Tax Day 2011 Extension

by: W. R. Mineo

Normally, all previous years' taxes are to be postmarked no later than midnight on April 15th of the following year of any given year. Meaning, that your taxes due for 2010 must be paid and filed by April 15th 2011, correct? Well, normally, yes; but not this year. The only time that this normally fluctuates is if and when April 15th falls on a weekend. April 15, 2011 will be on a Friday - so what gives? For the millions of American, like me, who wait until the last possible minute (my mantra - procrastinate later) this is welcome, but puzzling news. While we procrastinators and last minute filers rarely reason long enough to ask why, it is important to know the correct date, and to realize how it may or may not have an effect on other dates relevant to Tax Day 2011 such as automatic extension dates.

Extension to Pay NOT an Option

It is imperative to state and remind that although the IRS grants "automatic" extensions allowing taxpayers to file their final forms sixty days later, the extension and any estimated owed taxes are still due on tax day, which for 2011 means that your forms and payment (normally done on a Form 1040 V) must be postmarked at or before midnight, Monday April 18, 2011. Tax Day 2011 Extended Due to Emancipation Day Recognition What holiday? So by now, most of us Americans are racking our brains and scratching our heads trying to figure out what holiday in April is nationally celebrated. Tax Day 2011 has been extended due to remembrance, recognition and celebration of Emancipation Day, a Washington D.C. holiday, not a nationally recognized holiday.

Emancipation Day had been recognized previously by (Washington D.C.) mayoral proclamation and now by being officially designated as an officially recognized public holiday of the District of Columbia. The holiday commemorates the "first freed" by the U.S. federal government when President Lincoln signed the Compensated Emancipated Act nine months prior to his issuance of the infamous Emancipation Proclamation.

As a result of the public holiday in Washington D.C. the Department of Treasury, the governing body overseeing the Internal Revenue Service, has extended Tax Day 2011 until Monday, April 18, 2011. Careful Calendar Markings Required Emancipation Day does not equate to Tax Amnesty Day. Just because Tax Day 2011 is not April 18th versus the 15th does not automatically adjust other dates by 3 days. Keep these dates in mind:

Overseas Exception Due Date: June 15, 2011, the 15th falls on a regularly scheduled business day and hence the deadline will not be extended without approval.

Automatic Approval Extensions Due Date: June 15, 2011 (remember - estimated payments must still be sent in via IRS Form 1040V with the request for extension; it is better to over estimate as you may still be held liable for penalties for underpayment.)

Approved Filing 1040 Extensions Due Date: October 15, 2011

The extension of Tax Day 2011 will give some the necessary additional weekend and time to prepare and file the required forms and payments, but hopefully it will allow all to reflect on the reason - Emancipation Day, commemorating the freeing of those held in servitude in the federal capitol.

W. R. Mineo is an Army veteran and graduate of Western Kentucky University, consulting for L5DG on small business issues, website and Internet marketing, Internet writing and tax help articles; he previously worked on the re-branding and marketing of GoArmy.com.

Article Source: http://EzineArticles.com/5345496

Another Houselogic Article for You

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  9 Unexpected Energy (and Money) Savers

  Here are a few surprising and simple ways to cut your energy bill this season. Read

Visit houselogic.com for more articles like this.

Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

Great Rental in Old Gilroy

Gas Prices Throw a Wrench in Housing Rebound

By Gino Blefari

President & CEO

Intero Real Estate Services, Inc.

It's looking more and more like the rebound in housing markets across the country won't rear its head until 2012. At the end of last year, many folks expected more slow and steady recovery in 2011, but even that seems optimistic.

Why? A few reasons, of course. But the biggest and easiest scapegoat right now is gas.

Have you visited the pump lately? Each week, the cost of filling up is rising so fast you think your final price must be a mistake. That's not for my car, you think. But it is.

Historically, the price of gas is a serious enough issue for many Americans to cause a chain reaction of paralysis on consumer spending. It starts with the trade-offs like less eating out and shopping, then seeps into small changes like fewer car trips and different commuting habits, then onto downsizing – smaller, more fuel-efficient cars. Then finally, it gets into our heads.

And when it gets into our heads, we start to feel uncertain about the economic future (as if we weren't there already). This very psychology is enough to derail major purchasing decisions like buying a house or car, or making risky but beneficial moves with your business or career.

The other thing to think about with gas prices and the effect on housing is location. In many parts of the country, your car is your only means of travel. If we continue to see climbs in gas prices and sustained high prices like some are anticipating, then eventually this will start to impact how we think about where to live.

