Huntington Beach Real Estate FAQ's

As a Huntington Beach real estate agent, Deedee Sive often finds herself answering a number of questions by both her clients and those who are considering purchasing a home. Topics range from the simple to the complex and are generally topics that only those who work within the Huntington Beach real estate field will have knowledge of.

Regardless of the questions asked, Deedee is always happy to answer the queries of those she works with and those who she might one day work with. "The more a prospective buyer or seller knows the better their home buying or selling experience will be" says the Huntington Beach real estate agent. Deedee further adds that asking questions of a real estate agent can also prepare the buyer/seller for the process and can keep expectations realistic.

Some of the most frequently asked questions of Deedee are:

Q. Why should I use an agent when looking for and purchasing Huntington Beach real estate?

A. Whether buying or selling a home in the Huntington Beach Real Estate market or in surrounding communities, a real estate agent brings wealth of knowledge to the entire process. An agent will help you prepare your property for sale as well as market your home so that it sells more quickly. If you are purchasing a home, a real estate agent can help you narrow your search area, point out questionable property features and ultimately negotiate a great deal on your behalf.

Q. As a buyer will I be required to pay a real estate agent to help me find a home in the Huntington Beach area?

A. Real estate agents are almost always paid by the seller of a property, not a buyer. Once a home closes, the Realtor will receive a commission from the sale. Someone interested in purchasing a home in the Huntington Beach real estate market or Costa Mesa Real Estate market should be wary of any agent that requires payment upfront.

Q. What tax benefits are there for Huntington Beach real estate owners?

A. Homeowners benefit from several generous tax advantages. The most important benefit is the mortgage interest deduction. People may deduct interest paid on mortgage loans totaling up to $1 million used to buy, build or improve a principal residence plus a second home. The IRS calls such loans acquisition debt.

Points paid by the buyer or seller on a new mortgage loan for the purchase or improvement of a principal residence are deductible for the year in which the home was purchased. Any points paid on a refinance mortgage, a loan to purchase a second home or a mortgage on income property must be spread over the life of the loan, according to Edith Lank and Miriam S. Geisman, authors of "Your Home as a Tax Shelter," Dearborn Financial Publishing, Chicago; 1993.

Note that when obtaining a new mortgage, the borrower usually is asked to pay interest from the closing date until the first of the next month. Check whether that charge is included in the year-end report.

Some moving expenses are deductible for people who changed jobs and relocated as a result. The IRS requires that the new employment be located at least 50 miles away, among other considerations, said Analisa Collins-Sears, a public affairs officer with the IRS' Bay Area office.

Resources: * "Tax Information for First-Time Homeowners," a free guide published by the Internal Revenue Service. Order by calling 1-800-TAX-FORM.

These Huntington Beach real estate questions are but a few of the most frequently asked questions. As many of her clients both old and new share many of the same questions, Deedee has created a Huntington Beach real estate FAQ page within her website so that these questions can be answered without having to contact anyone. Of course if after viewing this page you still have questions, or have questions that where not present on this page, you may contact Deedee for further assistance.

Realtor Deedee Sive

Huntington Beach Real Estate Specialist

Thinking About Buying A Home?? Click Here

Thinking About Selling A Home?? Click Here

Bar Monitors Lawyer Loan Modification Advertising

California State Bar Journal, May, 2009

By Diane Curtis
Staff Writer

With no sign of the foreclosure crisis abating, the State Bar last month began notifying lawyers that the chief trial counsel’s office wants to monitor their loan modification-related advertising.
Included in the scrutiny of violations of the Rules of Professional Conduct regarding false and misleading advertising, bar prosecutors will be looking at whether lawyers are guaranteeing success in securing loan modifications or are implying that they have expertise or a special license from the State Bar to work on foreclosure cases, said Chief Trial Counsel Scott Drexel.

“Consumers are under very difficult circumstances facing the prospect of very quickly losing their homes, so they’re desperate to do something, and it makes them more susceptible to fraud,” Drexel said. He said his office was making oversight of attorneys involved in loan modification a priority. “There is a need to act as quickly as possible because the consumers who go to these people are on the verge of losing important rights.”

Deputy Trial Counsel Victoria Molloy, who is sending and monitoring the letters, said consumers, especially in Southern California, are “bombarded” with loan modification ads on radio and TV. “You can watch TV for an hour and see five or six ads,” Molloy said.

