Alpine Real Estate's Blog

HUD secretary: Tax credit can be used as a down payment

Alpine Real Estate (Alpine Real Estate) — Thu, 28 May 2009 15:22:23 -0700

HUD secretary: Tax credit can be used as a down payment

The $8,000 first-time home buyer tax credit keeps getting better. On May 11, the secretary of the U.S. Department of Housing and Urban Development, Shaun Donovan, announced to attendees of the National Association of REALTORS® Midyear conference that HUD will provide short-term bridge loans that will allow first-time home buyers to use the federal government's $8,000 tax credit as part of their down payment and closing costs.

The step essentially allows purchasers to get their $8,000 home-buying tax credit at closing rather than waiting until after filing their 2009 taxes. For many potential buyers, the fact that the tax credit couldn't be received until 2010 made it difficult to make a purchase before the Nov. 30 deadline - especially if they planned on using the tax credit as part of their down payment. Under this new program, the $8,000 can be used right at closing.

The short-term loan program would be available to buyers using FHA mortgages. It is expected the loans could be made by FHA-approved lenders, HUD-approved nonprofits, and state and local entities.

HUD officials say more details on the program will be published shortly. When that happens, more information will be available on www.Realtor.org.

Homeowners NEVER have to pay to participate in the President’s Making Home Affordable program

Alpine Real Estate (Alpine Real Estate) — Wed, 08 Apr 2009 12:21:10 -0700

Foreclosure scams are destructive, deceptive, and devastating to families who are fighting to survive. We have families on the edge of foreclosure that are being offered relief too good to be true, and we at HUD will take every possible measure to educate and protect consumers and homeowners, bring these scams to light, and prevent con artists from exploiting the housing crisis. There are legitimate people, places, and agencies that American families can turn to when they are facing foreclosure, and many of you are working on these efforts.

I would like to make the attached flyer available to you for distribution to your clients. It is a printable, easy-to-copy one pager detailing how consumers can access President Obama's housing plan for FREE. We are distributing the flyer nationwide today to all of our housing partners-our HUD field offices and staff, housing authorities, state and local agencies, and non-profit organizations. This and other targeted outreach efforts will help us reach out directly to communities hard-hit by foreclosure about the legitimate foreclosure assistance available to them.

For the homeowners fighting hard to make their mortgage payments and stay in their homes, our housing plan-the Making Home Affordable Plan-will help up to 9 million Americans. Making Home Affordable will work in concert with the President's Recovery Act and support a recovery in the housing market. Our plan is helping families in three ways. First, we are protecting housing opportunities for all Americans by taking action Administration-wide to reduce interest rates, which are now at historic lows. Second, we will assist 4 to 5 million homeowners who can't otherwise take advantage of today's historically low mortgage interest rates. Lastly, we have committed up to $75 billion to help an additional 3 to 4 million homeowners who are at risk of foreclosure modify their unaffordable mortgages into affordable ones. These three planks of our housing plan will keep American families in their homes and prevent the falling home prices that result from nearby foreclosures. These three planks of our housing plan will keep American families in their homes and prevent the falling home prices that result from nearby foreclosures.

Homeowners NEVER have to pay to participate in the President's Making Home Affordable program. I encourage anyone trying to modify or refinance their loans to a monthly mortgage payment that is affordable to visit the Making Home Affordable website at makinghomeaffordable.gov. Homeowners can also call the Homeowner's HOPE Hotline at 1-888-995-HOPE for free foreclosure counseling assistance.

April is National Fair Housing Month. It's important, in that context, to recognize that the economic and housing crises, including foreclosure scams, have disproportionately impacted minority populations across the country. Unscrupulous financial institutions, brokers, and others have broken their trust as lenders, cheating and lying to families fighting to make their way through this crisis. I will renew our commitment at HUD to fair housing enforcement, particularly for lending violations that target minority communities. As part of our broader effort to combat abuse and fraud, HUD is using new tools, including the SAFE Act and RESPA, to protect American families. We at HUD will ensure that all Americans, particularly those in areas previously victimized by unscrupulous practices, are protected and will enforce our laws against those who prey upon them.

I hope that you will find the attached flyer useful in your outreach to consumers about the President's Making Home Affordable plan.

Shaun Donavon

Secretary

U.S. Department of Housing and Urban Development

$6,000 GRANTS WILL SOON BE AVAILABLE

Alpine Real Estate (Alpine Real Estate) — Thu, 19 Mar 2009 08:28:42 -0700

The Utah State Legislature passed a bill last week that will provide $6000 grants to buyers of newly constructed, never-occupied homes. The program, called "Home Run," will be immediately available to buyers who finance a recently constructed home with a 30-year fixed rate mortgage and meet other qualifications.

Please note that Senate Bill 260 has not yet been signed by the Governor, we anticipate that will occur in the next week or so. Once signed by the Governor Senate Bill 260 will create a fund that will use federal stimulus dollars to provide 1,666 grants that will be distributed through Utah Housing Corporation to Utah buyers on a first-come, first-served basis.

Unlike the federal home-buyer tax credit which is available until Dec. 1, the Home Run program will only be in effect while grants are still available. We expect the grants will go quickly, so we encourage anyone interested in taking advantage of this program to start acting immediately.

To apply for the grant, home buyers should work through any lender qualified to make mortgage loans under Utah law. Lenders will work directly with Utah Housing Corporation to apply for the grant money. At closing, the $6,000 will be credited toward the buyer's down payment or closing costs. Buyers can use any type of traditional 30-year fixed-rate mortgage to qualify, including conventional, FHA, VA, USDA and Utah Housing loans.

Consumers do not have to be first-time buyers to qualify for the program but incomes cannot exceed $75,000 for singles and $150,000 for married couples. Buyers who qualify can take advantage of both the $8,000 federal home-buyer tax credit as well as a Home Run grant.

The Home Run program aims to clear the excess supply of unoccupied real estate inventory on the market. This is expected to stabilize housing as well as create new jobs and revenue in the state.

Utah Senate approves $6,000 New Construction Grant

Alpine Real Estate (Alpine Real Estate) — Wed, 18 Mar 2009 00:52:57 -0700

The Utah State Senate OK'd a bill that would allow buyers of new construction homes to get a $6,000 grant towards the purchase of a New Construction home. There is a surplus of homes for sale in Utah, and a good portion of these are new construction. The idea is to help get rid of this inventory to aid struggling builders.

The money used for the grant program would be provided from the funds Utah was given as part of the Obama federal stimulus money. There is only enough of this money for 1,600 buyers, so it would be granted at a first come first serve situation. Great incentive to buy now. The other stipulation for the grant program is only available for people making less than $75,000 a year. Non first time buyers will qualify for this program if it is implemented.

