Senate bill 401 passed yesterday, bringing California in line with Federal policy which waives taxation on forgiveness of debt for a personal residence. Governor Schwarzenegger said he would sign the bill. For example, for homeowners considering a short sale, this means that the amount of the “haircut” (loss) their lender(s) would take on that short sale will not be counted as income for them – which it would have been had this law not been enacted. It is a technical bill, and so as always, consult your financial adviser.

Many friends and clients know I’ve been slowly building a replica of a 1930’s era biplane called a Tiger Moth at a hangar at Camarillo airport.

3 wings are done and hanging in the rafters and I’m almost finished with the 4th – the lower right wing that has an aileron (controls the turns). I’ve just made the aluminum brackets for the pivots that the aileron will swing from. After double checking all the alignment Read the rest of this article »

If you’re not actively looking to buy, you won’t notice that interest rates appear to be creeping up. But if you’re in the market (or thinking about it)  it’s good to understand what drives interest rates. This past Wednesday was a very important milestone for mortgage rates. Why? Read the rest of this article »