I previously reported (in haste I admit) that the $8000 credit could be used as downpayment- however, that went out the window almost as soon as it was announced.
It has been officially announced, however, and this time it stuck, that the credit can be used towards closing costs.
How does it work? Well, its basically a short-term loan with the tax credit used as collateral.
Its brilliant!
A buyer has to buy a property between Jan 1, 20098 and Dec 1, 2009.
That's right, DECEMBER 1ST, not 31st!!
The credit is 10% of the purchase price of the home, up to $80,000. So, for most buyers in our area, they would qualify for the max credit, since most properties are well above $80,000.
The credit applies to first-time homebuyers only - those who have not owned a home in three years or more. Also, both parties in a marriage must meet this test.
Individuals with an adjusted gross income of $75,000 or less OR couples with a joint AGI of $150,000 or less qualify for the full credit. The credit is phased out as income increases. An Individual AGI of $95,000 or more or $170,000 for couples puts you out of the running for the credit.
The tax credit does not have to be repaid, so long as the buyer stays in the property a minimum of three years.
Different government agencies, non-profits and FHA-approved mortgagees can provide these bridge loans secured by the anticipated tax credit.
So, if you've been putting it off- now is the time!
Hi everyone! I bring GOOD NEWS! Ok, its not "the" good news, but it's pretty great!
The HUD Secretary today annouced that the $8000.00 first time homebuyers tax credit will now be "monetized" which means that the credit is now available for FTHBs to use as a DOWNPAYMENT! Isn't that wonderful?
Worried You Could be Facing Foreclosure? We May Have a Solution For You
TOP 5 REASONS TO AVOID FORECLOSURE
1. Military and government security clearances could be at risk with foreclosure.
2. Many employers run credit checks on prospective employees and foreclosure is one of the top items that will put a potential new hire in jeopardy.
3. Credit scores can be lowered by 300+ points affecting the ability to get a car, apartment, credit cards, etc.
4. The homeowner will always have to disclose they have had a foreclosure on any mortgage application.
5. A foreclosure is the one credit report item that is almost impossible to "repair."
If you are facing a potential foreclosure, contact the Short Sales Task Force today! Our agents have the training and experience needed to successfully negotiate 9 out of 10 short sales.
WHO QUALIFIES FOR A SHORT SALE?
It is estimated that most American families can only maintain their current living expenses for 60 days or less when income is interrupted for any reason.
You may be qualified to sell your home as a Short Sale if you meet one or more of the following situations:
1. Payment Increase or Mortgage Adjustment -- this is the single largest reason for distress in today's market. If you bought your home with an interest-only or adjustable rate mortgage and your payments have increase (or will soon increase).
2. Loss of Job -- when a homeowner loses employment, the loss of income is most often immediate and can quickly cause financial distress.
3. Business Failure -- as above, if your business is suffering, the loss of income may allow you to qualify for a Short Sale.
4. Damage to Property -- often insurance companies will not cover the full amount of damage to a property and homeowners are unable to make the needed repairs.
5. Death of a Spouse or Family Member -- if you have lost a spouse or family member and, as a result, suffer a loss of income, you may qualify for a Short Sale.
6. Severe Illness -- may result in a loss of income or large medical bills.
7. Inheritance -- if you have inherited a home and cannot keep up with the payments or maintenance, you may be able to sell the home as a Short Sale.
8. Divorce -- divorce or separation almost always results in financial hardship.
9. Relocation -- if your job requires you to move out of the area or out of state. Does not necessarily apply if you find a new job out of state.
10. Military Service -- servicemembers who have had their periods of active duty extended are suffering a tremendous amount of financial pressure and may qualify for a Short Sale.
If you meet one or more of the above scenarios, call the Short Sales Task Force today!
The Commonwealth Transportation Board voted on April 15, 2009 to fully fund Phases 3 and 4 of the completion of the Fairfax County Parkway.
The State of Virginia had set aside funds to complete Phase I & II. Phases III and IV have been made possible by the 15% of Federal Stimulus Package funds received by the state for transportation.
A bi-partisan group of representatives in Springfield, VA fought for these funds to stay in Northern Virginia. Delegate Dave Albo, Delegate Vivian Watts and Senator George Barker actively campaigned the the Governor, the Secretary of Transportation and the CTB to fully fund the Fairfax County Parkway.
This is welcome news for the people of Springfield, and specifically those living near and around the Engineering Proving Ground of Fort Belvoir, which is located just south of the intersection of Routes 7100 and 7900 and Rolling Road. The building that will house 9,000 top secret jobs can already been seen being built on the compound. It is expected that thousands more government contracting jobs will also come to the area as a result of the government job increase.
For the past 3-4 weeks, I've been driving my buyer clients around, searching for homes in the $300,000 price range and below.
Time after time, what I am encountering is this: "multiple contracts" or "multiple offers", "highest and best", "no more showings". And most of these properties with these remarks are showing as "Active" listings.
For example, a simple search (3PM Eastern) for Detached homes in Springfield, VA priced $260,000 and below yields 11 properties. Six of them are short sales. The rest are bank owned. Two of the short sale listings indicated there were contracts either being reviewed or that they were only accepting back-up offers. One of the bank-owned property's remarks indicated final signatures on their contract was forthcoming.
Of the listing agents that I was able to reach, all indicated that they in fact had already received at least one offer on their property. I suspect that the rest will indicate the same. So effectively, there are no fully available properties in this price range in Springfield. The only difference between this market and that of 2001-2003 is the status of the owner.
This is no longer a Buyer's Market. Its a Seller's Market, or more accurately, its the Bank's Market!
The keys to success are this:
Be diligent in your search for a home. Get a Buyer's Agreement so that your agent can search FSBO homes for you also.
Be prepared to act quickly. This means have your pre-approval from the bank already completed.As soon as a property comes on the market, go see it. And be prepared to write a contract on the spot.
Have the necessary cash for your downpayment. Or if you're doing 100% financing such as with VA, be sure you have enough cash to close.
Have patience. You may have to write several contracts before you finally get the house you want.
Be prepared to compromise. Bank addendums can be a deal killer if you don't go with what is contained in them. Banks want to relieve themselves of all liability. Be prepared for a one-sided deal. Banks in a short sale are giving some concessions, but be prepared for none.
Choose a REALTOR that has experience in this market and knows how to write winning contracts.
FOR RELEASE: IMMEDIATE For more information, please contact:
DATE: April 2, 2009 Cathy Baumbusch, 703-969-1691
CATHY BAUMBUSCH EARNS PRESTIGIOUS DESIGNATION TO HELP HOMEOWNERS IN DANGER OF FORECLOSURE
Cathy Baumbusch, of RE/MAX Allegiance, has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by "distressed" homes in the foreclosure process.
Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.
In Virginia, the foreclosure rate has steadily increased. As of Sept. 30, a record 21,000 homes in the state were in foreclosure, about 11,000 involving subprime loans1. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.
"This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales," said Baumbusch. "It is so rewarding to be able to help sellers save their homes from foreclosure."
Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® such as Cathy Baumbusch with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.
The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales.
"Our goal is to educate as many people as possible so we can help as many homeowners as possible," Charfen said.
For more information about CDPE designation or to find a certified distressed Realtor in your area, please call 1-800-482-0335.
The Making Work Pay tax credit, part of the American Recovery and Reinvestment Act of 2009, will give a 6.2% earned income credit max $800 for a married couple filing jointly and $400 for singles and other taxpayers. If married couples filing jointly have a combined Adjusted Gross Income (AGI) of $150-190K or above, the credit is phased out, as it is for other taxpayers earning modified AGI between $75,000 and $95,000.
New withholding tables have been released by the IRS and for those in the Military, they will be implemented by April 1, 2009. The credit will be spread out over the year. Military members can expect to see a change in federal withholdings. Military members do not need to fill out a new W-4 to receive this tax credit.
If you have more than one job (such as a Reservist with a regular full-time job), you may want to review your W-4 forms to ensure enough withholding is held to cover the tax for the combined income.
The IRS also released new tables for computing the advance payment of earned income credit. These tables change the percentage formula to increase payments for some married military members. The new percentage formula was implemented in March 2009.
Today's news reported that the Fed will further stimulate the economy by purchasing $750 billion in additional mortgage-related securities and an additional $300 billion in Long-Term Treasury Bonds.
The market has responded with astoundingly low interest rates this weekend.
Some 30-year fixed rate examples include:
Conforming: of 4.25% with 1-point, 4.5% with 0-points
Conforming Jumbo(up to $625,500): 4.375% with 1-point, 4.875 with 0-points
Non-conforming Traditional Jumbo: 5.5% with 1-point, 5.75% with 0-points
FHA (under $362,790): 4.5% with 1-point, 4.75% with 0-points
FHA ($362,791-729,750): 4.5% with 1-point, 4.875% with 0-points
There is a new tool that will allow homeowners to find out whether or not they are eligible to participate in the "Making Home Affordable" programs for loan modification and refinancing.
This program is part of the $75 Billion "lifeline" that President Obama has pledged to struggling homewoners.
Homeowners can either qualify for refinancing or loan modification.
Refinancing is for those who are current on their mortgages, but who are struggling to make their monthly payments.
Loan modification is for those who are falling behind on their payments either because of loss of income or a higher interest rate.
These programs are only available to those loans that are owned by Fannie Mae and Freddie Mac.
Natrually, the question becomes- how do you know who owns your loan?
Well, you could call your servicer and they will tell you, or to find out if Fannie Mae owns your loan, you can go to http://loanlookup.fanniemae.com/loanlookup/, and enter your address. You must confirm you are the owner of the property or have their consent.
Today's military members are faced with particularly troubling crises when it comes time to make a move. With orders in hand, military members have had little choice but to sell at a loss. Report dates are written in stone for the most part, and the service member can't delay reporting to achieve a home sale.
Many families rent their previous home at a loss, or the military member reports to the next duty station as a "geographical bachelor", leaving their family behind.Short sales and foreclosures are not an option either. Officers and most enlisted military members must hold a security clearance. Keeping that clearance requires periodic credit checks and if a foreclosure appears, the member runs the risk of losing their clearance and possibly their career. So, much more is at stake for the military members and their families.
Fortunately, the latest stimulus package included language to assist these families. The provisions are imed at helping service members who sell their home at a loss, faced foreclosure or were forced to move as a result of BRAC or a reassignment . Wounded veterans who need to relocate to be near a health facility and surviving spouses of those killed in combat will also be helped by the measures.
The $555 million program expands the Defense Department's Homeowners Assistance Program, which helps military and federal personnel whose homes have lost value because of a base closure. What is covered:
95 percent of a loss if a service member is forced to sell. or
The government pays off the balance of a service member's mortgage (and acquires title)or
The government pays the owner up to 90 percent of the home's previous value. No dollar ceiling has been set.
Applies to primary residence purchase PRIOR TO July 1, 2006
The Army Corps of Engineer's website is: http://hap.usace.army.mil/. There you can find information on who qualifies, application procedures, etc.
For more information, or if you need to sell your home in DC or VA, contact Cathy Baumbusch, 703-969-1691, or visit www.GoArmyRealEstate.com.
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.
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