The CALIFORNIA ASSOCIATION OF REALTORS® reports that home sales have decreased 36.2 percent in November in California compared with the same period a year ago, while the median price of an existing home fell 11.9 percent.

Closed escrow sales of existing, single-family detached homes in California totaled 287,600 in November at a seasonally adjusted annualized rate.  Statewide home resale activity decreased 36.2 from the 450,930 sales pace recorded in November 2006.

The median price of an existing, single-family detached home in California during November 2007 was $488,640, an 11.9 percent decrease from the revised $554,500 median for November 2006. The November 2007 median price fell 1.7 percent compared with October’s $497,110 median price.

Freddie Mac has launched an anti-fraud video on YouTube™ in an effort to warn troubled borrowers about the dangers of falling victim to con artists promising to help them avoid foreclosure through various fraudulent workout options.

The California Building Industry Association says the number of permits issued for new homes in California in November was 5,498, a 45-percent decline from November 2006.  Year-over year production of single-family homes declined by roughly 50 percent in November, and construction of multifamily units slid 36 percent.

The Federal Trade Commission, which oversees consumer affairs, has produced a new Facts for Consumers publication created to assist homeowners whose mortgage lenders may have closed or gone bankrupt in the wake of the mortgage lending crisis.  “How to Manage Your Mortgage if Your Lender Closes or Goes Bankrupt,” provides answers to important questions pertaining to loan servicing transfers; changes to escrow accounts; payment disputes, and more.  To download a copy of the pamphlet, go directly to http://www.ftc.gov/opa/2007/12/bankrupt.shtm.  To order a hard copy, write to the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Ave., N.W. Washington DC, 20580.

New Laws:

Federal Earned Income Tax Credit

This new bill, effective January 1, 2008, requires employers to provide employees with information on the Federal Earned Income Tax Credit (EITC) with their W-4’s.  The law was enacted to alleviate the tax burden on working poor persons and families, to enhance the ages and income of working poor persons and families, to ensure that California receives its share of the federal money available in the federal EITC program, and to inject additional federal money into the California economy.  Employers covered by the EITC include any California employer who is subject to, and is required to provide, unemployment insurance to his or her employees, under the Unemployment Insurance Code.  The employer is required to provide notification to all employees that may be eligible for the EITC within one week before or after, or at the same time, that the employer provides an annual wage summary, including, but not limited to, a form W-2 or Form 1099.  The language required in the notice to employees regarding availability of the EITC is set forth in the Revenue and Taxation Code at section 19854.  The employer must hand to or mail to the employee the notice or instructions on how to obtain notices available from the Internal Revenue Service (i.e., IRS Notice 797 and Form W-5). (Source: Giardinelli & Duke, APC)