Alisa Stone Herring , CRS, GRI's Blog

Buying your first home in 5 steps

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Mon, 03 May 2010 11:50:09 -0700

Get financials in order. Buyers should check their credit score, taxes, 401(k)s and other aspects of their financial situation to determine the maximum they're comfortable affording for their monthly mortgage, utilities, maintenance, taxes and insurance.

"If your credit score is a mess, clean it up before applying for a mortgage," says Ed Mermelstein, a New York-based real estate lawyer and developer. "A bad credit score may not just affect your rates, but may prevent you from getting a mortgage."

Buyers should also get preapproved by a broker or lender - that means they get an agreement by a bank to lend the buyer up to a specific amount for a home, and it tells sellers that financing is already lined up.

That's different than a letter of prequalification, which states that a buyer's financial information and credit look good. A prequalification does not guarantee a loan. Some websites, such as myhome.bankofamerica.com and trulia.com/guides/home_buying, aim to help buyers getting into the market.

Find a Realtor and start looking. To find a good Realtor, talk to friends, neighbors and co-workers. Referrals can be the best way to select someone. Make sure your choice has experience with the neighborhood and is a good negotiator.

The wrong agent can lead to frustrations. Marc Kruskol, 52, closed on his new home in January after going through about five Realtors.

"I don't have patience for Realtors who are lazy or don't do their job," says Kruskol, who bought a five-bedroom home in Palmdale, Calif., with a pool and three-car garage for $200,000. He got a 30-year, fixed-rate mortgage with a 4.99 percent interest rate.

Diann Patton, a consumer real estate specialist with Coldwell Banker Real Estate, suggests interviewing Realtors for the job. "This person is going to become your best friend for the next 30, 60, 120 days," she says.

Before buyers start looking, Patton suggests they make a pro-and-con list of things they must have in a house and prioritize what's most important. Think about lifestyle needs such as location and proximity to shopping and churches.

"Try not to treat your home like you're living in the stock market," she says. "It's a lifestyle, not about flipping. Don't try to time the market. We never know if it's going to go up or down."

Investigate the reputations of builders, condos. Buyers who are purchasing a new home should check out the reputation of the builder by getting information from the Better Business Bureau.

And, when buying a condo, first-time buyers should check out the financial health of the condo or homeowner association. In the past, this was rarely a problem because, for the most part, owners paid their monthly maintenance assessments and the associations were well-funded, says Robert White, managing director of KW Property Management and Consulting, a property-management firm in Miami.

But now some have cut services, and some are going without insurance, and dues-paying owners are subsidizing those who aren't paying.

"When they buy into a homeowner or condo association, the association may be having financial difficulties," White says. "A first-time owner could buy into the association, and the association could budget more expenses to the units that are paying, subsidizing the units that aren't paying. Ask the management company for a copy of the financial statements."

Make an offer and apply for a mortgage. There are myriad tips on making that final offer. While every local market is different, most economists say buyers are generally in the driver's seat today. Fifty-three percent of homeowners believe a seller's market is still two or more years away, according to a survey of 2,003 adults between March 30 and April 2 by American Express.

This market is very local. Homes in Chicago are getting multiple offers and going for more than 10 percent over the asking price, for example, while those in Fort Lauderdale are selling for 20 percent less than list price, according to ZipRealty.

Have enough cash for a down payment, which can be a minimum of 10 percent, and extra funds for closing costs, including appraisal costs and move-in deposit. Make sure any new additions or construction to an existing home have been properly filed with the city and approved. Be aware that appraisers will likely under-appraise than over-appraise, Mermelstein says.

"Definitely do an inspection. A lot of homes are sold 'as is' now, but you can get a credit (from the seller) if there is something big," says Cindy Royall Libonati, in Woodland Hills, Calif., a Realtor with Ewing & Associates Sotheby's International Realty.

To help determine an offering price, check closing costs of comparable homes on websites such as Propertyshark.com and Zillow.com.

Prepare for closing. At closing, first-time buyers get the keys to their new home. But there's a lot to prepare first. They'll have to get certified funds to cover closing costs and down payments (a settlement statement provided a day or two before closing will tell the buyer how much is needed). Homeowners insurance policies must be secured prior to closing as well. A closing cost estimate is provided after the application for the home loan spelling out what funds will be needed at closing.

Many Realtors suggest buyers have a financing contingency that will let them out of their contract without penalty if they don't get their loan. Buyers should also have a contingency that the home appraises for at least the selling price.

"First-time homeowners don't know you have to have a cashier's check, not a check," says Pat Lashinsky, CEO of ZipRealty, adding that they can be surprised by all the costs. "They can be like 'Whoa, what's all this' if they're not expecting it."

