in life but not currently.

In the February 2006 issue of Reader’s Digest, “Scratch Those Allergies” (page 208), with advice from allergist Clifford Bassett, MD gives the following suggestions:

–Ban pets from the bedroom, and get a HEPA air purifier.

–No pet is completely hypoallergenic, but those that shed more trigger more symptoms.

–Vacuum and dust often to eliminate sneeze-inducing dander and fur.

–Bathe and brush your pet often, especially if he sheds. If your symptoms are severe, have someone else do it for you.

I’d like to add a few points:

Continue reading Pets, Allergies, and You →