I Can Get A Tax Credit When I Update My Home to Save Energy? - 10/29/09 12:12 PM
The IRS just released this information on how you can weatherize your home and take advantage of a tax credit:
WASHINGTON — People can now weatherize their homes and be rewarded for their efforts. According to the Internal Revenue Service, homeowners making energy-saving improvements this fall can cut their winter heating bills and lower their 2009 tax bill as well.
The American Recovery and Reinvestment Act (Recovery Act), enacted earlier this year, expanded two home energy tax credits: the nonbusiness energy property credit and the residential energy efficient property credit.
Eligible homeowners can claim both of these credits when they file … (4 comments)
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Here's What You Need To Know: $8,000 Tax Credit Extension and Expansion Details - 10/29/09 11:36 AM
Here's what you need to know about the extension and expansion of the $8,000 tax credit as of October 29, 2009:
The tax credit would be $8,000 for first-time home buyers and $6,500 for move-up buyers (from December 1, 2009 to April 30, 2010). Move-up buyers will be eligible, so long as the home they are leaving has been used as their principal residence for 5 years or more. The tax credit would sunset on April 30, 2010. However, there would a binding contract rule that will permit those with contracts as of April 30th to qualify for the credit so … (0 comments)
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New Details For First-Time Home Buyer Tax Credit: Administration Calls Congress To Pass $8,000 Tax Credit And Other Pro-Housing Measures - 10/29/09 11:15 AM
WASHINGTON, DC – Treasury Secretary Tim Geithner and HUD Secretary Shaun Donovan called on Congress to approve three important measures to improve housing and the housing market for Americans:
Extend the First Time Homebuyer Credit, with strong anti-fraud measures
Extend Loan Limits for Mortgage Loans
Secure Financing for the Housing Trust Fund
The Administration supports a limited extension of the First Time Homebuyers Tax Credit, which is currently set to expire on December 1. This credit has made the difference in bringing new families into the housing market. Those buyers, in turn, have reduced the inventory of … (0 comments)
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$8,000 Tax Credit: New Deal? - 10/29/09 09:09 AM
According to news reports this morning, Senate negotiators reached a tentative deal on extending and slightly expanding the $8,000 first-time home buyer tax credit. Here’s the tax credit new deal Senate negotiators apparently reached:
* The current $8,000 first time home buyer tax credit would be extended for contracts that are finalized by April 30, 2010 and close by June 30, 2010.
* A new $6,500 tax credit will be available to some existing homeowners who lived in a home for a “consecutive” 5 years out of the past 8 years.
* The income limits will be raised, so both tax … (4 comments)
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Recession Over? Not With 21 Percent Unemployment. - 10/28/09 12:26 PM
How bad is the economy? Despite what you see going on with the stock market, and the continuing talk about profits and green shoots, it’s pretty bad.
According to the official unemployment numbers, not quite 10 percent of the U.S. population is unemployed. But that unemployment number doesn’t include everyone who doesn’t have a job but wishes they had one.
The Bureau of Labor Statistics (BLS) surveys only 60,000 households every month and asks them if they “have a job, are looking for a job, or have given up, or have gone back to school, or retired,” writes MSNBC.com senior producer … (8 comments)
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Taylor Bean and Whitaker Trouble: Continued Mortgage Bankruptcy Hearing Update - 10/23/09 09:24 AM
We’ve learned that hundreds of thousands of mortgage borrowers are scrambling as their funds have been frozen; we were told that Taylor Bean Whitaker loans were to be ported over to Bank of America's Home Loan Services group and performing Freddie Mac loans were supposed to go to Cenlar, a legitimate loan servicing company.
What do you do if you receive letters from two different mortgage servicing companies claiming that each one of them is going to service your Taylor Bean and Whitaker loan? While the problems persist, we’ve just received news that the next Taylor Bean Whitaker hearing is scheduled … (3 comments)
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If You Can't Refinance, Should You File for Bankruptcy Or Let The Home Go Into Foreclosure? - 10/20/09 12:20 PM
Q: I've been divorced for almost 2 years. My ex-husband was awarded the house and subsequently took over the payments. He has been laid off several times over the last two year, failed to qualify for unemployment, and still has not refinanced the house to remove my name from both mortgages. Because of this, my credit has been shot. Today, he called and offered me the house. He's officially four months behind on payments and received a letter from the mortgage company saying he has 30 days to seek counseling or they will foreclose. I have told him I cannot afford … (0 comments)
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What If Your Second Home Loan Modification Is Denied By Lender? - 10/20/09 11:56 AM
More and more people are finding that they have fallen into a trap. They bought a second home or moved to get a job and left their primary home, now when they call their lender to request a loan modification, the lender refuses to give them a loan modification because the home is no longer a primary residence. With that logic, the home will be lost to foreclosure and the lender may end up taking a bath on the loan.