Source: Flordia Realtors

IRS offers info on tax credits

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Thu, 15 Apr 2010 17:18:21 -0700

U.S. taxes can be offset by a number of real estate-related credits and deductions, and the IRS offers information on each.

Karen Russell, real estate industry liaison for Georgia, and in this instance, Florida as well, compiled a list of educational documents for the real estate industry to share with homebuyers and sellers.

"I am sharing the following links regarding credits available to first time homebuyers and long-term homeowners wishing to replace their primary residence," Russell says. "This information can be printed and placed for easy viewing" by interested buyers and sellers.

Energy Incentives for Individuals: http://www.irs.gov/newsroom/article/0,,id=206875,00.html

Seven Facts about the Non-business Energy Property Credit: http://www.irs.gov/newsroom/article/0,,id=214979,00.html

First-Time Homebuyer Credit: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Seven Important Facts about Claiming the First-Time Homebuyer Credit: http://www.irs.gov/newsroom/article/0,,id=202222,00.html

Five Tips About the First-Time Homebuyer Credit Documentation Requirements: http://www.irs.gov/newsroom/article/0,,id=219518,00.html

Ten Important Facts about the Extended First-Time Homebuyer Credit: http://www.irs.gov/newsroom/article/0,,id=215827,00.html

Source: Florida Realtors®

The St. Joe Company relocates corporate headquarters to NW Florida

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Tue, 23 Mar 2010 09:49:40 -0700

The St. Joe Company announced plans to move its corporate headquarters to its large-scale development project adjacent to the new Northwest Florida Beaches International Airport in Bay County. The new location is surrounded by some of the company's most valuable land holdings.

St. Joe's new headquarters will be located in Phase I of the company's West Bay Sector Plan development near the entrance of the new international airport scheduled to open in May.

According to the company's announcement, the new location is central to St. Joe's residential communities and commercial properties under development, as well as company lands slated for new business and development opportunities in the region.

As part of the move, St. Joe will consolidate offices from Jacksonville, Tallahassee, Port St. Joe and South Walton County. Construction of the approximately 50,000 square foot Class A multi-tenant office building is scheduled to begin this summer, with relocation of the company's headquarters and personnel to be completed by summer 2011.

"This move is a very important step in the evolution of The St. Joe Company, and we are excited about expanding our relationships with the people of Northwest Florida," says Britt Greene, St. Joe president and CEO. "At the same time we are very grateful for our 75-year relationship with the City of Jacksonville. There are many friends and supporters in the area that have played an integral part in the growth and success of the company throughout the years. We will remain forever thankful for their contributions and support."

"The relocation represents a new phase for our company where we will be able to closely align our resources in an area that we have been actively involved in developing for the past 12 years," continued Greene. "Furthermore, we expect to capitalize on the many significant business and economic development opportunities that we see emerging as the region continues to evolve into not only one of the nation's top ranked vacation destinations, but one of the nation's newest business and technology corridors."

The St. Joe Company, a publicly held company currently based in Jacksonville, is one of Florida's largest real estate development companies and Northwest Florida's largest private landowner.

Source: 2010 Florida Realtors®

GRAND LAGOON PROJECT

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Tue, 09 Mar 2010 18:26:46 -0800

Photos of the NEW Grand Lagoon Bridge on Thomas Drive are available!

Construction is coming along. For updates & additional photos, please visit the GrandLagoonProject.net website.

5 Week Temporary Road Closure Notice Estimated Dates: January 25 - March 10, 2010 4823 to 4723 Thomas Drive (Panama City Dive Center to Patches Pub)

Nine tips to sell your home in 2010

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Thu, 04 Mar 2010 18:00:56 -0800

Signs of a recovery in the real estate market indicate this may not be the "Winter of your Discount Tent." Home sales, value and mortgage applications have risen slightly as mortgage rates stand at a historic low.

This slight glimmer of positive news is offset by estimates that about 48 percent of all U.S. mortgages will be underwater by 2011. Foreclosures and short sales continue to plague the market, keeping a lid on home prices. As a result, 2010 will continue to be a buyer's market.

That doesn't mean, however, that all hope is lost of selling your home this year. Here are nine tips to sell your home in 2010.

1. Don't wait for a recovery

Home values aren't likely to rebound to previous highs for several years, perhaps even a decade. While you may face a loss by selling now, that negative figure may only be a paper loss, particularly if you've owned your home for some time.

2. Make improvements

If you have access to credit, invest in improving and repairing your home before placing it on the market, rather than trying to go for a quick as-is sale. Rehabs are more affordable now, thanks to the availability of low financing, reduced construction materials costs and lower contractor charges. Focus on upgrades to kitchens and bathrooms, especially counters and cabinets, as these yield the highest returns. Get three different estimates from contractors and add another 10 percent for unexpected costs.

