Wednesday Maui Sunset!

Maui Sunset 07/20/2010

Unbelievable Sunset Colors Last Night! This photo looks like a painting!! Don't you wish you had this view too? Now is the time to snatch that Maui Vacation Home;)

We're All Blind & Oblivious

I Think we could all use this great reminder...


There was a blind girl who hated herself because she was blind. She hated everyone, except her loving boyfriend.. He was always there for her.. She told her boyfriend, 'If I could only see
the world, I will marry you.'


One day, someone donated a pair of eyes to her. When the bandages came off, she was able to see everything, including her boyfriend.


He asked her,'Now that you can see the world, will you marry me?' The girl looked at her boyfriend and saw that he was blind. The sight of his closed eyelids shocked her. She hadn't expected that. The thought of looking at them the rest of her life led her to refuse to marry him.


Her boyfriend left in tears and days later wrote a note to her saying: 'Take good care of your eyes, my dear, for before they were yours, they were mine.'


This is how the human brain often works when our status changes. Only a very few remember what life was like before, and who was always by their side in the most painful situations.


Life Is a Gift


Today before you say an unkind word - Think of someone who can't speak.


Before you complain about the taste of your food - Think of someone who has nothing to eat.


Before you complain about your husband or wife - Think of someone who's crying out to GOD for a companion.


Today before you complain about life - Think of someone who went too early to heaven.


Before whining about the distance you drive Think of someone who walks the same distance with their feet.


And when you are tired and complain about your job - Think of the unemployed, the disabled, and those who wish they had your job.


And when depressing thoughts seem to get you down - Put a smile on your face and think: you're alive and still around.

Gorgeous Maui Sunset

Can you see the sailboat? Wishing you were on it?

BEAUTIFUL Morning view of Moloka'i!

Title Insurance - Where Does Your Money Go?

Title Insurance - Where Does Your Money Go? (edit/delete)

Where Does Your Dollar Go??!!

Title Insurance: As a homebuyer, the term is probably familiar - but is it understood? What is your dollar actually paying for when you purchase a title policy??

Title insurers, unlike property or casualty insurance companies, operate under the theory of risk elimination. Title companies spend a high percentage of their operating income each year collecting, storing, maintaining and analyzing official records for information that affects title to real property. Their technical experts are trained to identify the rights others may have in your property, such as recorded liens, legal actions, disputed interests, rights of way or other encumbrances on your title. Before closing your transaction, the title company will proceed to "clear" those encumbrances which you do not wish to assume.

This theory is different from that of most other insurance where, for example, rates and anticipated losses are based on actuarial studies and premiums are pooled on the assumption that a certain number of claims will be made. The distinction is important: title insurance premiums are paid to identify and eliminate potential risks and claims before they happen. Medical and casualty insurance premiums, for example, are paid when you close the real estate transaction, while property, casualty and medical insurance require regular renewal premiums.

The goal of title companies is to conduct such thorough search and evaluation of public records that no claims will ever arise. Of course, this is impossible - we live in an imperfect world, where human error and changing legal interpretations make 100 percent risk elimination impossible. When claims arise, professional claims personnel are assigned to handle them according to the terms of the title insurance policy.

The issuance of a title insurance policy is highly labor-intensive. It is based upon the maintenance of a title "plat," or library of title records, in many cases dating back over a hundred years. Each day, recorded documents affecting real property and property owners are posted to these title plants so that when a title search on a particular parcel is requested, the information is already organized for rapid and accurate retrieval. In California, most of the large counties have been converted to computer-based title plant systems which provide retrieval from remote locations, further speeding the process of delivering the title search to the customer. The investment is skilled personnel and advanced data processing represents a major part of the title insurance premium dollar.

Proper title plan maintenance, research, evaluation, and legal interpretations are the foundations upon which a title policy rests. That is where most of your dollar goes, and that is the source of your protection and peace of mind as a homeowner in California.

Material discussed is meant for general illustration and/or informational purposes only and is not to be construed as tax, legal or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary, therefore, please consult a professional for specific advice.

S10-31 [S3-02 (07/01)]

Lasting Letters. ..

Sunrise, Sunset. Time has wings. Have you ever lost a loved one, whether a family member or friend? Do you have any regrets? Did you have any unfinished business with them? Is there anything you would have shared with them, but time was cut short? If so, then you are in good company.

The failure to communicate is a problem common to all of humankind in this journey called life, even with our cell phones, pagers, email accounts and access to the World Wide Web. Real, lasting communication seems to have gone the way of the lost art of pen-and-paper letter writing. In this post we encourage you to recover that lost art through lasting letters to loved ones (family and friends). Whether you choose to send these letters while you are alive, or incorporate them into your estate plan to be given after your death, they surely will be appreciate by your loved ones.

Memories. ..Remember. Memories are the mental motion pictures of our lives. And given proper encouragement they can be even more vivid, because they are real. Identify three favorite experiences you shared. Can you remember the sights, sounds and smells surrounding your memories of the experiences? Whether special occasions, rich family traditions or spontaneous special moments, bring these experiences to life by engaging the senses and explaining what they meant to you.

Appreciation. ..Thank and praise. It is a rare turtle that finds itself atop a fence post through its own efforts. How have your loved ones helped you, in ways large and small? Perhaps it was the sacrifice of your parent(s) who struggled to provide for your daily needs, usually ahead of their own? Or maybe it was your older brother who helped you with your school work, or taught you how to drive? Thank your loved ones for the investment they made in your life, then praise them for the qualities you admire in them.

Wisdom. ..With the death of every human being, a library of wisdom borne of experience disappears. What have you learned in life's classroom that you can share or spare your loved ones? What have you learned about growing up, growing old, faith, family and work? Remember: Unless you share what you have learned, and even unlearned, your loved ones are as likely to repeat your defeats as they are to repeat your success. And the tuition can be expensive in physical, emotional, financial and spiritual capital. Consider devoting a separate paragraph of your wisdom to the subjects you find most essential.

Conclusion. ..Whether your financial estate is large or modest, the most important estate you have in this life is not in your relationship to things, but to people. Take time today to write your lasting letter to loved ones. Long after any inheritance is spent, your letters will be priceless treasures, perhaps shared for generations to come.

Note: Nothing in this blog is intended or written to be used, and cannot be used by any person for the purpose of avoiding tax penalties regarding any transactions or matters addressed herein. You should always seek advice from independent tax advisors regarding the same. [see IRS Circular 230.]

The Choice Is Yours. ..

It can be difficult to ponder our own mortality. That is just our human nature. Nevertheless, the clock is ticking for each of us. This blog post highlights some critical issues we all need to address while there is still time to make proper financial and legal plans.

