The year always ends with a mad rush to close home buying deals.

Buyers and sellers want to settle in before it’s time to deck the halls and fire up the menorahs and kinaras, so they truly can be home for the holidays.

Buyers also want to close escrow before the year ends so they can cash in on tax benefits that come with buying a home.

“If escrow closes prior to the end of the year, the deduction can be realized sooner,” said Stephanie Noryko broker owner of Granite Financial Real Estate Loans, in Cupertino.

It’s never a good idea to prolong the already tedious escrow process — year end or otherwise.

Typically conducted by a title and escrow company, the escrow process involves a neutral third party, through which is funneled the paperwork, money, transaction instructions and other details of a home purchase or mortgage refinance. Following the terms of the sales contract, the escrow agent holds onto, and then exchanges, disburses and transfers deeds, other documents and monies related to the transaction.

The longer a transaction is in escrow, the greater chance for problems.

“Interest rates can rise, shutting out the buyer. Lending practices can change, also shutting out the buyer. The buyer might lose his or her job or have another reason back out. Natural and other disasters can happen. Any of these things can put an escrow on shaky ground,” said Mary Pope-Handy a real estate agent with Sereno Group Real Estate Group in Los Gatos.

While the need for speed is essential, that doesn’t mean to approach escrow with reckless abandon.

Here are some tips to put you on the fast escrow track.

• Don’t bring funny money to the table. You should be fully approved — not prequalified — for the home loan. Financing in today’s housing market is a major sticking point. You should jump through all the financing hoops before you open escrow. It’s one less contingency to cover.

“Choose a lender that allows the broker to pay for the appraisal upfront so it is not necessary to wait for the truth-in-lending and estimate-of-closing-costs statements before ordering the appraisal,” said Noryko

• Work with a real estate agent who is familiar with both local market conditions and mortgages suitable for your financial profile. The agent is getting paid to guide you through the escrow minefield and keep you apprised of any steps necessary to quickly get through escrow. An experienced real estate agent will be aware of potential snags and how to quickly unsnarl them.

• Don’t give away rights, but don’t dicker away escrow speed. Sign a sales contract with as few contingencies as possible. Contingencies are tasks that must be completed before escrow closes including property inspections, repairs and financing. Once the task is complete, you or your agent must notify your title and escrow company. Know all the contingencies and prepare contingency removal letters in advance. Later, add the date and hand deliver the letters as soon as the contingency is met.

• “Quick escrows are good as long as the buyer doesn’t give up any rights and still has a full chance to inspect and investigate the property, have the appraisal done,” and otherwise take due process steps to seal the deal, said Pope Handy.

• Before hiring a title and escrow company, obtain referrals from those you trust, especially those who’ve recently closed a satisfactory escrow. Get a referral to an escrow officer, not the company, advises Sandy Gadow, author of “The Complete Guide To Your Real Estate Closing” (McGraw Hill $19.95).

Shop around for the best price, but consider an escrow office that is conveniently located in the general vicinity of the home you are buying. That’s both to save time and to have an escrow officer familiar with local market conditions, says Gadow, also publisher of EscrowHelp.com.

• As soon as escrow opens, line up homeowners insurance and other coverage, flood, optional earthquake coverage, etc. and give the policy information to your escrow officer so he or she can quickly verify coverage, says Noryko.

• Stick around. Don’t even take a daycation. Stay in touch with your real estate agent, escrow officer or others crucial to the deal. Everyone should have all possible methods of contacting you including your home and cell phone (pager, if you still go there), instant mail and email. Alert family, friends and your employer, that you have a priority to close the deal as soon as possible. You need to be available at a moment’s notice.

• Come prepared on closing day. You’ll have several days to see the final documents, but on closing day come prepared with plenty of time, pencil, paper, a calculator, and an inquisitive, demanding mind. You are allowed to have your representative attend closing with you. That’s typically your real estate agent. It’s his or her job to see that the deal closes in a satisfactory manner.