4. Hire professionals

You need professionals, not friends or relatives, to repair, upgrade and sell the biggest investment you'll likely own. Ask for credentials, references and a history of recent performance. Your appraiser should have at least five years experience with an appropriate license or certification. The same applies to hiring a home inspector. Talk to at least two or three appraisers and inspectors before selecting one.

5. Get downpayment assistance

Federal and local governments offer several downpayment assistance programs for first-time home buyers. Look for other city, county and state programs that will piggyback on federal programs for assistance. Search for "downpayment assistance programs" with the name of your region.

6. Take Uncle Sam's help

The $8,000 first-time homebuyer tax credit program that helped jump-start the real estate market in 2009 has been extended into 2010 and expanded. First-time homebuyers qualify if they sign a binding contract to buy a home by April 30 and close by June 30. The program's maximum income limits have jumped from $75,000 to $125,000 for individuals and from $150,000 to $225,000 for couples.

A separate $6,500 tax credit has been added for those who have owned their homes for at least five years and want to upgrade. Homeowners drowning in their present real estate loans are eligible for a loan-modification program with their current mortgage company or loan service through the Making Home Affordable Program (http://makinghomeaffordable.gov/).

7. Price accordingly

Listings move when a property is appropriately priced. Others gather dust because the owners haven't adjusted their expectations to the present market. This doesn't mean, however, you should severely drop your price on a well-maintained home to avoid extended problems. Research your market and price accordingly.

8. Energy tax credits

Through Dec. 31, homeowners who buy and install specific energy-efficient windows, insulation, roofs, doors and heating and air-conditioning equipment can apply for a 30-percent tax credit of up to $1,500 of their costs on each product.

Go one step further and earn a 30-percent tax credit through 2016 (without a spending limit) when you purchase such energy-saving products as solar energy systems, geothermal heat pumps, small wind systems, residential fuel cells and micro-turbine systems. Visit EnergyStar's Federal Tax Credits for Energy Efficiency (http://www.energystar.gov/index.cfm?ctax-credits.tx-index) for a complete summary.

9. It's not personal

Buyers want to imagine themselves in your house for years to come. Excess decor and knick-knacks distract from this vision. Ask your Realtor's advice or hire a home stager to bring your house back to zero before beginning to show it. A general rule of thumb is to eliminate or store at least half the items in every room.

Don't get defensive about colors, design patterns or flooring you installed. Just grit your teeth and think of the closing check while your agent serves as a buffer. Remember the customer is always right, unless, of course, they're low-balling you.

© 2010 www.freeshipping.org.

Termite swarming season is here

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Thu, 04 Mar 2010 17:58:18 -0800

Termite swarming season gets under way in late February and early March as temperatures begin to warm. Swarming means the termites are leaving their colonies to search for new nesting sites. Florida Agriculture and Consumer Services Commissioner Charles H. Bronson is again warning Floridians to take steps to protect their home. Termites cause about $750 million in property damage in the United States annually.

Termites are most abundant in the southwestern and southern U.S., with the Gulf Coast commonly known as "the termite belt." Since termites try to avoid light and open air spaces, the insects do their damage behind walls. Many homeowners don't realize they have a termite problem until swarming season when they see them flying around their homes.

The swarmers are winged, black insects about one-quarter-inch long and look a lot like flying ants. Termites can be categorized into two groups by their nesting sites. The earth-dwelling termites that make tunnels in the ground or build tubes above the earth are called subterranean termites. The second group, the wood-dwelling termites that have no contact with the earth, are called drywood termites.

Florida's climate makes it especially vulnerable to termites, and they are found throughout the state. Despite this, many homes in the state have no termite protection.

"Prevention is critical in avoiding termite destruction," Bronson says. "The insects can go undetected for long periods of time while they feed on the wood in a home." The Florida Department of Agriculture and Consumer Services regulates and licenses pest control companies and conducts regular inspections to ensure the businesses are adhering to the rules and regulations governing pesticides and pest control. Consumers can contact the department to find out whether a pest control company is properly licensed, to find out how many consumer complaints have been filed against a particular business and to learn about the various types of termite control contracts.

Licensed pest management professionals have the expertise to inspect buildings and treat them to prevent an infestation or provide treatment when the insects are found. Termite companies are now required to clearly tell customers if their contract covers both subterranean and drywood termites. Most pest control operations in Florida are licensed but it's important to check out a business before signing a contract.

Steps that consumers can take to protect their homes from termites include:

· Remove wood piles and other cellulose sources from under and next to homes.

· Have an annual inspection by a licensed professional pest control company.

· Direct water sources, such as air conditioner drip lines and roof downspouts, away from the structure foundation.