$6,000 GRANT on New Construction

Alpine Real Estate (Alpine Real Estate) — Wed, 18 Mar 2009 00:51:10 -0700

The Utah Senate has approved a proposal to give buyers of newly built homes a $6,000 down-payment grant using funds from the federal economic stimulus package. Senate Bill 260, sponsored by Sen. Scott Jenkins, R-Plain City, aims to stimulate sales from an excess inventory of new homes on the market left over from a building boom that came to a halt about two years ago. The funding would come from the $10 million Utah is slated to receive for housing assistance from the American Recovery and Reinvestment Act signed into law last month. Funds would be used to help more than 1,600 buyers on a first-come, first serve basis. Existing homeowners would be eligible as well as first-time buyers. "The goal is for people to buy the existing inventory out there," said Sen. Greg Bell, R-Fruit Heights. "We don't care if it's their first time, as long they're buying a new home that's already on the market." Grants would be awarded through the nonprofit Utah Housing Corp., the entity created by the state to administer housing assistance programs. The grants would only be available to buyers obtaining 30-year, fixed-rate mortgages. Individuals making more than $75,000 annually, or married couples making more than $150,000, would not be eligible. Sen. Jon Greiner, R-Ogden, said a recent tightening of lending standards has prompted lenders to raise their required down payments, and few houses can currently be purchased with a $6,000 down payment. But when combined with other incentives, the grants could be a powerful tool for reducing excess inventory, said Mike Ostermiller, chief executive of the Northern Wasatch Association of Realtors. "You can debate the effect of $6,000 by itself, but when you combine it with the $8,000 federal tax credit, record-low mortgage rates and ridiculously low prices, this could have a big impact," Ostermiller said. The University of Utah's Bureau of Economic and Business Research estimates that such a program would create 8,000 jobs in Utah's housing sector and add $27 million in income tax revenue to state coffers. While the proposal doesn't directly address the inventory of unsold, previously occupied homes on the market, Ostermiller said it will stimulate activity that will be good for the market in general. "The most important thing is getting some movement in the market," he said. "Your chances of selling your home are much better if this eats into the new inventory." The Senate voted 22-to-5 Monday in favor of SB 260, which Jenkins said could go a long way toward fixing the Utah housing market. "We hope it has a positive effect. We will see where it takes us."

New 8,000 Tax Credit For First time Home Buyers- No Repayment

Alpine Real Estate (Alpine Real Estate) — Mon, 16 Mar 2009 01:14:35 -0700

The "American Recovery and Reinvestment Act of 2009," passed the House and Senate on Friday, February 13,2009
(edited)The President did sign this bill on Feb. 17th. The new bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.

This credit does not require repayment as long as you stay in the home three years, or more.

A first time home buyer is defined as someone who has not owned a property in the last three years.
This credit can not be received if a first time buyer purchases a property to rent out. It has to be your principle residence.
This credit applies if you purchase a single property residence, or condo, or a townhouse.

The income requirements are maximum $75,000 for a single buyer, and $150,000 for a married couple.

The credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

$8,000 incentive to first-time buyers

Alpine Real Estate (Alpine Real Estate) — Sat, 14 Mar 2009 20:30:04 -0700

Enhanced tax credit provides $8,000 incentive to first-time buyers

$8,000 Home Buyer Tax Credit at a Glance

The tax credit is for first-time home buyers only.
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.
The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

The National Association of REALTORS® estimates there will be an additional 300,000 home sales because of the credit, which NAR Chief Economist Lawrence Yun says will help reduce inventory levels and stabilize prices in many parts of the country. To learn more about the home buyer tax credit and eligibility requirements, visit www.FederalHousingTaxCredit.com.

One of the biggest wins for first-time home buyers in last week's economic stimulus bill is a tax credit up to $8,000 for qualified purchases of a primary residence. Increased from last year's original $7,500 home buyer tax credit, this new incentive does not have to be repaid, making it a true tax credit rather than an interest-free loan.

FHAUTAH.com

AlpineContractors.com

FHAUTAH.COM is now Online!

Alpine Real Estate (Alpine Real Estate) — Sat, 14 Mar 2009 20:25:47 -0700

Wasatch Mortgage is proud to annouce that FHAUTAH.COM is now online!

We feel like it is important to provide Utah with all FHA updates that apply directly to our community. Now there is one site that will post any applicable FHA updates!

What you will find:

New FHA Limits.
New FHA lending guidelines.
New FHA programs.
New FHA requirements.
New FHA grants.

FHAUTAH.com

AlpineContractors.com

So you want to buy in Costa Rica?

Alpine Real Estate (Alpine Real Estate) — Wed, 17 Dec 2008 04:05:45 -0800

You've made up your mind that you are definitely moving to Costa Rica...you are sitting in a coffee shop and a young Costa Rican man approaches you , and , in broken English, informs you that his Uncle is selling a property "with a gorgeous view' and at "a really low price." He then explains that you will be able to save "much dollars" because you are buying direct from the family and will not have to pay a commission.

Too good to be true? Try telling this story to any "gringo" living in Costa Rica and you will get knowing smiles and nodding heads
.
This scenario and countless similar variations are played out everyday in Costa Rica ...and the saddest part of the story is that most buyers don't know until sometimes years later how much they have overpaid for their property.

The above example can almost be laughable because who among us would not try and get as much as he or she could for their property if a group of rich aliens descended upon their neighborhood?
Nearly all reading this will know that there are no governmental or local regulations regarding the sale or purchase of real estate in Costa Rica. In other words, it is CAVEAT EMPTOR (let the buyer beware) and"anything goes". You are truly on your own.

This is not meant to imply that there are not honest real estate people in Costa Rica...there are... but how do you find an honest real estate person AND get the best value for your purchase? Despite the fact that Costa Rican real estate can be among the most beautiful in the world, none of us likes to feel as if we were taken advantage of.

Most "gringos" , when shopping for real estate in Costa Rica assume:

1. The real estate system in Costa Rica is VERY similar to that in the States or Canada.

2. Houses are readily available for purchase in Costa Rica, and , while they may be slightly different, can be easily remodelled.

3. How different from the States and Canada can the real estate system be if there are real estate firms such as ReMax and Century21 in Costa Rica?

4. The internet is a true and valid representation of real estate and pricing in Costa Rica.

5. The entire array of services, such as electric, telephone, internet and water are readily available almost everywhere in Costa Rica.

6. Title insurance and protection against fraud is easily obtained. The SAD truth to all of the above is that all are false!

The reality:

1. The real estate system in Costa Rica is "wide open"

2. There are no "comparables" here of any kind so you never really know if you are paying a fair price

3. There is virtually no protection against fraud and misrepresentation in Costa Rica.

4. It is more expensive to remodel an existing home than to build...and there is really not much protection against builder fraud...unless you take certain steps.

