Has the new and improved tax credit sparked your interest in buying a home? Between the credit, the interest rates, and the pricing, the Denver home buying scene has been lively these days. Sellers finally have some incentives to put their homes on the market, plus we're seeing renewed buyer demand for the smaller, less expensive type of home often popular among first timers. Sellers are realizing that even if they cannot ask what they would like to ask for their homes, they will benefit from lower pricing on their next home while realizing a $6,500 tax credit themselves. And the interest rates we're seeing now won't last forever.
Knowing that there will be demand, some sellers may put their homes up for sale without proper preparation while others may try to pass along a few problems to the next buyer. You do not want to unknowingly buy a money pit! You should carefully examine any reports from the city before making an offer as well as have the home inspected before you buy, but you should also keep your eyes open for any warning signs of undisclosed trouble. Just because you see a few red flags does not mean you should run from the house, but "forewarned is forearmed" aptlyapplies to home buying.
Ask yourself:
Does the neighborhood seem stable? If you drive through and see homes and businesses boarded up, that might indicate numerous foreclosures and vandalism? Your realtor is prohibited by law from disclosing certain information that may prejudice you against a neighborhood, but you should look at the figures of comparable sales figures your Realtor® can offer you, check our website for Denver school information (Carol: link to schools report in our website under Local Resources) and Denver neighborhood crime statistics (Carol: link to neighborhood info in our website under Local Resources), and talk to some neighbors to make sure the area is a good match for you and your family.
Does the home seem well maintained? If the current owners are on the brink of foreclosure or living on fixed income, they may have followed the "if it ain't broke, don't fix it " approach to repairs, but you don't want to be hit with unplanned major expenses as you are unpacking your boxes. If the light switches don't turn on smoothly, the toilets don't flush, or the windows are foggy, there might be other issues involved than homeowner neglect.
Does the foundation seem sound? If you see bulges or cracks, the home may have structural damage. If the foundation is damaged or if the yard is graded to slope toward the home, you may have problems with basement flooding or at least dampness. Beware of the telltale water lines on the walls!
Do you see signs of a cover up? Any seller wants to put his property in the best light, but you want to make sure that he isn't hiding a problem. Has only one wall been painted to cover water damage? Is excessive potpourri hiding pet odors? Is there an area that has been locked or blocked with clutter to hide other damage?
GOOD NEWS for Colorado! Mortgage rates are holding, but for how long??? According to Zillow Mortgage Marketplace, 30-year fixed home mortgage rates in Colorado took a slide to a new recent low of 4.65% as of Tuesday. This is just down a tad from last week's average of 4.66%. Nationally, the average rate was 4.66% on 30-year fixed loans. Zillow says these rates are figured on borrower credit scores over 680 & a down payment of 20% or more. Winter is the BEST time for Denver Home Buyers to buy. Denver Home Sellers that leave their homes on the market are MOTIVATED! Sure it can be a hassle to look at homes when there's so much else to do during the Holidays, but it could be worth it, especially with rates SO LOW!!
THIS REAL ESTATE SUMMARY WILL POSITION YOU TO MAKE THE BEST EDUCATED DECISION YOUR REAL REGARDING ESTATE FINANCIAL PLAN.
October was the first month to out-perform the previous years sold date in 3 YEARS with a 10.98% increase! There are a couple of very good reasons for this positive change in the Denver real estate market.
1. Last October the financial world was in major disarray and
2. The First Time Home Buyers Tax Credit worked in 2009.
November's single family home active listing inventory is down to 15,076, from 18,331 one year ago.
The number of active listings for condominiums is 4,685, down from 5,366 units last November.
The current 19,761 active single family and condominium units is the lowest November inventory in more than 5 years.
The number of sold properties from Sept to Oct 2009 increased by 4.01%, instead of the usual 3% reduction we see.
Explore the NEW Tax Credit of $6,500 for existing homeowners to buy a new primary residence before June 2010.
Consider a Multi Generational Model for buying a larger home, meaning combine several generations in one family to buy jointly into the upper price range homes.