· When purchasing a home, carefully check its termite protection history.

· Obtain a termite protection contract and renew it annually.

Bronson said consumers should read a termite protection contract before signing it. Some contracts only require that the company re-treat a home if termites are found. Bronson says it is better to have a re-treat and repair contract that requires the pest control business to repair any damage caused by termites after a home has been inspected and treated.

For information, visit the department's web site at http://www.FloridaTermiteHelp.org or call (800) 435-7352.

© 2010 Florida Realtors®

St. Joe Co. betting on Southwest

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Sun, 28 Feb 2010 14:14:13 -0800

St. Joe Co., the largest private property owner in Northwest Florida, hopes Southwest Airlines will lift the company and region out of a major recession that has crashed the real estate market.

"We continue to believe we will be positioned to take advantage of the new airport," St. Joe president and CEO Britt Greene said. "We believe this is a game builder for St. Joe Co."

The company, which donated the land for the airport project, released its fourth-quarter and 2009 report during a press conference Tuesday. The company's net loss for 2009 was about $130 million. In 2008, the company lost about $40 million. The fourth quarter of 2009 saw a net loss of about $59 million compared to a loss of about $28 million for the same time in 2008.

The company was hit hard during the recession, which devastated property values last year. St. Joe sold about $6.6 million in commercial property and $14.3 million in rural property and is positioning itself for the opening of the Northwest Florida Beaches International Airport on May 23, officials said Tuesday.

"We are energized by the significant opportunities the airport will present since it is surrounded by some of St. Joe's most valuable land holdings," Greene said.

The company reduced overhead, restructured and renegotiated and extended its corporate credit facility, company CFO and Executive Vice President William S. McCalmont said. Southwest Airlines is key to St. Joe's plans, which include developing about 1,000 acres in the West Bay sector adjacent to the new airport, Greene said. St. Joe plans a 35,000-square-foot industrial-flex space and 50,000-square-foot commercial spaces. Greene said he expects to make announcements this year about companies locating at the new industrial park.

Local officials have said at least one company has shown interest in the space.

Southwest Airlines will fly up to 2,000 people per day to Bay County, which means more tourism, more business and more demand for real estate, Greene said. The new airport will be a contender for the aerospace industry as local leaders push to be part of a regional effort to build an aerospace corridor.

St. Joe agreed to pay Southwest up to $26 million to cover any losses the airline incurs during its first two years of operation.

Beazer Homes expects to build more than 200 homes, priced between $150,000 and $250,000, to meet demand, Matt Brandman, Beazer's Northwest Florida division president, wrote in an e-mail. New construction has been down countywide since 2008, except in Lynn Haven, and is a leading indicator for economic recovery.

Already, ticket sales are encouraging, Southwest Airlines spokeswoman Christi Day wrote Tuesday in an e-mail. She said vacationers often book early but noted Panama City is different than any of Southwest's other markets. The company is especially pleased with ticket sales in advance of the advertising campaign that starts in March.

"This is a sign that people who are already familiar with the market are excited about being able to travel there more easily than before, and at an affordable rate; and also a sign that others are discovering this new destination on Southwest.com," Day wrote. "We do hope to see this trend continue all the way through the start of service."

Copyright © 2010 The News Herald, Panama City, Fla., Scarlet Sims. Distributed by McClatchy-Tribune Information Services.

Transfer program little help for Shell Island owners

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Sun, 28 Feb 2010 14:11:35 -0800

PANAMA CITY - Transfer of development rights, or TDR, is a program that allows people to extend building limits on one property by taking them away from another. It is designed "to get development where it is most suitable, and to keep it from where it is unsuitable," said Lora Lucero, an attorney with the American Planning Association.

Bay County enacted its TDR program in 2006, in hopes of keeping Shell Island undeveloped. The program has been used just once, though, by late influential developer Charles Faircloth and partners for a 30-story, gulf-front condominium tower that has yet to be built.

Current Shell Island owners say the TDR program can't do much for them.

"I don't want a building on the gulf," said Dan Alford, who bought a lot on Shell Island for $1,400 in May 1991. "If the county wants the stuff for a public park, they should buy it. And they should buy it for what we could have sold the property for before the market fell through."

Alford is one of 14 Shell Island landowners who sued Bay County in October 2006, hoping to get monetary damages for the county's decision to zone the island public institutional in 2004, a move that barred residential building. Circuit Judge Michael Overstreet ruled Feb. 4 that the owners could seek building permits despite the zoning, but he didn't grant any damages.

If one of the owners moves forward with building plans, the county still could reject a permit, as could the state Department of Environmental Protection or the Florida Fish and Wildlife Conservation Commission.

Craig Willis, the Tallahassee attorney representing Alford and the others, said TDR is of little use to his clients.

