Archive for March, 2009
INDUSTRY NEWS, REAL ESTATE LEGISLATION
Many older subdivisions in Redding have covenants in their title prohibiting property title transfer to anyone other than to those of the Caucasian race. These restrictions have been struck down by sate and federal laws but the language persists in deeds and C,C&R’s to this day. For the second time in as many years, a California legislator wants these prohibitions systematically removed from the public records.
Last year, a bill would have required county recorders across California review and delete any such restrictions from title documents before title could transfer. County recorders objected citing the high cost for attorneys that would be required to review and modify property titles and time delays necessary to carry out the cumbersome process. County officials pegged the extra cost at about $750 per property. The bill failed.
Now, this same legislator wants to accomplish his objective by placing the burden on title companies to redact the discriminatory clauses. He related the fact that he could not buy the house he lives in had laws not nullified the discriminatory covenant in his deed. Title companies currently print disclaimers on title reports that have illegal restrictions declaring they are unenforceable. Expect title companies to pass on any implementation cost to buyers and sellers if this bill becomes law.
I would prefer the offensive language remain as historical proof that once upon a time some individuals clearly violated the fundamental rights our country grants to one and all. Cleansing records of these covenants could allow future generations to deny said discriminatory practices ever took place. Not unlike some religious fanatics today claiming the Holocaust never took place.
Let the record stand as a reminder to everyone that some felt it was their legal right to dictate who lived where. Obliterating the printed record only covers up a shameful practice of decades past. Leave the record intact so we can all ponder this unfortunate chapter in our history into perpetuity.
bradgreps@yahoo.com
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
INDUSTRY NEWS, REAL ESTATE LEGISLATION, TIPS FOR BUYERS
Mortgage interest deductibility has always been the 
sacred cow when it comes to real estate tax deductions. President Obama has proposed limiting the deduction for the wealthiest Americans.
The Obama budget proposes limits on mortgage interest deduction, property tax deduction and capital gains exclusions for households with adjusted incomes exceeding $250,000. These changes would take effect starting in 2011.
Many homeowners, incuding the upper end, count on these deductions as incentives to home ownership. Housing and banking trade groups fear reducing the write offs could cause housing prices to fall. Limiting these incentives could also be the first step toward reforming the federal tax code. Many real estate investments garner favorable tax treatment.
For a detailed list of real estate tax deductions, see my prior post:
http://movetoredding.com/?s=realtors+fight+for+tax+benefits
bradgreps@yahoo.com
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
REDDING LIFESTYLES, REDDING RECREATION, SHASTA COUNTY
A reader of my blog emailed me recently regarding my post that retold the story of the Ruggles brothers stage robbery in Shasta. She was writing a play loosely based on this local historic event and wanted to visit the site of the robbery for inspiration. I provided some brief directions and I hope she found the right spot.
It has been a number of years since I rode past that marker on my mountain bike, so I asked my wife if she would join me for a leisurely walk on this unseasonably warm winter afternoon. She lived in Old Shasta for years but never ventured down this old wagon trail. Off we went!
We drove to Middle Creek Road and turned north off Hwy 299 to find a gate blocking the road. We parked, I grabbed my camera pack and headed down the paved road behind the gate until we crossed the bridge over Middle Creek then veered right to begin the gradual descent down the dirt wagon road. Middle Creek drops sharply into a rocky canyon as it twists its way toward Iron Mountain Road. The wagon road winds its way along the side of the south facing hills above the creek offering occasional glimpses of the tumbling waters at the bottom of the gorge.
We walked by signs warning visitors not to remove any artifacts. We hadn’t seen any yet but suddenly we felt the historical significance of this pretty valley on the outskirts of Redding. As we passed a sharp bend in the road that crossed a small side drainage we noticed some man-made rock walls that appeared to funnel the water across the road. A shear wall covered in brush supported the downhill side of the grade. Not far from this point, about a mile down the wagon trail from the pavement was the spot that I recall being marked with a stake and small metal plaque signifying the place 
where the Ruggles brothers held up the stage in the Spring of 1892.
The robbery site is located where the road cuts through a hill with high road banks on either side. I assume the brothers positioned themselves on top of the road banks (photos right) to take advantage of the view and shooting angle as the stage approached. The photo below is the hillside behind and below the south road bank looking east toward Mt. Lassen.