Suddenly, the "Can I live here?" question includes a lot more considerations.

As we move through the market this year, we had expected some obstacles thrown in from a new lending atmosphere and congressional attempts to regulate. We expected slow growth due to a slow job market. But did we stop to think about something as seemingly unrelated as the price of gasoline? Maybe not. But now it's time to realize how these things affect everything around us – big and small. And housing is definitely one of them.

MARS in Real Estate

The following article gives direction to Intero Real Estate Agents about the lates rules for Short Sales. Team Patereau thought you might be interested.

The FTC’s New “MARS” Rule – Its Affect on Short Sale Listing Agents and Negotiators
By Chris Moles, Brokerage Counsel, Intero Real Estate, Inc.

The Federal Trade Commission (FTC) has issued the Mortgage Assistance Relief Services (MARS) rule to protect distressed homeowners from those mortgage relief scams that have sprung up during the mortgage crisis. The rule covers any operation that, for a fee, will initiate negotiations with the seller’s mortgage lender or servicer to obtain a loan modification, short sale approval, or other relief from foreclosure. Of course, this affects many agents and negotiators who work in short sales.

MARS has three parts. It forbids advance payments, it requires certain disclosures, and it prevents the negotiator from making certain claims.

Ban on Advance Fees

MARS completely bans upfront fees for short sale negotiators. What this means is that short sale negotiators may no longer require payment upfront upon the commencement of their efforts with the bank. Rather, the negotiator may only collect fees after satisfactory agreement between the bank and the seller.

Further, the agreement will only be deemed “satisfactory” if there is evidence that the seller knew 1) how the terms of his mortgage would change, and 2) that he had an option to refuse the modification. Therefore, this rule imparts a more pronounced duty on both the listing agent and the negotiator (if they are different) because they are on the hook if the client comes back later and claims, “I didn’t understand what was happening.”

Of course, this part of the rule is easily complied with so long as negotiators only get paid upon closing, which is advisable.

Disclosures

MARS further requires standard disclosures for the short sale negotiator to make before executing a loan modification agreement. The FTC will assume that the seller was mislead if he was not explicitly informed that:

• The negotiator is not associated with the government, and the negotiator’s services have not been sanctioned by the government or the bank;
• The bank has the right to refuse to modify the existing loan;
• The seller has the right to refuse an offer and, if he does, he owes nothing to the negotiator,
• The seller may lose his home and damage his credit rating if he discontinues making mortgage payments, and
• The amount of the fee.

Prohibited claims

Coupled with its mandatory disclosures, the MARS rule prohibits negotiators from making any false or misleading claims about their services. This is not new (fraud or false promises have always been a trade violation). However, the rule gives examples of misleading claims. Generally, advertisements about the following topics will be scrutinized to determine whether they are misleading:

• The likelihood of sellers getting the results they seek(essentially, claims that promise or impart certainty that the seller will get approval at the seller’s terms. For example, “I have a 99% success rate” is now likely a violation if things don’t work out);
• The negotiator’s affiliation with government or private entities(For example, ads that say things like “this is made possible by the federal stimulus plan” and the like will now be scrutinized);
• The seller’s payment and other mortgage obligations(Any ad that would make a seller think he doesn’t need to pay his mortgage or that his mortgage agreement has standard language that entitles the seller to a short sale will be scrutinized);
• The negotiator’s refund and cancellation policies(Any statement that leads people to think they can get a full refund from their agent or negotiator, if reasonably untrue, will be scrutinized);
• Whether the negotiator has performed the services promised (the negotiator must negotiate a settlement that is knowingly accepted by the seller and bank. Any statement that seems to entitle the negotiator to money for anything short of this is a violation);
• Whether the negotiator will provide legal representation to the seller(if the negotiator’s company makes it seem that they will act as the seller’s attorney, they need to be duly licensed to do so and they need to follow through. Attorney affiliates will be scrutinized to determine what percentage of “bone-fide legal work” they deliver);
• The availability or cost of any alternative to for-profit mortgage assistance relief services(any assertion about other services or options needs to be 100% accurate. It is not appropriate to discourage making payments, talking to a lawyer, working with the bank directly, or looking into government programs. Ads stating “don’t waste money on a lawyer” or “stop letting your bank call the shots” and the like will be scrutinized);
• The money and/or credit a seller will preserve by using these services(if the total benefit does not seem to match the prior promises, the FTC will scrutinize that situation. This makes it even more important to request that the client seek independent legal/financial advice);
• The cost of the services(hidden fees and unusual costs will be scrutinized); or
• Any advertisement or advice that tells sellers to discontinue speaking with their bank.