"The problem with the TDR ... is that it has never been an effective mechanism of providing compensation to property owners," Willis said. "It's a real illusion of providing some type of compensation."

In Faircloth's case, it could have provided more than an illusion of compensation. Faircloth - the developer behind the Summit, Gulf Crest, Hidden Dunes and Treasure Island - traded four lots on Shell Island to the county in June 2006 for 80 extra feet of height allowance on a lot on the south side of Thomas Drive.

The 300-foot-tall Legacy Beach Resort was slated to rise between the Watercrest condos and Regency Towers (another Faircloth development).

Mary Sittman, one of Faircloth's partners, called Legacy Beach "more than a condominium."

"A 30-story tower, retail, restaurants, a full resort," Sittman said. "It would have been the first of its kind."

Faircloth died in October 2007, however, at the age of 79.

"Mr. Faircloth died, and so did the real estate market, kind of simultaneously," Sittman said. Legacy Beach Resort was never built; the development order on the tower expires in June 2011.

Regardless of what happens with Legacy, some of the remaining Shell Island landowners want some way to get money back from their land, in lieu of spending more time and money gaining approval from various public agencies to build.

Alford said he received an offer for $75,000 on his lot, but the deal fell through when the county enacted zoning in 2004. The county commissioners passed a resolution that year to work toward preserving Shell Island from any development.

Lucero, the APA attorney, said the Shell Island owners might get a chance to make money off their land if the real estate market improves, and other developers want to use the TDR program but need Shell Island lots to trade to the county.

If not, she said, they might be out of options.

"Government is not required to ensure that they can make the highest-profitable and best use of their land. Government is there to protect ... public health, safety, and welfare," Lucero said. "As long as they can make some economically viable use of their parcels, and they haven't been wiped out completely by government regulations, then I think they're going to have a tough battle ahead."

Source:WILL HOBSON / News Herald Writer

Pier Park- Stores and New Stores

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Fri, 12 Feb 2010 18:28:34 -0800

NEW STORES NOW OPEN AT

PIER PARK:

-La Cantina

-Hallmark

-Earthbound Trading Co.

TEANTS COMING SOON:

-Yogurty's Yummy Yogurt

-Break Thru

-Laser Tag

-Lattitude 29

RETAILERS NOW OPEN

Dillard's
JCPenney
Target
Borders Books and Music
The Grand Movie Theatre
Jimmy Buffett's Margaritaville
Old Navy
Aeropostale
American Eagle
Ann Taylor Loft
Alltel Wireless
A.M Cafe' Accessories on the Boardwalk
Aqua Gallery
As Seen on TV & More
AT&T
Back Porch Seafood House
Bath and Body Works
Beach Hut
Beach Scene

Beau Tresor Home Accessories
BeBo'z
Blender A Fusion Clothing Store
Bootleg BBQ
Buffalo Wild Wings
Cache
Candymaker Candy Stores
Carlyle & Co.
Carter's Clothing Children Apparel
Chico's
Claire's
Coldwater Creek
Crocs Footwear
Cost Cutters
Counts Oakes Resort Properties
DeJaVu
Del Sol

Dollar Tree
Emerald Coast Photography

Earthbound Trading Co.
The Eye Gallery
Famous Footwear
Feathers Shoe Boutique
Fish Tales - Glass Art Gallery
Five Guy's Famous Burgers and Fries
Footprints Coastal Decor
GameStop
GNC
Great American Cookie Co./Pretzel Time
Guglielmo's Italian Grill
Guy Harvey's Island Grill Hallmark Hana Japan
Hofbrau Beer Garden
Hollister

Hy's Toggery & Gifts
Jake at the Beach Life is Good Genuine
Neighborhood Store
Jos. A Bank
Journey's Justice
Lid's
Kilwin's Chocolate and Ice Cream

La Cantina

Long Horn Steakhouse
Marble Slab Creamery
Massage Envy
Maurice's
Merle Norman Cosmetics
Mermaids Trading Company
Motherhood Maternity
Nails So Happy
New York & Company
Nike Factory Store

Olive Garden
Pac Sun
Paint n' Place
Panera Bread
Paradise Found
Payless Shoes
Peace Frogs Apparel
Perfumania

Polka Dots Toys and Gifts
Popcorn Kingdom
Rack Room Shoes
Red Brick Pizza

Red Robin Gourmet Burgers & Spirits
Reggae J's Island Grill
Regions Bank

Regis Salon
Ron Jon Surf Shop

Rue 21
Runway Collection

Sheesha Mediterranean Cafe

Shimmering Seas Jewelry & Gifts
Smoothie King
Solace Day Spa Salon/Aveda Concept Store
Spring Rige Welcome Center
Starbucks
Sunglass Hut
Sunglass World
SUNSIGHTS by Solstice
Tatoe Tots Children's Clothing
Tilly's
Tootsie's Orchid Lounge
Trader Tom's Shells and Gifts
Tran Fashion
ULTA Cosmetics
Unique Boutique by Irene and Co.
University Gift & Apparel
Verizon

