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U.S. INCOME TAX LAW CHANGE re CALCULATION OF CAPITAL GAINS ON SALE OF HOME ALSO USED AS A RENTAL

DID YOU SEE THE IMPORTANT CHANGE FOR U.S. INCOME TAX LAW and CALCULATING CAPITAL GAINS ON THE SALE OF A RESIDENTIAL PROPERTY?   THIS IS FOR A HOUSE OR PROPERTY THAT HAS ALSO BEEN USED PART OF THE TIME AS A RENTAL.

U.S. Housing and Economic Recovery Act of 2008 
SEC. 3092. GAIN FROM SALE OF PRINCIPAL RESIDENCE ALLOCATED TO NONQUALIFIED USE NOT EXCLUDED FROM INCOME. (a) IN GENERAL.—Subsection (b) of section 121 of the Internal Revenue Code of 1986 (relating to limitations) is amended by adding at the end the following new paragraph: ‘‘(4) EXCLUSION OF GAIN ALLOCATED TO NONQUALIFIED USE.— ‘‘(A) IN GENERAL.—Subsection (a) shall not apply to so much of the gain from the sale or exchange of property as is allocated to periods of nonqualified use.  ‘‘(B) GAIN ALLOCATED TO PERIODS OF NONQUALIFIED USE.—For purposes of subparagraph (A), gain shall be allocated to periods of nonqualified use based on the ratio which— H. R. 3221—259 ‘‘(i) the aggregate periods of nonqualified use during the period such property was owned by the taxpayer, bears to ‘‘(ii) the period such property was owned by the taxpayer.  ‘‘(C) PERIOD OF NONQUALIFIED USE.—For purposes of this paragraph— ‘‘(i) IN GENERAL.—The term ‘period of nonqualified use’ means any period (other than the portion of any period preceding January 1, 2009) during which the property is not used as the principal residence of the taxpayer or the taxpayer’s spouse or former spouse.  ‘‘(ii) EXCEPTIONS.—The term ‘period of nonqualified use’ does not include— ‘‘(I) any portion of the 5-year period described in subsection (a) which is after the last date that such property is used as the principal residence of the taxpayer or the taxpayer’s spouse, ‘‘(II) any period (not to exceed an aggregate period of 10 years) during which the taxpayer or the taxpayer’s spouse is serving on qualified official extended duty (as defined in subsection (d)(9)(C)) described in clause (i), (ii), or (iii) of subsection (d)(9)(A), and ‘‘(III) any other period of temporary absence (not to exceed an aggregate period of 2 years) due to change of employment, health conditions, or such other unforeseen circumstances as may be specified by the Secretary.  ‘‘(D) COORDINATION WITH RECOGNITION OF GAIN ATTRIBUTABLE TO DEPRECIATION.—For purposes of this paragraph— ‘‘(i) subparagraph (A) shall be applied after the application of subsection (d)(6), and ‘‘(ii) subparagraph (B) shall be applied without regard to any gain to which subsection (d)(6) applies.’’.  (b) EFFECTIVE DATE.—The amendment made by this section shall apply to sales and exchanges after December 31, 2008.

These new rules are targeted at investors who are buying or owning a home, living in the house for two years, then moving on to buy the next property and keeping the old house as a rental. 

 

 

In that situation, and if prior rules were followed (IRC Section 121 et. seq)and the investor sold the property later, the owner would protect up to $250,000 in profit as a single person and $500,000 in profit for married couple.

THE NEW RULES AND FORMULA TAKE INTO CONSIDERATION THE ACTUAL NUMBER DAYS OF USAGE AS A PRIMARY RESIDENCE (the numerator) over and compared to THE NUMBER OF DAYS OF ITS "QUALIFIED USE LIFE" (the denominator).

Example:  You bought a home for $200,000 five years ago.  You moved out of it three years ago so you could buy your new home.  You lived in the house forty percent of the time of ownership.  You are now selling the same home for $225,000.  Your profit is $25,000.

Old Law effective until December 31, 2008:  You had no capital gains tax liability on this profit.  It didn't matter if you moved away from that property after two years and turned it into an investment property.

New Law:  Since you lived in the home 40% of the time, you will be responsible for capital gains on $15,000 of that profit.  

 

 

DO YOU SEE THIS IMPORTANT CHANGE?