Click here for robbery details: http://movetoredding.com/2008/09/25/ruggles-brothers-loot-never-found/
For those with GPS capability, here’s the UTM coordinates of the site I believe to be the spot where the marker once stood: 10 T 0544616 /4494068
Click here for a slide show of our hike:
http://www.visualtour.com/show.asp?T=1828662
For a map, click here:http://maps.google.com/maps?f=q&source=s_q&hl=en&geocode=&q=Shasta&sll=37.0625,-95.677068&sspn=36.915634,78.134766&ie=UTF8&ll=40.59714,-122.471766&spn=0.017303,0.038152&t=p&z=15
bradgreps@yahoo.com
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
HOME LOANS, INDUSTRY NEWS, REAL ESTATE LEGISLATION, TIPS FOR BUYERS, TIPS FOR SELLERS
The New York Times reported that mortgage professionals are losing hope the government will subsidize low interest rate loans to aid homeowners anxious to refinance unaffordable loans.
Many homeowners have been on the fence waiting for the government to implement a program that would buy interest rates down to 4%. Realtors and builder groups have suggested the federal government consider using a portion of the bailout money to subsidize lower interest rates for home owners and home buyers. Instead, the Obama administration has focused on loan modifications for homeowners at market rates (currently between 5 to 5.5%) and a federal tax credit of $8,000 for first-time buyers.
In the meantime, it is getting risky for those playing the waiting game because property values continue to drop and lending standards continue to tighten. Their advice-refinance now before it’s too late!
bradgreps@yahoo.com
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
INDUSTRY NEWS, SHASTA COUNTY
Today, the National Association of Realtors issued an
alert concerning an Internet scam. The perpetrators are using NAR’s name claiming if prospective tenants wire funds to NAR via Western Union, they will hand over keys to a rental property. The advertisements claim NAR will work as an intermediary to receive deposits on rental property.
NAR is not involved in property management in any form or fashion. Anyone that spots this advertisement is encouraged to report the matter to the FBI’s White Collar Crime Unit.
Even the FBI is not immune from spam scams. Those Nigerians promising to share huge sums of money with any American willing to provide bank account information are now claiming the FBI has lottery or inheritance proceeds waiting to be claimed. Here’s the alert:
Consumers continue to be inundated by spam purportedly from the FBI. As with previous spam attacks, the latest versions use the names of several high ranking executives within the FBI and even the IC3 to attempt to defraud consumers.
Many of the spam e-mails currently in circulation claim to be an “official order” from the FBI’s Anti-Terrorist and Monetary Crimes Division, from an alleged FBI unit in Nigeria, confirm an inheritance or contain a lottery notification, all informing recipients they have been named the beneficiary of millions of dollars. To claim the large sum, recipients are instructed to furnish their personally identifiable information (PII) and are often threatened with some type of penalty, such as prosecution, if they fail to do so. Specific PII information requested includes, but is not limited to, the recipient’s name, banking information, telephone number, and a copy of their passport.
The spam e-mail allegedly from the IC3 states that the recipient has extorted money and will be given a limited amount of time to refund the money or face prosecution.
Do not respond. These e-mails are a hoax.
The FBI does not send unsolicited e-mails of this nature. FBI Executives are briefed on numerous investigations but do not personally contact consumers regarding such matters. In addition, the IC3 does not send threatening letters to consumers demanding payments for Internet crimes.
Consumers should not respond to any unsolicited e-mails or click on any embedded links associated with such e-mails, as they may contain viruses or malware.
It is imperative consumers guard their PII. Providing your PII will compromise your identity!
If you have been a victim of Internet crime, please file a complaint at www.IC3.gov.
For previous PSAs concerning e-mail scams targeting the FBI and other government agencies:
Click on the following link to reach the FBI website: http://www.ic3.gov/complaint/default.aspx
bradgreps@yahoo.com
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
SHASTA COUNTY
This morning I checked Turtle Bay’s Eagle Cam and saw a tiny yellow beak in a ball of fuzz that might be the first egg to hatch. The local paper predicted the hatch and it happened almost on schedule. I could be wrong since the eagle has hunkered down making any confirmation impossible.