5. Real estate franchises here mean nothing as they are not bound by strict rules and regulations as in the States or Canada. They are used purely as a marketing tool here.

6. Utilities and all auxiliary services and common infrastructure services are not readily available in all areas of the country. Even in some of the more affluent areas of Costa Rica it is common for power
and water to be "out" for several hours three or four times weekly. Phones in some areas may take literally years to be available. Building permits in some areas are being denied because the local
infrastructure cannot support the increased population. In some beach areas, the issuance of building permits may NEVER resume as the infrastructure simply cannot support the number of incoming
"gringos". DO NOT ASSUME ANYTHING IS THE SAME....TAKE NOTHING FOR GRANTED!

7. Approximately 40% of all gringos who settle in Costa Rica return "home" within five years... and well over 55% of gringos who settle on beach areas year round return in the same time frame.

8. Real estate fraud is common, even with title insurance. Assume that you will need an attorney to check on your first attorney! (Seriously...)

"OK, you have my attention. How can I tell if I am not overpaying for real estate?"

Sadly , it is impossible to know if you are getting a good price or not. The vast majority of real estate firms show their listings at the price that the owner asks. But the most important item to know about Costa Rican real estate is: Costa Rican real estate is a two tiered market: one price for Ticos (locals) and one price for Gringos (foreigners).

So...the question then becomes "how do I, a gringo, obtain Tico pricing?" .... OR... "Why should I believe you ? You're just trying to get more business for yourself?"

Let's address the last question first. My company operates in a very very small geographical area of Costa Rica... probably less than 5% of the country. We have more business than we can handle .
Our firm has several Tico "scouts" that talk to potential sellers of property in our area daily. We do not list every property we find for sale because 90% of the properties or homes we preview are overpriced. Remember, the old cliche of "almost everything in Costa Rica is for sale at the right price" really does have some validity. ( look at it this way: if someone offered you twice what your home was worth you would probably consider selling and buying another and pocketing the difference, right?). Because we see so many properties we are aware of what is a value and a fair price. Most people , including locals, are not.

If you take a look at the many advertised websites selling real estate in Costa Rica you will often find literally hundreds of homes and properties for sale AND will refer to an MLS that exists in Costa Rica.
TRANSLATION: this means that these listings are compiled from other websites and claimed as their own. There are virtually no exclusive listings in Costa Rica. These firms categorically have not
talked to all of these listings and are claiming them as their own. In point of fact, 99% of all real estate transactions in Costa Rica take place exactly as they have for decades...primarily through word of
mouth.

"SO...what next? How do I find my ideal property...and at a fair price?"

In my opinion, your initial assumption should be : " all real estate in Costa Rica is overpriced."
Then step two: spend time finding an area or town that you absolutely love and that "feels right". Spend time there. Talk to the local gringos about prices, utilities, infrastructure...all of the items on your "check
list". These people live there. They should be able to tell you the pros and cons about life there.

Now comes the difficult part... WHAT and WHERE and at WHAT PRICE?
There will most likely be areas within your personal "chosen area" which will be more expensive than others...Grecia, for example, has a specific area ( San Isidro de Grecia ) which has a preponderance of gringos and is at least priced 50% higher than surrounding properties? Why?...

who can say. In my opinion, it is not worth it. But the point here is :
make sure that you see ALL surrounding areas not just one or your decision making will be affected.
In many areas there are simply no "well known" real estate firms or firms that advertise on the internet OR who even speak English. ( keep in mind that "everyone" is a realtor in Costa Rica , or at the very least, knows someone that is selling property ). But it is imperative that in order to find the best pricing you need SOMEONE who knows the area and can at least ferret out good prices.

Several important points:
1. Ticos prefer to live on a main road. They do not all have cars and generally prefer to purchase something smaller and on a bus line. ( smaller properties, i.e., those under 5000 sq. meters, can only be legally purchased if on a main or principle road ).

2. The average Tico family makes perhaps between $500 and 700 per month. Most Ticos cannot afford the same properties that gringos can. This should be self explanatory except that most gringos do not
even consider it when thinking about purchasing.

3. 95% of gringos prefer properties that offer privacy, and yet still offer convenience and security...and of course , we all want a view AND a river! And certainly at least an acre or two. Be specific with your
WANT list. Make sure that you know exactly how much a new road will cost or new power lines to your dream property. It has to be factored in.
When my wife and I were looking for property and made the discovery that it was going to be nearly impossible to find an existing house to buy...we utilized the services of a local tour guide to help find property. We did not find out until later that we overpaid for our property by almost double. We are still not sure who pocketed the difference between the sales price and what the actual price SHOULD have
been...and at this point it does not matter except to serve as an illustration and a warning to others in the same position.

4. Do not be in a hurry to buy. Rent if possible and get to know the area.

5. Ultimately you will have to hire someone to help you find property. But... ( and this is crucial ) be sure to let this person know that you are aware that the seller will most likely be giving "your employee" a
commission and that you will expect to be able to verify the exact sales price. You may even tell this person that your attorney will need to verify the price. It is imperative that your employee know that you
know exactly how the system works . It will not ensure that games will not be played but it will help.

6. Talk to local gringos and ask for help. Seek out a local attorney or two and do the same. Talk to the local bank president. You will slowly get an idea of the local pricing structure. Unless you are fortunate enough to find a real estate firm in which you have total confidence...you definitely will need to utilize locals to be your "scouts". And it is crucial that you instruct them that the sellers NOT know that a gringo is interested in buying. ( if you use more than one "scout" you will quickly see the gap between gringo and Tico pricing and the disparity which is always here . And if you do not see it...then something is wrong with your scouts' findings. )

A few more observations.....
-if you are planning on living in a predominantly Gringo community or in a popular beach area...it will become even more difficult to find good pricing and value. Demand and prices have become nearly
stratospheric. It will take either luck or perseverance to obtain a true"value" near the ocean or in a more expensive gated community. The above is primarily for the purchase of raw land. The following
should be used as a rough guideline when purchasing land with an existing home:

Construction costs ( inc. architect fees, utilities, landscaping and all extras):
Central Valley: between $38 AND 42 per sq. foot.
Ocean or beach: between $48 and 60 per sq. foot
Gated or development areas: sky is the limit
You will be the only one to determine how much of a premium you are willing to pay. And remember in figuring replacement value, Ticos include ALL tiled area in their size estimates. You should not. ( for
example, a tiled outside porch area does not cost as much as an inside portion of the house...figure roughly a third as much ). If , when your search is complete, you end up with your "perfect" property... Do NOT FORGET YOUR CHECKLIST!. And lastly...make sure that you obtain the services of a good attorney ( and ensure that he or she is bilingual and that you have all documents translated ). Ask local gringos for referrals or other Tico professionals. And , if you are still worried about fraud or accuracy... hire another attorney to check on the work of the first. It may be well worth the extra $50 or so that it will cost.