Result:   That's zero considered to be capital gain according to the old law (up to December 31, 2008) vs. $15,000 considered to be capital gain by the new law  (effective January 1, 2009). 

This NEW RULE does not mean mean that you cannot buy a home and move every two years.  This NEW RULE means that YOU in that situation MUST BE CAREFUL.  

If you are planning on buying a home every two years, and if you rent that house for part of the time of ownership, when you sell that home, your income tax liability will be increased .... as compared to your income tax liability under the old rules.

LET'S GET READY.  THIS LAW BECOMES EFFECTIVE JANUARY 1, 2009.

If you are such an INVESTOR and are buying or holding this kind of residential property, you should take action now and implement a strategy that works.  

WARNING:  THIS IS COMPLICATED.  IF THIS IS YOUR SITUATION, YOU SHOULD IMMEDIATELY CONTACT A QUALIFIED REALTOR and/or EXPERIENCED CPA OR INCOME TAX PROFESSIONAL.

Posted by Harrison K. Long, Explore Properties Group, Irvine, CA.

Source: U.S. House Resolution 3221, US Housing and Economy Recovery Act of 2008; Section 3092, Gain From Sale of Principal Residence Allocated to Nonqualified Use Not Excluded From Income.

WHAT ARE YOUR THOUGHTS ABOUT THIS U.S. CAPITAL GAINS CALCULATION CHANGE for INCOME TAXATION?

 


DISNEYLAND FIREWORKS EVERY NIGHT

Disneyland Fireworks can be heard nightly here in Southern California.  That's a good thing and helps us be taken away in our thoughts of fun and interesting times with family and friends.

My wife Christi and I live at our home in the Turtle Rock area of Irvine, South Orange County, California, about 15 miles south of Anaheim and Disneyland.

It's a beautiful time of year here.  We experience some of the best weather in the world with warm sunshine during summer days and ocean breezes at night. 

While writing a note here at my desk at home, I feel a bit of the pacific ocean sea breeze washing through our neighborhood.  Disneyland fireworks are going off in the distance.  Hearing them each night at about 9:35 PM is fun.

We are blessed to have a home and live in such a place.  The comfort of our weather and variety of coastal lands some reasons why so many folks want to move and live here in South OC. 

Disneyland fireworks seem to be part of that too.

Posted by Harrison K. Long, Explore Properties Group, Coldwell Banker Previews. June 27, 2008.


California Sales Tax Should Not Be Expanded to Include That For Services

It is incredible that the State of California and legislature (controlled for many years by Democrats) is considering sales tax expansion to include that on services, such as fees for real estate agents, physicians, dentists, lawyers, accountants, architects, gardeners, landscapers, babysitters, and so many others.

There is an obscure rule of the Board of Equalization, the state's tax collecting agency, that would allow such consideration. This elected board is itself governed by 3 Democrats and 2 Republicans.

We recognize that the state of California is in financial trouble with estimated budget deficit of $17 billion.  The state should reduce its payroll, stop giving away money so much money through entitlement programs, increased welfare benefit payments, and that involving medical care for illegal immigrants.

Democrats don’t want to cut services.  Republicans don’t want to raise taxes, and we agree. 

The California sales tax currently only applies to goods that you can touch, like motor vehicles, household items, golf clubs, clothing, office supplies, computers, telephones, and digital recorders.  

Our sales tax does not now apply to services, like that of a real estate agent, physician, lawyer, dentist, accountant, architect, and labor for an auto mechanic.

The State board of Equalization without permission from the legislature and governor could change this system to include sales taxes on services.

What a mistake that would be and get us tied up in court of years on constitutional issues, which would require further use of the state's precious money.

The possibility of expansion of sales tax to include services should be opposed and rejected by every California business person.

The board’s chairwoman, Judy Chu, has already proposed a 5 percent sales tax on services and argued that the board has such authority to make this determination on its own.

Our California State Board of Equalization and the Democrat controlled legislature should not be allowed to expand sales tax in California to include that for services.

Posted by Harrison K. Long, Explore Properties Group, June 9, 2008
Source: Orange County Register


An Old Fashioned Way of Determining Value for a Home and Real Estate

Value of housing has many variants.  The value of a certain home is determined by lots of factors specific to that property.  It's difficult to asign economic value to each of these factors.  This is especially true when buyers and sellers do not not have complete information about each factor. 

