Market Area: Prince George’s County, MD 20772
Time Frame: last 60 days
General Market Conditions:
Current Market Conditions: slow
Employment Conditions: Declining
There is an oversupply of active listings.
Number of units on the market for sale: 366
Number of Units in pre-foreclosure stage NOT listed in MRIS: 100
Number of Units in pre-foreclosure (Short Sale) Stage Listed in MRIS: 85
Number of Units that are REO or Corporate Owned: 35
Marketing Activity:
Range of Values is: $110,000 to $875,000
Normal marketing time is: 75 days
Resale Comments: My Independent MRIS research shows that there are currently 366 homes on the market in the 20772 zip code. Most of these homes are overpriced or are in less than ideal condition that do not attract buyers and just sit on the market. The average days on the market for these active properties are 75 days. These buyers have found and are expecting and getting a great value- a good home at a good price and with all the competition for their attention, they have a lot of choices. The market is very competitive. These buyers are really picky. Buyers have a sense of what’s fair market value and what’s not and they just won’t show up if sellers are not in the ballpark. It is very important that sellers price their home correctly and competitively. Buyers are looking for value pricing and if sellers don’t meet these expectations, they’ll be overpriced and overlooked.
Thursday, January 28, 2010
Monday, January 25, 2010
Clinton,MD, 20735 Prince George's County, Maryland
1/25/2010
Market Area: Clinton, MD Prince George’s County, MD 20735
Time Frame: last 60 days
General Market Conditions
Current Market Conditions: slow
Employment Conditions: Declining
There is an oversupply of active listings.
Number of units on the market for sale: 163
Number of Units in pre-foreclosure stage NOT listed in MRIS: 97
Number of Units in pre-foreclosure (Short Sale) Stage Listed in MRIS: 38
Number of Units that are REO or Corporate Owned: 16
Marketing Activity
Range of Values is: $85,500 to $899,210
Normal marketing time is: 110 days
Resale Comments: My Independent MRIS research shows that there are currently 163 homes on the market in the 20735 zip code. Most of these homes are overpriced or are in less than ideal condition that do not attract buyers and just sit on the market. The average days on the market for Prince George’s County are 110 days. These buyers have found and are expecting and getting a great value- a good home at a good price and with all the competition for their attention, they have a lot of choices. The market is very competitive. These buyers are really picky. Buyers have a sense of what’s fair market value and what’s not and they just won’t show up if sellers are not in the ballpark. It is very important that sellers price their home correctly and competitively. Buyers are looking for value pricing and if sellers don’t meet these expectations, they’ll be overpriced and overlooked.
Market Area: Clinton, MD Prince George’s County, MD 20735
Time Frame: last 60 days
General Market Conditions
Current Market Conditions: slow
Employment Conditions: Declining
There is an oversupply of active listings.
Number of units on the market for sale: 163
Number of Units in pre-foreclosure stage NOT listed in MRIS: 97
Number of Units in pre-foreclosure (Short Sale) Stage Listed in MRIS: 38
Number of Units that are REO or Corporate Owned: 16
Marketing Activity
Range of Values is: $85,500 to $899,210
Normal marketing time is: 110 days
Resale Comments: My Independent MRIS research shows that there are currently 163 homes on the market in the 20735 zip code. Most of these homes are overpriced or are in less than ideal condition that do not attract buyers and just sit on the market. The average days on the market for Prince George’s County are 110 days. These buyers have found and are expecting and getting a great value- a good home at a good price and with all the competition for their attention, they have a lot of choices. The market is very competitive. These buyers are really picky. Buyers have a sense of what’s fair market value and what’s not and they just won’t show up if sellers are not in the ballpark. It is very important that sellers price their home correctly and competitively. Buyers are looking for value pricing and if sellers don’t meet these expectations, they’ll be overpriced and overlooked.
Thursday, January 21, 2010
Obama signs expanded tax credit
Obama signs expanded tax credit
On 11/4/09, the Senate unanimously approved an extension of the current $8,000 first time homebuyer tax credit. The House is expected to approve the measure in the next few days and then on to the White House for signature sometime next week. The current proposal would give qualifying homebuyers until April 30th to sign a purchase contract and an additional 60 days to close.
In addition, homebuyers who previously owned a home for at least five consecutive years in the previous eight years would be eligible for a $6,500 tax credit for new home purchases. The income limits would expand to $125,000 for individuals and to $225,000 for married couples. Updates will be forthcoming as the bill moves forward.
$8,000 home credit still in play
Negotiations about whether and how to extend and expand the tax credit for homebuyers are moving quickly. Here are the latest developments.
By Jeanne Sahadi
Confused about whether lawmakers will extend the $8,000 first-time homebuyer credit and what it would look like?
That's understandable, since the situation is still very fluid.
Here's where things stand.
Support for the credit: There is still bipartisan support in Congress for extending the credit past Nov. 30 and making it available to more homebuyers.
The Obama administration wants the credit extended for a "limited period," Treasury Secretary Tim Geithner and Housing Secretary Shaun Donovan said Thursday. They did not elaborate.
What's on the table now: There appears to be a compromise deal that falls between the most and least generous proposals that have been put forth so far.
"There is bipartisan compromise to extend the credit through spring and expand it to existing homeowners who are stepping up to a different home," financial policy analyst Jaret Seiberg wrote in a research note for Concept Capital's Research Group.
The latest idea under discussion is a credit worth up to $8,000 for first-time homebuyers and up to $6,500 for homeowners looking to trade up to a bigger primary residence and who have already lived in their current home for five years. (CNN: Senate compromise may be in the works.)
To qualify for the full credit, however, homebuyers must have adjusted gross income of less than $125,000 ($225,000 for married couples filing jointly).
In addition, the credit would only apply to homes sold for $800,000 or less. Contracts to buy a home must be signed by April 30, 2010, and the deals must close by June 30 in order for a buyer to qualify for the credit.
Rationale for extending the credit: Supporters of the credit say it has helped to boost existing home sales in recent months. Extending the credit would help further support sales, stabilize housing prices and generate jobs in the face of an expected rise in foreclosures next year, which is expected to put downward pressure on prices.
If the credit is allowed to expire, they say, the housing market and the broader economy will grow moribund again.
"The most fundamental argument for the credit is that nothing works in the economy if housing is falling -- it hurts household wealth and credit becomes tight," said Mark Zandi, chief economist at Moody's Economy.com. "[The credit] is a good insurance policy. It's vital to stem the housing price declines."
What critics say: Though extending the credit has bipartisan support, it is not without its critics.
Critics, while acknowledging that the credit has helped to generate additional home sales, say it has been poorly targeted and therefore not cost-effective.
They point to estimates that only 10% to 20% of the nearly 2 million homebuyers who will have gotten the credit by Nov. 30 bought solely because of the tax break.
In other words, a large majority of homebuyers who benefited from the credit would have bought their homes without it.
By one economist's estimate, the government may have spent $43,000 for each sale that occurred strictly because of the credit.
In a position paper published this week, the liberal Center on Budget and Policy Priorities said making the credit available to existing homeowners would not help stabilize housing prices or reduce inventory.
