September:  Highest Consumer Confidence

September: Highest Consumer Confidence

Consumer confidence reached its highest level since the Great Recession in September, according to the Thomson Reuters and University of Michigan Surveys of Consumers.

consumer-confidenceSeptember’s increase in consumer confidence is the result of optimistic outlooks on the overall economy and personal incomes.  The consumer expectations index rose 5.8 percent over the month of September, while the current conditions index fell 0.9 percent.

Additionally, a growing number of consumers expect their incomes to increase over the next year. The median income growth expectation reported in September was 1.1 percent, which is the highest expectation since late 2008. At the same time, more households anticipate income growth now than at any time since September 2008.

The renewal of income growth is particularly important for sparking consumer spending, and adding pending changes to monetary policy will make income gains prompt to boost even more consumer’s confidence.

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Fact or Fiction: Tax relief for homeowners’ on debt forgiveness.

Fact or Fiction: Tax relief for homeowners’ on debt forgiveness.

Congress is now back from its summer vacation, so the burning financial question on thousands of homeowners’ minds right now is this: Are you finally going to help the consumers who are underwater on their mortgages and have already accepted a principal reduction by their lenders? 20131125_fact copy

Under current federal tax law, when the homeowners accept reductions in what they owe, the amount forgiven by the bank gets reported to the IRS, and the owner is hit with taxes as if it were ordinary income.

The Mortgage Forgiveness Debt Relief Act of 2007 was created to help distressed homeowners; that were faced with taxes after a Principal reduction; however this law has already expired Dec. 31, 2013.

If Congress does not extend the law retroactively thousands of underwater homeowners could be hit with tax burdens they may not be able to handle. We hope for the Best!

Fannie Mae reduces waiting period for distressed borrowers

Fannie Mae reduces waiting period for distressed borrowers

A recent report revising the waiting periods for distressed borrowers with a derogatory credit event such as a foreclosure, bankruptcy, short sale, or deed-in-lieu of foreclosure on their credit history to obtain a new loan has been released by Fannie Mae. This revised statement reduces the waiting period up to two years for borrowers with a short sale or deed-in-lieu of foreclosure on their record if there are extenuating circumstances that borrowers can prove. FannieMae

According to Fannie Mae, extenuating circumstances are defined as “nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.”

If a borrower has a foreclosure on his or her credit record, the new minimum waiting period is seven years. Under extenuating circumstances, that period is shortened to three years with some additional requirements for up to seven years. For those with a bankruptcy the waiting period is four years but two years with extenuating circumstances from the discharge date.

Fannie Mae said in the report that it is “focused on helping lenders to provide access to mortgages for creditworthy borrowers while supporting sustainable homeownership” and that the new policy “provides opportunities for borrowers to obtain a loan to Fannie Mae’s maximum LTV (loan-to-value) sooner after the Pre-foreclosure, Short Sale or DIL.”

Have a great school year!

The early morning rise is now the everyday activity for all kids who attend Elementary school student with A+ report cardschool.  They have to do homework each night and dress in well, clothes each day as opposed to sleep wear.   Run through their checklist of stuff, such as pencils and paper, lunch, binders, agenda, phone, etc.  it really takes a lot to be a kid in school these days.

I hope you had the best summer ever, spend a lot of time together as a family, and treasure those moments forever!

Wishing you all, parents and kids for a great school year!

As Always, Keep up the good work!

Labor Day Weekend’s exclusive happenings!

This Labor Day weekend travelers can take advantage of The Maritime Museum’s Sailing In San Diegoannual Festival of Sail, Julian Fall Apple Harvest, U.S. Sand Sculpting Challenge and 3-D Art Expo on San Diego Bay, featuring live entertainment and food as well as take part in the start of the San Diego Chargers football season kick-off.

Festival of Sail is hosted by the Maritime Museum of San Diego along the  North Embarcadero, San Diego Bay and will host over twenty fascinating ships from around the world during August 29, 2014 – September 1, 2014.  Julian Fall Apple Harvest going on, emulating the 1870’s gold rush, this charming festival allows travelers to shop, sample famous apple pies, picnic and hike throughout the refreshing oak trees, and even take part in a horse-drawn carriage-ride down Main Street.

In addition to this Labor Day Weekend’s exclusive happenings, other enjoyable excursions and activities include attractions and tours like SeaWorld, the San Diego Zoo, Balboa Park, boating and brewery tours, hiking, horseback riding, sailing, Segway excursions, whale watching and wine tasting.   http://www.sdmaritime.org/festival-of-sail/

Have a safe and enjoyable Labor Day Weekend!