Soles4Souls

Soles4Souls is a Nashville-based charity that collects shoes from the warehouses of footwear companies and the closets of people like you. The charity distributes these shoes free of charge to people in need, regardless of race, religion, class, or any other criteria. Since 2005, Soles4Souls has given away over 5.5 million pairs of new and gently worn shoes (currently donating one pair every 9 seconds.) The shoes have been distributed to people in over 125 countries, including Kenya, Thailand, Nepal and the United States. Soles4Souls has been featured in Runner’s World, Ladies’ Home Journal, National Geographic’s Green Guide, and The New York Times. It has appeared on CBS, ABC, NBC, FOX, BBC, CNN and thousands of regional news outlets across North America. Soles4Souls is a 501(c)(3) recognized by the IRS and donating parties are eligible for tax advantages. Anyone can join our cause, and we need your help.

Soles4Souls facilitates the donations of shoes, which are used to aid the hurting worldwide. Shoe companies, retailers, and individuals can donate footwear (both new and used). Soles4Souls is a 501(c)(3) recognized by the IRS, and donating parties are eligible for tax advantages.

The idea behind gifts of shoes is nothing new to the Soles4Souls team, as they coordinated relief efforts for the Asian Tsunami and Hurricanes Katrina and Rita, netting over 1 Million pairs donated for these disasters. The team originally operated as www.katrinashoes.org with several churches partnering in the collection and distribution of footwear.

Click here to donate or to read more >

The Worker, Homeownership, and Business Assistance Act of 2009 extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.

The maximum credit amount remains at $8,000 for a first-time homebuyer –– that is, a buyer who has not owned a primary residence during the three years up to the date of purchase.

But the new law also provides a “long-time resident” credit of up to $6,500 to others who do not qualify as “first-time homebuyers.” To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.

For all qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 tax returns.

A new version of Form 5405, First-Time Homebuyer Credit, will be available in the next few weeks. A taxpayer who purchases a home after Nov. 6 must use this new version of the form to claim the credit. Likewise, taxpayers claiming the credit on their 2009 returns, no matter when the house was purchased, must also use the new version of Form 5405. Taxpayers who claim the credit on their 2009 tax return will not be able to file electronically but instead will need to file a paper return.

A taxpayer who purchased a home on or before Nov. 6 and chooses to claim the credit on an original or amended 2008 return may continue to use the current version of Form 5405.

Income Limits Rise

The new law raises the income limits for people who purchase homes after Nov. 6. The full credit will be available to taxpayers with modified adjusted gross incomes (MAGI) up to $125,000, or $225,000 for joint filers. Those with MAGI between $125,000 and $145,000, or $225,000 and $245,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.

For homes purchased prior to Nov. 7, 2009, existing MAGI limits remain in place. The full credit is available to taxpayers with MAGI up to $75,000, or $150,000 for joint filers. Those with MAGI between $75,000 and $95,000, or $150,000 and $170,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.

New Requirements

Several new restrictions on purchases that occur after Nov. 6 go into effect with the new law:

Dependents are not eligible to claim the credit.
No credit is available if the purchase price of a home is more than $800,000.
A purchaser must be at least 18 years of age on the date of purchase.

For Members of the Military

Members of the Armed Forces and certain federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and still qualify for the credit. An eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011, and settle on the purchase by June 30, 2011.

For more details on the credit, visit the First-Time Homebuyer Credit page on IRS.gov.

The form for the celebration of Labor Day was outlined in the first proposal of the holiday: A street parade to exhibit to the public “the strength and esprit de corps of the trade and labor organizations,” followed by a festival for the workers and their families. This became the pattern for Labor Day celebrations. Speeches by prominent men and women were introduced later, as more emphasis was placed upon the economic and civil significance of the holiday. Still later, by a resolution of the American Federation of Labor convention of 1909, the Sunday preceding Labor Day was adopted as Labor Sunday and dedicated to the spiritual and educational aspects of the labor movement.

Traditionally, Labor Day is celebrated by most Americans as the symbolic end of the summer. The holiday is often regarded as a day of rest and parades. Speeches or political demonstrations are more low-key than May 1 Labour Day celebrations in most countries, although events held by labor organizations often feature political themes and appearances by candidates for office, especially in election years. Forms of celebration include picnics, barbecues, fireworks displays, water sports, and public art events. Families with school-age children take it as the last chance to travel before the end of summer.