"When [they] purchase a new home, they simultaneously put their current home up for sale. As a result, there is no net effect on supply or demand in the housing market."
Timing on a vote: An amendment to extend and expand the credit could be attached to a bill that would extend unemployment benefits and which could pass the Senate by next week.
However, there's a chance the housing credit will be dealt with separately.
The credit could be attached to another piece of legislation or put in a standalone bill with other proposals to extend tax breaks.
Source: CNN Money
Obama signs expanded tax credit
By Chris Kissell
Homebuyers are receiving an early holiday gift from Congress and the White House.
This week, the Senate and House passed an unemployment relief bill that also extends the federal homebuyer tax credit into 2010 and expands the pool of eligibility beyond first-time buyers. President Barack Obama signed the measure into law Friday.
"Any program expansion can be considered a good thing for those seeking a primary residence," says Cameron Findlay, chief economist at LendingTree in Charlotte, N.C.
Extending and expanding the credit will likely shape the type of home purchases that occur over the next few months, according to Findlay.
"Sales activity itself may not see a large increase," he says. "But we expect the mix of the sales to shift towards (the) primary residence owner."
Bill details
The new legislation extends the existing $8,000 first-time homebuyer credit beyond its scheduled Nov. 30 expiration date and into the spring. A $6,500 credit also will be offered to existing homeowners who sell their current property and purchase a primary residence that costs $800,000 or less. To be eligible for the tax break, homebuyers would have to be under contract by April 30, 2010, with closings wrapped up no later than 60 days after that.
Income limits for the credit would increase to $125,000 for individuals and $225,000 for couples. Homebuyers who qualify must stay in their new homes for at least three years or they will have to repay the credit.
The legislation excludes investor-owned properties from eligibility, a move that appears to keep the program focused on "promoting long-term community price stabilization," Findlay says.
Act soon
Buyers are the most obvious beneficiaries of the expanded credit. But sellers also could get a boost, especially if they live in states stung by dramatic property value declines. David Kuiper, a mortgage planner at First Place Bank in Holland, Mich., says homeowners who fear selling at a loss might be persuaded to do so anyway if they know they'll get money back in the form of a tax credit after buying a new home.
"It would help with the equity loss in the home they sell," he says.
Jim Sahnger, mortgage consultant for Palm Beach Financial Network in Stuart, Fla., says the credit could help reimburse other costs associated with selling a property, including "updating, minor renovations (or) recapture of closing costs."
However, the credit's impact also could cut in negative ways. As the spring expiration date draws nearer, sellers might use the credit as leverage against buyers who are "under the gun to get a deal done," Sahnger says.
"The closer we are to the deadline, the more sellers may be apt to hold firm on pricing," Sahnger says, noting that such a pattern emerged in recent weeks as the original Nov. 30 deadline loomed.
Source: Bankrate
On 11/4/09, the Senate unanimously approved an extension of the current $8,000 first time homebuyer tax credit. The House is expected to approve the measure in the next few days and then on to the White House for signature sometime next week. The current proposal would give qualifying homebuyers until April 30th to sign a purchase contract and an additional 60 days to close.
In addition, homebuyers who previously owned a home for at least five consecutive years in the previous eight years would be eligible for a $6,500 tax credit for new home purchases. The income limits would expand to $125,000 for individuals and to $225,000 for married couples. Updates will be forthcoming as the bill moves forward.
$8,000 home credit still in play
Negotiations about whether and how to extend and expand the tax credit for homebuyers are moving quickly. Here are the latest developments.
By Jeanne Sahadi
Confused about whether lawmakers will extend the $8,000 first-time homebuyer credit and what it would look like?
That's understandable, since the situation is still very fluid.
Here's where things stand.
Support for the credit: There is still bipartisan support in Congress for extending the credit past Nov. 30 and making it available to more homebuyers.
The Obama administration wants the credit extended for a "limited period," Treasury Secretary Tim Geithner and Housing Secretary Shaun Donovan said Thursday. They did not elaborate.
What's on the table now: There appears to be a compromise deal that falls between the most and least generous proposals that have been put forth so far.
"There is bipartisan compromise to extend the credit through spring and expand it to existing homeowners who are stepping up to a different home," financial policy analyst Jaret Seiberg wrote in a research note for Concept Capital's Research Group.
The latest idea under discussion is a credit worth up to $8,000 for first-time homebuyers and up to $6,500 for homeowners looking to trade up to a bigger primary residence and who have already lived in their current home for five years. (CNN: Senate compromise may be in the works.)
To qualify for the full credit, however, homebuyers must have adjusted gross income of less than $125,000 ($225,000 for married couples filing jointly).
In addition, the credit would only apply to homes sold for $800,000 or less. Contracts to buy a home must be signed by April 30, 2010, and the deals must close by June 30 in order for a buyer to qualify for the credit.
Rationale for extending the credit: Supporters of the credit say it has helped to boost existing home sales in recent months. Extending the credit would help further support sales, stabilize housing prices and generate jobs in the face of an expected rise in foreclosures next year, which is expected to put downward pressure on prices.
If the credit is allowed to expire, they say, the housing market and the broader economy will grow moribund again.
"The most fundamental argument for the credit is that nothing works in the economy if housing is falling -- it hurts household wealth and credit becomes tight," said Mark Zandi, chief economist at Moody's Economy.com. "[The credit] is a good insurance policy. It's vital to stem the housing price declines."
What critics say: Though extending the credit has bipartisan support, it is not without its critics.
Critics, while acknowledging that the credit has helped to generate additional home sales, say it has been poorly targeted and therefore not cost-effective.
They point to estimates that only 10% to 20% of the nearly 2 million homebuyers who will have gotten the credit by Nov. 30 bought solely because of the tax break.
In other words, a large majority of homebuyers who benefited from the credit would have bought their homes without it.
By one economist's estimate, the government may have spent $43,000 for each sale that occurred strictly because of the credit.
In a position paper published this week, the liberal Center on Budget and Policy Priorities said making the credit available to existing homeowners would not help stabilize housing prices or reduce inventory.
"When [they] purchase a new home, they simultaneously put their current home up for sale. As a result, there is no net effect on supply or demand in the housing market."
Timing on a vote: An amendment to extend and expand the credit could be attached to a bill that would extend unemployment benefits and which could pass the Senate by next week.
However, there's a chance the housing credit will be dealt with separately.
The credit could be attached to another piece of legislation or put in a standalone bill with other proposals to extend tax breaks.
Source: CNN Money
Obama signs expanded tax credit
By Chris Kissell
Homebuyers are receiving an early holiday gift from Congress and the White House.
This week, the Senate and House passed an unemployment relief bill that also extends the federal homebuyer tax credit into 2010 and expands the pool of eligibility beyond first-time buyers. President Barack Obama signed the measure into law Friday.
"Any program expansion can be considered a good thing for those seeking a primary residence," says Cameron Findlay, chief economist at LendingTree in Charlotte, N.C.
Extending and expanding the credit will likely shape the type of home purchases that occur over the next few months, according to Findlay.
"Sales activity itself may not see a large increase," he says. "But we expect the mix of the sales to shift towards (the) primary residence owner."