The blog post following this one will encourage you to consider lasting letters as a means to enrich relationships with your loved ones (family and friends). Since letter writing has become a lost art, the mere fact that you make the effort will be remarkable. ..especially for all you bloggers!

Facing Facts. ..It has been said that there are only two certainties in life: death and taxes. Nevertheless, even these two certainties differ markedly in their respective degrees of certainty. Whereas taxes can be minimized, deferred or even legally avoided (but not evaded, as discovered by infamous gangster Al Capone), death awaits us all and is often preceded by a period of incapacity. Whether one is a prince or a proper, both incapacity and death can arrive without warning.

Therefore, it is essential that you make appropriate estate plans now to take care of your loved ones and your hard-earned assets before it is too late. In this post we will highlight some critical issues to address while there is still time to plan.

Incapacity Planning. ..Do you read the newspaper, listen to the radio or watch television? If so, then you know that accidents and dread diseases are part of our everyday human experience. We all believe such tragedies will befall someone else. But what if you made the headlines or the lead story? If you were incapacitated today, who would make your important personal, health care and financial decisions tomorrow? Would it be someone you appoint through proper legal instruments or someone appointed for you by a court? The choice is yours.

Long-Term Care. ..The number one fear of many Americans, particularly retirees, is running out of money before they die. This is understandable, given the volatile economy and the specter of nursing home costs. Although you cannot control the economy, you can protect your hard-earned assets from the cost of round-the-clock care in long-term care facility.

In fact, you may insure the option to have your long-term care provided in your own home, but only if you obtain such coverage through proper long-term care insurance contract while you are insurable. If you wait too long, your options may be very limited. In a worst case scenario, you could end up depleting your assets and be forced to resort to Medicaid, a program designed for the indigent. The choice is yours.

End-Of-Life Decisions. ..For many people, the line between preserving life and dying naturally is quite fine. In the end, according to the United States Supreme Court, every person has the right to define that fine line for him or herself. Where is that line for you?

Only by executing proper legal instruments can you determine the course of your health care treatment as you approach that fine line. Depending on your unique personal circumstances, you should consult your loved ones and your legal, medical and spiritual advisors regarding your wishes. Otherwise, your failure to address this ultimate end-of-life issue in your estate plan can potentially lead to family strife and poisoned relationships for generations. Again, the choice is yours.

Testamentary Transfers. ..You will never see a hearse pulling a U-Haul trailer. In short, you cannot take your worldly possessions with you beyond this life. What will be your legacy for a lifetime of work? Will the inheritance you leave be used wisely or dissipated by your heirs through squandering, divorces, lawsuits or bankruptcies? Have you considered protecting the inheritance through long-term discretionary trusts?

Will your lifetime of work be lost unnecessarily to the IRS? Each taxpayer may exempt up to $42 million from federal estate taxation under current law.* However, with proper planning, a married couple may protect up to $4 million. Single persons whose estates exceed $2 million may need to employ advanced legal strategies to preserve their assets from loss to estate taxes.

Conclusion. ..The process of preparing your estate plan is an extremely personal experience. To a large extent, it is not something you do yourself. Rather, you do it for the people you love.

* The future of this tax exemption is uncertain, at best.

Note: Nothing in this blog is intended or written to be used, and cannot be used by any person for the purpose of avoiding tax penalties regarding any transactions or matters addressed herein. You should always seek advice from independent tax advisors regarding the same. [see IRS Circular 230.]

Asset Protection Strategies

. ..Statistically and anecdotally, we all know that the number of divorces, lawsuits and bankruptcies is staggering. While no one believes lightning will strike them, wealth created through a lifetime of work, saving and investing can be lost overnight if these forms of man-made lighting do strike. To protect your assets from such disaster, proper risk management strategies should be given careful consideration. These strategies include exempting your assets from the claims of creditors, limiting your liability through legal entities, andtransferring your risk through insurance.

Exempting Assets. ..State and federal laws may exempt some of your assets from the claims of creditors. Depending on your state of domicile (i.e., your legal residence), the equity in your primary personal residence may be protected from creditors. Protection also may extend to your retirement funds and even the cash value of your life insurance.

Once you have identified the protected asset classes available to you under applicable law, it may be prudent to maximize your protection by converting non-exempt assets into exempt assets. For example, if the equity in your home is exempt from the claims of creditors under the laws of your domicile, then using non-exempt resources to pay off your mortgage may be a smart move.

Limiting Liability. ..Many entrepreneurs operate their businesses as sole proprietors rather than through a legal entity, such as a Corporation or a Limited Liability Company. Whether their business is home-based or in the Fortune 500, these business owners are attracted by the informality of sole proprietorship. They also do not want to incur legal fees to create and maintain a legal entity. However, in addition to other advantages, conducting business through legal entity may offer substantial risk management benefits.

While lawsuits brought against a sole proprietorship are really lawsuits against the owner's personal assets, lawsuits against a properly created and maintained legal entity are really lawsuits against the entities assets. Nevertheless, the selection of an appropriate legal entity is critical for managing your risk.

Transferring Risk. ..When was the last time you reviewed the details of your liability insurance program with your insurance professionals? Are your policies current? Are the coverage limits adequate and are the deductibles reasonable? Have you scrutinized the policies for loopholes? Remember: the fundamental philosophy of any insurance coverage is to pay a premium you can afford to transfer a risk you cannot afford. Take time to understand both the risks you have retained and the risks you have transferred.

Closing Thoughts. ..Managing your risk, like avoiding lighting, requires that you make proper plans in advance of the storm. Take time today to protect your wealth tomorrow.

Note: Nothing in this blog is intended or written to be used, and cannot be used by any person for the purpose of avoiding tax penalties regarding any transactions or matters addressed herein. You should always seek advice from independent tax advisors regarding the same. [see IRS Circular 230.]

FLP Primer; The Family Limited Partnership. ..

Family Limited Partnerships offer many benefits, both tax and non-tax. This write up is a primer that explores why they are both a taxpayer favorite and a favorite target of the IRS (and some courts).

In the Blog following this one we examine three strategies for protecting your hard-earned wealth: exempting your assets, limiting your liability, and transferring your risk. This blog will inspire you to take specific actions today to protect your wealth tomorrow.

The Family Limited Partnership (FLP) has been a popular business entity for wealth management, tax minimization and wealth transfer maximization. Under the right circumstances, FLPs traditionally helped taxpayers remain in control of their wealth even after transferring it to their loved ones. Additionally, many of these transfers were made at a significant discount, thereby further leveraging wealth transfer tax savings. Not surprisingly, while FLPs have been employed as a planning panacea by taxpayers, FLPs have received the evil eye from the IRS and some courts with increasing frequency.