Some web sites (like S&P and Case-Shiller) use mathematical weighting formulas to come up with opinion on home value.

However, they don't take consider whether buyers have actually seen the houses and the neighborhoods. 

So these sites and indexes are not capable and accurate to determine economic value or price property with such complicated formulas.
 
Lenders don't look to computer-generated models to make decisions.  They instead rely on old fashioned buyer and seller factors, such as comparable sales to determine how much to loan on a given property.

Buyers count on such things as appearance of the home, landscaping, what kind of light the interior of the home is exposed to, character of the town and neighborhood, schools, whether others homes on the street have been improved and positive activities in the area, and management of the homeowner association.

We believe the old fashioned way of determining home value will be making a comeback.

Posted by Harrison K. Long, Explore Properties Group, June 1, 2008


Property Owners & Buyers Should Oppose CA State-mandated Energy Audits At Time Of Sale

Property Owners, Sellers, Buyers, and Realtors, should fight against any proposed California state-mandated audit law requiring time-of-sale energy efficiency audits.

CA Assembly bill 2678 was introduced in Feb. 2008, has been passed out of committee.  This bill would require California Energy Commission to develop requirements for time-of-sale energy efficiency audits for residential and commercial buildings.

If this passes, owners will be required to submit for state audits and then be required to meet new retrofit standards. 

If passed, this bill will add time to the home and commercial building selling process.  This will also add costs for sellers, which would eventually be born by the buyers and slow the market down even further.

We and the California Association of Realtors strongly oppose this legislation.
 
This bill would would impose requirements at time of sale, and only at time of sale.  If you are not selling your home, this would not require you to do anything.  

This bill is aimed at the property owners who will be selling, is against the real estate industry as a whole, and should be opposed.

Posted by Harrison K. Long, Explore Properties Group, May 15, 2008
Source: Orange County Register, May 10, 2008

Sellers Should Require Serious Earnest Money Deposits On The Sale of a Home

Sellers sometimes make the mistake of contracting with a buyer for a home sale and asking earnest money deposits of less than three percent of the price.  That's painful when the buyer backs out of the deal.  One way to assure that a buyer is serious is to require 3 percent or more of earnest money deposit.  If the buyer doesn't and later backs out, he would only lose the small deposit and cause financial hardship for the seller.  The seller would also lose the benefit of finding a buyer during the time the home was taken off the market.
Smart sellers ask buyer deposit of at least 3 percent, so that the buyer will think twice about walking away. 
In some states and according to contract, if the buyer defaults prior to sale closing, the earnest money goes to the seller.  In some states, the seller can also sue the buyer for damages, if 
the house subsequently sells for less than the original contract price, plus costs sellers incurred to carry the house until it sells.  In some situations, seller can sue the buyer for specific performance, which is asking the court to force the buyer to close the deal.

Be careful and consult a local attorney for guidance on this.  Keep in mind that litigation is time-consuming, expensive and uncertain.

Posted by Harrison K. Long, Explore Group, April 28, 2008


Top Five Reasons to Use a Realtor®

Top Five Reasons to Use a REALTOR®
1.  REALTORS® subscribe to a strict Code of Ethics—a set of obligations that often go above those mandated by law. Known as the REALTOR® Code of Ethics, these principles embody a strong commitment to fairness, integrity, and moral conduct in business relations. Under the Code of Ethics, REALTORS® put the needs and well-being of their clients above anything else. 2.  As members of C.A.R., California REALTORS® have access to confidential legal counsel, innovative marketing tools, and an extensive repository of market data. With these resources, REALTORS® are equipped to help you make important decisions throughout the home-buying or –selling process, such as how much home you can afford or what information you must disclose to the other party.
3.  Among the top skills REALTORS®’ bring to the table is the ability to negotiate a favorable price. REALTORS® are knowledgeable about the small repairs and improvements you can make to enhance the “salability” of your home. According to the NATIONAL ASSOCIATION OF REALTORS®, the median price of a home sold using an agent is 16 percent higher than a home sold without the guidance of an agent. 
4.  Your REALTOR® acts as your advocate during each step of the transaction. Whether evaluating buyer proposals or preparing counteroffers, your REALTOR® saves you time by serving as a liaison between you and the other parties of the transaction, prepares and reviews necessary paperwork, and guides you through the process to make sure everything is handled appropriately.
5.  REALTORS® are well-versed in up-to-date market data, such as inventory levels, time on market, and ratios of list-to-sold prices. Backed by education and experience in the real estate industry, your REALTOR® can help you leverage this market information to aid in your decision-making process.  
   Source: California Association of Realtors, 2008
   Posted by Harrison K. Long, Explore Properties Group, April 21, 2008