Bill details
The new legislation extends the existing $8,000 first-time homebuyer credit beyond its scheduled Nov. 30 expiration date and into the spring. A $6,500 credit also will be offered to existing homeowners who sell their current property and purchase a primary residence that costs $800,000 or less. To be eligible for the tax break, homebuyers would have to be under contract by April 30, 2010, with closings wrapped up no later than 60 days after that.
Income limits for the credit would increase to $125,000 for individuals and $225,000 for couples. Homebuyers who qualify must stay in their new homes for at least three years or they will have to repay the credit.
The legislation excludes investor-owned properties from eligibility, a move that appears to keep the program focused on "promoting long-term community price stabilization," Findlay says.
Act soon
Buyers are the most obvious beneficiaries of the expanded credit. But sellers also could get a boost, especially if they live in states stung by dramatic property value declines. David Kuiper, a mortgage planner at First Place Bank in Holland, Mich., says homeowners who fear selling at a loss might be persuaded to do so anyway if they know they'll get money back in the form of a tax credit after buying a new home.
"It would help with the equity loss in the home they sell," he says.
Jim Sahnger, mortgage consultant for Palm Beach Financial Network in Stuart, Fla., says the credit could help reimburse other costs associated with selling a property, including "updating, minor renovations (or) recapture of closing costs."
However, the credit's impact also could cut in negative ways. As the spring expiration date draws nearer, sellers might use the credit as leverage against buyers who are "under the gun to get a deal done," Sahnger says.
"The closer we are to the deadline, the more sellers may be apt to hold firm on pricing," Sahnger says, noting that such a pattern emerged in recent weeks as the original Nov. 30 deadline loomed.
Source: Bankrate
The Feds Are Pushing Short Sales in a BIG Way
The Feds Are Pushing Short Sales in a BIG Way
Short Sales and Deed in Lieu of Foreclosure (commonly referred to as Cash for Keys) have received major attention on the Hill.
The Feds are stepping in AGAIN, perhaps to the advantage of everyone...homeowners, buyers and the real estate community.
In an effort to curtail foreclosures, the Feds have introduced HAFA, Home Affordable Foreclosure Alternatives, effective April 2010.
This is a big push to get banks to approve and move expeditiously on allowing homeowners to short sale their homes or possibly turn in their keys WITHOUT deficiency recourse.
Up until now, foreclosures have outnumbered short sales and loan modifications 20:1. Banks have been very non-responsive to short sales...or they take "a month of Sundays" to even respond to an inquiry. Homeowners, buyers and agents may see some relief around the horizon.
With HAFA, banks will be required to streamline and simplify the process of short sales or DILs.
Here are the highlights:
• Allows homeowner to receive preapproved short sale terms before property listing
• Prohibits servicer from reducing real estate commissions as a condition of approving the short sale. Great news
for the agents!
• Homeowners are fully released from future liability for the debt...No more deficiency judgments!
• Servicer must respond within 30 days of the homeowner requesting a short sale. Yes! An established time frame!
• $1,500 relocation incentive to the homeowner
• The bank MUST respond within 10 business days of receiving an executed purchase agreement, it's decision on
approval or denial. You read it right...TEN DAYS!
• The servicer (bank) may not charge the homeowner administrative processing fees...the servicer must pay all out of pocket expenses
Click on the provided link above to read the entire directive. It even includes a short sale agreement.
Source: Ezine Articles
Short Sales and Deed in Lieu of Foreclosure (commonly referred to as Cash for Keys) have received major attention on the Hill.
The Feds are stepping in AGAIN, perhaps to the advantage of everyone...homeowners, buyers and the real estate community.
In an effort to curtail foreclosures, the Feds have introduced HAFA, Home Affordable Foreclosure Alternatives, effective April 2010.
This is a big push to get banks to approve and move expeditiously on allowing homeowners to short sale their homes or possibly turn in their keys WITHOUT deficiency recourse.
Up until now, foreclosures have outnumbered short sales and loan modifications 20:1. Banks have been very non-responsive to short sales...or they take "a month of Sundays" to even respond to an inquiry. Homeowners, buyers and agents may see some relief around the horizon.
With HAFA, banks will be required to streamline and simplify the process of short sales or DILs.
Here are the highlights:
• Allows homeowner to receive preapproved short sale terms before property listing
• Prohibits servicer from reducing real estate commissions as a condition of approving the short sale. Great news
for the agents!
• Homeowners are fully released from future liability for the debt...No more deficiency judgments!
• Servicer must respond within 30 days of the homeowner requesting a short sale. Yes! An established time frame!
• $1,500 relocation incentive to the homeowner
• The bank MUST respond within 10 business days of receiving an executed purchase agreement, it's decision on
approval or denial. You read it right...TEN DAYS!
• The servicer (bank) may not charge the homeowner administrative processing fees...the servicer must pay all out of pocket expenses
Click on the provided link above to read the entire directive. It even includes a short sale agreement.
Source: Ezine Articles
FHA ANNOUNCES POLICY CHANGES TO ADDRESS RISK AND STRENGTHEN FINANCES
FHA ANNOUNCES POLICY CHANGES TO ADDRESS RISK AND STRENGTHEN FINANCES
New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing
Market and Access for Underserved Communities
WASHINGTON – Federal Housing Administration (FHA) Commissioner David Stevens today
announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the
agency to continue to fulfill its mission to provide access to homeownership for underserved
communities. The changes announced today are the latest in a series of changes Stevens has
enacted in order to better position the FHA to manage its risk while continuing to support the
nation’s housing market recovery.
The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP);
update the combination of FICO scores and down payments for new borrowers; reduce seller
concessions to three percent, from six percent; and implement a series of significant measures
aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun
Donovan previewed the changes in December of last year, noting that the FHA would announce
additional details before the end of January.
“Striking the right balance between managing the FHA’s risk, continuing to provide access to
underserved communities, and supporting the nation’s economic recovery is critically important,”
said Commissioner Stevens. “When combined with the risk management measures announced in
September of last year, these changes are among the most significant steps to address risk in the
agency’s history. Additionally, by continuing to provide affordable, responsible mortgage
products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest
source of home purchase financing for underserved communities.”
Announced FHA Policy Changes:
1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring
back private lending
_ The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative
authority to increase the maximum annual MIP that the FHA can charge.
_ If this authority is granted, then the second step will be to shift some of the premium
increase from the up-front MIP to the annual MIP.
_ This shift will allow for the capital reserves to increase with less impact to the consumer,
because the annual MIP is paid over the life of the loan instead of at the time of closing
_ The initial up-front increase is included in a Mortgagee Letter to be released tomorrow,
January 21st, and will go into effect in the spring.
2. Update the combination of FICO scores and down payments for new borrowers.
_ New borrowers will now be required to have a minimum FICO score of 580 to qualify for
FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will
be required to put down at least 10%.
_ This allows the FHA to better balance its risk and continue to provide access for those
borrowers who have historically performed well.
_ This change will be posted in the Federal Register in February and, after a notice and
comment period, would go into effect in the early summer.
3. Reduce allowable seller concessions from 6% to 3%
_ The current level exposes the FHA to excess risk by creating incentives to inflate
appraised value. This change will bring FHA into conformity with industry standards on
seller concessions.
