Jack Kirk Sr's Real Estate Blog

In an actual transaction a client obtained a Reverse Mortgage to complete a home purchase transaction.  Here is the scenario: Senior parents own their home free and clear. The parents would like to stay in their home and be independent through their retirement. They however need some assistance occasionally now and feel they may need more care assistance in the future as they age.

A home in the parents neighborhood came up for sale. There daughter and son-in-law have interest in moving to this home and providing their parents with support. The problem is that the adult children do not have enough equity in their home to make the purchase without increasing their own house payment beyond what they could personally afford.

A solution is possible  through a Reverse Mortgage. In this case the parents obtained a Reverse Mortgage on their home and was able to pull $225,000 cash equity. They still do not have a house payment because of the Reverse Mortgage.  They then purchased the new home with their adult children,using $200,000 of these funds as a down payment on the new home after setting aside $25,000 to complete some home repairs. With the adult childrens remaining equity, after they sold their home, there was no house payment on either home.

The daughter now works part time and has the free time to help her parents. The parents still have no house payments and have the security of family in their neighborhood.

For more information on Reverse Mortgages and helpful links,  go to www.CWMReverse.com

You don’t have to be a first time home buyer to take advantage of the “Extended Home Buyer Tax Credit”.

You could receive an $6,500 TAX CREDIT if you are CURRENTLY A HOMEOWNER and purchase another owner occupied home between November 7, 2009 and April 30, 2010 that closes escrow by July 1, 2010. You must have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

You could be eligible for an $8,000 TAX CREDIT if you are a FIRST-TIME HOME BUYER and purchase a home between November 7, 2009 and April 30, 2010 that closes escrow by July 1, 2010. You or your spouse must not have owned a home during the three years prior to the purchase.

The purchase price cannot exceed $800,000. Also, single Buyers with incomes that do not exceed $125,000 and married couples with combined incomes up to $225,000 may receive the maximum tax credit. The tax credit will not need to be repaid as long as the home is “owner occupied” for three years or more. If the property is sold during this three-year period, the full amount of the tax credit will be recouped on the sale.

In June of 2009 my wife Cathy (KJ6AMY) and I (KJ6AMZ) obtained our Amateur Radio License also referred as HAM Radio License. We have enjoyed connecting with other Ham’s in the Morgan Hill, Gilroy, San Martin, Monterey and Hollister areas. We hold a Technician Class license and will be testing for a General Class license in April 2010. I originally obtained my Novice Class License (WN6HXV) when I was 15 years old but later allowed my license to expire. Things have changed technically since my days as a Novice transmitting CW.

Through the use of a local repeater and IRLP I was able to take to my son in Provo, Utah with my YAESU FT-60.

HAM Radio operators, besides being experimenters, provide communication service during emergencies. They work closely with the Red Cross Emergency services.

“Short Sales” What is a Short Sale? Who can explain what a Short Sale is? Is a Short Sale best for me?

A short sale in real estate occurs when the outstanding obligations (mortgages, including HELOCS) are greater than the properties value or potential sales price. The owner of the property lists the property for sale with a Realtor of their choice at the market price and the Realtor prepares a request (Short Sale Package) that is sent to the Lender(s) requesting a  reduction in the mortgage(s) balance that will match the sales net. The Realtors commission is paid out of the sales proceeds as well as the unpaid property taxes, Title fees and most of the sales closing costs. In most cases the Seller(s) will not have to contribute any funds towards the closing.

Some things to consider when determining if a short sale is right for you:

1. Contact a Realtor that is experienced in the short sale process.

2. Review this option with your CPA and family Attorney. I always have my clients meet with a CPA and Attorney (with real estate experience) to review whether the short sale process is right for you.

3. The short sale approval process can take 2-5 months depending on the Lender.