Some teenagers and young adults view it as the last weekend for parties before returning to school. However, of late, schools have begun well before Labor Day, as early as July 24 in many urban districts, including major southern cities in the United States such as Atlanta, Miami, and Los Angeles. In addition, Labor Day marks the beginning of the NFL and college football seasons. The NCAA usually plays their first games the week before Labor Day, with the NFL traditionally playing their first game the Thursday following Labor Day.

You have made the decision to buy or sell your home and, let’s face it, the process is often confusing and a little overwhelming. Often, you find yourself giving blind trust to yourbroker, escrow officer, lender and all the other providers of services throughout the transaction.

Once a buyer and a seller get together it’s time to open escrow, a one to three month process that will officially transfer ownership of the property. This escrow process involves several key entities and can be very stressful to the uninitiated. However, the one thing for both buyer and seller to remember is that all of the parties involved are interested in the same objective: to close escrow. Nothing happens and no one gets paid until your escrow is closed.

The premise behind a real estate transaction is simple; the seller is selling and a buyer is buying! You may have been told that you don’t NEED a broker, you don’t NEED an escrow, you don’t NEED a lender; you don’t NEED a title policy. However, unless you are a learned expert in these matters, a consumer shouldn’t even think about entering into escrow without the professional help from at least some, if not all of these providers.

What can you do to make sure things run smoothly? Here are ten tips that every buyer and seller should know in preparing for a trouble-free escrow process.

1. Select a licensed Real Estate Broker to represent you.

2. Choose an Independent Escrow provider - You have a choice. Remember only independent escrow providers licensed by the California Department of Corporations are 100% neutral third parties. Their only concern is to monitor the real estate transaction and safeguard trust account funds. Independent Escrow providers are specialists whose sole purpose is providing escrow. ESCROW IS THEIR ONLY BUSINESS.

3. Sellers: Eliminate surprises - If you have judgments against your property and don’t say anything to any one, you should know that a search of public records is automatic, and will reveal any liens. If you don’t let your broker or escrow officer know about potential problems in advance, your escrow will most definitely be delayed.

4. Buyers: Eliminate surprises - If you have questionable credit, tell your broker or mortgage lender. They know the steps you need to take to clean up your credit. Every lender will require a credit report. Today, many borrowers go through a pre-qualification process before looking for a home. If you are pre-qualified, you know how much of a loan you can obtain and therefore how much you can spend on your new home.

5. Be responsive - The escrow officer may periodically contact you requesting pertinent information. There is always a good reason for the request. Just ask the escrow officer if they need more details; then get them the information they need as soon as you can. Remember nothing happens until the escrow is closed. Don’t think, “If I don’t respond, maybe they’ll forget about it.”

6. Be prompt - You will be required to meet with an escrow officer when it is time to sign the loan documents. If you are not on time, the officer will take the next appointment and you may be the one waiting. Remember, signing documents is at least a 60 minute affair. The escrow officer will go through and explain each document you must sign. Remember: All persons taking title will need to sign the loan documents.

7. Insurance - Make sure you have addressed your insurance needs. Select an insurance agent and inform your escrow officer in advance. Talk with your agent to determine your insurance needs. You must have fire insurance. You may also want a homeowners policy. Most lenders require title insurance as well. Your lender will require the name and address of your insurance agent. Be sure to have this information well in advance of the date escrow is to close.

8. Walk-throughs - Make sure you have completed all walk-throughs, inspections and other contingencies such as termite inspections and any required city permits. Many things can delay the close. Be informed and prepared.

9. Documents -To expedite the escrow closing, bring the following items with you to your appointment:

    Buyers & Sellers -Drivers license or passport (photo ID)

    Buyers Only — The name and address of your homeowners insurance agent

    Sellers Only - If your home is a condominium, make sure you have a copy of the homeowners association information

10. Many people are involved in most real estate transactions. It takes cooperation and communication between all of these entities to ensure a smooth escrow close. A positive outlook and a quick response to anything asked of you will encourage this cooperation. Many things can hold up an escrow - make sure you’re not one of them.