“Qualified principal residence” indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence. It includes both first and second trust deeds. It also includes a refinance loan to the extent the funds were used to payoff a previous loan that would have qualified.

The tax breaks apply to debts discharged from 2009 through 2012. Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.

Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.

If you would like more info on this, please contact me. Thanks!

Good job Governor Schwarzenegger!

image courtesy SacBee

Schwarzenegger signs homebuyer tax credit bill

By JUDY LIN Associated Press Writer

Posted: 03/25/2010 03:35:52 PM PDT

Updated: 03/25/2010 05:20:08 PM PDT

SACRAMENTO, Calif.—Gov. Arnold Schwarzenegger on Thursday signed a bill aimed at selling California’s vacant homes and encouraging new construction by extending a $10,000 state tax credit for first-time homebuyers.

The governor signed a bill the state Legislature passed on a bipartisan vote earlier this week. It provides a state tax credit to first-time homebuyers who buy new or existing homes from May 1 until the end of 2010.

Homebuyers can claim 5 percent of the purchase price against their California taxes, or up to $10,000.

To view the whole story: http://www.mercurynews.com/news/ci_14758523?source=email&nclick_check=1

In unfinished areas of your basement, seal where the cement meets the wood frame at the top of the basement wall.
Seal around windows and door frames. You should use good caulk that will last a long time.
Weather strip doors and windows so they close tightly.
Seal with spray foam insulation around pipes and wires that pass into your home.
Sealing can’t do the job alone

Maximize your home’s energy efficiency by improving your insulation, moisture control and allowing proper ventilation. Balancing all these aspects of your home’s airflow will create a healthier home and pay for itself quickly, even in a newer home.

Improve the air flow and insulation of your home

The air flow in your home can be the single, most important factor affecting your energy costs, comfort and health. Of course weather factors change that rate, but while your home needs to have adequate ventilation to be healthy, significant, uncontrolled air leakage is the biggest energy waster and does not promote comfortable living.To make your home energy truly efficient while allowing it to ventilate at the proper level may require hiring an energy analyst. They will use particular diagnostic tools to assess your air leakage.

If you feel comfortable doing it yourself, you first need to find out where your home isn’t – but should be insulated, the type of insulation you have, the R-value and the depth of that insulation. Good places to check first are the garage, basement, crawlspaces and attics. You can inspect the exterior walls using an electrical outlet (refer to safety procedures and more details regarding this on a Web site such as www.Energy.gov).

If you have a newer home, the insulation may be found on the outside foundation or basement walls. You may have to contact the original builder to determine if this type of insulation was used.

If you decide you need to add insulation anywhere in your home, make sure you select the proper R-value and the type of insulation necessary. A further explanation of this can be found on www.Energy.gov. You can even use a calculator on this site to find out your payback period for adding insulation and the potential cost.

source: HWA

Why IndyMac doesn\’t want to mod your loan!