Background.. .Simply put, an FLP is a Limited Partnership among family members. The FLP is often created by the wealth-owning generation, typically the parents. The FLP creators are initially both the General Partners (GPs) and the Limited Partners (LPs) at the time they contribute assets to the FLP. The lion's share of the contributed assets is thereafter assigned to the LP shares. Even so, the GPs hold all of the management control over the FLP assets.

When the FLP assets generate income, the GPs are entitled to compensation for their management services. LPs enjoy an ownership interest only. They have few rights or power and there are restrictions on the transferability of their LP interests. This lack of control (minority interest) and inability to transfer the LP interests freely (lack of marketability) reduces or discounts the value of the FLP assets. In turn, this discounting enables the parents to transfer more wealth (and the future appreciation of that wealth) via their LP interests to younger family members, yet retain lifetime control over that wealth.

Other benefits include income splitting and asset protection, since FLP-income may be spread among multiple family members, and creditors of the LPs may be limited in their attempts to reach the underlying FLP assets.

IRS & Judicial Attacks. ..Given the powerful tax and wealth transfer benefits available through FLPs, it is easy to see why the IRS and some courts do not like them. First and foremost, an FLP must be created for a business purpose...not just for estate planning. For example, a valid business purpose may be to maintain family ownership and control of assets while they are transferred between generations free from the claims of third-party creditors and probate. Any planning with an FLP must begin with a solid business purpose in substance, as well as in form.

Like most legal arrangements that offer both tax minimization and wealth minimization, FLPs are subject to an unwritten rule of law: pigs live and hogs get slaughtered. Some examples of hoggish behavior with FLPs include taxpayers who establish deathbed FLPs and/or taxpayers who transfer substantially all of their personal assets and means of financial support to their FLPs (i.e., leaving themselves no other source for income and sustenance). Result: If an FLP is found to be hoggish, then the entire value of the underlying FLP assets may be included in the estate of the FLP creator by the IRS and some courts.

As you might imagine, in addition to the FLP's business purpose, the IRS has traditionally scrutinized thevaluation discounts claimed by the taxpayer for the LP interests. Once these gifts are made, the taxpayer must ensure that any discounts attributed to the gifts are substantiated in writing by an appropriate valuation expert and that these discounts are reported on a timely gift tax return. Expert professional valuation assistance is critical to successful FLP planning, implementation and maintenance. It is money well spent.

Practical Consideration...FLPs are not for everyone. Between legal fees, valuation fees, required state filing and reports, and tax returns (for the FLP, the GPs and the LPs), FLPs may require a substantial commitment in time and resources. Bottom line: Carefully weigh the costs versus the benefits of FLP planning before proceeding.

Note: Nothing in this blog is intended or written to be used, and cannot be used by any person for the purpose of avoiding tax penalties regarding any transactions or matters addressed herein. You should always seek advice from independent tax advisors regarding the same. [see IRS Circular 230.]

The 3 Year Interim Binder

The 3 Year Interim Binder

As more and more people buy property for investment or speculation, the Interim Binder becomes a more important tool. The Interim Binder is not, in itself, a policy of title insurance. When issued however, it binds the insurer to issue a policy of title insurance within three years. By utilizing the Interim Binder, principals to a transaction can realize a substantial savings in the cost of title insurance.

Here's How It Works:

Cost = 110% of HOP Rate

Time Parameters = Must resell within a 3 year period or buy a one year extension for an additional 10% of the HOP rate.

Seller's Pay = Normal Fee

Buyer's/Investors Pay = 10% of HOP Rate

Example:

Original price or liability $1,000,000 - HOP Rate

CLTA/ALTA HOP - Paid by Seller $2,339

Buyer/Investor pays an additional 10% + 234

--------

Total fees for Interim Binder $2,573

Resale price within 3 years $1,200,000 - HOP Rate

CLTA/ALTA HOP $2,559

Less the original rate on $1,000,000 - 2,339

---------

Binder resale rate $ 220

The total cost to the Buyer/Investor is $454 derived by adding $234 (representing the original additional 10% of the HOP rate), to the $220 (representing the premium for the increased liability at the date of resale). By contrast, the rate the buyer/investor would normally pay without utilizing the Interim Binder is $2,581.

Total Savings: $2,127 ($2,581 less $454)

Note: Equity Title Company automatically issues the HOP Policy for Single Family 1 to 4 unit properties. The HOP -"Homeowners Policy" is the most current and comprehensive policy available by CLTA/ALTA for residential properties.

*Material discussed is meant for general illustration and/or informational purposes only and is not to be construed as tax, legal or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary, therefore, please consult a professional for specific advice.

**S2-09-2 (05/05, 07/08, 02/09)

Hawai'i Five-O

This is a GREAT article written by David C. Jefferys from the WSJ. ..

"Hawaii is not a state of mind but a state of grace." - Paul Theroux

When I was 9 or 10, I met Barack Obama-a friend of a friend knew him. He must have been 19 or so, even slimmer than he is now. We were standing on a street corner in Honolulu. It was a sunny day. Most days are like that here. In my memory, he is backlit. He is much taller than I; maybe the sunshine gives him a faint golden glow. Because Obama is now president, the moment has taken on an iconography it didn't have at the time. In fact, it was altogether forgettable. I don't know what we're doing there. I don't know where I'm going next.

I've come home for the inauguration of the first president born and raised in Hawaii. I wanted to see it where we were both from, and I did, at dawn, the television's reflection in my hotel's sliding-glass doors, Diamond Head silhouetted behind. Later that morning, people gathered in Kapiolani Park as they always do, to practice tai chi, jog or head out into the ocean for a morning swim or paddle board ride. The mood in the city is gentle and buoyant, sweetened, perhaps, by the humble pride locals have in the new president. But watching this island boy-born at the Queen's Medical Center, off to the mainland at age 18-seems to have been mostly a private experience.

So it was a particular gift when during the inaugural parade, Punahou School's marching band came on live. I had gone to the school to visit an old classmate, now a history teacher there, and while we were talking about all things Obama (we had graduated the same year as his sister), the new president gave his alma mater the shaka sign-thumb and pinkie extended-which means, "We're cool, all's well," especially when dangled out a car window.

Everyone cheered. "They're playing ‘Aloha ‘Oe,' " my friend said. Queen Lili‘uokalani wrote "Aloha ‘Oe." She was the last monarch of the kingdom of Hawaii, and though the lyrics are about a lover saying goodbye to his cowgirl in Maunawili, anyone who grew up singing the song knows that it is a greater loss she was describing.