“Given that, plus the increased volume of calls we’re getting to the 800 line — with people complaining about hiring loan modification companies and then not getting what they bargained for — we felt it was important to look at loan modification as more of a global issue than a case-by-case issue.”

According to Realty Trac, 13 of the 25 metropolitan areas nationwide with the most foreclosures are in California.

For several months, the bar has been receiving between 850 and 900 calls a month to its complaint hot line from consumers regarding foreclosures or loan modifications, although many calls have nothing to do with lawyer misbehavior. Attorneys, many of whom are being approached by loan consultants to work with them, also have been calling the ethics hotline about the foreclosure or loan modification business at the rate of 235 per month.

The letters sent out to lawyers who have advertised state that attorneys contacted are “requested to provide the State Bar with copies of all written or electronic communications, as defined in rule 1-400, made by or on behalf of you or your firm within the six months prior to the date of this letter concerning any and all loan modification services offered by you, your firm or any entities with whom you are associated.” Those not abiding by the Rules of Professional Conduct could be subject to bar prosecution and discipline. Molloy also noted that not submitting the information could be interpreted as failing to cooperate in a State Bar investigation and also could result in prosecution and discipline.

Letters regarding advertising initially were sent to 30 California attorneys whose print, Internet, radio or television ads were known to the bar. Of those, only one has been sent on to enforcement for investigation, said Molloy. However, there are more than 100 open investigations related to foreclosures in general.

A major concern of the bar, Molloy said, is if lawyers are “being used as straw men” by loan consultants who want to involve a lawyer in the process because lawyers, unlike loan consultants, may charge fees in advance of doing the work. “It’s not that lucrative for them unless there’s money upfront,” said Drexel.

Molloy said there is nothing inherently wrong with a lawyer working with a loan consultant. “It’s more of a question of how it plays out in practice. If an attorney is hired to assist in a loan modification, and they make good faith efforts, whether they’re successful or not, presumably they’ve earned their fees.” It’s when the consultants or lawyers try to skirt the rules that a problem occurs.

Drexel recommended that consumers use caution in hiring anyone and to beware when a loan modification ad ends with the declaration, “Licensed by the State Bar.”

“You have to ask yourself, ‘What is it they’re trying to convey?’ My own view — and whether we can convince a judge of that I don’t know — is that they’re at least implying that they are specially licensed to do this kind of loan modification work by the State Bar or they have some special expertise and have an endorsement by the State Bar.

“Particularly in this area where there is a great danger of consumers being taken advantage of, I think we have a heightened concern about the accuracy and fairness of any advertisement for those types of services. It’s a public protection measure.”

“It’s very interesting that the bar apparently thinks that this crisis is of significant magnitude to embark on a very aggressive and unprecedented step,” said David Cameron Carr, president of the Association of Discipline Defense Counsel. Drexel, noted, however, that the move is not unprecedented because the bar has taken preemptive steps in the past, such as when it alerted consumers to the actions of the Trevor Law Group before the bar filed charges. The Trevor group sued thousands of restaurant and auto repair shop owners, many of them minorities, for minor violations that were posted on the web sites of regulatory agencies.

Carr said it remains to be seen whether the bar’s current effort at monitoring advertising will be worth the labor involved in reading all the advertising material. “You might question whether this is the best use of resources,” he said. “The idea that people are going to be massively misled by lawyer advertising — I think that is probably not true.” He said many people hit by the mortgage crisis can be helped by lawyers.

The decision to seek advertising information related to foreclosures followed the February release of an ethics alert from the bar’s professional responsibility committee on the same subject. “There is evidence,” the alert said, “that foreclosure consultants may be attempting to avoid the statutory prohibition on collecting a fee before any services have been rendered by having a lawyer work with them in foreclosure consultations.”

That alert to attorneys mentioned areas ripe for abuse: referral or marketing fees; fee-splitting, unauthorized practice of law by a foreclosure consultant; in-person or telephone contacts to get clients; filing lawsuits without good cause; and failing to perform legal services competently.
The Department of Real Estate also issued alerts for consumers contending with the possibility of foreclosure.

© 2009 The State Bar of California

Realtor Deedee Sive

Huntington Beach Real Estate Specialist

Thinking About Buying A Home?? Click Here

Thinking About Selling A Home?? Click Here