Ask Whether Your Business or Company Implements Its Ethics and Values

Most every business or company will tell you that they have and believe in values and high ethical standards. You need to dig deeper and ask how they implement those values. Ask what they do to reinforce them. Ask whether they have a plan or a program to instill and support these values. Find out about their response.
Posted by Harrison K. Long, Explore Group, April 13, 2008.  Source: Bob Hunt, OC Register, April 12, 2008


Homebuyer Basics About Mortgage

Loan Qualification (or "prequalification") is an opinion that your income, assets and current debts qualify you for a loan of a specified amount.  This may come from a lender or Realtor.  This opinion usually does not take your credit into account, and no one is committed by it.  Preapproval is a conditional commitment by a lender to make a loan prior to the identification of a specific property. On a preapproval, unlike a qualification, the lender verifies the information and checks your credit.  A preapproval will stipulate a loan amount or monthly payment, but not the loan type or the price.  Approval is a commitment by a lender to make a loan, and a specific property (and appraised value) is identified. Some loan details are spelled out, including the type and purpose of loan, down payment, and documentation, proposed interest rate. Lock is a commitment by the lender to a specified price, rate and points.  Prospective home buyers should get qualified as soon as possible.  They should also get preapproved to establish their believability to home sellers and Realtors.  
Posted by Harrison K. Long, Explore Group, March 31, 2008
[Source: Jack Guttentag, Inman News]


What Buyers Should Consider When Thinking About Foreclosures?

What Should You Consider When Thinking About Foreclosure Buyer Opportunities?
Buyers must be pre-approved for a loan by a lender.
Source of Down Payment Must be confirmed.
The bank could require that you finance your purchase with them.
Expect competition for your offer. Some buyers bid on multiple properties.
Banks won’t accept offers that are contingent on selling your home.
The best deals generally are those properties with the longest time on the market.
Bank-owned homes typically sell at less than their listing price.
Get your own buyer inspection of the property.
Consider the cost of repairs or damaged or missing appliances when bidding.
The bank will make a counter-offer to your first offer.
Some banks will not accept an offer unless it is submitted by a REALTOR®.
The bank will require the use of its own forms for the offer and purchase contract.
Banks generally are looking to sell and close escrow quickly, within two weeks to 45 days.
Posted by Harrison K. Long, Explore Group, March 28, 2008
Source: California Association of Realtors


Private Transfer Fees in California and Required Disclosures

Certain developers recently started imposing Private Transfer Fees (PTFs) on newly-built subdivisions in California.  These PTFs require subsequent purchasers of real property to pay a fee to a private entity upon future sales of the property.  CA Assembly Bill 980 was passed and made law October 14, 2007. This defines new disclosure and recording obligations regarding PTFs.  Private transfer fees (PTFs) are fees imposed by private parties that require the payment of a specified amount of money (usually a percentage of the sales price) upon subsequent sales of the real property.  Such fees are normally recorded on new common interest subdivisions by the developer to pay either the developer or a third party entity (sometimes created by the developer).
PTFs could increase the cost for buyers to purchase a property.  If a buyer discovers the existence of such a fee and that additional dollars must be paid in order to purchase the property, the buyer may choose to cancel the contract.
[Source: California Association of Realtors]

Posted by Harrison K. Long,
Explore Properties Group, March 24, 2008


What You Need to Know Before You Buy Rental Real Estate

When buying real estate for residential rental, you need to know:
A.  Cost of maintenance and anticipated upkeep.  The owner landlord is responsible for maintaining the property.  If you hire a maintenance man or property manager, the charge would be between 10 to 20 percent of gross revenue.
B.  Know of laws affecting real estate and rentals.  There are differences in law from state to state.  Your tenant has rights of control over the property.
C.  You as landlord must keep the real estate in a "habitable condition."  The house or property must have must have working doors and windows and locks.  The heating system must work, and the roof cannot leak.
D. You must know how to find good tenants and the law about interviewing and screening.  Make sure your standards for accepting a tenant are legal in the state and city.
E.  The reasonable price of rent and value of the property.
F.  Anticipated CAP rate.
F.  The amount of your requested security deposit and whether that is legal.
G. Whether or not you will accept HUD Section 9 participants and what the law is on that.
H. That your standards are clear to all potential tenants before you begin the interview process.
Warning: Be careful to learn and know your rights and responsibilities as a landlord. Consult with qualified counsel in your jurisdiction or state.  Find and attend a good seminar on this subject.
Article Posted by Harrison K. Long, Explore Properties Group.
  www.ExploreRealEstate.net