What is the Real Scope of the Real Estate Fraud Problem in Costa Rica?

Alpine Real Estate (Alpine Real Estate) — Wed, 17 Dec 2008 03:38:32 -0800

For sure it is safer to buy and own property in Costa Rica than in other Central American countries. And the legal system offers a great foundation to property owners. Big or small problem, reality does not allow to wave away that fraud exists.

Here's a summary of what I found in the Nacion:

The somewhat alarming article states that the National Registry has it's hands tied in trying to protect real estate ownership rights. The institute can't control nor prevent fraud. Actually they don't have a system to prevent fraud as it does not take place within the Registry. This crime appears when a person is robbed illicitly of his/her property and presents a serious problem affecting the Registry. Since 2004 over 250 of these fraud reports have been filed.

How can a property illegally pass to another owner? In most fraudulent cases, a public notary, already deceived or part of the scam, modifies the registry data of a property by presenting false testimonies to modify a registered title. The property changes hands and the "new" owner can sell the property to a third party in good faith or, mortgage the property.

The National Registry claims that the real problem is the fraudulent notaries. The Registry only checks that paperwork is properly forwarded.

The National Direction of Notary Professionals is responsible for monitoring the 9,000 Notaries that work in Costa Rica however, they do not have the tools, the resources nor the logistical support to carry out this work.

This situation was the subject of an inter-institutional commission in which the Ministry of Justice, The National Direction of Notaries, the Costa Rican Institute of Notarial law, the college of lawyers, the College of Topographical engineers and the National Registry are seated.

The commission checks the "modus operandi" of various scams and measurements are taken to resolve the fraud problem. One of the actions taken is to check if registered property owners are among the living. Another one is that a property will be frozen when fraud is detected.

Taken measurements are not enough and if changes are dependent on politicians, fraud in real estate will be problem to deal with for quite some more years.

What Can You Do To Prevent a Real Estate Nightmare?

As a property owner you can do a simple title check online yourself at the National Registry website here.

Check this information regularly and consult your lawyer/notary whenever you notice a change in data.

When you are looking to buy a property, please take extra precautions dealing with following property characteristics (have property history thoroughly checked):

When the property is located in zones with high appreciation in real estate like Escazú, Curridabat, Santa Ana and coastal areas in Guanacaste.
Properties completely free of liens.
Properties with a very long clean history; p.e. belonging to the same person for decades
When a property looks abandoned or not taken care of. These properties would be "attractive" for fraud as the owners are not checking their property situation.

When you are victim of a scam, find a lawyer with experience in fraud cases. To file a lawsuit correctly is essential.

Costa Rica Property Scam

Alpine Real Estate (Alpine Real Estate) — Wed, 17 Dec 2008 03:32:22 -0800

Every few years, Costa Rica floats to the top of the offshore charts and then falls back down again. Well, those of you who don't already know it, Costa Rica is again all the rage. We have had countless calls from folks who are interested in setting up structures in Costa Rica for tax and other purposes, and who claim to have friends who have been successful with these structures. They all want to set up a Costa Rica structure to avoid taxes and use the proceeds to purchase Costa Rica property -- and that's where the scam comes in.

No doubt, Costa Rica is a beautiful place which abounds in opportunities and it appears to be one of the leading jurisdictions for U.S. expatriates to settle down in. Unfortunately, too many of these expatriates are expatriates because they were caught in the U.S. committing some sort of scam or fraud, or committing tax evasion. And so, it is a notoriously corrupt little country, with at least as many scammers as Belize, Antigua and Nevis.

So, faithful readers, let me chronicle here the infamous Costa Rica real property scam, a scam which seems to occur most often in Costa Rica, but happens with varying frequency in other countries throughout Central America.

This starts with successful American businessmen who think they know it all. From their point of view, it is pretty simple -- form a Costa Rica company with bearer shares and deposit a lot of money with an offshore bank. Then, use the Costa Rica company to go buy a beautiful piece of Costa Rica real estate at bargain basement prices. At retirement, you simply cash out of the United States and go to Costa Rica to live happily ever after.

Unfortunately, in the words of fellow Oklahoman the late Will Rogers: "It ain't what you know, it's what you know that ain't."

Here, the ain't is adverse possession law and squatters rights. Most of the visiting Americans blindly assume that Costa Rica has adverse possession laws which are roughly similar to those of U.S. states, which typically require 10 years or longer to establish any meaningful rights. Unfortunately, it ain't so and directly to the contrary Costa Rica has elaborate laws which give squatters immediate and immovable rights, and there is simply no way to get them off the property once they are on, except to pay them to agree to move off.

Let's look at this from the viewpoint of the Costa Rica real estate salesman, which is radically different. For him, it's easy: Simply get a bunch of wealthy Gringos to come to Costa Rica. Show them some beautiful (and vacant) Costa Rica property, and get them to pay you big dollars for it. Then, as soon as they get back on the airplane, move some squatters onto the land. When the Gringos show back up again, they own beautiful property that they can't use because of the squatters. Thus, the Costa Rica salesman approaches the Gringos and tells them that it is unfortunate that the squatters showed up on the property, but there is nothing either he or the courts can do to get them off. However, out of the kindness of his heart he will purchase the land back at some nominal sum, say 10% (which the Gringos take because the land completely worthless with the squatters on it). Then, the salesman moves the squatters off the land, once again leaving it vacant, and repeats the process. The local economy and the salesman are much enriched by this transaction, and the Gringos go back the States wishing to hell that they'd never heard of Costa Rica.

This scam has been around for as long as we can remember, and fades in and out as people remember or forget it and others get the word. It hasn't made headlines anywhere lately, so it is back to booming again. Doubtless, there are a bunch of folks back here in the U.S. who are dreaming of finally retiring to their new property in Costa Rica. Unfortunately, for many these dreams will be nightmares.

This is big business in economically-distressed Costa Rica, just like the Nigerian Central Bank letter is the 3rd biggest industry in Nigeria. Be careful not to be a part of this particular international financial aid program.

Free Money for Houses, College or Small Businesses!

Alpine Real Estate (Alpine Real Estate) — Thu, 20 Nov 2008 23:50:17 -0800

The free money comes from an under- used program in Utah called the Individual Development Account (IDA). The accounts are funded by a combination of private and governmental contributions and administered by the non-profit AAA Fair Credit foundation (877-787-0727 or email info@uidan.org). UIDAN stands for Utah Individual Development Account Network.

