About Short Sales

In the real estate market in California there may yet be some hope. In the past 10 months there has been a shift in home ownership in California. The prices of homes in California have severely dropped and to make things easier for first time home buyers the government has set up a stimulus package and a tax credit when they purchase their first home.

The tax break from California home buyers affects those who purchase a home during the 2009 tax year. It only affects first time home buyers with the eligibility stating that you must not have owned a primary residence in the past three years. The benefit of this tax break equals out to be $8,000 on your 2009 tax return. Another important stipulation is that the purchased home must be your primary residence, which includes homes such as houseboats, condominiums and trailer houses. You must follow the established 2008 IRS guidelines and insist that your loan closing fall between January 1, 2009 and December 1, 2009 to be eligible for the additional return.

California home prices have taken a dramatic plunge, but have turned into a great advantage for the residents of the state. California home purchases have increased; making California one of the leading states in the country in revitalizing the real estate market. Most California homes on the market are the result of recent foreclosures and are owned by the finance company; however, most of these homes are in decent, sound neighborhoods providing the opportunity for people improve their living situations. The price reductions vary from county to county; for instance in Yuba county prices decreased by 41.5% making the average price for a home around $158,000. In Sutter County prices plummeted by a whopping 66% making prices as low as $166,000, prices throughout the state of California averages $224,000. It has been many decades since California homes have been this affordable.

It is a buyers market right now in California; however, the struggling families that are trying to keep their homes and those who are forced to sell because of their economic circumstances will take a loss a considerable amount of equity in their homes value. The government has enacted a program for these California home owners through counseling centers that specializing in refinancing and offering low interest loans. But unfortunately, for some it has come too late.

The best bargains on California homes are not always advertised. Get in touch with a real estate agent, or research potential bargains on the California state MLS listing. Frequently for sale signs are not posted on the home, or advertised in the local newspapers; therefore, the property may go unnoticed by prospective buyers. If you do your own research on the California state MLS listing and find the right property for you, a real estate agent can make the arraignments for the buyer to take a tour and make a decision on that piece of property.

With housing prices going down as of late in California now is as good an opportunity to own a home as ever before. On average if a family makes $53,000 they can now live the California dream and live comfortably knowing they can afford the mortgage.

There are plenty of organizations out there to assist people in the dream of home ownership. Places such as Neighborworks homeownership center, the resale of HUD homes, veterans loans are just some of the places out there to assist in helping people to realize their dream of homeownership.