Equity Sharing Arrangement for Buying & Owning Real Property

Investments in real property can take all types of forms.  Multiple investors can form a syndication, partnership, limited partnership, or LLC, where none of the parties live in the property and the property is rented to tenants.  Another common equity sharing arrangement involves one party (the owner-occupant) occupying the property and the other (investor) putting up the bulk of the financing.  Both the owner-occupant and the investor can receive tax benefits and share in the profit according to their investments as described in their equity sharing agreement.  First-time homeowners are the typical owner-occupant while the investor can be a family member, a seller, or any real estate investor. Equity Sharing is a form of ownership and investment that allows two or more parties to share an interest in real property.  It is frequently used in situations where, because of the high cost of housing, one party, the investor, puts down the bulk of the downpayment, and the other, the owner-occupant (also caller the "occupier") puts down little or no downpayment but agrees to pay a monthly amount consisting of "rental payments," mortgage payments, taxes, and other specified charges, and lives in the dwelling.  The owner-occupant may pay all of the mortage costs as "rent" or may pay two different amounts, one portion representing the rent and the other representing mortgage, which would include interest for which he or she could receive a tax deduction.
[Source: California Association of Realtors, March 2008]

Leasing Out Your House to Move On and Buy Another?

In this South OC buyer's market, some homeowners are leasing out their homes.  It's good to lease out and generate some cash, possibly take advantage of selection, house prices and low mortgage rates to buy the next place.  Renting out your vacant house is a good thing, perhaps even if you must borrow against it to have money for a down payment on your new property.  However, you must be careful and prepared to act as a professional landlord for at least one year.

Kelo V. City of New London, U.S. Supreme Court decision re eminent domain

Kelo v. City of New London, 545 U.S. 469 (2005), was a case decided by the U.S. Supreme Court involving the use of eminent domain to transfer land from one private owner to another to further economic development. The case arose from the condemnation by New London, Connecticut, of privately owned real property so that it could be used as part of a comprehensive redevelopment plan. The Court held in a 5-4 decision that general benefits a community enjoyed from economic growth qualified such redevelopment plans as a permissible "public use" under the Takings Clause of the fifth amendment to the U.S. Constitution.  The decision was widely criticized by many who viewed the outcome as a violation of property rights and as a misinterpretation of the fifth amendment, and that it will benefit large corporations at the expense of individual homeowners and local communities. 
Posted by Harrison K. Long, Explore Properties Group


What Is An "AS IS" For Sale Home Listing

A listing that is advertised as an "AS IS " sale can be a challenge for buyers.  Something might be wrong with the property that will cost a lot of money to repair.  An "AS ISs" sale can mean different things.  It could mean that the property is part of the estate of someone who died.  In some states, such properties are sold in their "as is" condition and without warranty in order to protect the heirs.  When a bank forecloses on a property, the sale is usually an "AS IS" sale.  As with an estate sale, the bank might know nothing about the condition of the property, and it up to buyers to satisfy themselves before buying.  
In California, most sales are made "AS IS" subject to the buyers' right to inspect the property.  "AS IS" tells you nothing about the property except that the sellers won't warrant the condition. Buyers are encouraged to have the property inspected by professionals.  Buyers are usually able to withdraw from a purchase contract without penalty if they don't approve the inspections.  For a buyer to be protected in this situation, an inspection contingency that gives the buyers the right to withdraw without losing their deposit money needs to be included in the purchase contract.
Offers made on foreclosures or probate properties that require court confirmation often need to be contingency-free.  There could be severe and negative legal consequences for the buyer if you back out of such a contract.  Buyers must careful and consult with a qualified Realtor or lawyer in that situation.  
Posted by Harrison K. Long, Explore Properties Group, Feb. 27, 2008
[source: Inman Real Estate News]


Who Owns the Mortgages After Bundling?