Here's who qualifies:

- Utah resident

- Minimum 18 years of age

- Currently employed

- Less than $10,000 in net assets (one house and one car do not count towards that $10,000)

- Income Limits:

Household Income

1 Person $20,800
2 Persons $28,000
3 Persons $35,200
4 Persons $42,400
5 Persons $49,600
6 Persons $56,800
7 Persons $64,000
8 Persons $71,000

Here's how they work:

You commit to a program that includes classroom instruction on money management. You open a savings account at a local bank and agree that for one to three years you will make regular, monthly deposits that are monitored by case manager. Your deposits are matched 3-to-1 up to $1,500. So, assuming you deposit the maximum $1,500, at the end of the program you will have $6,000 - plus interest.

That money can be spent on...

- 1st Time Home Purchase

- Tuition at a College or Vocational School

- Starting a Small Business

Martha Wunlerli, the statewide program coordinator for the IDA program said, "Individual development accounts allow low income people to build wealth and gain the financial skills to move into the financial mainstream and stay there. It's all about getting out of poverty and staying out of poverty or preventing poverty. A lot of savers are young people just starting their career. They may not think about being poor, but we know that if they don't watch their money carefully when they're young, and those students loans accumulate, that they could be the next generation of poor people."

$7,500 Tax Credit FAQ

Alpine Real Estate (Alpine Real Estate) — Wed, 15 Oct 2008 12:21:50 -0700

$7,500 Tax Credit FAQ (edit/delete)

7500 Tax Credit FAQ

Information for First Time Home Buyers. The following are questions and answers regarding the Tax Credit

Who is eligible to claim the $7,500 tax credit?
First time home buyers purchasing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.

What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. No other applications or forms are required. No pre-approval is necessary; however, prospective home buyers will want to be sure they qualify for the credit under the income limits and first-time home buyer tests.

What types of homes will qualify for the tax credit?
Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.

Instead of buying a new home from a home builder, I have hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after April 9, 2008 and before July 1, 2009.

In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

What is "modified adjusted gross income"?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.

To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $7,500 are available for some taxpayers whose MAGI exceeds the phaseout limits. The credit becomes totally unavailable for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000.

Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $7,500 by 0.5. The result is $3,750.

Here's another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $7,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,625.

Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

Does the credit amount differ based on tax filing status?
No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files their taxes as "married filing separately" (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.

Are there any circumstances for which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?
In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.

I heard that the tax credit is refundable. What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).

What is the difference between a tax credit and a tax deduction?
A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS.

A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer's tax liability would be reduced by $1,125 (15 percent of $7,500), or lowered from $7,500 to $6,375.

Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
No. The tax credit cannot be combined with the MRB home buyer program.

I live in the District of Columbia. Can I claim both the DC first-time home buyer credit and this new credit?
No. You can claim only one.

I am not a U.S. citizen. Can I claim the tax credit?
Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.

Does the credit have to be paid back to the government? If so, what are the payback provisions?
Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

Why must the money be repaid?
Congress's intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.

Because the money must be repaid, isn't the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?
Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.

If I'm qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2008 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the future home buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment. Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding.

East Layton Mountain Estate - 3311 E. Cove Circle, Layton, Utah 84040

Alpine Real Estate (Alpine Real Estate) — Thu, 25 Sep 2008 01:00:46 -0700

Via Jeramy Jones:

Mountain estate with uncompromised quality. Unobstructed lake & mountain views. Boarders BLM with exclusive trail access to Adam's canyon waterfall & hiking trails. All the extras you would expect from vaulted ceilings to granite countertops. The exclusive Twin Peaks neighborhood offers the privacy and prestige you are looking for. Call 801-721-7100 for an appointment, Ask for Jeramy!

Beautiful Bear Lake Custom Log Cabin - 38 Wedge Way, Bear Lake, Utah 84028

Alpine Real Estate (Alpine Real Estate) — Thu, 25 Sep 2008 00:21:10 -0700

One of a kind custom log cabin with lake & golf course views. Immaculate down to the details! Vaulted ceilings, master suite w jetted tub & privite deck. Rock fire place, tiled floors, scribed logs, year round access. Lavishly furnished & Decorated.

To Schedule a showing, please call 801-721-7100, ask for Jeramy!

Will a Short Sale negatively affect my credit?

Alpine Real Estate (Alpine Real Estate) — Wed, 24 Sep 2008 12:54:15 -0700

A short sale almost certainly will negatively impact credit scores because you are settling the mortgage debt for less than you agreed to pay originally. I say almost certainly because in rare cases a lender may report the debt as paid in full and forgive the remaining portion of the debt.

While it is possible that the lender would forgive any remaining balance, the words "short sale" will not appear on your credit report. Rather, the account status accurately should be reported as "settled," which means paid but not in the full amount that you originally agreed to repay, just as your lender described.

Because it is a mortgage, the impact of settling the account will probably be significant. Just how significant, though, depends on your unique credit history.

A short sale would have less impact on the credit scores for a person with no other negative information than for a person who had late payments or collection accounts in their history. In either case, though, the damage to your creditworthiness, and therefore your credit scores, will be substantial.

If your objective is to get rid of the debt so you can quickly apply for new credit, a short sale probably won't help. That should never be your goal, anyway.

Rather, you need to think about your long-term credit health. A short sale is one option that may help you get out from under debt you cannot manage. Once you are free of that unmanageable debt, you can begin to take steps to rehabilitate your credit history so that in months, or maybe even years, down the road you can obtain the credit you want and can manage in ways that work to your advantage.

Our National Debt Just Doubled!

Alpine Real Estate (Alpine Real Estate) — Wed, 24 Sep 2008 02:25:21 -0700

We Just Doubled our National Debt

"It's good for us!" "There was no choice." "It had to be done."

Everyone keeps trying to tell me that what was casually announced on Sunday -- when nobody would be paying any attention -- that the government would be bailing out Fannie and Freddie -- would be "a good thing!"

Why do I feel like I just swallowed that yukky cough medicine that my grandmother spooned down our throats when I was a little kid -- the kind that constricted my already sore throat like a really dry wine.

Doesn't it bother anybody else that we just doubled our national debt?

This was so orchestrated it makes me sick. It reminds me of when Chevron bought Gulf Oil Corporation in 1984. The board of directors just rolled over and died -- and left all the employees (not to mention the entire city of Pittsburgh) just hanging out to dry while they took their stock options. Trust me. I was in charge of the records. They made lots and lots of money.

Doesn't it bother anyone else that Wall Street's investment bankers are at the helm of our money supply? There are people making money here and I'm not sure that it is necessarily going to be us Realtors.

Yes, we will sell a few more houses and pull out of the slump when the mortgage rates go down a bit.

What is the real price?

Who is next. GM? Ford?

I read the Tough Love book. I know not to bail my kids out of jail. This is not a whole lot different.

We are headed down the road to socialism.... We need more personal accountability and not less.