What it Means

In California, most legitimate negotiators have DRE licenses and work with listing agents to negotiate with the bank. The negotiator is then paid out of the commission. The bank and the seller know about it and the listing agent is arguably the one losing money. As such, the seller does not pay until the agreement is made and the seller gets the service for which he bargained.

However, this rule should cause all short sale listing agents and negotiators to revisit their practices. Be sure that the client is given those disclosures listed above and be sure that the client knows how the negotiator is compensated. Further, negotiators and listing agents must be careful that their advertisements can survive FTC scrutiny. This is more a good-faith judgment call than anything else. If it sounds disingenuous, change it. And always advise that the client seek outside counsel.

Finally, and probably most importantly, NEVER require any up-front payment for negotiation. While the rule technically allows negotiators to collect after short sale approval and prior to closing, the short sale negotiators and listing agents who avoid trouble always and only get paid upon a successful closing.

Simon Says, "Good news this year..."

Simon Constable, Wall Street Journal, is predicting good news for the real estate market. Here's what he has to say:

There might finally be some good news this year about the nation's dismal housing market. Or, at least, the bad news could stop.

Either way, it will be welcome relief for current homeowners as well as for potential real-estate investors. Reason to be optimistic have been sadly lacking since the housing bubble burst in 2006. More...

CEO of Bamboo Consulting and a former leader of multiple reputable real estate companies around the Bay Area, Carole Radoni candidly speaks with Intero COO, Tom Tognoli and shares her thoughts on today’s luxury market.

Fantastic Family Home For Rent in Gilroy

Here's a video from HAFA, the US Government supported housing recovery program. We learned about this by going to http://www.makinghomeaffordable.gov/.

The main page description is: The Obama Administration’s Making Home Affordable Program includes opportunities to modify or refinance your mortgage to make your monthly payments more affordable. It also includes the Home Affordable Foreclosure Alternatives Program for homeowners who are interested in a short sale or deed-in-lieu of foreclosure.

As is the case with many government programs, this one has not been completely successful - BUT - a few have benefitted. And, if you are in a situation that stresses you constantly, watching this video may help you take action to change things.



If this applies to you or someone you know, contact Team Patereau. We have helped people move on. We can help you too.

Unexpected Ways to Save Money and Energy

Special thanks to REALTOR® Karen Stephens in Memphis, TN, who shares this article she wrote  where she encourages homeowners to give their pocketbook and Mother Nature a break this season by taking advantage of these simple, surprising ways to save energy and money.

• “Put lamps in the corners: Did you know you can switch to a lower wattage bulb in a lamp or lower its dimmer switch and not lose a noticeable amount of light? It’s all about placement. When a lamp is placed in a corner, the light reflects off the adjoining walls, which makes the room lighter and brighter.
• Switch to a laptop: If you’re reading this article on a laptop, you’re using 1/3 less energy than if you’re reading this on a desktop.
• Choose an LCD TV: If you’re among those considering a flat-screen upgrade from your conventional, CRT TV, choose an LCD screen for the biggest energy save.
• Give your water heater a blanket: Just like you pile on extra layers in the winter, your hot water heater can use some extra insulation too. A fiberglass insulation blanket is a simple addition that can cut heat loss and save 4 to 9 percent on the average water-heating bill.
• Turn off the burner before you’re done cooking: When you turn off an electric burner, it doesn’t cool off immediately. Use that to your advantage by turning it off early and using the residual heat to finish up your dish.
• Add motion sensors: You might be diligent about shutting off unnecessary lights, but your kids? Not so much. Adding motion sensors to playrooms and bedrooms cost only $15 to $50 per light, and ensures you don’t pay for energy that you’re not using.
• Spin laundry faster: The faster your washing machine can spin excess water out of your laundry, the less you’ll need to use your dryer. Many newer washers spin clothes so effectively, they cut drying time and energy consumption in half—which results in an equal drop in your dryer’s energy bill.
• Use an ice tray: Stop using your automatic icemaker. It increases your fridge’s energy consumption by 14 to 20 percent. Ice trays, on the other hand, don’t increase your energy costs one iota.
• Use the dishwasher: If you think doing your dishes by hand is greener than powering up the dishwasher, you’re wrong. Dishwashers use about 1/3 as much hot water and relieve that much strain from your energy-taxing water heater. Added bonus: you don’t have to wash any dishes.”

Click here to read more blog posts by Karen Stephens.