Down the block from the school are the tenements of lower Makiki, laundry suspended over the lanais. In the breezy space-age lobby of Punahou Circle Apartments where Obama grew up, ink jet pictures of the president with his family-Toot and his grandfather; Michelle, Malia and Sasha-are connected by red, white and blue bunting. ";We had a party with refreshments for the tenants,"; a lady pushing an empty shopping cart tells me. Another lady smokes a cigarette under copies of the Shepard Fairey posters, while in the building's office a white-haired man sorts through papers. He seems grumpy about me, though I am the only tourist. This is a strange stop on the presidential homes tour, I realize-we expect log cabins in Kentucky, compounds in Maine. But it's the 21st century: Here is a man we know.

Hawaii, not so much. The 50th state is 50 this year. Middle-aged. When the press pool arrived in Honolulu before Christmas to follow Obama around, they seemed confused by the euphonic, bewilderingly repetitive place names, by the smallness of the place, its physical blend of L.A. suburban, Hong Kong high-rise and lost-in-the-Pacific ham-radio vibe, all set in a terrarium of overwhelming dramatic beauty. Molten lava spurting like a gigantic Hadean fountain? Check. Forty-foot waves? Check. And Wal-Marts and slums and people who live in tents on the beach. This last trip the only tiki torches I saw were at the Outback Steakhouse.

Obama took his daughters to Sea Life Park on Oahu's southeastern shore. Sea Life Park! With its tetchy old sea lions and suspiciously mellow trainers, and dolphins that actually seemed happy. There is something kind of awesome about Sea Life Park, but the most awesome thing is that it is still there.

So is Waiola Shave Ice. And Irifune, the Japanese surfer restaurant. Leonard's still makes malasadas, tourists still lean into the wind on the Pali, and the Board of Water Supply puts up its light show every Christmas. (We love our Santa in a canoe.) Not much has changed on the windward side of Oahu-except that the cars seem newer. There was more rust when I was a kid.

Someone has planted a sign in front of Makapu‘u Beach, a bit of homemade activism-the old tourist marker sign with the drawing of Kamehameha holding a spear with one hand and pointing with the other, but where the place name should be, ceded land is painted. It's a reference to the dispute over 1.4 million acres of public land in Hawaii-comprising airports, resorts, forests, universities and beaches-and how the massive yearly income generated should be apportioned between the state and descendants of indigenous Hawaiians. After the overthrow of the monarchy in 1893, the land was annexed by the U.S.-an act for which President Bill Clinton issued a formal apology.

It's a cliché to say, "Look how well we live together"-the ceded land sign reminds me we're not beyond tribe-but maybe Hawaii shows us that it's time to tend to the business of malama, taking care. (Malama Obama? Yes, there's a bumper sticker.) We've been doing this here, living and dying side by side, for a long time. In Nu‘uanu Valley, an Episcopal church houses a preschool for Native Hawaiian children, while across the street, O‘ahu Cemetery, established in 1844, accommodates whalers-a greyhead Indian, a drowned Russian seaman-Chinese businessmen, Hawaiian historians and Joseph Campbell, all resting in incomparable peace next to one of the largest pagodas in the world.

The problems now-traffic, resource allocation, energy, sewage-are the same the mainland has, but here they're condensed. The federal government is taking note: Gov. Linda Lingle's ambitious Hawai‘i Clean Energy Initiative for 2030 aims to generate 70 percent of Hawaii's electricity from renewable sources, a joint effort between the state and the Department of Energy. Only here do you have text-book-perfect wind, ocean, sun and geothermal. There's a near-shore ocean conservation project for Maunalua Bay in East Honolulu-the first of its kind-and light rail is planned for 2012; there's even a new chain of "gas" stations with an electric-car-battery swap system opening.

For a millennium, people in Hawaii have been drawn to the summit of Mauna Keaon the Big Island, an object massive enough that its wake may have guided Tahitians to Hawaii a thousand years ago. At more than 33,000 feet from ocean floor to summit, it is the tallest thing on the planet. The slope is so gradual it is difficult to see its immensity, but at the top, 13,796 feet above the sea, it is no longer the Earth we're looking at-we are above the clouds-but the heavens. More than a dozen telescopes cluster here, some of the most powerful in the world, and the mountain will soon be home to an even more powerful one. The Thirty-Meter Telescope will have 10 times the resolution of the Hubble. It will allow us to peer deeper than ever into other galaxies. The project is not without controversy: Some Hawaiians see the mountain as sacred and perhaps our attention is better focused below. But so goes the process of ho‘oponopono, making things right-another Hawaiian concept ripe for export.

What better testing ground for putting away childish things than this small place, so much the object of fantasy-its fearsome concrete skyline and jammed freeways the result of our American problem of seeing everything as tabula rasa, even when it's a full page. The pictures the world saw in the days before the election, of Obama walking through his old neighborhood-as run-down as a postwar-boom landscape can get-made me think that this man has properly Hawaiian roots. Could aloha define a real way to live? Yes, it means hello and goodbye and they say it at the airport, it may be too hokey for most of us, but a shaka now and then couldn't hurt.

O'ahu Travel Guide

The island of Oahu compresses a lot into roughly 600 square miles-from world-class surfing on the North Shore to stylish hotels in Waikiki, as well as dozens of lush golf courses. An insider's guide to the best:

HOTELS
A much-needed spruce-up of the beaches and skyline has brought back tourists after a slump in the 1990s, particularly to Waikiki where accommodation ranges from quirky retreats to luxurious resorts.

Hotel Renew: A new boutique hotel that's only half a block from Waikiki Beach, if you can break your gaze away from the in-room 80″ projection television set.
The Royal Hawaiian: Renovated and redesigned, the Spanish-Moorish "Pink Palace of the Pacific," stretches across 10 acres of coconut groves to the beach.
Trump International Hotel &; Tower:This 38-story tower, one of the most dramatic additions to Waikiki in recent years, will have condo-hotel units; due to launch in late 2009.

DINING
Although traditional luaus with roasted pigs still lure the tourists, Oahu is taking a turn away from well-worn themes as the dining scene matures. There are high-end restaurants featuring Pan-Pacific, Eurasian and Hawaiian Regional cuisine, as well as humble trucks and beach shacks that serve tasty local dishes.

Macky's Kahuku Sweet Shrimp:Shrimp trucks along the North Shore are plentiful, but Macky's stands out with five kinds of shrimp, including those from local farms that are cooked to order and eaten with sides of fresh pineapple and sweet corn.
‘Elua Restaurant & Wine Bar:Two chefs with two cooking styles might seem contradictory, but it works at ‘Elua where French and Italian Mediterranean classic cuisine incorporates Hawaiian specialties such as the rare Moi fish; the creative selection of wines is a bonus.
Tangö Contemporary Cafe:You couldn't draw inspiration from farther afield than Finland, but this packed Kakaako neighborhood newcomer does just that by fusing traditional Nordic fare with Hawaiian classics in a minimalist room.

SPORTS
A temperate 70 to 85 degrees year-round combined with dramatic landscapes (volcanic valleys, dense jungles) and pounding surf beaches make Oahu ideal for outdoor exertion.

Golf:The 18-hole Coral Creek Golf Course on Ewa Beach incorporates unusual rock formations on cliffs that plunge from the southwestern shores of the island. The Olomana Golf Links course near eastern Waimanalo is where Barack Obama played a round in 2008 under the shadow of the grand Ko‘olau Mountain Range.
Surfing:For those not brave enough to plunge into swells on the North Shore, try stand-up paddle boarding on forgiving Waikiki Beach, or enlist the help of the Waikiki Beach Boys Canoe Club for a lesson on paddling traditional outriggers. Or go bodysurfing in the shallow waves of Waimanalo Bay Beach Park on the eastern coast.
Basketball: Chance a pickup game in Paki Playground across from Kapiolani Park where Magic Johnson played once and Obama honed his skills. The Crane Community Park in Kaimukiis always busy, and the YMCA on Atkinson Drive (Saturday mornings and weekday afternoons) is refreshingly civil, where courtesy rules in the form of a gentle "Mahalo nui loa," or "Thank you very much."

SHOPPING
Oahu shopping has grown from ticky-tacky souvenir emporiums to the place to pick up bonafide island clothes, crafts and goods. There are the requisite boutiques and malls selling designer fare, but with prices comparable to the mainland, it's better to hunt for homegrown specialties.

Royal Hawaiian Center:This revitalized and rebranded (in 2008) Waikiki complex is packed with high-end boutiques such as Bulgari, Fendi and Hermès, and has quiet places to rest under manicured trees as well as a new bridge connection to the beach.
Garakuta-do:The Japanese have long flocked to Hawaii to stock up on American goods; now they're also buying Japanese antiques and folk art at this crowded store.
Native Books:This island institution brims with books on island language and history, hula gear and ukuleles that are well-chosen and, above all, authentic.

ITINERARIES

Architecture: Even if you're only passing through Honolulu Airport, stop to admire the work of its architect, Vladimir Ossipoff. Born in Russia and raised in Japan before moving to the islands in the 1930s, the master of modern Hawaiian architecture is also known for designing more than 1,000 homes on Oahu. The Honolulu Academy of Arts occasionally organizes guided tours of some of these private properties.
Open Skies:Hop a helicopter or a seaplane for a swoop across the island. With a good pilot and eagle eyes, you'll be able to pick out hidden stretches of Hanauma Bay, the forceful Halona Blowhole, colorful coral formations at Kaneohe, the 1,000-foot drop of Sacred Falls and the National Memorial Cemetery of the Pacific, uniquely located inside Punchbowl Crater (the remains of both of Obama's maternal grandparents are there). Chinaman's Hat was the forbidding locale for "Jurassic Park" and "Godzilla." From the skies Oahu's breaking waves look even more menacing in comparison to the antlike souls who surf them.
Culture:One moment you could be standing, awestruck, in the Valley of Temples at the Byodo-In, a replica of a 900-year-old Japanese temple, the next where mythical elves might have built the ancient Hawaiian Ulupo Heiau temple. Royal offspring were born at the Kukaniloko Birthstones State Monument. It's worth sneaking a kiss on the east coast at Eternity Beach just like Burt Lancaster and Deborah Kerr did in 1953 (as long as there's not a wedding party ashore).
Getting There: Major airlines fly nonstop from mainland hubs to Honolulu. From the mainland, Continental Airlines has premium Business First seats. Low-cost carrier Go! has intra-island flights.

To view this article in its entirety, Click here: http://magazine.wsj.com/features/the-big-trip/hawaii-five-o/

Diary of Realtor

*This entry was intended for a "Dear Diary" writing contest but we sneaked a copy of the revealing, self-discovery tale of Pederson Properties Owner & President for you to read as you will no doubt enjoy it!

Dear Diary,

My Passion is. ..

Real Estate! Of Course I have other passions such as my Faith, my Family, Paddling, Sailing or just being on, in or under the Pacific Ocean, Photography, Interior Designs, Psychology. ..I could go on BUT Real Estate is my ultimate passion. There are so many avenues in this business; I can literally see myself doing this for the rest of my life. Now...it all makes sense!

Real Estate [ree-uhl, reel] - noun

1. Property, esp. in land: three acres of real estate.
2. Real property

Real Property [ree-uhl, reel] - noun Law.

1. Property consisting of houses and land
2. An estate or property consisting of lands and of all appurtenances to lands, as buildings, crops, or mineral rights (distinguished from personal property).

Realtor [ree-uhl-ter, -tawr, reel-] - noun Trademark

A person who works in the real-estate business and is a member of the National Association of Real Estate Boards, or one if it's constituent boards, and abides by its Code of Ethics.

I'm sure if we asked our Associates if they dreamed of becoming a Realtor® when they were a child we would hear laughter followed by the infamous unison reply "no". I've actually found most Realtors® have very interesting (some hysterical) stories of how they even ended up in this business. For me it was something I consciously avoided for many years!

I was born and raised in the Real Estate Industry and started holding Open Houses with my Mom while I was still in diapers. As I grew older and understood more, I strongly disliked like the idea of working weekends and thought it was borderline boring & repetitively exhausting. My Dad is a General Contractor and has been building beautiful Speculative & Custom homes since he was 18 years old. Starting his Own Company when he was just 25 years old, he has since then successfully developed wonderful communities throughout the state of Washington, California & Hawai'i over the last 30+ years.

My parents raised my brother and me on the very beautiful Hawaiian Island of Maui (Westside) where we had an amazing upbringing to say the least. I got an early start in the Hospitality Industry, which isn't unusual as you may have guessed for a tourist driven state. I had the opportunity to Graduate High School early and made it happen because of my enthusiasm to exceed in my new found career. I immediately flourished in both the Ritz-Carlton & Hyatt Hotel Corporations and worked hard gaining the respect from others (due to my achievements & age) as I moved up the corporate later. After almost 10 years with an immense knowledge of how companies should be run, with the emphasis; Guest Relations, I decided I wanted to start and run my own companies. The entrepreneurial heritage kicked in full force and I was in a hurry to accomplish my new set of goals. With the slightest aperture, I escaped my Corporate America...

I jumped back in to School for Psychology and Interior Designs which had actually been my passions to pursue prior to the Hospitality endeavor. I had observed how my parents mastered their business relationship (Dad Built, Mom Sold) over many years, and I wanted in! On my 18^th birthday, when I had still been working for the hotels, I decided to get my Real Estate License. At that time I had no intentions of doing anything with it, but because you could get it at 18-I felt the urgency to at least shelf it!