_ This change will be posted in the Federal Register in February, and after a notice and
comment period, would go into effect in the early summer.
4. Increase enforcement on FHA lenders
_ Publicly report lender performance rankings to complement currently available
Neighborhood Watch data - Will be available on the HUD website on February 1.
_ This is an operational change to make information more user-friendly and hold
lenders more accountable; it does not require new regulatory action as
Neighborhood Watch data is currently publicly available.
_ Enhance monitoring of lender performance and compliance with FHA guidelines and
standards.
_ Implement Credit Watch termination through lender underwriting ID in addition to
originating ID.
_ This change is included in a Mortgagee Letter to be released tomorrow, January
21st, and is effective immediately.
_ Implement statutory authority through regulation of section 256 of the National Housing
Act to enforce indemnification provisions for lenders using delegated insuring process
_ Specifications of this change will be posted in March, and after a notice and
comment period, would go into effect in early summer.
_ HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific
authority includes:
_ Amendment of section 256 of the National Housing Act to apply indemnification
provisions to all Direct Endorsement lenders. This would require all approved
mortgagees to assume liability for all of the loans that they originate and
underwrite
_ Legislative authority permitting HUD maximum flexibility to establish separate
"areas" for purposes of review and termination under the Credit Watch initiative.
In addition to the changes proposed today, the FHA is continuing to review its overall response to
housing market conditions, and continuing to evaluate its mortgage insurance underwriting
standards and its measures to help distressed and underwater borrowers through FHA/HAMP and
other FHA initiatives going forward.
###
HUD is the nation's housing agency committed to sustaining homeownership; creating
affordable housing opportunities for low-income Americans; and supporting the homeless,
elderly, people with disabilities and people living with AIDS. The Department also promotes
economic and community development ad enforces the nation's fair housing laws. More
information about HUD and its programs is available on the Internet at www.hud.gov and
espanol.hud.gov.
Source: FHA Announcement-1.20.10.pdf
New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing
Market and Access for Underserved Communities
WASHINGTON – Federal Housing Administration (FHA) Commissioner David Stevens today
announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the
agency to continue to fulfill its mission to provide access to homeownership for underserved
communities. The changes announced today are the latest in a series of changes Stevens has
enacted in order to better position the FHA to manage its risk while continuing to support the
nation’s housing market recovery.
The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP);
update the combination of FICO scores and down payments for new borrowers; reduce seller
concessions to three percent, from six percent; and implement a series of significant measures
aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun
Donovan previewed the changes in December of last year, noting that the FHA would announce
additional details before the end of January.
“Striking the right balance between managing the FHA’s risk, continuing to provide access to
underserved communities, and supporting the nation’s economic recovery is critically important,”
said Commissioner Stevens. “When combined with the risk management measures announced in
September of last year, these changes are among the most significant steps to address risk in the
agency’s history. Additionally, by continuing to provide affordable, responsible mortgage
products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest
source of home purchase financing for underserved communities.”
Announced FHA Policy Changes:
1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring
back private lending
_ The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative
authority to increase the maximum annual MIP that the FHA can charge.
_ If this authority is granted, then the second step will be to shift some of the premium
increase from the up-front MIP to the annual MIP.
_ This shift will allow for the capital reserves to increase with less impact to the consumer,
because the annual MIP is paid over the life of the loan instead of at the time of closing
_ The initial up-front increase is included in a Mortgagee Letter to be released tomorrow,
January 21st, and will go into effect in the spring.
2. Update the combination of FICO scores and down payments for new borrowers.
_ New borrowers will now be required to have a minimum FICO score of 580 to qualify for
FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will
be required to put down at least 10%.
_ This allows the FHA to better balance its risk and continue to provide access for those
borrowers who have historically performed well.
_ This change will be posted in the Federal Register in February and, after a notice and
comment period, would go into effect in the early summer.
3. Reduce allowable seller concessions from 6% to 3%
_ The current level exposes the FHA to excess risk by creating incentives to inflate
appraised value. This change will bring FHA into conformity with industry standards on
seller concessions.
_ This change will be posted in the Federal Register in February, and after a notice and
comment period, would go into effect in the early summer.
4. Increase enforcement on FHA lenders
_ Publicly report lender performance rankings to complement currently available
Neighborhood Watch data - Will be available on the HUD website on February 1.
_ This is an operational change to make information more user-friendly and hold
lenders more accountable; it does not require new regulatory action as
Neighborhood Watch data is currently publicly available.
_ Enhance monitoring of lender performance and compliance with FHA guidelines and
standards.
_ Implement Credit Watch termination through lender underwriting ID in addition to
originating ID.
_ This change is included in a Mortgagee Letter to be released tomorrow, January
21st, and is effective immediately.
_ Implement statutory authority through regulation of section 256 of the National Housing
Act to enforce indemnification provisions for lenders using delegated insuring process
_ Specifications of this change will be posted in March, and after a notice and
comment period, would go into effect in early summer.
_ HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific
authority includes:
_ Amendment of section 256 of the National Housing Act to apply indemnification
provisions to all Direct Endorsement lenders. This would require all approved
mortgagees to assume liability for all of the loans that they originate and
underwrite
_ Legislative authority permitting HUD maximum flexibility to establish separate
"areas" for purposes of review and termination under the Credit Watch initiative.
In addition to the changes proposed today, the FHA is continuing to review its overall response to
housing market conditions, and continuing to evaluate its mortgage insurance underwriting
standards and its measures to help distressed and underwater borrowers through FHA/HAMP and
other FHA initiatives going forward.
###
HUD is the nation's housing agency committed to sustaining homeownership; creating
affordable housing opportunities for low-income Americans; and supporting the homeless,
elderly, people with disabilities and people living with AIDS. The Department also promotes
economic and community development ad enforces the nation's fair housing laws. More
information about HUD and its programs is available on the Internet at www.hud.gov and
espanol.hud.gov.
Source: FHA Announcement-1.20.10.pdf
Has Prince Georges County NSP program run out of money?
In the past day or so, I received numerous emails that the Prince Georges Neighborhood Stabilization Program (NSP) is set to close its doors in the spring 2010. Is this true?
FUNDING ALERT AND APPLICATION DEADLINE FOR PRINCE GEORGE’S COUNTY DOWN PAYMENT ON YOUR DREAM (NSP) PROGRAM:
Due to the unprecedented demand for down payment and closing costs assistance through the Prince George’s County Neighborhood Stabilization Program, they are quickly depleting available funds. As a result, FRIDAY, FEBRUARY 19, 2010 will be the deadline for application intake. Funding will be awarded on a first come first completed basis, until all funds are depleted.
FUNDING ALERT AND APPLICATION DEADLINE FOR PRINCE GEORGE’S COUNTY DOWN PAYMENT ON YOUR DREAM (NSP) PROGRAM:
Due to the unprecedented demand for down payment and closing costs assistance through the Prince George’s County Neighborhood Stabilization Program, they are quickly depleting available funds. As a result, FRIDAY, FEBRUARY 19, 2010 will be the deadline for application intake. Funding will be awarded on a first come first completed basis, until all funds are depleted.
