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Two new laws dealing with the use of wireless telephones while driving go into effect July 1, 2008. Below is a list of Frequently Asked Questions concerning these new laws.

Q: When do the new wireless telephone laws take effect?
A: The new laws take effect July 1, 2008.

Q: What is the difference between the two laws?
A: The first prohibits all drivers from using a handheld wireless telephone while operating a motor vehicle, (Vehicle Code (VC) §23123). Motorists 18 and over may use a "hands-free device." Drivers under the age of 18 may NOT use a wireless telephone or hands-free device while operating a motor vehicle (VC §23124).

Q: What if I need to use my telephone during an emergency, and I do not have a "hands-free" device?
A: The law allows a driver to use a wireless telephone to make emergency calls to a law enforcement agency, a medical provider, the fire department, or other emergency services agency.

Q: What are the fines(s) if I’m convicted?
A: The base fine for the FIRST offense is $20 and $50 for subsequent convictions. With the addition of penalty assessments, the fines can be more than triple the base fine amount.

Q: Will I receive a point on my driver license if I’m convicted for a violation of the wireless telephone law?
A: No. The violation is a reportable offense, however, DMV will not assign a violation point.

Q: Will the conviction appear on my driving record?
A: Yes, but the violation point will not be added.

Q: Will there be a grace period when motorists will only get a warning?
A: No. The law becomes effective July 1, 2008. Whether a citation is issued is always at the discretion of the officer based upon his or her determination of the most appropriate remedy for the situation.

Q: Are passengers affected by this law?
A: No. This law only applies to the person driving a motor vehicle.

Q: Do these laws apply to out-of-state drivers whose home states do not have such laws?
A: Yes.

Q: Can I be pulled over by a law enforcement officer for using my handheld wireless telephone?
A: Yes. A law enforcement officer can pull you over just for this infraction.

Q: What if my phone has a push-to-talk feature, can I use that?
A: No. The law does provide an exception for those operating a commercial motor truck or truck tractor (excluding pickups), implements of husbandry, farm vehicle or tow truck, to use a two-way radio operated by a “push-to-talk” feature. However, a push-to-talk feature attached to a hands-free ear piece or other hands-free device is acceptable.

Q: What other exceptions are there?
A: Operators of an authorized emergency vehicle during the course of employment are exempt, as are those motorists operating a vehicle on private property.

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Spring is officially here!  And with it comes warmer weather... longer days... and your Economic Stimulus Package tax rebate! Do you know when to expect yours? The tax rebate article below can help you figure out when you'll receive your money, and it provides you some insight into how you can help make sure you get it sooner rather than later!

 TAX REBATES MAILING SOON... WHEN WILL YOU GET YOURS?

Timing Is Everything! The deadline for filing your 2007 taxes was April 15. Tax rebates will start going out on May 2... but only to taxpayers who have their returns processed--not just sent--by April 15.

Would You Like Paper? Or Electronic? Tax rebate checks will start going out on May 2. But here's the deal... taxpayers who chose direct deposit will be first in line. According to the IRS, all direct deposit tax rebates will be wired between May 2 and May 16. Paper checks won't start going out until May 16, and aren't expected to be completed until mid-July.

What's Your Number? The IRS needs some way to determine the order of distributions - but they're not going alphabetically. Instead, tax rebates will be distributed in order of the last two digits of your Social Security number...the lower your number, the sooner you'll receive your payment. For a detailed breakdown of the order, take a look at the IRS's Stimulus Payment Schedule. About seven to ten days before your rebate is sent, the IRS will send you a notice informing you how much it will be. If you signed up for direct deposit, however, you'll probably receive that information in the mail about the same time your rebate is deposited into your account, since direct deposit transactions are processed so quickly. But you don't have to wait that long to determine approximately how much you'll receive. To calculate your approximate rebate, visit the new online stimulus calculator on the IRS website.

Finally, it's important to remember that the rebate check will not be counted as taxable income and will not reduce your refund or increase the amount you owe when you file your 2008 return. However, if you owe back taxes, the IRS will apply your rebate to that bill and send you whatever is left over.

For more information, visit the Economic Stimulus Package Information page on the IRS website. You can even read detailed answers to Frequently Asked Questions.

Remember, this information may be of interest to your friends, family members, and coworkers. So feel free to pass it along to help make their spring a little brighter. If you or someone you know is thinking about buying or selling a home, call or email me with any questions  925.487.5065. It would be my pleasure to help you with all of your real estate needs.

Deducting Mortgage Interest -  Mortgage interest on a primary residence is usually fully tax-deductible, unless your mortgage balance exceeds $1 million or you took out a mortgage for reasons other than buying, building or improving a home.

To claim this tax deduction, you should fill out Schedule A, labeled "itemized deductions." Your lender should send you a "Form 1098" that tells you how much mortgage interest you paid for the year. You should record your interest deduction on line 10.

Late payment charges also may be deducted as home mortgage interest if not for a specific service received in connection with your home loan. The same is true for mortgage prepayment penalties-if you pay off your mortgage early and incur a prepayment penalty, you can deduct that penalty as home mortgage interest (subject to the same requirements for late payments).

