As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.
Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.
Who Qualifies?
First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.
To qualify as a "first-time home buyer" the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000. Each home buyer's tax credit is determined by two factors:
The price of the home-the credit is equal to 10% of the purchase price of the home, up to $8,000.
The buyer's income-single buyers with incomes up to $75,000 and married couples with incomes up to $150,000-may receive the maximum tax credit.
If the Buyer(s)' Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income-over $95,000 for singles and over $170,000 for couples are not eligible for the credit.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.
What is a short sale? A real estate short sale is when a home owner sells their property for less than what they owe on the mortgage, and the lender gives their permission to do this. Short sales are becoming more popular in areas or circumstances where the seller owes more than the home will likely sell for and the seller does not have the financial means to make up the difference. The seller should retain the services of a REALTOR with knowledge and experience in short sale transactions. The REALTOR gets written permission from the seller to negotiate on the sellers behalf directly with the mortgage company. The lender often allows the REALTOR fees and closing costs to be deducted if the seller does not have the financial means to do so. Offers to purchase are then presented to the mortgage holder and typically to any PMI company insuring the loan.
If you are selling your home as part of a short sale transaction, make sure to negotiate for a release and full satisfaction of the mortgage from your lender. Depending on the laws of your state and your individual circumstances, lenders may be able to wait a year or two for you to improve your financial situation, and then file a deficiency judgment against you to try and recover the money that you still owe them. The only way for you to avoid this risk is to have the lender not only release the mortgage lien, but also agree in writing to a full satisfaction of the mortgage. You should be aware that short sales are best left as a last resort when there is no other viable option to sell your home and foreclosure may be in the future. You must be able to prove that you lack the financial resources to sell your home by more traditional means.
Also read the Mortgage Forgiveness Debt Relief Act of 2007, and be aware the I.R.S. could consider debt forgiveness as income. The advice of an attorney and a CPA is highly recommended.
Short sales negatively impact your credit and your ability to purchase another home. While preferable to a foreclosure, it is still not an option for a homeowner to seek lightly. A professional REALTOR can counsel you on your options and help you choose the right course of action for your situation.
If you would like the counsel of a REALTOR regarding the steps to take to sell your property on a short sale, please call Jolynna McCune with GROOME & CO REALTORS at 901-649-0221. All consultations are confidential.
If you are attempting to buy a home on a short sale, try to make sure the deal is closeable. Have your REALTOR verify the status of the sellers relationship and history of discussions with their lender regarding the likelihood of allowing a short sale. Many short sale listings are not closeable deals because the lender won't allow it, yet many weeks or months can be wasted in waiting it out.
How does a foreclosure differ from a short sale?
In a foreclosure the sellers have lost ownership of the property through a legal process and is being sold by the bank, mortgage holder or in some instances the PMI company or guarantor of the loan. In a short sale the homeowner may still reside in the home and is still the legal owner of record. To purchase a foreclosure from a lender, a buyer must have strong financing from a reputable lender who funds loan directly (NOT mortgage brokers in most cases) or proof of cash funds prior to submission of an offer. Also, in most cases, the homes need at least some repair and the seller will generally not be willing to pay for those repairs. Therefore, the buyer must have available funds to repair the home after closing. In some cases, the lender for the buyer may require repairs to be done prior to closing to obtain the loan. This is typically true for FHA financing or other financing where buyer's down payment is minimal. In such instances a buyer is better to look for homes with very minimal damage or needed repair. If the terms of the offer allow, the buyer may have the home inspected within a short time frame after the offer is accepted to determine if the buyer would like to proceed with the sale.
Please give me a call or reply to this post to receive a weekly list of foreclosures in the area.
Other types of foreclosures are HUD homes or VA owned properties. These are homes that the department of housing and urban development or veterans affairs own. On HUD homes the process is more like an auction, where the seller allows the home to be shown by any REALTOR to prospective buyers. After the property has been available for a short period of time, the bid period ends and HUD reviews the offers. They will often accept one of the offers at that time. If HUD deems the offers too low, it will remain on the market and will be open to daily bids until a satisfactory offer arrives. A listing of HUD homes can be found on www.hud.gov and follow the links to Tennessee properties. GROOME & CO is registered with HUD and we will be happy to show you properties of interest.