Homebuyer tax credit: No e-file and four-month delays
Homebuyer tax credit: No e-file and four-month delays
By Les Christie
Good news homebuyers: You can file for your $8,000 first-time buyer tax credit again.
Bad news: You still can't e-file your taxes if you want the cash. And there are long delays.
On Thursday, CNNMoney revealed that buyers who purchased their properties after Nov. 6 were unable to claim the refund because the Internal Revenue Service had yet to release a new form and instructions. But on Friday, the IRS finally posted the new form 5405.
The two-month delay was frustrating to Florida resident Charles Teschke. "We are not broke or anything, but nevertheless we were still counting on getting the tax refund to help pay for the appliances and stuff we needed for our new home," he said. "The IRS told me they estimate it will take four months for me to get my refund!"
First-time buyers were able to immediately file for the tax credit after Congress approved it last February as part of the stimulus program. All they had to do was file an amendment to their 2008 tax returns (the ones they filed last April) and claim the promised refund of 10% of the purchase price, up to $8,000.
What I did with my $8,000 tax credit
They were able to e-file, and they received their refunds promptly. One reader filed a claim the first week of August, and had the check by the third week in September.
But on Nov. 6 the rules changed. That's when Congress extended -- and expanded -- the tax credit, which was originally scheduled to expire on Nov. 30.
Now, the deadline is April 30, by when all contracts must be signed. (Closings must happen by June 30.) Plus, existing homeowners looking to trade up (or down) can qualify for a $6,500 refund.
And these new buyers can no longer file electronically. They have to mail in paper forms, including the new 5405, whether they are amending their 2008 taxes or claiming it on the 2009 taxes that are being filed this spring.
That is going to dramatically slow refunds, but taxpayers can't blame the IRS. Instead, it's people scamming the system who are at fault.
For example, in October tax preparer James Otto Price III was the first person convicted of this crime. He falsely claimed the credit for 15 clients.
So buyers must now file documentation with their taxes -- including proof of residency, a signed mortgage statement and drivers license -- which the e-file system is not equipped to handle.
"Because of the scams, the IRS started sending back the amended returns and asking for proof," said Mary Mellem of David & Mary Mellem, EAs & Ashwaubenon Tax Professionals. "The system has no way of sending along the documents they're requiring. Taxpayers must file a paper return instead."
The IRS points out that taxpayers can still use the electronic forms available on its Web site or consumer sites such as TurboTax; they just have to print them out, attach the proof and mail everything in. And that can take quite a while.
"Taxpayers are looking at another three months before they get their returns," said Mellem.
Source: CNN Money
By Les Christie
Good news homebuyers: You can file for your $8,000 first-time buyer tax credit again.
Bad news: You still can't e-file your taxes if you want the cash. And there are long delays.
On Thursday, CNNMoney revealed that buyers who purchased their properties after Nov. 6 were unable to claim the refund because the Internal Revenue Service had yet to release a new form and instructions. But on Friday, the IRS finally posted the new form 5405.
The two-month delay was frustrating to Florida resident Charles Teschke. "We are not broke or anything, but nevertheless we were still counting on getting the tax refund to help pay for the appliances and stuff we needed for our new home," he said. "The IRS told me they estimate it will take four months for me to get my refund!"
First-time buyers were able to immediately file for the tax credit after Congress approved it last February as part of the stimulus program. All they had to do was file an amendment to their 2008 tax returns (the ones they filed last April) and claim the promised refund of 10% of the purchase price, up to $8,000.
What I did with my $8,000 tax credit
They were able to e-file, and they received their refunds promptly. One reader filed a claim the first week of August, and had the check by the third week in September.
But on Nov. 6 the rules changed. That's when Congress extended -- and expanded -- the tax credit, which was originally scheduled to expire on Nov. 30.
Now, the deadline is April 30, by when all contracts must be signed. (Closings must happen by June 30.) Plus, existing homeowners looking to trade up (or down) can qualify for a $6,500 refund.
And these new buyers can no longer file electronically. They have to mail in paper forms, including the new 5405, whether they are amending their 2008 taxes or claiming it on the 2009 taxes that are being filed this spring.
That is going to dramatically slow refunds, but taxpayers can't blame the IRS. Instead, it's people scamming the system who are at fault.
For example, in October tax preparer James Otto Price III was the first person convicted of this crime. He falsely claimed the credit for 15 clients.
So buyers must now file documentation with their taxes -- including proof of residency, a signed mortgage statement and drivers license -- which the e-file system is not equipped to handle.
"Because of the scams, the IRS started sending back the amended returns and asking for proof," said Mary Mellem of David & Mary Mellem, EAs & Ashwaubenon Tax Professionals. "The system has no way of sending along the documents they're requiring. Taxpayers must file a paper return instead."
The IRS points out that taxpayers can still use the electronic forms available on its Web site or consumer sites such as TurboTax; they just have to print them out, attach the proof and mail everything in. And that can take quite a while.
"Taxpayers are looking at another three months before they get their returns," said Mellem.
Source: CNN Money
Settlement rules set to change Jan. 1
By Michele Lerner SPECIAL TO THE WASHINGTON TIMES
Future homebuyers may not be aware of the major changes in the Real Estate Settlement Procedures Act (RESPA) rules that go into effect on Jan. 1, but industry professionals have been preparing for months for the new Good Faith Estimate (GFE) and HUD-1 forms. A GFE is a form provided to loan applicants that includes a summary of the loan terms and an estimate of anticipated closing costs. The HUD-1 form is the statement provided to both buyers and sellers at settlement with detailed information about the required payments from both sides of a transaction.
Lenders have three days after a borrower completes a loan application to provide a written GFE. Borrowers have 10 days to review the form and compare forms from other lenders or shop around for services such as a title company or title insurance. The GFE is tied to a loan application for a specific property under contract, although borrowers can ask for a general estimate of closing costs when they request a loan preapproval before shopping for a home.
The changes to the two forms are intended to make loan features and closing costs "clearer" to buyers, demonstrate the ability of consumers to shop for loans and some services, and make sure estimates of the cash needed at closing are more accurate.
The key elements of the new forms are that they hold lenders accountable for their closing-cost estimates and encourage consumers to compare fees and services from multiple providers. Consumers typically work with the title company, pest inspectors and homeowners insurance companies recommended by their Realtor or lender rather than compare rates for these services.
"In the past, the GFE was just a list of likely fees, a true estimate with no requirement of accountability for the lender," says Holly Spencer Bunting, an associate who practices in the areas of mortgage banking and consumer finance with K&L Gates LLP in the District. "That is substantially changing, with the biggest difference being that lenders are now accountable for the fees borrowers need to pay at settlement."
The Department of Housing and Urban Development (HUD) created the new RESPA rules in an attempt to answer consumer complaints about closing costs and create a better understanding of mortgage loan terms.
"The new RESPA rules will have a tremendous impact on the way consumers pick their service providers when they buy a home," said Todd Ewing, president of Federal Title & Escrow Co. in the District. "The impetus for the change was consumer complaints about surprises at the closing table."