Now everybody has their hand out. Like the man with the 430 credit score who called in on a floor call and could not understand why he could not get any credit to buy a house. People want something for nothing -- and why not? Uncle Sam will bail us out -- but with what? Money we don't have.

The government just doubled our national debt! We are now tumbling down the slippery slope at a very fast pace!

Costa Rica - Investing Abroad

Alpine Real Estate (Alpine Real Estate) — Wed, 24 Sep 2008 02:17:10 -0700

Doing Business in Costa Rica

Costa Rica remains one of the safest and most attractive country for foreign investment in Latin America. The Costa Rican government, its ministries and financial institutions maintain a decidedly pro-U.S. and continental stance in regard to financial security and tax laws. The stated aim is to entice primarily high-tech corporations to take advantage of Central America's most educated, computer literate and disciplined workforce, along with the modern production infrastructure the country is currently creating. The economy is being transformed from its long-time dependence on coffee, bananas and cattle raising to one centered on microprocessor production and high-tech telecommunications services.

The Costa Rican-American Chamber of Commerce

AmCham is an important resource for anyone interested in doing business in Costa Rica.
http://www.amcham.co.cr/

This investment-friendly climate and government policy of making Costa Rica "the Silicon Valley of Latin America" has enticed commercial leaders such as Acer, Microsoft, GE, Abbot Laboratories, Continental Airways and Intel Corporation to make sizable investments here, both financially and physically, with major production and distribution facilities. Western Union has chosen Costa Rica to host its Latin American regional operations center. In 1998, for the first time ever, Costa Rica is poised to earn more from high technology exports than from coffee or bananas or even its lucrative, thriving tourism industry.

The World Bank has given Costa Rica an excellent bill of overall political and economic health. At its annual conference in El Salvador this year, the bank lauded the country as possessing "one of the most stable and robust" democracies in Latin America. It went on to praise the Costa Rica's "healthy economic growth rate" and "some of the best social indicators" on the continent.

Costa Rica is one of the most vocal supporters of continental free trade, and already has its own agreement with Mexico and other countries of the region. Costa Rica's numerous free trade zones and tax holiday opportunities are extremely enticing. They offer benefits such as exemption from import duties on raw materials, capital goods, parts and components; unrestricted profit repatriation; tax exemption on profits for eight years and a 50 percent exemption for the following four years.

A study done recently for the Ministry of Foreign Trade (COMEX) projects that by the year 2005, Costa Rica's export earnings will amount to $15.7-billion, about four times the current figure. Intel will be leading the way; its exports, from the three manufacturing facilities the processing giant is building here, are expected to reach an annual $3.5-billion by the year 2001.

High-tech companies will spur the export boom, while traditional exports, such as coffee and bananas, will fall in percentages of overall figures, but in terms of revenue, will continue to grow.

Costa Rica is building a competitive advantage for itself and the many high-tech companies who have chosen or are pondering the option to operate here. It is a country at a turning point in integrating itself into the modern world economy. Those doing business here will have the inside track.

Getting Here

The best way for potential investors to begin their search is to travel to Costa Rica and find out first-hand about the favorable business climate and opportunities. There are direct flights to San José from many cities in the United States and Canada. For all accommodations and tourism inside the country, there is no better service than Travel Web, which you can easily contact by phone at our toll-free number or on-line.

Amcham

Among the more knowledgeable and helpful sources of information on investing and doing business in Costa Rica is the Costa Rican-American Chamber of Commerce (AMCHAM), composed over 1,500 representatives from more than 330 multinational and local companies.

Business Resources

CINDE, the Costa Rica Investment and Development Board, has been officially commissioned by the government of Costa Rica to be the main promoter and advisor to foreign investors. CINDE is a private, non-profit organization that provides complete and updated information on the economy and the business environment in Costa Rica, and helps in the initial contact with potential investors. It has an office in New York to provide tailor-made services. PROCOMER, the Foreign Trade Promotion Institute, can help exporters understand relevant legislation, acquire export permits, seize the advantages of market opportunities and chart their way through related fields of endeavor. CADEXCO, the Costa Rican Exporters Chamber, provides information to entrepreneurs, private and public institutions on export procedures and requirements; trade barriers and how to overcome them; how to sell products abroad; information on export credit lines and export contracts, international prices, etc.

Internet Services

Costa Rica's Internet services are the most readily available and sophisticated in Central America. Informática Internacional, the country's longest-serving private sector Internet services company; is one of the leading providers of Internet services nationwide. Through its diverse client base and wide range of products and services, Informática has ways to improve any business, personal communications needs, or assist in the electronic marketing of products and services. Through Informática, corporations and individuals planning to settle in Costa Rica can acquire Internet domains and E-Mail addresses in the country even before making the actual physical movement.

Real Estate

All individuals and private companies, local or foreign, can own land and property in Costa Rica. Few restrictions apply, the most important being physical occupancy and a 50-meter limit from the beach on oceanfront property. Potential real estate investors, and their lawyers, must first go to the National Registry for a title search, to the Ministry of the Environment and Energy for an environmental impact study, the local municipality for zoning laws and building permits, and then perhaps to other ministries and institutions for pertinent information. There are some excellent Real Estate agents who can find you the property you want. In addition, pick up The Golden Door to Retirement and Living in Costa Rica. It covers all aspects of living and investing in the country, and is required reading for anyone thinking of living full- or part-time here.

Privatization

The government of Miguel Angel Rodríguez has assumed a constitutional and legislative commitment to deregulation and privatization through a national consensus process. Instead of simply selling off state owned companies and institutions to the private sector, Costa Rica has opted for a phased opening up of areas such as telecommunications. For example, ICE, the Costa Rica Institute of Electricity, which today holds a constitutional monopoly in the field, will not be sold - the various telecommunications services will be offered as concessions, and ICE will become just another player in this modern, competitive branch.

Ogden Ranked #11 in the nation as "Best Places for Business & Careers"

Alpine Real Estate (Alpine Real Estate) — Wed, 24 Sep 2008 00:49:16 -0700

Yes, Ogden is ranked #11 in the nation as "Best Places for Business & Careers." If you want to read the full article, please follow the link below:

http://www.forbes.com/lists/2007/1/07bestplaces_Best-Places-For-Business-And-Careers_Rank.html

Own in Ogden

Alpine Real Estate (Alpine Real Estate) — Fri, 19 Sep 2008 13:20:18 -0700

CITY OF OGDEN, UTAH

Own in Ogden is an Ogden City, a Utah Municipal Corporation program designed to increase home ownership in specific targeted neighborhoods. Persons buying primary residence homes in the overall Own in Ogden Target Area (see map) can qualify for a $3,000 zero interest, deferred payment, declining loan to assist with that purchase. Specified Target Neighborhoods receive $5,000 loans (see page 2). Income qualified, sworn Ogden City Police Officers and Ogden City Fire Fighters receive $10,000 loans when buying a primary residence within the overall target area.