Vice & Vertue Victoria's Secret The Walking Co.
Yankee Candle Zales Jewelers

Mortgage officials try exits softer than foreclosures

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Fri, 12 Feb 2010 11:19:45 -0800

NEW YORK - Feb. 11, 2010 - Seeking alternatives to the nation's struggling foreclosure prevention efforts, federal and mortgage industry officials increasingly are looking for ways to get distressed borrowers to leave their homes voluntarily, without going through the expensive foreclosure process or a messy eviction.

Citigroup, for instance, plans to announce a pilot program on Thursday that would allow delinquent borrowers who don't qualify for or decline mortgage relief the opportunity to stay in their homes without making payments for up to six months before turning over the keys, in return for keeping the property in good condition. The bank estimates that up to 20,000 borrowers in Texas, Florida, Illinois, Michigan, New Jersey and Ohio could be eligible.

The program is just the latest amid a growing acknowledgment that foreclosure prevention efforts will fail to reach millions of borrowers over the next few years.

"This is a graceful way to move on with their lives instead of being foreclosed on and being evicted from their homes," said Sanjiv Das, chief executive of CitiMortgage.

The Citigroup plan attempts to address some common industry complaints, including borrowers who leave their homes in disarray after foreclosure, requiring lenders to spend thousands of dollars fixing up the property before putting it on the market. Also, homeowners who owe far more than their homes are worth increasingly are choosing to "strategically default," even though they can afford to pay their mortgage. The new program gives CitiMortgage more control over when distressed homes are put up for sale, bypassing clogged courthouses that have slowed the foreclosure process in many parts of the country.

By avoiding a glut of foreclosures that could hit the housing market within the next 16 to 18 months, the program - if it is replicated throughout the industry - could help prevent another dip in home prices, Das said.

It would be a more orderly process "than if all of the foreclosed properties came crashing at some point in the cycle," he said.

Other initiatives have also emerged for borrowers likely to lose their homes. Fannie Mae and Freddie Mac, the mortgage financing companies, developed programs allowing former homeowners to become renters after a foreclosure or other proceedings. As part of its federal foreclosure prevention program, known as Making Home Affordable, the Treasury Department announced late last year that lenders would be eligible for $1,000 in exchange for allowing borrowers to sell their home in a short sale. In such deals, the borrower sells the home for less than the outstanding mortgage, and the lender forgives the difference.

Moody's Economy.com has forecast that the number of short sales and transactions in which borrowers surrender their deed in lieu of foreclosure will increase more than 50 percent, to about 490,000, this year. That is just a fraction of the 1.9 million homeowners Moody's has forecast will lose their homes to foreclosure this year, up from 1.7 million last year.

But lenders have struggled to make many of these programs effective. The short sale is often lengthy and cumbersome for homeowners. In some cases, borrowers have second liens on the property, which can hang up the process. And lenders are sometimes suspicious of the potential for fraud if the home is sold cheap to a friend or family member of the borrower.

It's unclear how rental programs for former homeowners are working. Fannie Mae launched its "Deed for Lease" program in November, offering borrowers a 12-month lease in return for turning over the keys to their former home and maintaining the property. A company spokeswoman said that it was too early to judge the program's success, but that former homeowners who surrender their deed to avoid foreclosure - numbering nearly 2,000 through the third quarter of last year - would be eligible. Freddie Mac's year-old program targets former homeowners after their foreclosure, offering them a month-to-month lease. It has not released specific data on how many homeowners have chosen this option.

Citigroup's program goes further. It targets delinquent homeowners who do not qualify for mortgage relief. During the time the borrower is still in the home, they must continue to pay utilities, but in some cases, the bank may help cover some of the taxes, insurance or homeowner association fees. The borrower would also be eligible for transition counseling to help find a new home, and a minimum of $1,000 to help offset moving costs.

If there is significant demand for the program, Citigroup will expand it, Das said. "There might be complications that we haven't thought about," he said. "What happens if they don't turn over the keys after six months or they don't maintain their house like we would like them to maintain their house?"

Source: washingtonpost.com

4 reasons to sell now

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Tue, 09 Feb 2010 16:45:09 -0800

Selling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign:

· Sell low and buy low. Because all property values are down, the loss on the property a homeowner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he'll be in better shape.

· Downpayment help is widely available. While nothing-down loans have disappeared, it's easy to find downpayment assistance for lower-income and first-time homebuyers. Programs vary all over the country, but one good way to find them is to search online for "downpayment assistance programs" and the name of your region.

· Your Uncle Sam has money to share. Besides the $8,000 first-time homebuyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.

· Good help is available. Really talented real estate practitioners, contractors and designers are available and eager for business.

Source: McClatchy Tribune, Kate Forgach (02/07/2010)

10 features homebuyers want

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Tue, 02 Feb 2010 15:34:40 -0800

- Feb. 2, 2010 - Home designers and builders speaking at the recent International Builders Show in Las Vegas say that buyers are seeking cost-effective features and rejecting things that don't have lasting value.

"It's all about family togetherness - casual living, entertaining and flexible spaces," says Carol Lavender, president of the Lavender Design Group in San Antonio.

Paul Cardis, CEO of Avid Ratings, which conducts an annual survey of buyer preferences, identified these must-haves in new homes:

• Large kitchens with islands

• Energy efficiency, including energy-efficient appliances, super insulation, and high-efficiency windows

• Home offices

• Main-floor master suite

• Outdoor living space

• Ceiling fans

• Soaking tub in the master suite and/or an oversize shower with a seating area

• Stone and brick exteriors rather than stucco or vinyl

• Community walking paths and playgrounds

• Two-car garages, but three-car garages are even more desirable

Source: MarketWatch, Steve Kerch (01/30/2010)

Pending sales stabilize above year-ago levels

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Tue, 02 Feb 2010 15:33:53 -0800

WASHINGTON - Feb. 2, 2010 - Pending home sales have leveled from a market swing driven by response to the homebuyer tax credit, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in December, increased 1.0 percent to 96.6 from 95.6 in November, and is 10.9 percent above December 2008 when it was 87.1. In November, the monthly index had fallen by 16.4 percent from surging activity in preceding months.

Lawrence Yun, NAR chief economist, says it's important to recognize how the tax credit skews market data. "There are easily understood swings in contract activity as buyers respond to a tax credit that was expiring (but that) was then extended and expanded," he says. "These swings mask the underlying trend, which is a broad improvement over year-ago levels. December activity was the fifth highest monthly tally in two years."

Buyers who have a contract in place to purchase a primary residence by April 30, 2010, have until June 30, 2010, to finalize the transaction to qualify for a tax credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.

The PHSI in the Northeast rose 2.3 percent to 76.1 in December and is 14.9 percent higher than December 2008. In the Midwest the index increased 5.2 percent to 86.9 and is 8.7 percent above a year ago. Pending home sales in the South rose 2.2 percent to an index of 98.4, and are 5.5 percent higher than December 2008. In the West the index fell 3.8 percent to 119.9 but is 18.6 percent above a year ago.

Yun projects the extended and expanded tax credit will encourage 2.4 million households to take the credit in 2010. "While new-home sales will remain low due to a lack of construction, existing-home sales are projected to rise to around 5.6 million in 2010," Yun said. Last year there were 5.16 million existing-home sales.

He added that one of the greatest benefits of rising sales will be firming home prices. "For several months now we've been seeing stabilization in all of the home price measures as inventory is pulled down," Yun said. "As a result, the housing wealth for many middle class families has begun to stabilize."

Rates on 30-year home loans fall

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Fri, 15 Jan 2010 18:36:13 -0800

Rates on 30-year home loans fall

Mortgage Rate Trend Index

Don't expect much rate fluctuation over the next 30 to 45 days, say 48% of the experts polled this week by Bankrate.com. If it does change, expect an increase, according to 36%. Only 18% foresee further rate drops.

WASHINGTON - Jan. 15, 2010 - Rates for 30-year home loans edged lower for the second straight week, a report said Thursday, but remained above last month's record lows.

The average rate on a 30-year fixed mortgage was 5.06 percent this week, down from 5.09 percent a week earlier, mortgage company Freddie Mac said.

Rates dropped to a record low of 4.71 percent in early December, pushed down by an aggressive government campaign to reduce consumers' borrowing costs, but then rose steadily for the rest of the month.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day, often in line with long-term Treasury bonds.

The Federal Reserve is pumping $1.25 trillion into mortgage-backed securities to try to bring down mortgage rates, but that money is set to run out next spring. The goal of the program is to make homebuying more affordable and prop up the housing market.

While it's possible that the program could be extended, analysts believe the Fed is reluctant to do so. "We believe that the bar for the Fed's program extension is high," Credit Suisse mortgage strategist Mahesh Swaminathan wrote Thursday.

The average rate on a 15-year fixed-rate mortgages fell to 4.45 percent, down from 4.50 percent last week, according to Freddie Mac.

Rates on five-year, adjustable-rate mortgages averaged 4.32 percent, down from 4.44 percent a week earlier. Rates on one-year, adjustable-rate mortgages rose to 4.39 percent from 4.31 percent.