Ms. Bunting says HUD officials have said consumers sometimes expect to pay $5,000 at closing and then have to pay as much as $8,000 because the GFEs are so wrong.
The fees paid at settlement are now divided into three "tolerance buckets," which refer to whether the fees can change from the GFE and how much they can change.
"The first bucket has no tolerance for errors, so if anything changes at the settlement table, it must be 'cured,' or paid for by the lender," says Barbara Roubo, vice president and mortgage branch manager for Chevy Chase Bank in Reston.
Source: http://www.washingtontimes.com/
Future homebuyers may not be aware of the major changes in the Real Estate Settlement Procedures Act (RESPA) rules that go into effect on Jan. 1, but industry professionals have been preparing for months for the new Good Faith Estimate (GFE) and HUD-1 forms. A GFE is a form provided to loan applicants that includes a summary of the loan terms and an estimate of anticipated closing costs. The HUD-1 form is the statement provided to both buyers and sellers at settlement with detailed information about the required payments from both sides of a transaction.
Lenders have three days after a borrower completes a loan application to provide a written GFE. Borrowers have 10 days to review the form and compare forms from other lenders or shop around for services such as a title company or title insurance. The GFE is tied to a loan application for a specific property under contract, although borrowers can ask for a general estimate of closing costs when they request a loan preapproval before shopping for a home.
The changes to the two forms are intended to make loan features and closing costs "clearer" to buyers, demonstrate the ability of consumers to shop for loans and some services, and make sure estimates of the cash needed at closing are more accurate.
The key elements of the new forms are that they hold lenders accountable for their closing-cost estimates and encourage consumers to compare fees and services from multiple providers. Consumers typically work with the title company, pest inspectors and homeowners insurance companies recommended by their Realtor or lender rather than compare rates for these services.
"In the past, the GFE was just a list of likely fees, a true estimate with no requirement of accountability for the lender," says Holly Spencer Bunting, an associate who practices in the areas of mortgage banking and consumer finance with K&L Gates LLP in the District. "That is substantially changing, with the biggest difference being that lenders are now accountable for the fees borrowers need to pay at settlement."
The Department of Housing and Urban Development (HUD) created the new RESPA rules in an attempt to answer consumer complaints about closing costs and create a better understanding of mortgage loan terms.
"The new RESPA rules will have a tremendous impact on the way consumers pick their service providers when they buy a home," said Todd Ewing, president of Federal Title & Escrow Co. in the District. "The impetus for the change was consumer complaints about surprises at the closing table."
Ms. Bunting says HUD officials have said consumers sometimes expect to pay $5,000 at closing and then have to pay as much as $8,000 because the GFEs are so wrong.
The fees paid at settlement are now divided into three "tolerance buckets," which refer to whether the fees can change from the GFE and how much they can change.
"The first bucket has no tolerance for errors, so if anything changes at the settlement table, it must be 'cured,' or paid for by the lender," says Barbara Roubo, vice president and mortgage branch manager for Chevy Chase Bank in Reston.
Source: http://www.washingtontimes.com/
Thursday, January 7, 2010
Overcoming Common Foreclosure Fears
Overcoming Common Foreclosure Fears
As foreclosure numbers continue to rise, you might be one of the many homeowners worried about losing your home. The truth is, foreclosure can be prevented, however, most homeowners are too confused or afraid to confront their mortgage problems and, therefore, neglect taking the necessary steps to potentially save their homes. As a CDPE (Certified Distressed Property Exptert) I have been trained to assist homeowners who are financially-challenged with their mortgage on the path toward avoiding foreclosure. The first and biggest step is always overcoming their fears.
Here are six of the most common foreclosure fears along with the steps homeowners can take to overcome them and start taking action to save their homes.
Fear: Homeowners are afraid to let the mortgage company know they are having a problem because they think it will speed up the foreclosure process.
Contacting your lender must be the first step as it gives you a chance to explain why you have fallen behind on your payments and what steps you are taking to get back on track. Most lenders have a financial interest in keeping you in your home and may be willing to alter the terms of your loan or devise a repayment plan.
Fear: Homeowners believe that if their mortgage company has already turned them down for a loan modification, there is no point in continuing to try or look for other options.
Many homeowners are turned down for a loan modification because the information they provide to their lender indicates that their expenses exceed their income or that they have not provided accurate documentation and information about their loan. A housing counselor may be able to suggest alternatives that better suit your current financial situation or help you make adjustments that make you a better candidate for a loan modification with your lender.
Fear: Homeowners fear being judged by others for seeking help.
These are challenging financial times. While it may feel like you are the only one struggling, the reality is that many of your friends and neighbors are also finding it difficult to stay afloat.
Fear: Homeowners think it is better to use all of their financial resources before seeking help.
Many homeowners try to ride out the financial storm, using their savings and depleting their retirement accounts before seeking help. By the time they do seek help, they are in an even more desperate financial situation and they have spent the resources that may have given them more options in dealing with their mortgage crisis.
Fear: Homeowners facing foreclosure fear that their situation is hopeless.
While for some, seeking help may mean saving their home, it is inevitable that some homeowners will end up in foreclosure. A certified housing counselor or real estate professional can help homeowners work through the foreclosure and build a new path for long-term financial success.
Fear: Companies claiming they can save your home charge large, up-front fees.
You can receive counseling from a reputable, nonprofit housing counseling agency at no charge. While there are unscrupulous businesses looking to take advantage of homeowners, there are also many HUD-approved housing counseling agencies that offer help for struggling consumers.
Please don’t let fear stand in the way of saving your home. Feel free to e-mail me for guidance on your specific situation and please pass this along to any friends, family members and social network who may also need to confront these fears and get proactive.
Visit http://www.jamiehelps.com for additional assistance
As foreclosure numbers continue to rise, you might be one of the many homeowners worried about losing your home. The truth is, foreclosure can be prevented, however, most homeowners are too confused or afraid to confront their mortgage problems and, therefore, neglect taking the necessary steps to potentially save their homes. As a CDPE (Certified Distressed Property Exptert) I have been trained to assist homeowners who are financially-challenged with their mortgage on the path toward avoiding foreclosure. The first and biggest step is always overcoming their fears.
Here are six of the most common foreclosure fears along with the steps homeowners can take to overcome them and start taking action to save their homes.
Fear: Homeowners are afraid to let the mortgage company know they are having a problem because they think it will speed up the foreclosure process.
Contacting your lender must be the first step as it gives you a chance to explain why you have fallen behind on your payments and what steps you are taking to get back on track. Most lenders have a financial interest in keeping you in your home and may be willing to alter the terms of your loan or devise a repayment plan.
Fear: Homeowners believe that if their mortgage company has already turned them down for a loan modification, there is no point in continuing to try or look for other options.
Many homeowners are turned down for a loan modification because the information they provide to their lender indicates that their expenses exceed their income or that they have not provided accurate documentation and information about their loan. A housing counselor may be able to suggest alternatives that better suit your current financial situation or help you make adjustments that make you a better candidate for a loan modification with your lender.
Fear: Homeowners fear being judged by others for seeking help.
These are challenging financial times. While it may feel like you are the only one struggling, the reality is that many of your friends and neighbors are also finding it difficult to stay afloat.