Q: We have a first mortgage of approximately $160,000 and a second mortgage that is about $25,000. The monthly payment on … (0 comments)
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Foreclosure Relief and a Reduction in Unemployment Go Hand In Hand - 10/20/09 11:17 AM
Foreclosure relief is needed to stem the rise but the unemployment rate needs to go down to allow people to earn money to pay their mortgages. Recent statistics may be getting less worse but the economy is still shedding jobs and there are increasing numbers of foreclosures.
Eventually the numbers will turn around, but the question is, when will we get foreclosure relief and a reduction in the unemployment rate?
Each week, I receive dozens of letters from readers. The vast majority of them are in trouble financially, mostly because they’ve lost their job and can’t pay their bills. I … (0 comments)
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LLC vs Corporation: Can You Do Without Either? - 10/20/09 10:37 AM
When it comes to choosing how to hold your real estate investments, you can choose from many options. The most popular options are using an LLC to own real estate or a corporation. Some decide that they would prefer to hold title to their real estate investments in their own name. Is it wise to own investment real estate properties in your own name?
Q: I have tried unsuccessfully to find an article you wrote several months ago regarding the preferred organizational structure for an individual (and possibly his spouse- no other partners) to own rental real estate. We’re trying … (0 comments)
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Why Buy Title Insurance On a House When You Pay Cash For the Home? - 10/20/09 10:19 AM
Why Buy Title Insurance On a House When You Pay Cash For the Home?
If you are making the largest investment of your life, wouldn't you want to make sure you are protected by obtaining and buying title insurance? When you buy title insurance on a house, a title company gives you certain guarantees that you are the rightful owner of the home and certain other title protections. Title insurance does not protect you against future title problems that might develop nor does it protect you from fire or other casualties. But if you are paying cash to a seller are … (6 comments)
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When Do Real Estate Buyers Become Prospective Buyers For Your Home? - 10/20/09 10:05 AM
How do you know when real estate buyers become prospective buyers for your home? Does something magical occur when a specific real estate buyer knows your home or house is for sale? If you have your home listed for sale, does the listing broker keep count of prospective buyers so that you know who they are?
Q: I need some help. Is there an industry standard definition for a "prospect"? Can you define it? It seems that every real estate agent has a different opinion of what this means.
A: If you are selling a home and that home is listed … (0 comments)
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Foreclosures Are Everywhere - 10/15/09 02:00 PM
Well, the foreclosure numbers are out for the third quarter, and they’re the worst on record. According to RealtyTrac, foreclosure filings (which include default notices, scheduled auctions and bank repossessions) were the highest in Q3 2009 since 2005, when the company began tracking foreclosures.
Foreclosure fillings were down 4 percent in September from July, but up 29 percent from September 2008. September’s total was still the third highest monthly total, behind only July and August of this year. The sheer number of foreclosures is bad enough, and the continued downdraft in the jobs market isn’t helping matters. RealtyTrac’s Rick Sharga said … (2 comments)
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What Are My Gift Tax Limits On The Purchase Of A Home? - 10/12/09 04:13 PM
Q: I am in the process of purchasing a town house and paying cash. I am using funds from a certificate of deposit (CD) that is payable on death (POD) to my daughter. She is currently renting an apartment and I feel it would be better for her to own rather than rent. The home will be in her name. Are there tax implications in this transaction for me or for my daughter?
A: You can give anyone a gift of up to $13,000 per year without triggering a taxable event. You can also give away up to $1 million in … (0 comments)
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What Do I Do If My House Won't Sell? - 10/12/09 12:57 PM
If you are getting the showings, but your house won't sell, what should you do?
Q: My husband and I are baby boomers and have just downsized by purchasing a home at a good price in a 55+ community.We have had over 60 showings and besides some negative comments about two rooms with wallpaper, the local Realtors have said the house shows “good” to “excellent.” We have been on a few people's "short" lists, but we’ve had no offers. Other similar homes nearby listed in the same price range have sold.
My question is whether we should take the house off … (6 comments)
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Can Mortgage Problems Lead To HELOC Foreclosure? - 10/12/09 11:26 AM
Q: I live in Maryland and recently became unemployed. I have enough money to pay my monthly first mortgage payment with Bank A for 2 years, if I do not pay my home equity line of credit(HELOC) payment with Bank B. Can Bank B foreclose on my home if I am current on my first mortgage payments? If Bank B cannot foreclose, what legal action can they take against me?
A: I’m sorry you have become unemployed and hope you find success in finding a job soon. Unfortunately, you should know that either of your lenders has the right to foreclose … (1 comments)
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Do You Qualify For The $8,000 First Time Home Buyer Tax Credit? - 10/12/09 10:02 AM
To qualify for the first time home buyer tax credit, you can’t be a nonresident alien. That is to say you must be legally in the United States with the right to reside here. So if you were a tourist coming for a visit, you would not qualify for the tax credit. You would also not qualify for the tax credit if you were undocumented and living in the United States illegally. You also must not have not owned a home during the last three years and your modified adjusted gross income must be less than $75,000 per year.
Q: I … (0 comments)
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Do I Have to Live in My Primary Residence As Dictated by My Mortgage Lender? - 10/08/09 10:28 AM
Q: I bought a house as a primary residence in 2006. In 2007, I bought another home that I intended to use as my primary residence. I was recently informed by my lender that their current lending guidelines require my first home be owner-occupied. I tried to appeal but they didn't budge.
I'd like to know if the clause from my loan document is sufficient. Even if their current guidelines dictated owner-occupancy for all loans, will satisfying the terms of the loan I signed override their current requirements?
A: Yes. The documents you signed govern your relationship with your lender. That … (2 comments)
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Is Your Reverse Mortgage Threatening Your Home Equity? - 10/08/09 09:58 AM
According to a report from the National Consumer Law Center, reverse mortgages are being used by abusers of the subprime mortgage market as “tools” to profit from seniors. The National Consumer Law Center thinks that if protections aren’t put in place soon, not only will the life savings of senior citizens become depleted, but so will our tax dollars and economy.
“In the reverse mortgage market, seniors face some of the same aggressive lending practices that were common in the subprime lending boom," said Tara Twomey, an NCLC attorney and author of the report. “Well-funded marketing campaigns and perverse incentives to … (1 comments)
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Protesting Property Taxes: Tips For Getting it Done Right - 10/07/09 04:06 PM
The autumn wave of real estate property tax bills came due starting in September – and across the country, homeowners are panicked about rising property tax bills in the face of substantial property value declines.
It isn’t just that property values are down as much as 55 percent from the high point several years ago. It's that many local communities and states are broke, and are increasingly relying on expected property tax revenues to support flagging income and sales tax revenue. Getting your property tax bill adjusted may not be easy – but it is doable, provided you take the … (2 comments)
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Can My Son Take Advantage of the $8,000 First Time Home Buyer Tax Credit While Receiving Help From Us? - 10/07/09 03:21 PM
Q: I read your recent article about the IRS rules regarding the $8,000 first-time home buyer tax credit. I understand that the deal cannot be between close kin. However, if our son (age 22) buys a home for $100,000, and we as parents provide $100,000 cash for the deal, is our son still eligible for the $8,000?
A: I believe that your son could buy the property alone or your son could buy the property with you and still qualify for the $8,000 first time home buyer tax credit. The IRS rules state that while you might have owned a … (0 comments)
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What's More Important? Should You Buy an Investment Property or Your Dream Home? - 10/07/09 02:06 PM
Q: My primary residence is under contract and I am trying to make a wise decision around my next home purchase. I am trying to decide if I should purchase a "dream home" that I could see myself living in for many years, or a much less expensive home that I could pay for with cash, live in it a few years, and then turn it into my first rental property. The interest rate for a loan for the dream house is less than 5 percent and I would put 20 percent down. I can afford the nicer home, but I … (1 comments)
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When Should You Refinance Your Mortgage? - 10/06/09 11:50 AM
Refinancing a first mortgage and/or a second mortgage or home equity line of credit may not be right for everybody. If you refinance the mortgages will you reduce the amount you owe on the mortgage loan? Will you reduce the number of years left to pay on the mortgage once you refinance the mortgage and home equity line of credit or second mortgage loan?
If you refinance your mortgage, will the costs you incur by refinancing your mortgage exceed the savings you get? How long will it take for you to break even after you spend money refinancing your mortgages?
Refinance … (0 comments)
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Home Buying Risks, Pitfalls and Tips For New Construction Homes - 10/06/09 11:06 AM
Q: You have written about risk of buying in an unfinished development to prospective buyers. What can a homeowner do who is in the bad situation having bought the property already?
A: Each home choice has pros and cons, benefits and risks associated with it. An old home may require more maintenance and upkeep. A new home may have defects associated with some new construction homes and developments, including bad drywall, bad soil conditions and many other potential hazardous issues and conditions. A home in a condominium building may have rotten neighbors.
When home buyers undertake the single largest financial … (0 comments)
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