Own in Ogden loans can only be used at the time of closing for down payment, closing costs, or, if funds are remaining, a principal reduction toward the first mortgage loan. Own in Ogden funds are available on a first come first serve basis.

II. PROCEDURE

When Buyers find a home and complete negotiations using a Real Estate Purchase Contract, they submit for assistance with the following initial requirements; (1) Own in Ogden Application, (2) Own in Ogden Commitment Letter, (3) Real Estate Purchase Contract, (4) Picture Identification and (5) Income information (most recent tax returns and pay-stubs for all household members over the age of 18).

Non US citizens must also provide documentation of legal residency at the time of application. Buyers will also be required to provide a completion certificate from the HUD-approved home buyer class prior to closing. After the application is received, the Program Administrator coordinates the finalization of file requirements, approvals and funding.

III. REQUIREMENTS

Household Income Qualifications:

Income information in the form of pay-stubs and recent tax returns are required to qualify for the Own in Ogden Program. Every member of the household over the age of eighteen must submit income information regardless of their participation in the real estate purchase. The annual household income (all members over the age of 18) cannot exceed 80% of the area-wide median income. These income limits, based on household size, are listed below:

Persons in Household Maximum Income

1 $36,400

2 $41,600

3 $46,800

4 $52,000

5 $56,150

6 $60,300

7 $64,500

8 $68,650

Effective 070108

Property Location: (Target Neighborhoods)

Properties must be located within the Own in Ogden target area. The current target area is from the south side of Twelfth Street (north boundary) to the Ogden River and from the west side of Monroe to the east side of Wall Avenue, then from the Ogden River to the north side of 36th Street (which is the south boundary) and from Harrison Blvd. (both sides) west to the City limits (please refer to map).
The loan amount in the overall target area is $3,000.

Specified Target Neighborhoods: (where $5,000 loans are available):
East Central, the city blocks from 20th Street on the north to 30th Street on the south between Washington Boulevard and Harrison Boulevard, including both sides of those four streets.
Ownership/Residency:
Buyers must be taking fee simple title to the property upon closing, and using the property as their primary residence throughout the term of the Own in Ogden loan. Ownership in title of persons who do not primarily reside in the property is not allowed.
Purchase Price:
Dependant on the source of funding, the initial purchase price of the property cannot exceed $397,500 for single unit, $508,850 for a duplex, $615,100 for a triplex, and $764,400 for a four-plex. Multi-unit dwellings are allowed only if the Buyer(s) intent is to reside in one of the units and an existing tenant is not evicted without just cause or through mutual written agreement with their current landlord (Seller). Property values will be confirmed by an appraisal submitted to the Own in Ogden Administrator.
Zoning:
The home must be located in an area that is zoned residential, allowing the use of the property as a primary residence. Non-conforming uses or other types of property zoning will not be allowed. Buyers purchasing properties with unresolved code enforcement citations will not be eligible to receive Own in Ogden assistance until after all citations have been resolved.
Manufactured Housing:
Manufactured housing must be located on a permanent foundation, connected to utility hookups and in compliance with Ogden City Code requirements.
IV. PROPERTY STANDARDS

Housing habitability and safety issues
: Own in Ogden requires that homes being purchased using down payment assistance meet basic HUD/FHA requirements for habitability, with no major structural damage or negative conditions representing a threat to resident health and safety.
Permission to conduct an Ogden City Housing Safety Inspection:
Permission to conduct a housing safety inspection is required from the property owner of record (enclosed). This housing safety inspection addresses safety issues, and must be conducted, and any required repairs completed, prior to Own in Ogden funding. To address any other property concerns, a formal property inspection conducted by a private inspection firm may be conducted at Buyers' expense.
Minimal FHA 203K escrowed repairs:
Repairs that will be completed after closing may be allowed, provided the repairs that are specified in the Ogden City Housing Safety Inspection are included in the approved outline of repairs, and that all work is conducted by a licensed contractor. Funds for approved repairs must be held in escrow and disbursed only to the licensed contractor upon satisfactory completion.
Lead Base Paint:
Any deteriorated paint surfaces that are found during the Ogden City inspection will require testing, and need to be repaired prior to funding if the surfaces are found to be positive for lead. A licensed and certified lead base paint contractor must perform all work involving the stabilization of Lead Base Paint in compliance with HUD guidelines. After repairs, a certified Lead Base Paint Risk Assessor must provide all associated clearance reports. Effective 070108 3
V. FIRST MORTGAGE FINANCING / OWN IN OGDEN REPAYMENT TERMS:

Loan approval:
Documentation from the Mortgage Lender regarding the mortgage loan must be provided to the Own in Ogden administrator. Only fixed-rate FHA, VA, or conventional financing is allowed. Purchases involving other down-payment assistance programs are not allowed. Rent to buy and lease to buy contracts are not allowed. Adjustable rate mortgages, balloon payment mortgages and interest only mortgages are not allowed. Seller carry financing is not allowed. 2/1 buy downs may be accepted upon review, on a case-by-case basis, when used in conjunction with a fixed-rate mortgage, and when the Lender provides written documentation stating loan qualification has been approved at the highest rate of the mortgage buy down plan
Expense to Income Ratio:
Documentation from the Mortgage Lender regarding expense to income ratios must be provided to the Own in Ogden administrator. Borrower(s) whose expense to income ratio exceeds 45% will not qualify for Own in Ogden down payment assistance.
Buyer's Cash Contribution:
Borrower(s) must provide at least $500.00 of his/her own money toward the purchase. This is usually in the form of earnest money. Fees paid for appraisals or termite inspections may be submitted, provided a receipt confirming direct payment from the Buyer to the vendor is provided. This $500.00 contribution is to be verified prior to the allocation of funds and cannot be included in the mortgage loan.
Lien position:
Own in Ogden Loans are secured by a Promissory Note and Trust Deed. The City prefers that Own in Ogden loans occupy second position. Third position Own in Ogden loans may be considered on a case by case basis.
Repayment Requirements:
Effective August 28, 2002, all new Own in Ogden loans will be forgiven at a declining rate over a five-year residency requirement period. During the required time of residency, 10% for each year of residency will be forgiven over a period of four years with the remaining 60% balance credited after the full five years of residency is completed. To receive these credits, Buyer(s) are required to provide proof of residency for each year. This is to be in the form of standard monthly billings, mailed to the property address, in the name of the buyer. No Own in Ogden loan credits can be awarded without proof of residency.
Refinancing:
The general policy of Ogden City Community & Economic Development is not to subordinate loans. Subordinations will not be granted to assist with debt consolidation or payment of personal debt. Loan subordinations will be considered strictly on a case by case basis under certain circumstances. These circumstances may include (1) streamline first mortgage refinancing to lower monthly payments, (2) protection of Ogden City interests, or (3) escrowed funds for property repairs being performed by a licensed contractor under a scope of work approved by Ogden City. For further details please refer to Policies Regarding Loan Subordinations, page 12.
For more information about the Own-in-Ogden Program, call or write:

Ogden City, a Utah Municipal Corporation

2549 Washington Blvd., Suite 120

Ogden, UT 84401-1333

(801) 629-8906

TDD (801) 629-8949

Effective 070108

OWN IN OGDEN APPLICATION PROCESS

ITEMS NEEDED TO SUBMIT AN OWN IN OGDEN APPLICATION:

1. COMPLETED OWN IN OGDEN APPLICATION

2. SIGNED OWN IN OGDEN COMMITMENT LETTER

3. COMPLETE REAL ESTATE PURCHASE CONTRACT INCLUDING A LEAD BASE PAINT DISCLOSURE IF THE HOME WAS BUILT BEFORE 1978.

4. CURRENT TAX RETURN FOR ALL HOUSEHOLD MEMBERS OVER THE AGE OF 18.

5. CURRENT PAY STUB FOR ALL HOUSEHOLD MEMBERS OVER AGE 18.

6. PICTURE IDENTIFICATION (to be copied by Own in Ogden Administrator)

7. NON CITIZENS - DOCUMENTATION OF LEGAL RESIDENCY

8. PROOF OF $500 CONTRIBUTION TOWARD THE PURCHASE.

ADDITIONAL ITEMS NEEDED FOR FINAL APPROVAL:

9. HOUSING CODE INSPECTION PERMISSION FORM FROM SELLER.

10. HOUSING CODE INSPECTION COMPLETED (Ogden City)

11. LEAD BASE PAINT INSPECTION COMPLETED (Ogden City) Any defective and deteriorated paint surfaces will require testing, and will have to be repaired prior to funding if the surfaces are found to be positive for lead.

12. TITLE WORK FOR THE PROPERTY.

13. TERMITE INSPECTION FOR THE PROPERTY

14. LENDER'S LOAN APPROVAL LETTER - Indicating (1) loan approval status, (2) loan amount, (3) loan terms, (4) interest rate and (5) verification of debt to income ratio not exceeding 45%.

15. LENDER AFFIDAVIT

16. HUD APPROVED HOMEBUYER CLASS CERTIFICATE.

17. SELLER'S AFFADAVIT OF OCCUPANCY

18. APPRAISAL OF THE PROPERTY.

19. SETTLEMENT STATEMENTS.

Effective 070108

Submit subordination requests to: Cheryl Hurley / Project Coordinator

(Please allow five days for processing) Community Development Division

2549 Washington Boulevard Suite 120

Ogden, Utah 84401

Phone: 801-629-8906 Fax: 801-629-8996

The End of Down Payment "Charities"

Alpine Real Estate (Alpine Real Estate) — Fri, 19 Sep 2008 13:08:45 -0700

The End of Down Payment "Charities"

The nine lives of down-payment assistance groups - controversial players in the housing industry - appear to have run out.

Federal rules require that only a charity, family member or employer can gift a down payment to a buyer who uses mortgages insured by the Federal Housing Administration. That rule spawned a cottage industry of down payment "charities" that gave down payments to home buyers and were then reimbursed by the home seller, typically a home builder.

(Since 2002, The Wall Street Journal has published three Page One stories pointing out some of the risks of the down payment gifts. See U.S. Backed Mortgage Program Fuels Risks, Scrutiny of Down-Payment Gifts Threatens Charitable Movement, and Home Buyers' Down Payments Are Now Paid by Some Builders.)

In May 2006, the Internal Revenue Service ruled that these groups were essentially funneling down payments from the builder to the buyer, while also collecting sizable fees from the builders, and thus were not bona fide nonprofits. Despite the ruling, these groups kept giving out gifts, mostly to low-income buyers who would not be able to afford a house without them.

A year later, the Department of Housing and Urban Development proposed a rule that banned seller-funded down payment assistance. But a federal judge stayed the ban, and the charities lived on.

The final nail could be the mammoth housing bill that's expected to emerge from Congress in the coming days. It would end seller-funded down payment assistance starting in October.

HUD officials, who have been warning for years that such down payment gifts lead to higher default rates, are no doubt cheering. But it's very bad news for home builders, which have been relying more on the gifts to boost flagging home sales in the absence of subprime loans. Miami-based builder Lennar Corp., for example, said recently that 33% of the mortgages it originated used down payment assistance, according to a research note by J.P. Morgan analyst Michael Rehaut.

"We believe the legislation's elimination of seller-funded down payment assistance program.....represents a material negative for the housing market and hence the overall bill could result in more harm than good near term,'' Mr. Rehaut says.

Readers, do you agree that eliminating these programs would hurt the housing market or is this a bit of "near-term pain" for long-term gain in reducing the default risk to government-backed loans.

$7,500 Tax Credit FAQ

Alpine Real Estate (Alpine Real Estate) — Fri, 19 Sep 2008 12:59:55 -0700

7500 Tax Credit FAQ

Information for First Time Home Buyers. The following are questions and answers regarding the Tax Credit

Who is eligible to claim the $7,500 tax credit?
First time home buyers purchasing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.

What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. No other applications or forms are required. No pre-approval is necessary; however, prospective home buyers will want to be sure they qualify for the credit under the income limits and first-time home buyer tests.

What types of homes will qualify for the tax credit?
Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.

Instead of buying a new home from a home builder, I have hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after April 9, 2008 and before July 1, 2009.

In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

What is "modified adjusted gross income"?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.

To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $7,500 are available for some taxpayers whose MAGI exceeds the phaseout limits. The credit becomes totally unavailable for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000.

Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $7,500 by 0.5. The result is $3,750.

Here's another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $7,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,625.

Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

Does the credit amount differ based on tax filing status?
No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files their taxes as "married filing separately" (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.

Are there any circumstances for which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?
In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.

I heard that the tax credit is refundable. What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).

What is the difference between a tax credit and a tax deduction?
A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS.

A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer's tax liability would be reduced by $1,125 (15 percent of $7,500), or lowered from $7,500 to $6,375.

Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
No. The tax credit cannot be combined with the MRB home buyer program.

I live in the District of Columbia. Can I claim both the DC first-time home buyer credit and this new credit?
No. You can claim only one.

I am not a U.S. citizen. Can I claim the tax credit?
Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.

Does the credit have to be paid back to the government? If so, what are the payback provisions?
Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

Why must the money be repaid?
Congress's intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.

Because the money must be repaid, isn't the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?
Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.

If I'm qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2008 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the future home buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment. Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding.