Proposition 90 restored – An update on Bank of America’s short sales

A couple of weeks ago I wrote about a call to action regarding proposition (prop) 90. Proposition 90 is a conditional amendment passed by California voters that provides property tax relief for persons aged 55 and over. It allows these individuals, under certain conditions, to transfer a property’s base tax value from an existing residence in one county to a replacement one in another county.

The provisions of prop 90 may result in substantial tax savings since it allows the adjusted base value of the original sold property to be transferred to the newly purchased or constructed homes, if eligibility requirements are met. One critical requirement is that the county where the new home is being purchased or constructed must allow prop 90 transfers. A separate amendment, authorized by prop 60, allows similar property value transfers between properties within a county.

On July 30, measure 920 was introduced by Supervisors Jeffries and Benoit to the Riverside County Board of Supervisors to restore prop 90 in Riverside County. They were allowed prior to 1995 but the law allowing them was not renewed. Hundreds of support letters from community members were submitted along with a presentation by a realtor presenting the financial benefits accruing to the county as a result of prop 90. There was no opposition so the measure will now move forward to a vote on Aug. 20 and become effective on Sept. 19.

Studies conducted across the state show that prop 90 will entice nearly 1,200 new households to relocate to Riverside County as a result of this going into effect. Homeowners that would not otherwise have moved here will now. They typically pay cash, generating millions in additional economic activity over the next few years, resulting in creating over 1,000 new jobs for the region.

Bank of America short sale update

Being a preferred Bank of America (BoA) short sale agent, I receive updates regularly. I most recently received one recommending us to advise our homeowners who are being serviced by BoA that a servicing transfer may occur at anytime during the short sale process to another company.

This transferring of loan services is a common practice across the industry and occurs for a variety of reasons. Reading between the lines, it may appear BoA wants to get out of the short sale servicing business. This may explain why BoA offers cash incentives (up to $30,000) to homeowners to short sale their homes.

BoA went on to say they will send a letter to the homeowner 15 days before the servicing transfer date. BoA may also call the agent assigned to the file advising them on the impacts to the short sale currently in review and provide information regarding the new servicer to help determine the options available to the homeowner with the new servicer. This alone is reason enough to always open mail received from your bank/loan servicer.

If you have questions regarding this and/or other real estate matters, contact Mike Mason, broker/owner of Mason Real Estate DRE: 01483044, Board of Director of your Southwest Riverside County Association of Realtors® (SRCAR), Short Sale & Foreclosure Resource certified by National Association of Realtors® (NAR) at [email protected] or call (951) 296-8887.

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