Fear: Homeowners think it is better to use all of their financial resources before seeking help.
Many homeowners try to ride out the financial storm, using their savings and depleting their retirement accounts before seeking help. By the time they do seek help, they are in an even more desperate financial situation and they have spent the resources that may have given them more options in dealing with their mortgage crisis.
Fear: Homeowners facing foreclosure fear that their situation is hopeless.
While for some, seeking help may mean saving their home, it is inevitable that some homeowners will end up in foreclosure. A certified housing counselor or real estate professional can help homeowners work through the foreclosure and build a new path for long-term financial success.
Fear: Companies claiming they can save your home charge large, up-front fees.
You can receive counseling from a reputable, nonprofit housing counseling agency at no charge. While there are unscrupulous businesses looking to take advantage of homeowners, there are also many HUD-approved housing counseling agencies that offer help for struggling consumers.
Please don’t let fear stand in the way of saving your home. Feel free to e-mail me for guidance on your specific situation and please pass this along to any friends, family members and social network who may also need to confront these fears and get proactive.
Visit http://www.jamiehelps.com for additional assistance
Wednesday, January 6, 2010
Start ’Em Early — Teaching Your Kids About Credit
Many parents have learned how to build and manage their credit and money through trial and error. As a result, in many cases, their credit has either been damaged or not optimized in the process. Parents can find a number of easy ways to get educated on more effective ways to manage their money and credit. Here are some important, age-specific tips that parents can use to help their children learn the value of money.
1. Start Young—Young children are sponges for new information and can learn valuable money management lessons through their interaction and activities with parents. Use daily errand activities like going to the supermarket or bank to teach kids lessons about budgeting and money. Consider having them “pay” for rent, food, and other things with toy money for a week. Let them learn on their own at first and then go back and help them make a budget. Once your children are ready, consider a weekly allowance that is tied to household responsibilities and some form of budgeting and saving. Additionally, explain the difference between “wants” and “needs” to your children.
2. The Teen Years—Teen spending makes up a great deal of the economy and, if you are not careful, it can inadvertently cost you a good portion of your salary as well. Work with your teenagers to teach them the importance of balance between spending and saving as well as budgeting. Help prepare them to appropriately begin building their own credit.
3. College Bound—Many young adults will begin receiving offers for credit cards (although this will soon change with the new Credit Card Act of 2009) and quickly find themselves with debt they cannot pay. College can be treacherous for students with credit cards. If you haven’t built the foundation of educating your children on effective credit management by the time they’ve entered college, it is not too late. It is critically important to start educating them on the best practices noted above and lead them by example through effectively managing your own credit. The key is to not procrastinate any longer. Various educational resources exist to help minimize any anxiety you may have regarding your own subject matter expertise.
The road to good credit doesn’t have to be a rocky one. Educating your children about money and credit from an early age will help them build a positive future. For more tips on credit, please e-mail me—I can point you in the right direction. For credit recovery, you can visit, www.scores2opendoors.com. There are many other resources available to you! Please also forward this important information to your family, friends, and social network; it just might help someone you know.
1. Start Young—Young children are sponges for new information and can learn valuable money management lessons through their interaction and activities with parents. Use daily errand activities like going to the supermarket or bank to teach kids lessons about budgeting and money. Consider having them “pay” for rent, food, and other things with toy money for a week. Let them learn on their own at first and then go back and help them make a budget. Once your children are ready, consider a weekly allowance that is tied to household responsibilities and some form of budgeting and saving. Additionally, explain the difference between “wants” and “needs” to your children.
2. The Teen Years—Teen spending makes up a great deal of the economy and, if you are not careful, it can inadvertently cost you a good portion of your salary as well. Work with your teenagers to teach them the importance of balance between spending and saving as well as budgeting. Help prepare them to appropriately begin building their own credit.
3. College Bound—Many young adults will begin receiving offers for credit cards (although this will soon change with the new Credit Card Act of 2009) and quickly find themselves with debt they cannot pay. College can be treacherous for students with credit cards. If you haven’t built the foundation of educating your children on effective credit management by the time they’ve entered college, it is not too late. It is critically important to start educating them on the best practices noted above and lead them by example through effectively managing your own credit. The key is to not procrastinate any longer. Various educational resources exist to help minimize any anxiety you may have regarding your own subject matter expertise.
The road to good credit doesn’t have to be a rocky one. Educating your children about money and credit from an early age will help them build a positive future. For more tips on credit, please e-mail me—I can point you in the right direction. For credit recovery, you can visit, www.scores2opendoors.com. There are many other resources available to you! Please also forward this important information to your family, friends, and social network; it just might help someone you know.
Tuesday, January 5, 2010
Lower Your 2009 Tax Debt
Lower Your 2009 Tax Debt
As a Top 5 in Real Estate Member, I counsel many clients on a wide range of financial concerns, not just their real estate investments. As 2009 comes to a close, I wanted to alert you to some important information that could save you money come tax time.
In addition to the $8,000 tax break for first-time home buyers and the newly expanded tax credit that includes move-up buyers, new tax-relief bills passed in 2008 provide for a number of other tax breaks that may lower your 2009 tax debt. Plan now and review these breaks with your accountant to see if they could help reduce your tax liability in 2009 and beyond:
• Payroll Tax Credit. For 2009 and 2010, Congress gave workers a 6.2% credit on earned income, applied as lower income tax withholding (there are caps based on income). Recipients of Social Security, Railroad Retirement benefits or Supplemental Security Income, some federal workers, and veterans with disability pensions will get a one-time $250 check. Self-employed workers may be able to reduce quarterly estimated payments to get advance benefits.
• Larger Personal Exemptions. For 2009, each personal exemption you can claim is worth $3,650—up by $150 over 2008.
• Higher Standard Deductions. The standard deduction for married couples filing jointly rises to $11,400 up by $500 from 2008. For singles, the amount increases to $5,700—up by $250 over last year, and heads of households can claim $8,350, a jump of $350.
• Tax Credit for College Tuition. For 2009 and 2010, the Hope credit is replaced by a new credit of up to $2,500 per student a year for four years of college, not just the first two years. It now also covers the cost of books, but begins to phase out based on higher incomes.
• Child Tax Credit. If the credit exceeds the filer’s tax liability, all or part of the credit will be refunded if the filer earns more than $3,000 – down from $12,550 in 2008. (Also, for families with three or more children, the maximum earned income tax credit for 2009 and 2010 rises by $628.50)
Other changes that could affect you include higher income limits for deductible IRAs and Roth IRAs, higher estate tax and gift tax exemptions, credit for energy-saving home improvements, and partial exclusion of unemployment benefits.
To understand how the new tax breaks could save you money, consult with your financial advisor or e-mail me for more information. Be sure to pass this information along to your family and friends—in these tough economic times, we could all use a tax break!