Be patient, perhaps the eaglet is staying warm under the cover of mom or dad. Sunny and warmer weather may allow the eaglet to be seen when the parent moves out of the way.
Click this link to see for yourself: http://www.turtlebay.org/caltranseaglecam.php
bradgreps@yahoo.com
530-224-6767 or 530-941-7492
Brad Garbutt
Realtor/Broker Associate
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
LOCAL GOVERNMENT, REDDING LIFESTYLES, SHASTA COUNTY
Rick Bosetti, Redding’s mayor, discussed the state of the city and some of the projects planned for the near future. Rick also fielded questions from the audience regarding a wide range of issues.
The stimulus package money recently authorized by President Obama will funnel nearly $4 million to Redding. Shasta County, Anderson and Shasta Lake will also receive a portion of the stimulus money. The city would like to focus the money on infrastructure for the Oasis Road development. The city is in danger of losing Costco and the $3 million plus in sales tax revenue it generates yearly if they decide to move out of the city. Costco would like to add a 16-pump gas station and significantly expand the store size.
Other interested tenants include Cinemark and Fred Meyer.Cinemark has plans to build a 16-screen theater complex. Fred Meyer has wanted to build a store here for some time. The Oasis Road developer has several options to pay for the construction of the expensive interchange improvements. Rick feels the time is right to begin this project because construction costs are about 30% lower today than just a few years ago.
Local home builders are also discussing several projects they would like to get underway to aid the construction industry. I assume builders would like to see some relief from high permit fees and/or a deferment of fees until the homes are sold. The city had a program in place last year similar to this but that program has expired.
Rick pointed to the weak economy for bringing budget issues to the forefront. As tax revenues decline, the city council is looking closely at their budget and some interesting things have occurred. The unions that represent city workers have rejected pay and benefit cuts in favor of layoffs. Rick mentioned that Chico city employees offered to take across the board pay cuts to maintain current job levels.
I asked who sits at the bargaining tableon behalf of Redding’s citizens. He said a city employee in the Human Resources Department has represented the city for more than 10 years. During that time period, retirement obligations for the city have ballooned from just under $4 million/year to more than $18 million today. He said the city council may want to consider hiring an outside representative to sit at the bargaining table on behalf of citizens. New GASB accounting regulations require the city to break out the cost of future retirement benefit obligations, presently projected to be about $100 million.
Other concerns on the horizon include the tab to Calpers for retirement benefits. Due to the recent steep declines in the stock market, and CalPers 6% return guarantee to government employee participants, the bill to fund retirement obligations could increase substantially, despite a recent smoothing formula used by Calpers to minimize large variances in year-to-year funding requirements. They won’t know exactly how much until Calpers sends the city a bill.
Rick made one final comment that left the audience stunned: when Rick took office as a city councilman he told staff not to invite him to any social functions, dinners, get togethers, etc and vise versa. He said he wants to represent and make decisions for the 90,000 city residents, not just the 900 city employees. If he was to get too friendly with city staff or employees, he’s afraid it would influence his vote on issues that come before him.
Thanks Rick!
bradgreps@yahoo.com
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
INDUSTRY NEWS, REAL ESTATE LEGISLATION, TIPS FOR BUYERS
Efforts to get the housing market back on track have resulted in three 
distinctly different tax credits from state and federal government agencies. Here is a summary of the three incentives:
- First-time buyers that bought a home April 9,2008 to December 31, 2008 may qualify for a $7,500 tax credit enacted as part of the Housing and Economic Recovery Act of 2008. This “tax credit” must be repaid at $500/year over 15 years.
- First-time buyers that buy a home between January 1, 2009 and November 30,2009 will be awarded a $8,000 tax credit that can be applied to their 2008 or 2009 Federal Tax Return. No repayment is necessary unless the buyer disposes of the property within 36 months or it ceases to be their principal residence.
- Anyone that purchases a brand new home (never occupied) may qualify for up to $10,000 state tax credit if purchased (escrow closes) between March 20, 2009 and February 28, 2010. The credit is 5% of the purchase price or $10,000, whichever is less. The credit is spread over 3 years. If your tax obligation to the state is less than the tax credit, there is no carryover or refund of the difference.