There are many bargains in today's market for a buyer. Short sales, bank foreclosures, government foreclosures and relocation/corporate owned homes. However, do not overlook extremely motivated sellers with homes in excellent condition. In many instances a great home priced very well with excellent care and maintenance or numerous upgrades can be a better deal than that low priced foreclosure that needs tens of thousands in work ( which will typically have to be done with your cash rather than financed in the loan ). Have the guidance of a REALTOR to help you find the right deal for your circumstances. If time is not a concern then a short sale offer may be right for you. However, if you need a specific closing date or do not have large cash reserves for repairs and updates needed in a distressed property then a well priced traditional sale with a highly motivated seller may be the best route.
If you are interested in buying a short sale or need the counsel of a REALTOR regarding the steps to take to sell your property on a short sale, please give me a call! 901-649-0221
FIVE QUICK TIPS TO IMPROVE THE DESIRABILITY OF YOUR HOME
1. TOUCH IT UP:
A finished, flawless paint job can enormously increase the value and attractiveness of your home! Spend some time checking the exterior and interior surfaces - as well as fences, banisters etc. - and touch up any chipped or peeling paint.
2. BAKE, BAKE, BAKE:
Research has shown that potential buyers are greatly influenced not only by the appearance of a house, but by its scent as well! Baking cookies or pastry before an open house or showing will fill your home with a warm, welcoming and comforting aroma that is irresistible to buyers!
3. TOUCH OF COLOR:
In addition to providing a delightful and aromatic scent, fresh flowers brighten up your home and appeal to the buyer's sense of aesthetics. Add a few arrangements in different rooms to add some color and cheer!
4. MIRROR IMAGE:
Mirrors have long been used to give the impression of extra spaciousness in a home. Adding a few mirrors to different areas of the house - including hallways and bonus rooms - will make the house appear roomy and bright.
5. LANDSCAPE LUXURY:
Paying special attention to your landscaping is absolutely crucial during the selling process. Keep your lawn freshly mowed, flowerbeds free of weeds, and add some additional outdoor lighting to brighten up the pathways.
I read this article on my RISMEDIA feed this morning. Sometimes we can get so stuck in our lives and unable to move ahead towards better things. I like this guy's advice and am considering buying the book. Has anyone read it?
‘Moving Forward' - 5 Ways to Take the Lead in Your Life, Career
By Chris McNamara
RISMEDIA, August 2, 2008-(MCT)-Dave Pelzer, an acclaimed author of life-guidance books, demands that readers accept themselves as they are and-as the very bland title reads-move forward.
The past should remain there, in the past, if the future is to be enjoyed. Here are five of Pelzer's suggestions on taking the lead in your life and career:
1. Let it go. Too many of us cling to negative events that happened 5, 10, 20 years ago. We paralyze ourselves when we can't simply let it go, and begin living life now. 2. How we feel about ourselves-our esteem-affects every aspect of our lives. Crucial is trusting ourselves to create our own, best outcomes in any situation. 3. When facing great challenges, the immediate goal is to merely get through them. To do this: (1) Don't become overwhelmed. (2) Do what you can, as much as you can. (3) Keep your focus on the now. 4. Optimism-the belief that things can get better-is the first step toward redemption when we are wallowing in misery. 5. "I believe that no matter how many mistakes we've made; how badly we've really, really screwed up; how old, worn out, or dejected we've become; as long as there is true, steadfast ambition, all of us have an opportunity for greatness."
For further information, read "Moving Forward: Taking the Lead in Your Life," by Dave Pelzer (Center Street, $22.99)
Well it's that back to school time of year again and I wanted to post a reminder to everyone that this weekend, August 1st through 3rd, is Tennessee's tax free weekend. A few of the exempt items include computers (up to $1500), clothing and school supplies among other things. For a complete list of what's exempt, check out this site. http://tn.gov/revenue/salestaxholiday Happy back-to-school shopping!