Deducting Real Estate Taxes -  Real estate taxes, which are annual taxes based on the assessed value of a property, also are tax deductible. Your mortgage interest statement may list the amount of real estate taxes you paid if your taxes and homeowners' insurance were placed in an escrow account when you closed on your mortgage. If real  estate taxes aren't included, you could review your cancelled checks to determine your total real estate tax deduction.

Deducting Loan Points Paid on a Purchase -  The points you pay on a purchase mortgage are deductible the year you made the purchase. You can deduct any points you paid—and that a seller paid on your behalf*-if you meet the following criteria:

· The loan is secured by your primary residence and the loan was used to buy, improve or build the home.

· Paying points (and the amount of points paid) is not an irregular practice in the seller's geographic area;

· The points are computed as a percentage of the loan principal;

· The points are clearly delineated on the buyer's settlement statement; and

· You put cash into your home purchase in an amount at least equal to the points you were charged.

*Seller Paid Points are Deductible by the Buyer -  When a seller pays points for the buyer (or in other words, buys the mortgage rate down) the buyer gets a lower mortgage rate.

Deducting Loan Points Paid on a Refinance -  If you refinanced last year, you may be able to write-off any points you paid to buy down the mortgage rate. To do so, you deduct the points proportionately over the life of the new loan. For example, if you took out a 30-year loan, you would deduct 1/30th of the points you paid each year.

Have you refinanced more than once in recent years? Many homeowners may have overlooked an important opportunity. Say, for example, you refinanced in 2003 and paid points. You can deduct 1/30^th of those points in that tax year. However, say you refinanced again in 2006, paying off that 2003 loan. The remaining points from the 2003 refinance-that is, those that hadn't yet been deducted-can now be deducted in full since that loan has been paid off.

Deducting Interest on a Home Equity Loan -  The interest on a home equity loan is usually tax-deductible*. However, if your home equity loan when combined with your first mortgage amount, increases the debt on your home to an amount more than the property's actual value, there may be deductibility limits. Usually, you can deduct the smaller of interest on a $100,000 loan or your home's value less the amount of your existing mortgage. As always, you should check with your tax advisor to determine which of these deductions apply to you!

If you or someone you know is thinking about buying or selling a home, or even refinancing their home, I would be glad to help.  As a real estate expert in the Bay Area, I will utilize my experience and resources to help you or someone you know navigate through the process. Don't leave your future in the hands of some random real estate agent. I'm local, accountable, and you can trust that I'll do everything in my power to help you succeed. Call me today at 925.487.5065.

Short sales happen when a lender agrees to accept less than the amount owed by the borrower – there is not enough equity to sell the house and pay all the costs of the sale. Some lenders will not consider a short sale if the payments are current, and in addition may try to tap into other accounts where the borrower has assets. Generally speaking, the borrower must be unable to pay the existing mortgage, and the property must be worth less than the borrowed amount.

Short sales come with advantages and disadvantages for both borrower and lender. For the homeowner, short sales will appear as a “pre-foreclosure in redemption” status, which will reduce their FICO by 75-100 points. (Foreclosures will hit someone’s FICO by about 250 points, and can appear up to 10 years later.) For lenders, foreclosures are much more time consuming and costly and in some states the process can take up to 280 days as interest payments go uncollected, taxes pile up, and attorneys and agents are compensated.

The Bush administration announced a new mortgage industry coalition aimed at helping homeowners avoid being trapped in a rising tide of foreclosures.

Treasury Secretary, Henry Paulson, said the initiative would help coordinate efforts by financial companies to help an estimated 2 million homeowners whose introductory mortgages with low rates (teaser rates) are now resetting at much higher rates, greatly increasing the risk that borrowers will default on the loans. 

"A combination of stagnant or falling house prices, low down payment mortgages and resetting adjustable-rate mortgage rates are creating real challenges for many American homeowners," Paulson said in a statement.

He said that 11 of the largest mortgage service companies, representing 60% of all mortgages in the country, had agreed to join this new coalition. Other members will include mortgage counseling agencies, investors and large trade organizations. Announcement of new private sector alliance HOPE NOW

The new initiative, which is being called HOPE NOW, follows an announcement by President Bush on Aug. 31 that the administration was making changes in the Federal Home Loan Administration insured-loan program so that more people could qualify for FHA-insured loans. New steps to help homeowners avoid foreclosure.

Subprime mortgages are mostly to blame for the rise in mortgage defaults — loans offered to people with weak credit histories — which stirred up the global financial markets in August, prompting the Federal Reserve to cut interest rates last month to make sure the country didn't get pushed into a recession.

Paulson said the new coalition had put together an "aggressive plan to reach more homeowners and help them find a way to stay in their homes."

For more information regarding loans, give me a call.

If you or someone you know is thinking about buying or selling a home, or even refinancing their home, I would be glad to help.  As a real estate expert in the Bay Area, I will utilize my experience and resources to help you or someone you know navigate through these turbulent times. Don't leave your future in the hands of some random real estate agent. I'm local, accountable, and you can trust that I'll do everything in my power to help you succeed. Call me today at 925.487.5065.