Wednesday, December 30, 2009
Help in Your Community
The right information is the key to assisting each other in our communities. As a Certified Distressed Property Expert, I have been trained to do just that. Share information and solutions to best meet homeowners needs during financial hardships you might be facing. During this economic crisis there are many families in our communities that don't know where to turn or how to resolve the challenges they face. The help is there, we just have to reach out to one another. If you or someone you know struggling to pay their mortgage, let's sitdown and weigh your options. There are solutions available to you. Whether it's foreclosure prevention, short sales, or loan modifications, help exists.
www.jamiehelps.com
www.jamiehelps.com
Top 5 Facts You Need to Know about the Expanded Home Buyers Tax Credit
On November 6, President Obama signed the Worker, Homeownership, and Business Assistance Act of 2009 into law, extending and expanding the important home buyer tax credit, and thereby providing many Americans with just the break they need to buy a first home or move up to a new home.
One of the requirements for becoming a Member of the Top 5 in Real Estate Network® is to provide my community with critical real estate information so you can make the best possible decision when buying or selling a home. To that end, I wanted to pass along some key facts about the extended and expanded tax credit that are critical for you to understand in order to take advantage of this opportunity:
1. Eligibility: The tax credit is now available for first-time home buyers and eligible current homeowners. A first-time home buyer is an individual who has not owned a principal residence during the three-year period prior to the purchase. This law applies for both parties in a married couple; if you haven’t owned a home for three years, but your husband has, then neither one of you can qualify for the tax credit. A qualified current homeowner who wished to move to a different home, must have owned and resided in their residence for five consecutive years out of the last eight.
2. Salary requirements:Single taxpayers with incomes up to $125,000 and married couples with a joint income up to $225,000 qualify for the full tax credit. Single taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
3. Amount of credit: The maximum credit amount for first-time home buyers is $8,000; the maximum credit amount for current homeowners is $6,500. The federal tax credit amounts to 10% of the cost of the home, up to a maximum credit of $8,000 for first-time home buyers and $6,500 for current homeowners. Under the new legislation, a tax credit may only be issued for homes purchased for $800,000 or less. The tax credit is a true credit—it does not have to be repaid unless the homeowner sells or stops using the home as their principal residence within three years after the purchase.
4. It’s refundable: The tax credit is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if you owe no tax or the credit is more than the tax owed. The credit is claimed using Form 5405, which you file with your original or amended tax return.
5. Timeline: The credit is available for homes purchased on or after November 7, 2009 and before May 1, 2010. The federal income credit can be claimed on one’s individual or joint tax return for the purchase of any single-family home (newly-constructed or resale, single-family detached, townhomes or condominiums) between the dates of November 7, 2009 and April 30, 2010. Home purchases subject to a binding sales contract signed before May 1, 2010 will also qualify for the tax credit as long as closing occurs by June 30, 2010.
For more information on the home buyer tax credit, e-mail me. Please forward this blog and my contact information to friends and family who may also be able to take advantage of this unique opportunity to purchase the home they’ve always wanted.
One of the requirements for becoming a Member of the Top 5 in Real Estate Network® is to provide my community with critical real estate information so you can make the best possible decision when buying or selling a home. To that end, I wanted to pass along some key facts about the extended and expanded tax credit that are critical for you to understand in order to take advantage of this opportunity:
1. Eligibility: The tax credit is now available for first-time home buyers and eligible current homeowners. A first-time home buyer is an individual who has not owned a principal residence during the three-year period prior to the purchase. This law applies for both parties in a married couple; if you haven’t owned a home for three years, but your husband has, then neither one of you can qualify for the tax credit. A qualified current homeowner who wished to move to a different home, must have owned and resided in their residence for five consecutive years out of the last eight.
2. Salary requirements:Single taxpayers with incomes up to $125,000 and married couples with a joint income up to $225,000 qualify for the full tax credit. Single taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
3. Amount of credit: The maximum credit amount for first-time home buyers is $8,000; the maximum credit amount for current homeowners is $6,500. The federal tax credit amounts to 10% of the cost of the home, up to a maximum credit of $8,000 for first-time home buyers and $6,500 for current homeowners. Under the new legislation, a tax credit may only be issued for homes purchased for $800,000 or less. The tax credit is a true credit—it does not have to be repaid unless the homeowner sells or stops using the home as their principal residence within three years after the purchase.
4. It’s refundable: The tax credit is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if you owe no tax or the credit is more than the tax owed. The credit is claimed using Form 5405, which you file with your original or amended tax return.
5. Timeline: The credit is available for homes purchased on or after November 7, 2009 and before May 1, 2010. The federal income credit can be claimed on one’s individual or joint tax return for the purchase of any single-family home (newly-constructed or resale, single-family detached, townhomes or condominiums) between the dates of November 7, 2009 and April 30, 2010. Home purchases subject to a binding sales contract signed before May 1, 2010 will also qualify for the tax credit as long as closing occurs by June 30, 2010.
For more information on the home buyer tax credit, e-mail me. Please forward this blog and my contact information to friends and family who may also be able to take advantage of this unique opportunity to purchase the home they’ve always wanted.
Thursday, December 24, 2009
Short Sale or Not, That is the question?
In this economy, odds are, you know someone who might be facing the possibility of foreclosure. But, you as well as they should understand that they are NOT ALONE. The idea of losing your home can be quite daunting, and overwhelming to say the least. There are options for those possibly facing foreclosure. Most are unaware. It is vitally important that I share the options that are available. My desire is to help as many families as possible save their families and their homes from foreclosure; we just need to figure out what the solution is for you. Problem solving has to start somewhere. Start with a professional REALTOR® who has been equipped and trained through earning the CDPE designation. Visit my website to learn more about the designation and options for those possibly facing foreclosure! Don't wait today is the best day to start working towards a solution!
http://www.jamiehelps.com/
http://www.jamiehelps.com/
Tuesday, December 22, 2009
Featured Website to Help Homeowners in Distress
In today's economy there are many, many homeowners that are in distress with their mortgage. For various reasons, there is a hardship that exist and the homeowner is no longer able to afford their mortage. There is help. I have a website that is totally devoted to educating everyone on what a short sales, foreclosures, deed-in-lieu and things you should consider during this time of hardship. The one thing you SHOULD NOT DO, is doing nothing. There is help! http://www.jamiehelps.com/.
You might not be the one in distress, but lets reach out to all in the community to assist families in getting the help they need and deserve during difficult times! Please spread the word!
You might not be the one in distress, but lets reach out to all in the community to assist families in getting the help they need and deserve during difficult times! Please spread the word!
Monday, December 21, 2009
INTEREST RATES
Okay, so I have to give an example of how important and crucial it is to understand that now is a really good time to buy. So, interest rates are low, which means that this will potentially allow you to qualify for more house. Current example for a client. Because he did not lock in his interest rates months ago when he first entered into a ratified contract, the interest rate is higher than what he was initially quoted and now has a major problem with the monthly payment. Had he locked in when interest rates were lower, his payment would be almost $300 less than what we are anticipating it to be now. Each and every case is very different, but I can not stress enough how it can make all the difference in the amount of house you qualify for! I know it may sound simple, but it's true. The better the economy gets, the higher interest rates will go!! I know that sounds a little backwards too. The economy dictates that the better condition our economy is in, the more interest and more money consumers can pay! So, as our economy stabilizes, and it will, and prices in the market will increase, you may potentially get priced right out of the house you thought you would not be able to afford, when all the time, you really could've!
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