It today's market, prices are right, rates are low, and there are plenty of homes from which to choose. But no one knows when that will change. So if you're waiting it out hoping prices will fall even lower, consider that you might be disappointed when the market picks up again (and it always does) and you're still on the fence watching opportunity pass you by. And even if prices do fall lower, there's no guarantee that mortgage interest rates will be at the same level they are today.
In today's market with increased inventory, sellers are pricing their homes to compete. When the economy improves and more consumers begin looking for homes, prices will rise again.
There is a lot of "pent-up demand" in the market today. Millions of jobs have been created nationwide, yet the number of new households created is much lower. People who really want to make a move are waiting until they feel conditions are more favorable.
Waiting for housing prices to hit bottom is never a sound strategy. No one can predict precisely when prices will bottom out. In fact, the bottom is not usually evident until prices have started to move up again.
While waiting for housing prices to fall even further, many consumers forget the role that mortgage interest rates play in determining what they end up paying for their home. So while prices might fall further, interest rates could rise and negate any savings from a lower purchase price. If you purchase a home for $150,000 at today's rate of 6.4%, your monthly payment will be $1,043 (not including property taxes or insurance). Assuming you wait and the price on that home drops to $145,000 but interest rates have gone up to 7%, your monthly payment would be $23 more each month despite the lower purchase price. Instead of saving money you end up paying $8,280 more over the life of the mortgage. Currently, mortgage rates are near historic lows, but there's no guarantee how long they'll be there. Celia Chen of Moody's Economy.com predicts rates will hit 7 percent in mid-2009.
When you buy a home you go through the moving process and the hassles and feel like settling in forever. Right? As time goes by, your family size changes, your income has changes, or your personal preferences change. Some people stay put for 5, 10, or 15 years. Others seem always interested in "What's Next?" Now there is a way that you can relax and enjoy your home and all the good times while keeping an eye on the neighborhood real estate activity, too.
Whether you are ready to move or are just curious about home values and activity in the area, I can help you keep up to date. We'll keep you posted on activity in your own backyard as well as showing you monthly home sales in your area.
You don't have to be ready to move to be ready to hear the latest news about who's moving and what their home sold for. My complimentary Home Sales Alert will show up like clockwork. By being informed you can avoid having a mistaken impression of market value. That way you can sell or buy at the right time for your personal needs. Just email me to register, or visit my website at jolynnashomes.com and click on subscribe. If you need more information or want to visit, just give a call.
I thought this was a good article I read this morning from RISMEDIA, and wanted to repost it here to share. I think most of us are used to stress as a way of life, and this is a simple approach to reducing some of it.
Would you like to find control buttons to reverse your stress overload? If so, you might want to try a new technique of seeing how many good options you can invent.
You might invent a new way to approach housework, a relationship problem, or a project at work.
For example, let's say you hate grocery shopping. You go every Friday night, and it's a pain to start every weekend this way.
What if you decided, instead, to shop every third Saturday morning?
Also, what if you treated yourself to breakfast at a good restaurant before going to the grocery store?
Or, you might decide to exercise a new option by setting limits with your grown children. You might say, "I love keeping the grandkids, but I don't want to baby-sit every single Saturday."
These messages are part of Judi Light Hopson's podcasts, pinpointing the 12 areas of inventing stress management options.
Consider a business owner we'll call Alicia. Alicia knew something had to change when she yelled at her daughter-in-law a couple of weeks ago.
Alicia returned to her office one afternoon after lunch. Her 3-year-old granddaughter was sitting behind her desk.
"My daughter-in-law, who'd gone shopping, had left the child with my assistant," Alicia says, rolling her eyes. "Since I was going to participate in a major conference call, I had to literally park my granddaughter in the restroom with my assistant, so I could focus on the callers," Alicia reports.
If people, pressures, the clock, or random mishaps are running over your boundaries, start to think of ways to turn the tide.
Could you do things differently? Could you state a limit with someone? Could you ask a favor of a friend to reduce your stress?