If you suddenly find yourself with a mortgage on your Denver home that is too high for your income, or if your circumstances have changed since you took it out, you may find help with the government's Home Affordable Modification Program. The need for HAMP originated with President Obama's Making Home Affordable program, announced in February, 2009. Created by the U.S. Treasury Trouble Assessed Relief Program (TARP), HAMP seeks to facilitate working with your lender to make the payments affordable. Changing the terms of a mortgage is a complex process that involves a ton of documentation from you and a ton of tedious paperwork that must be filled out accurately. HAMP strives to streamline the process.
The program aims to capture applicants who are either delinquent or on course to be. Meg Reilly from the Treasury Department claims that over 25,000 applicants are processed through HAMP each week. To date, over 500,000 loan modifications are in process. The program got off to a slow start as servicers got up to speed; in July, President Obama strongly urged the lenders to hire more staff to meet the needs of troubled home owners. This year, Wells Fargo, a major loan servicer, claims to have hired over 5,800 people to meet the need, while many other banks have followed suit. Many necessary documents are now online.
To qualify for HAMP, you must have a mortgage payment (including principle, interest, taxes, and insurance )which is currently more than 31 % of the household's monthly income. If approved, the program will lower the payment to 31% for at least five years. At that point, the interest will increase to a current market rate capped so it won't exceed a certain level. The process, which starts with you contacting your lender, stating your case, and compiling required documents, ultimately ends with a reduced payment. To arrive at a 31% payment, the lender might reduce the interest rate to as low as 2%, extend the repayment term to up to 40 years, and possibly reduce some principle.
So, does all this mean that HAMP will help you? The answer is "maybe." You must prove to the lender that you have a good reason to have the loan modified. More importantly, you must have the income to devote 31% to housing costs. If you are unemployed without prospects for a job, the program will probably not work for you.
Will HAMP help you quickly? Here, the answer is "Probably not." The process itself is lengthy. After you provide all the documentation, your case is reviewed. If you receive preliminary approval, you will be set up for a three month trial with your new payment while the bank reviews and processes your documents. If the bank cannot process your documents in time, you can get a two month extension. Once all the paperwork is processed, you will receive all the documentation in the mail.
Many who have gone through the process claim that it is hard to reach servicers. When they do get through, they complain they get a run around about their eligibility, often have to submit their documents several times, and then be told they do not qualify after starting the process. Paperwork gets clogged in the system, as people are on trials for much longer than three months with a two month extension.
Some critic say this slowness is because lenders are overwhelmed; other take a more calloused view that it is more profitable for banks to do foreclosures than do workouts. In any case, the Federal Government is committed to making this program work. This means they will also continue to help smooth out the process, as well as put pressure on the lenders to step up their processing time and increase the number of people they accept.
If you fear you are on the course to foreclose, do not despair. HAMP is a great place to start to try to work out your situation. You can take the first step by contacting your mortgage company or by visiting the Making Home Affordable site.
Super Ranch Home – 3 Beds + Office, 3 Baths
3 Car Garage
Kitchen has 2 Big Pantries with Plenty of Cabinets and Opens to Family Room. The Dining Room can easily open to the Living Room for Large Gatherings. Professionaly Finished Basement Extends Living Space to Play Area, or Great Teenager’s Retreat.
This is Not Bank Owned or a Short Sale, Just a Super Value.
The Federal first time home buyer's tax credit has gotten lot of attention this year, but states like Colorado have incentives out there for new homeowners as well. . At this time, the $8,000 credit has been extended until next April and expanded to include current home buyers, but the state programs for Denver home buyers can often be used in conjunction with the U.S. government program. Not all of the programs are confined to first time buyers.
First, Colorado through the Colorado Housing and Finance Authority (CHFA), offers fixed rate 30 year loans at market rates to homeowners on first and second mortgages through a statewide network of lenders. Part of the intent of the program is to educate buyers to be fiscally responsible, so new buyers must take the CHFA U First Time Homebuyer course while other borrowers must complete the online CHFA U Money Management course. CHFA offers the Home Opener program for first mortgage and the Home Open Plus program to help pay the down payment and closing costs. Both programs are good for any price home but have income limits. For the Home Opener Plus program, the borrower must pay $1,000 out of his own pocket. For the Denver metro area, the income ceiling is $76,000 for a one person household, $89,000 for two persons, and $98,800 for three or more; for income limits elsewhere in Colorado, click here.
CHFA Mortgage Credit Certificate (MCC) program allows homeowners to claim 20% of their interest as a dollar for dollar tax credit on their Federal income tax returns, with the 80% going to the Schedule A deduction. The program has income and purchase price limits, but targeted areas based on census tracts have higher limits. With Denver County and Denver City, there are 45 qualifying areas. The MCC program, which is also good on refinanced property, is in effect until the home is sold and no longer used as a primary residence. If the home is sold within 10 years and other conditions apply, you might have to pay back some of the credit.
To facilitate coming up with the down payment on homes where the borrower was planning to use the $8,000 credit, Colorado offers the JumpStart Tax Credit Loan program. This loan is interest free if paid back by June 10, 2010 or 8% thereafter.
The State also offers two specialized programs: CHFA HomeAccess and CHFA SectionEight and SectionEight Plus Homeownership Programs to help disabled and low income persons. HomeAccess applies to People with disabilities or parents of a child with a disability; the other aids people who have lived in Section 8 housing for at least one year. Both programs have a second mortgage option to assist with down payment and closing costs.
Coloradoans can qualify for most of these programs with lower credit scores than most conventional loans will accept. Some critics of the programs feel that people are enabled to buy a home sooner than they can really afford to. Most of the programs have an educational requirement plus a credit score requirement to prevent them from getting in over their heads.
Denver home buyers as well as the Realtors who would love to represent you are delighted that the $8,000 homebuyer's tax credit has both been extended until April 30, 2010 PLUS has been expanded to include repeat buyers. Current homeowners can qualify for up to $6,500. The maximum home value is $800,000.
For first time home buyers, this is particularly great news if you've been looking at homes and maybe even found one, only to realize that you won't get the deal done by November 30, the old deadline. (If you have a deal in progress, the needed completion date now will conform to the new rules.) If you've been thinking of buying but have been trying to do some last minute credit repair, been trying to build your down payment, or been unsure of whether to take the plunge, you have another chance. Now, that worry is gone and you will officially have more time to prepare.
If you are a current homeowner, now is your chance to move to a bigger home with a little government assistance. You can now receive up to a $6,500 tax credit. This credit is designed to aid homeownership, not reward house flipping, so you must have owned a home used as a primary residence for at least five of the last eight years. However, if you lived in a home for five years, sold it, and then either bought another house or rented for three years, you would still meet the qualifications to get help buying your new Denver home. This give a lot of flexibilty to people who have been transferred a lot or been divorced and made alternate living arrangements the past few years.
Though the credit expires April 30, 2010, the credit has a contingency that offers a few extra months to close. As long as you have a binding contract in place by April 30, 2010, you have until July 1, 2010 for all the details to be completed and the transaction closed. This means you can make offers on homes until the last minute - although doing so could backfire if another buyer snaps up your dream home while you are thinking. It even gives you an opportunity to buy a new home that might not be ready by the end of April but will be ready by July 1
The new law allows you to claim the credit with higher income levels than in the past. Now, you can earn the full credit if your income is $125,000 if you are single or $225,000 if you are married. If you make up to $20,000 more than that, the credit phases out.
The new bill requires you to attach documentation of your purchase to your tax return. You cannot apply for the credit without actually making the purchase. Whether you make a mistake based on plans that fell through or purposely try to put one over on Uncle Sam, the IRS will not be amused. This new requirement is in response to rising cases of fraud by non-qualifying home buyers who tried to use the credit without buying a home.
According to the National Association of Realtors (NAR), two million people will take advantage of the credit by year's end. The credit has contributed $22 billion to the economy and is credited with stabilizing the housing industry. In parts of the country, housing prices are increasing and housing inventories are decreasing. NAR estimates that 350,000 sales would not have occurred without the credit.
Though sales have decreased somewhat in Denver since January, 2009 when distressed properties are included, sales of non-distressed homes have increased 7%. In Denver, as elsewhere, inventories of lowered priced homes are lower than more expensive ones. Even though the credit provides more time, those who shop early will get the best selection. The Bandy Team can help you find your first or your next home in the Denver metro area, whether you have set your sites on Cherry Creek, Castle Rock, or Stapleton,
Super Ranch Home – 3 Beds + Office, 3 Baths
3 Car Garage
Kitchen has 2 Big Pantries with Plenty of Cabinets and Opens to Family Room. The Dining Room can easily open to the Living Room for Large Gatherings. Professionaly Finished Basement Extends Living Space to Play Area, or Great Teenager’s Retreat.
This is Not Bank Owned or a Short Sale, Just a Super Value.
No matter how much you love or hate your job, you don't want the day to come when your employer says "good bye" and slams the door in your face. While the 7% unemployment rate in Denver is lower than elsewhere, these forced departures still happen all too often. If you're a Denver home owner with a mortgage, loss of your major household income can throw you into a panic about how to pay the mortgage. Even if you qualify for unemployment, that is hardly enough to pay the house payment, much less take care of all your other needs.
Financial analysts always say that you should have three - six months of income in the bank, but most people living paycheck to paycheck are virtually a check away from homelessness. Even if you have reserves like that, it takes people longer to find jobs these days so eventually you may have to confront the issue of how to keep the house in the absence of a regular income.
When your income drops, you need to develop a quick plan, if you don't already have one. All creditors feel they come first, but in reality, you need to pay your mortgage, insurance, utilities, and other necessities like food, followed by your car note, then your loans and credit cards. If you have no reserves, obviously you will have to modify the list.
That brings up an issue that people usually consider last. Do you want to keep the house? Selling it may be a viable option, especially if being off work has made you evaluate whether you really need to maintain your former lifestyle. This may be a challenging time to sell, but is still worth considering. If you owe more on your loan than the value of your home, you may need to consider selling it as a short sale, where the bank agrees to accept less than the loan value as payment in full. For this, you should consult an agent who specializes in selling distressed property, as selling short sales presents special challenges. In any case, while you are off, this is a good time to do the projects that would be needed to get the home ready to sell if you decided to do so. Times where no income is coming in may not be the time to consider a high budget project, but decluttering and painting take more time (which you have) than money (which you don't.)
Assuming you want to keep the house, you need help and you need to help yourself. First step - you need to contact your lender or an outside housing counselor who will do this for you. Your lender may be able to help you if you contact them early. If you do this, you may qualify for some help in the form of reduced payments, forbearance (where you don't have to pay for a short time), or a loan modification.
For some of these plans to work, you need some income. This may mean that you accept a job that pays less than what you were making but is enough to cover the house payment and your other basic expenses. There is no point of jumping through all the hoops to get a loan modified if you will default in a few months because the payment is still too high for you.
The difficult thing is that lenders say they want to work with customers, but many distressed borrowers report that they can't reach them, don't hear back from them, or wait forever, only to be told that they don't qualify or that they should apply to the Federal program. This is why it is often a good idea to talk with a HUD-approved counselor who might be able to get in touch with your lender or at least help you explore other resources before foreclosure looms.
Sellers Love This Home But Transferred! $555k Appraisal On 7/30/09-equity From Day One! Newly Painted Gorgeous Mcstain Home In Lowry With Main Floor Office & 4 Bedrooms. Basement Finish Started (studs Up). Great Location, Fabulous Kitchen Pantry, Amazing Deal!
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Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
The Federal first time home buyer's tax credit has gotten lot of attention this year, but states like Colorado have incentives out there for new homeowners as well. . At this time, the $8,000 credit has been extended until next April and expanded to include current home buyers, but the state programs for 
Denver home buyers
No matter how much you love or hate your job, you don't want the day to come when your employer says "good bye" and slams the door in your face. While the 
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