So, back in school headed towards what I really wanted to do (Interior Designs) I started casually collaborating with my Dad on his ventures. Looking back on my youth, I realized the idea of becoming an Interior Designer hit me in a Lighting store when I was about 9 years old. Along with holding Open Houses with Mom, I frequently ran errands with Dad and learned about all the details that go into building a house. I loved looking at all the plans/blueprints in my Dad's office and starting sketching designs as a tween. I'll never forget giving my Dad a drawing for a Master Bathroom which he then implemented in one of his Spec Homes, which to this day I still smile about.

About 6 years ago I had my first "A-ha!" moment regarding Real Estate. Interior Designs had become more of a specialty, something I'll always be passionate for but expressed for select Clients &/or Projects. With this first "A-ha!" moment, I [finally] realized I had been putting off Real Estate for all these years because I knew I'd be doing it for the rest of my life! It was an incredible feeling I still can't seem to put into words. I was emancipated and immediately ready to move toward fruition. When I was ready to activate my Hawai'i Real Estate License, I had the opportunity to move to Southern California. I contemplated this possibility for awhile, and decided it would be a great learning experience at the very least. While never living anywhere but the Islands I was ready to accept this challenge of not only living in a new area with a different way of life, but also entering a new career where I'd be competing with Top Producer's who probably had been there for 20+ years, much like the life I was leaving back home on Maui.

After I acquired my California Real Estate License I started my own company: Pederson Properties, Inc. and affiliated my team with the #1 company in the United States: Coldwell Banker Residential Brokerage. I laugh now, but when I originally got my Real Estate Licenses it was for Commercial Real Estate. However after a few impromptu deals for friends - Luxury Residential became my niche. I continued to go with what was thrown my way, and was smitten - now, I'm completely in love! I definitely experienced-and continue to experience the love-hate relationship at times, but nonetheless my passion is for all things real estate.

Real Estate is unlike any other ‘job' I've ever experienced or heard of. I can't explain it to my friends and when I try to, they just don't get it. I think you have to be a Realtor® to understand? The process of finding a home, the offer & sale/escrow process and the emotional roller coaster involved - dealing with other peoples money and participating in the biggest purchase of their lives (in most cases). I was thinking today, about simple tasks like previewing properties-and how bizarre it is to me. We have this License which allows us to go into people's homes and scrutinize everything about it! I'll never forget the first time I previewed by myself-I felt like I was actually ‘breaking-and-entering'!! Another time I caught myself laughing about was when I previewed a property that was noted as VACANT by the listing agent and after knocking/doing my ‘pre-entry' ritual, I walked in on a houseful of passed out Spring Breakers! Oh, the joys of Vacation Rentals! Never a dull moment in Real Estate...and always good stories to share-which is why I'm so happy to have this Diary!

In closing, I must make known-I experienced my second "A-ha!" real estate moment today. I was finishing my second very long day of showing properties with great Clients and was reminded of how much I love what I do. Real Estate has always been part of my life-and would continue to be so whether I had my Licenses or not. I get to meet amazingly great people and assist/be part of their home buying process. Finding that gem. The diamond in the rough. Their dream home, or vacation home. Even in a market like this, it's still exciting to me to go out there and find opportunities. I've experienced the 80's & 90's & ‘01's lows, the '04, '05, '06 high's and our of course current crisis. Even so, there is no better feeling than helping people attain their dreams, goals, desires etc.

Coachella Valley's Real Estate Market (Dissected)

*Oldie, but goodie ~ Subscribe to our RSS feed for an updated review

Welcome to the Coachella Valley! Home to famous cities such as Palm Springs, Indian Wells, La Quinta & Indio. Whether you're thinking about investing here, already have, or are a Full-Time Resident - this post is for you! We want you to know and understand what's happening here. Hopfully you find it helpful! Please let us know if you have any questions or would like further information, we would be more then happy to assist!

A spin-off from our good friend Mirela Monte and her Fabulous blog titled: Snapshot of the Real Estate Market we thought it would be easiest to respond via blog post - mostly because our answer was so lengthy and detailed, but also because the information is GREAT for all our readers!

Mirela brilliantly asked key questions which have all been addressed by not only us, but other Realtors® throughout our Nation. We encourage you to check out her Snapshot, as well as the comments left by others.

1. How many properties do we have listed for sale in our Multiple Listing Service (MLS)?
2. How does that figure compare with last years & the year before?
3. What is the Sales activity per month on single family homes, condos, multi-family & commercial?
4. What is the absorption rate for all the above?
5. How does that compare with last year and the year before?
6. How do January's sales figures compare with January of last year?
7. How does that compare with November and December of last year?
8. What is the best selling product in our market? What is the worst selling product? Why?
9. How much of our market is foreclosure related? How many foreclosures have occurred in our market since January?
10. What are our observations on local financing?
11. What are our observations on local appraisals?
12. What is the best advice we would give a Buyer in our market?
13. What is the best advice we would give a Seller in our market?

1. How many properties do you have for sale in your MLS?

We based our search on Single Family Res Detch & Attch from 01/01 - 02/19 for 2008 & 2009:

• 2009 = 2003 Active
• 2008 = 109 Active

2. How does that figure compare with last year's and the year before?

Our inventory has doubled, tripled, quadrupled etc. YTD

3. What is the sales activity per month on single family homes, condos, multi-family, lands and commercial?

Single Family Res Detch/Attch:

• January 2009 = 507
• January 2008 = 520
• January 2007 = 650
• January 2006 = 798
• January 2005 = 929

Condominiums Detch/Attch:

• January 2009 = 60
• January 2008 = 165
• January 2007 = 175
• January 2006 = 267
• January 2005 = 412

Lots and Land:

• January 2009 = 8
• January 2008 = 56
• January 2007 = 116
• January 2006 = 208
• January 2005 = 230

Commercial:

• January 2009 = 2
• January 2008 = 4
• January 2007 = 5
• January 2006 = 6
• January 2005 = 9

4. What is the absorption rate for all the above?

17.1 weeks is our Absorption Rate for 2009. Here's how we got it:

# of listings on market = 2003

# sold last month = 507

# sold (507) X 12 (months) = 6,084

6,084 (divided by) 52 (weeks) = 117 units per week

2003 (total Actives) divided by 117 = 17.1 weeks is our Absorption Rate for 2009

~*~*~*~*~*~*~*~*~*~*~*

# of listings on market = 109

# sold last month = 362

# sold (362) X 12 (months) = 4,344

4,344 (divided by) 52 (weeks) = 83.5 units per week

109 (total Actives) divided by 83 = 1.3 weeks was our Absorption Rate for 2008

5. How does that compare with last year and the year before?

Absorption Rate increased over 16 weeks!

6. How do January 2009 sales compare with January 2008 sales?

• Closed Sales for January 2009 = 507
• Closed Sales for January 2008 = 362

*We've Closed 145 MORE properties YTD!

7. How does that compare with November and December of last year?

• Closed Sales for November 2008 = 519
• Closed Sales for December 2008 = 595*
• Closed Sales for November 2007 = 321
• Closed Sales for December 2007 = 353

*Comparing 01/2009 to 12/2008 we're 88 Sales behind...

8. What is the best selling product in your market? What is the worst selling product? Why?

Clearly our worst selling product for 2009, so far, is our Commercial Real Estate with our Lots & Land coming in a close second. The Coachella Valley is still growing and our Commercial projects will increase over the next 10 years, however has (like everything else) been greatly affected by this recession.

Our best selling product in the Coachella Valley thus far is our Single-Family Residences; just 13 Sales off track which I think we'll make up before this 1^st quarter is over. Buyers are coming out of the wood-work, most antsy to snatch up the deals (A.K.A Real Estate Owned/Short Sale properties).

9. How much of your market is foreclosure related? How many foreclosures have occurred in your market in January & February?

We would say 55% of our Market is Distressed Properties. Here are our #'s:

• Total Notice of Default (NOD) Active since 01/01/09 = 102
• Total Real Estate Owned (REO) Active since 01/01/09 = 495
• Total Notice of Default (NOD) Sales since 01/01/09 = 34
• Total Real Estate Owned (REO) Sales since 01/01/09 = 550
• Total Distressed Active Properties since 01/01/09 = 597
• Total Distressed Sold Properties since 01/01/09 = 584

10. What are your observations on local financing?

The money is there - and fundable. It's all about your CREDIT SCORE!

11. What are your observations on local appraisals?

Ridiculous. Depending on the lender, most appraisers come from OUTSIDE our Valley. Our comps are obviously established by the REO Sales which kill our "normal" properties AND aside from being timid and hyper-sensitive they're adding an additional 10-20% DECREASE IN VALUE based on "a deteriorating market".

12. What is the best advice you would give a Buyer in your market?

In a nut shell? . ..Cash is King - our inventory is your playground!

13. What is the best advice you would give a Seller in your market?

Don't Sell!! JUST KIDDING;) Our advice depends on the Seller's situation, their time frame & reason for selling. Not everyone is in arrears but for those who are, we spend even more energy counseling, educating & assessing their options as well as focus on power pricing & positioning etc.

*Please Keep in mind, this information was pulled on Thursday, February 19th, 2009 around 7PM and is bound to change before Grey's Anatomy starts at 9PM;)

Here we go again, shocking ourselves with our open and honest - yet prideful gesture of letting you all know where you should with out a doubt stop by if you're in the beautiful San Diego area!

Swami's has been an [Encinitas] Local hangout for as long as we can remember. Whether you're stopping by for a quick cup of java before work, a smoothie between errands or refueling after an exhaustive tanning or surf session - Swami's takes care of you & your friends. With a casual and comforting (outside) ambiance, smiling hosts and talented Chef's, Swami's offers a broad menu which accommodates everyone's taste buds & appetites. Breakfast, lunch & dinner with a tremendous smoothie/juice bar - you will feed your body and mind the most healthy & wholesome selections, most locally grown.

Our favorite smoothie is a toss between Nirvana Nectar (Apple Juice, Bananas, Strawberries, Raspberries, Boysenberries, ginseng, protein powder, vitamin C) topped with some bee pollen and the Swami's Surprise(Apple juice, Mangos, Dates, Strawberries) topped with bee pollen...Mmmm'good! From the Juice bar, you can't go wrong with an Apple Hop or Swami's Veggie Mix and remember, you get two free additives (bee pollen, protein powder, tofu, wheat germ, spiralina etc.) and a Smoothie Card for frequent visitors!

Swami's offers the best Specials which change daily - we always recommend whatever is on the grease board! However, they also have fantastic staple faves to remember as a contingency plan. Regardless of the time of day we love the Blueberry pancakes, Swami's Combo (two eggs, home-style potatoes, toast & java), Croissant Breakfast (w/mock bacon), Huevos Rancheros, the Protein Veggie Wrap, Ultimate Veggie Sandwich, Tofu Stir Fry. ..yum!!

The Açaí Bowl continually leaves us speechless and is dirty delish. We've summed it up as simply phenomenal. You can see for yourself why we repetitively order this small piece of paradise.

Same with the B.L.T.A - A traditional lunch preference which is uniquely prepared Swami's Style and tastes ridiculously good!

As far as salads go, you must try the Swami's Salad! It's loaded with Romaine lettuce, tomatoes, bell peppers, carrots, cucumbers, broccoli, mushrooms, red cabbage, spinach, sprouts, raisins, garbanzo beans, sunflower seeds and avocado! Whew! . ..Getting hungry just thinking about it, let alone gawking at these photos! ;)

Swami's is located at 1163 S. Coast Hwy 101 in Encinitas, California. They are OPEN DAILY from 7am - 5pm and can be reached directly for Take-Out orders etc. at760.944.0612.

For additional information visit: http://tinyurl.com/Swami-sCafe.

We sure hope you make it over - you will definitely find one of us there. ..

Happy Eating!

A Reminder of "Good Funds Law"

A Reminder of "Good Funds Law"

The practices under the "Good Funds Law" will remain substantially the same except that the date of disbursing funds is now specifically governed by statute.

The law reenacts the requirements that checks be deposited prior to disbursement. In addition, the actual day we disburse funds us governed by the type of funds we have deposited into our account.

We intend to follow the disbursement schedule of the "Good Funds Law" and the guidelines set forth by our underwriters. We will be able to do the following:

1. Disburse-funds the same day as our deposit, if we received:

• Wired funds (we must verify receipt by our bank).

2. Disburse-funds the next day following the day of deposit if we received:

• Cashier's Checks
• Certified ChecksWe can draw on these checks the next day if from out of state, but we will require the bank's phone number to verify issuance of the check.

3. Disburse-funds 2-8 days after the date of deposit if we received:

• A personal check from any source

Recording at 8:00 A.M.:

Our 8:00 A.M. recordings will continue to require the funds be deposited the evening before recording and, in most instances, we will be able to disburse our funds the day of recording.

Special Recording:

(In counties that allow special recordings):

We will deposit the funds on the same day as received, and disburse funds on the day following confirmation of the special recording, unless funds were received at least one day prior to the special recording or by wire or cashiers / certified check.

Note: Disbursement by wire has a deadline of 2 P.M. Pacific Standard Time.

Section 23413.1 et seq. of the California Insurance Code

Mozy's Cafe in Encinitas/Leucadia California

We've found ourselves quite furtive when it comes to local favorites. Not sure why - maybe because we frequent these locations or simply because we've been selfish?! Whatever the reason it's taken us this long to share, we'd like all our readers to know about [our] best kept secret in Leucadia, California.

Mozy's is located at 698 N. Coast Hwy - at the cusp ofEncinitas and is a must visit for breakfast, lunch or dinner! If you're visiting California and find yourself cruising the Coast Highway, you can't miss it. Whether you're in dire straights for a morning jolt, or need something to fill your tummy, Mozy's Café has everything & then some.

Boasting a casual atmosphere with a surfer Coffee House vibe & patio seating you'll find yourself in deep thought just questioning which dish you should commit to. Catering to everyone's taste buds & offering delicious Caribbean, Mediterranean, Vegetarian & Vegan cuisine - we promise you'll be thinking about what you'll try the next time you're here.

We can't seem to stray from our usual breakfast burritos (regardless of the time of day). Either the Tropical orFavorite with Soy Chorizo. One of our friends turned our entire office on to the Gen Mai Cha tea; simply prepared with a liberal splash Peruvian Java and just a dash of Almond Milk & honey. ..tastes like perfection;)

One other favorite none of us can seem to leave with out is Mozy's Raw Oatmeal Cookies. Just ridiculously good - so yum-O it makes our mouths water just thinking about it. In fact. ..it's only 4:15PM, we could still get our fix!! ;)

Mozy's is open daily from 7AM - 8PM. Call them directly and place to-go orders at 760.944.9168. Hoping you all make it evenually and share with us your experience!

Happy Eating:)

Here are a few items Mozy's offers to wet your whistle. ..

Mozy's Cater's too!

We'll see you there!!!!!!!!!!

Short Sale Questions

Frequently Asked

Short Sale Questions

1. What is a short sale?

A short sale* is a transaction in which the seller's lender agrees to accept a payoff of less than the balance due on the loan. In addition to absorbing any loss on the loan, the lender in most cases agrees to pay the costs of the sale.

2. How long does the average short sale take?

It can take anywhere from 28 days to six months once the lender receives a signed offer from both the buyer and seller. The process frequently moves slowly. Currently, many lenders are working to revamp their system to speed up the procedure.

3. If a short sale transaction can take up to six months, why do they call it a "short sale"?

Clearly an oxymoron! Or look at it this way: the value is "shorter" than the loan amount.

The truth is, a short sale has multiple phases that may affect the transaction time frame. Depending on market trends, price positioning, and other factors, it can take anywhere from seven to 180 days or more for a property to sell. Once the negotiations are complete, the short sale proposal is sent to the lender who will evaluate it from a financial perspective. In addition, the homeowner must establish eligibility for the short sale by providing supporting documentation such as, W-2 forms, bank statements, tax returns, and other financial documents. Understandably, this process takes time!

4. Why would a lender agree to a short sale?

There are various reasons why a lender may agree to a short sale. For example, Senate Bill 1137 (Effective July ‘08 & Revised September '08: http://tinyurl.com/Bill1137) imposes strict requirements on lenders prior to exercising their right to foreclose. Foreclosures take time, and as we all know, time is money.

The expense to the lender is another factor. Foreclosure costs may include: internal fees and expenses, eviction, repairs and maintenance of the property, security, as well as Home Owners Association (HOA) dues, and utilities. These factors, combined with the federal and state government's push to halt foreclosures, make it easy to see why a short sale may be in the lender's best interest.

5. Is a short sale an option if foreclosure has already taken place on my property?

No. Once the lender has completed the foreclosure process, a short sale is no longer an option. For that reason, it is vital that homeowners understand the importance of early communication with lender. Don't wait until it's too late. Speak to your lender, and let him or her know that you are having financial or other difficulties. If you want to retain ownership of your home, you may be able to work with your lender to explore alternatives to foreclosure.

6. I have a second mortgage on my home. Does this make me ineligible for a short sale?

In many cases, a short sale can be achieved on properties with multiple loans. Depending on the amount of the loss to the junior lien holder (second trust deed), a short sale may be possible under certain circumstances. Proposals and requests for short sale consideration should be submitted to both lenders at the onset.

7. Once I have an offer on my property, what happens next?

Your REALTOR® will assist you in negotiating the best price and terms. Once the negotiations are complete, the offer and all supporting documentation should be packaged and submitted to the lender's loss mitigation department. Follow-ups and ongoing communication are significant components of a successful short sale.

8. Will I have to pay capital gains taxes is I sell a property as a short sale?

A short sale has no bearing on the calculation of capital gains taxes. However, there are other tax liabilities that must be evaluated. See the advice of tax and legal advisors before agreeing to a short sale. For addition information, you may visit www.irs.org to learn more about taxation of short sales.

9. Will a short sale affect my credit?

Yes. Your tax advisor will be able to address your specific situation.

10. I would like to purchase a short sale property. Where do I start?

Choose a REALTOR® who has the ability to recognize a short sale property and who possesses the skill and training to work through any difficulties that may arise during the buying process. Be prepared for a bumpy road. If your REALTOR® is knowledgeable, he or she will help you manage your expectations.

11. When purchasing a short sale, do I have to pay all of the escrow fees?

The allocation of costs is a negotiable item in any real estate transaction. Typically, the buyer and seller each pay their own fees.

In short sales, lenders may request that certain fees be paid by the buyer, as a condition of sale. Some of these costs may include: funds owed to junior lien holders, closing costs, delinquent property taxes, and Home Owners Association Dues (HOA's). Expect the unexpected and work with a REALTOR® who understands short sales and can walk you through the process prior to preparing an offer to purchase.

12. How is Pederson Properties simplifying and streamlining the short sale process?

Pederson Properties & affiliates have been working diligently on a multifaceted program to educate its managers and sales associates regarding the intricacies of the short sale. In response to the unprecedented challenges today's homeowners face, the company has developed a unique short sale package that allows our sales associated to deliver comprehensive proposals to lenders, thereby increasing the likelihood of a successful and swift transaction.

13. How do I determine if I'm eligible for a short sale?

Homeowners must be aware of their options before considering a short sale. Other options include: loan modification/refinance, deed in lieu of foreclosure, foreclosure, and bankruptcy. There are many non-profit counselors available to advise homeowners on the advantages and disadvantages of each of these options. A complete list of counselors may be obtained at www.hud.gov.

* When the amount of the loan and other costs of the sale exceed the current market value of the property, there are a number of options struggling homeowners may consider, including loan modification, deed in lieu of foreclosure, foreclosure, bankruptcy and short sale. Any homeowner considering a short sale should consult with legal and tax advisors. A complete list of non-profit counselors is available at www.hug.gov. Please contact a Pederson Properties sales associate at 760.575.4847 or www.PedersonProperties.com if you have any questions or would like to request additional Information.