More than $2.1 trillion, or 19 percent, of outstanding mortgages have been bundled into securities by private banks, according to Inside Mortgage Finance, a Bethesda, Maryland-based industry newsletter. Those loans may be sold several times before they land in a security. Mortgage servicers, who collect monthly payments and distribute them to securities investors, can buy and sell the home loans many times. Each time the mortgages change hands, the sellers are required to sign over the mortgage notes to the buyers. In the rush to originate more loans during the U.S. mortgage boom from 2003 to 2006, assignment of ownership wasn't always properly completed [Alan White, assistant professor at Valparaiso University School of Law in Valparaiso, Indiana]. Loans were mass produced and short cuts were taken. Some paperwork is done in the name of the original lender. Some original lenders aren't around anymore. More than 100 mortgage companies stopped making loans, closed or were sold last year [Bloomberg data].
Posted by Harrison K. Long, Explore Properties Group, Feb. 22-2008
www.ExploreRealEstate.net
[source www.Bloomberg.com]

What Causes Home Mortgage Rates to Rise or Fall?

If Retail Sales in a given month are better than expected in the US economy, that's good news for Stocks.  But if money flows into stocks, this causes money to be pulled out of Bonds.  That in turn causes long term bond prices to move lower.  If the US Federal Reserve Board (the FED) cuts the short term rate on funds, that worries bond traders about the risk of more inflation.  Some folks believe that cuts to the Fed Funds Rate generally cause home loan rates to rise, not decline.
Why?  Because Fed Rate Cuts can spur on inflation.  That would make it less expensive to finance business and personal purchases.  As a result, inflation erodes the value of the fixed return provided by a Bond.  In the face of inflation, long term bond prices fall, and home loan rates rise.

Posted by Harrison K. Long, Explore Properties Group, Feb. 17, 2008


US Law on Forgiveness of Debt on Short Sale

On December 20, 2007, President Bush signed into law the U.S. Mortgage Forgiveness Debt Relief Act of 2007 (H.R. 3648).  This will provide relief for some people who need to sell, experiencing declining home values and rising mortgage payments.
Some people are submitting to foreclosure or short sales and could also face tax bills on the phantom income generated by debt forgiveness.
Example:  If you had refinanced your home for $600,000 and now want to sell, finding that the current value of your home is $500,000.  Your lender might agree to a short sale and discharge your mortgage debt even though the payoff was $100,000 short.  You could then receive from the lender at end of the tax year a 1099 form showing income from the gain.  You would be on the $100,000 of debt forgiveness.  This is called "phantom income".
This legislation will provide relief from some tax bite in specific situations, beginning January 1, 2007, and lasting until January 1, 2020.  Certain discharges of mortgage debt on a principal residence will be excluded from a taxpayer's gross income. 
Restrictions: (A) 
the amount of indebtedness is limited to $2 million, and (B) 
in order 
be excluded, the debt discharged must be acquisition debt.  The mortgage must have been used to purchase the home.
Example: If you had lived in your home for twenty years, that you bought it back when it was just $200,000, and that, by now, you have refinanced it up to $650,000.  Suppose, also, that your neighbor purchased his home just last year, and that he took out a $650,000 mortgage to finance the transaction. Now, both of you need to sell and your homes have decreased in value to $600,000. If you both are granted short sales by the lender, you will both have mortgage debt forgiveness of $50,000.  Under this new law, the debt forgiveness will not be taxed because it was acquisition debt.   However, your debt was new mortgage debt not from the home's purchase and will be taxed.
This new law will also relate to situations where there is not a sale, but where the borrower and lender have restructured the loan and, along with other possibilities such as interest rate and/or payment reductions, the loan balance has been reduced.  In such cases the debt forgiveness will not be taxed as ordinary income, but the amount of debt forgiveness will be applied to a reduction in the borrower's cost basis in the property. This way, it may subsequently be at least partially recaptured by the IRS in the form of capital gain tax.
This tax exclusion only applies in situations where the debt forgiveness resulted from a situation related to a decline in the value of the property or to the financial condition of the borrower.  You wouldn't benefit from it if your mortgage was reduced as a form of payment for services rendered to the lender.
by Harrison K. Long, Explore Properties Group, Coldwell Banker Previews
Attribution: Robert Hunt, California Association of Realtors, 2008
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