Numbers one and two have income limitations and first-time buyers only are eligible, neither conditions apply to number three. A first-time buyer is defined as an individual that has not owned a home in the past three years.
The tax credits have plenty of conditions and exceptions, so it’s a good idea to consult with a tax professional before assuming a credit will apply to your personal situation. The funds are limited for the state tax credit. Buyers need to apply for the credit within 7 days of close of escrow. There’s $100 million total available funds in the kitty.
Buyers can also combine the federal and state tax credits for a new home purchase. Contact me for details on any of these programs.
bradgreps@yahoo.com
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
SHASTA COUNTY
Just over a month ago, Lake Shasta was only 1/3 full and nearly 160 below the full mark. Now, after a sopping wet February, Shasta Lake has gained more than 70′ in elevation and is more than half full. Last night around 6:11 PM my wife and I were jolted by a temblor as we relaxed in our living room. Just a coincidence? Perhaps.
My first thought was Eureka or San Francisco had the big one. I surfed to the USGS website to find out where the epicenter of the quake was located. I was too quick and there was nothing noted on their website. I zoomed out the map and saw nothing nearby. Then, I clicked the refresh button and saw the red box near Redding that had the details of the quake.
Based on the distance cited from Redding and looking at the Google Map, I guesstimated the quake to be below Bear Mountain in the Jones Valley area. My science degree kicked in and I put two and two together-tons of water suddenly pushing at the sides of Bear Mountain, somethings gotta give. Right?
Seismologists are quick to point out that there is no proof the weight of water stored in Lake Shasta causes earthquakes. Speculation in the past by locals suggesting this is causing earthquakes in the Keswick area have been dismissed by those that make a career of studying earthquakes.
However, those same scientists have determined there are no active earthquake faults in our neck of the woods. Tell that to those of us that celebrated Thanksgiving in Redding in 1997! We are all entitled to our theories.
For details on this quake, click here:http://earthquake.usgs.gov/eqcenter/recenteqsus/Quakes/nc40232953.php
bradgreps@yahoo.com
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
FHA LOANS, HOME LOANS, TIPS FOR SENIORS
Reverse mortgages have traditionally been used by seniors to tap equity in
their home. Sandra Castrogiovanni, of Security 1 Lending, specializes in Home Equity Conversion Mortgages (HECM) for seniors. She addressed Realtors Wednesday touting new uses for this loan product. Seniors, age 62 or older, may want to consider a HECM if they want:
- To preserve their cash
- No monthly payment
- To qualify for a loan without any income verification
- To get a loan despite bad credit
To preserve cash, a senior may want to secure a reverse mortgage instead of paying off their new home with the cash proceeds from the sale of their previous home. The amount seniors can borrow depends on their age(s) and the appraised value of the home being purchased.
Reverse mortgages have no monthly payments-ever. In fact, the homeowner may receive a monthly payment from the homes equity. The net equity in the home is pledged to repay the HECM when the home is sold after the owner passes away. However, an extended absence for medical treatments or assisted living stay could trigger a forced sale of the home.
Since the home’s equity will be used to repay the loan, there is no requirement the borrower provide proof of income. In the event the senior is receiving monthly payments from their homes equity, the size of the payments is determined by the projected life span of the borrower(s) and equity available as security. Bad credit is not an obstacle either because the eventual sale of the property, not the seniors creditworthiness, is how the lender expects to recover their loan disbursements.
The senior can also receive a lump sum of cash to help pay for the home purchase and not receive any monthly payments. Again, the loans are set up so the senior can reside in the home for the remainder of their life. These loans are insured by FHA. Prospective borrowers will be thoroughly counseled on the ins and outs of this unusual loan. The loan fees for HECM’s are very high-over $15,000.
Here’s a few other details:
- Property must be owner occupied primary residence of borrower
- Mortgage insurance premium (MIP) required
- No seller concessions or credits
- Buyer must pay normal closing costs and seller must pay for all repairs
- No gift funds allowed to borrower
- Loan limit is $625,000 through 2009
Most importantly, use a local lender. Contact me if you have any questions.
bradgreps@yahoo.com
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
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