We advised Alicia that her daughter-in-law might be overwhelmed herself. We encouraged the two of them to talk, and Alicia reports that her stress is now under control.
"I've offered to baby-sit every other Saturday for six hours," says Alicia. "My poor daughter-in-law has four kids and never gets a break.
"By giving her the option of leaving the four kids with me, two Saturdays a month, she can make plans to get her hair done or run errands."
In your circle, make an enjoyable game out of inventing new options to curb stress. See how many problems and sticky issues you can find solutions to.
Ron, a policeman whom we've known for years, says he loves the create-an-option game. "Any thinking adult or older child can create new ways of making stress go down," says Ron.
"My kids came up with our new housecleaning attack plan. We turn on rock music and all work together like mad for an hour two or three times a week."
A doctor we'll call Charles said his father-in-law had a heart attack the day before his daughter's wedding. "We exercised the best option we could think of," says Charles.
"We sent the limo carrying the bride and groom from the reception to the hospital for a visit with my father-in-law-and then on to the airport."
Charles said his father-in-law was thrilled. "The bride and groom hitting the hospital in full wedding attire made the local newspapers."
Just visit www.jemsprepare.com and click on the Wellness Cafe icon at the top of homepage. Scroll down to the heading of Work/Life Leadership to listen, download, and share the information freely with others.
Judi Hopson and Emma Hopson are authors of a stress management book for paramedics, firefighters and police, "Burnout To Balance: EMS Stress." Ted Hagen is a family psychologist.
RISMedia welcomes your questions and comments. Send your e-mail to: [1]
A friend of mine sent me this forwarded email and I wanted to repost it here because it meant a lot to me when I read it this morning. I don't usually even read all the "forwards" I get, but for some reason felt compelled to open this one. There is a link to the short video clip at the bottom and I invite you all to watch it. What an incredible show of love, faith and committment. How much better would this world be if we all aspired to such greatness and strength of character?
A son asked his father, 'Dad, will you take part in a marathon with me?' The father who, despite having a heart condition, says 'Yes'. They went on to complete the marathon together. Father and son went on to join other marathons, the father always saying 'Yes' to his son's request of going through the race together. One day, the son asked his father, 'Dad, let's join the Ironman together.'To which, his father said 'Yes'
For those who didn't know, Ironman is the toughest triathlon ever. The race encompasses three endurance events of a 2.4 mile (3.86 kilometer) ocean swim, followed by a 112 mile (180.2 kilometer) bike ride, and ending with a 26.2 mile (42.195 kilometer) marathon along the coast of the Big Island
Father and son went on to complete the race together. View this here:
While summertime offers us a great opportunity to make the most of our sunny Saturdays, you might find yourself with some extra free time. What to do? Why not take a little time each weekend to give your beautiful new home a little extra care? One of the best things about owning a home is the pride and satisfaction derived from making it look as beautiful as possible!
Here is a list of some practical summer to-do's that will help to keep your home and garden in wonderful shape.
1. Keep it green: Harsh summer heat can up the ante when it comes to caring for your lawn. Make sure to keep it watered and fertilized!
2. Fire it up: Get a head start for the upcoming winter and clean out your wood-burning fireplace and chimney. You'll have one less winter task to attend to!
3. Carpet care: Now's the perfect time to have your carpets professionally cleaned, which will protect your carpet and make it last even longer. Want to save a few bucks? Rent a quality carpet cleaner and do it yourself!
4. Touch-ups: Inspect your home - inside and out - and touch up any paint where necessary. This can be done quickly and easily, and will prevent future peeling!
5. Lock and key: Check all of the locks on your windows and doors and ensure that everything is working properly. Being proactive about safety is always a smart move!
6. Oil it: Anything squeaking? Add a squirt of WD-40 or similar product to door, cabinet and window hinges to keep them in top repair.
7. Park the car: If your garage is filling up with an abundance of stored items, take a day to reorganize and get rid of unwanted clutter. Give your unneeded items to charity, or have a fun summer yard sale!
Or....forget all of the above and head to the beach! :)
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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