The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount.

The nationwide fee for loans in Freddie Mac's survey averaged 0.7 point for 30-year loans, 0.6 point for 15-year and five-year loans and 0.5 point for one-year loans.

Source: FAR Early Bird News

IRS completes paperwork for tax credit

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Fri, 15 Jan 2010 18:34:37 -0800

WASHINGTON - Jan. 15, 2010 - The Internal Revenue Service (IRS) finished updating the online tax credit claim forms, and they now reflect the extended deadline.

Form 5405 must be used for both the first-time homebuyer extension and the move-up homebuyer expansion of the homebuyer tax credit.

The revised IRS instructions and revised IRS form can be found on the Florida Realtors Homebuyer Center here.

© 2010 Florida Realtors®

FAA ASSIGNS NEW CALL LETTERS FOR NORTHWEST FLORIDA BEACHES INTERNATIONAL AIRPORT

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Thu, 14 Jan 2010 20:19:18 -0800

PFN Becomes ECP: FAA Assigns Airport New Call Letters

Panama City, Florida (January 7, 2010) - The Federal Aviation Administration has assigned a new three-letter identifier to the new Northwest Florida Beaches International airport now under construction in West Bay, Florida.

Northwest Florida Beaches International Airport's three-letter location identifier will be "ECP" when the airport opens in May 2010.

The new airport is replacing Panama City - Bay County International Airport, whose three-letter identifier is "PFN."

Location identifiers are not interchangeable and cannot be transferred from one location to another or from one airport to another even within the same community. In fact, the first and second letters or second and third letters or third and first letters of a three-letter identifier may not be duplicated with less than 200 nautical miles separation.

"The FAA's awarding of our new location identifier is another important step in our process to open Northwest Florida Beaches International Airport in May," said Airport Authority Chairman Joe Tannehill.

Construction of the new Northwest Florida Beaches International is 80 percent complete and on track for an opening date of May 23, 2010.

Media Contact: Randy Curtis
Airport Executive Director
(850) 763-6751 ext. 203

Selling your home? Realtors pick nine green improvements to close deal

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Thu, 14 Jan 2010 16:36:33 -0800

WASHINGTON - Jan. 14, 2010 - A new poll of nearly 1,000 Realtors offers a glimpse at the top "green" improvements recommended by real estate professionals to help move a sale property off the market.

The upgrades - which include planting native greenery, replacing air filters, staging the home with recycled or reusable props, weather-stripping doors and windows, installing programmable thermostats, installing low-flow showerheads, using turn-off power strips, replacing standard lighting with CFL or LED bulbs, and choosing low-VOC paint - are all fairly inexpensive investments.

And while three of those nine options get back at least twice as much in sale price gains as they cost, none have a bigger return on investment (ROI) than the top five traditional upgrades suggested by realty practitioners in a November survey. Cleaning and de-cluttering a home before it goes on the market, for instance, will cost the owner less than $200 to complete but bumps up the property's sale price by almost $1,700 - for a staggering ROI of 872 percent.

Other high-ROI traditional improvements recommended by the real estate community include home staging, lightening/brightening, landscaping and plumbing repairs.

Although they do not offer a great ROI, HomeGain says eco-improvements are becoming more popular; and with their energy savings and low cost of investment, they probably should be considered by all homeowners - not just those preparing their unit for sale.

Source: USA Today (01/14/10)

Record year for foreclosures as unemployment rises

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Thu, 14 Jan 2010 16:34:03 -0800

MIAMI (AP) - Jan. 14, 2010 - A record 2.8 million households were threatened with foreclosure last year, and that number is expected to rise this year as more unemployed and cash-strapped homeowners fall behind on their mortgages.

The number of households that received a foreclosure-related notice rose 21 percent from 2008, RealtyTrac Inc. reported Thursday. One in 45 homes were sent a filing, which includes default notices, scheduled foreclosure auctions and bank repossessions.

In December, more than 349,000 households, or one in 366 homes, were hit with a foreclosure-related notice. That represents a 14 percent spike from November and a 15 percent jump from December 2008.

Banks repossessed more than 92,000 homes, up 19 percent from November. That increase was likely due to lenders working to clear their books at the end of the year, RealtyTrac said.

Stemming the tide of foreclosures is an important step for the real estate market and the economy to recover. Because foreclosures are usually sold at heavy discounts they can lower the value of surrounding properties. Cities lose property tax dollars from empty foreclosures and declining home values, straining local economies. Home prices have stabilized in some cities, but are still down 30 percent nationally from mid-2006.

The foreclosure crisis isn't letting up. Between 3 and 3.5 million homes are expected to enter some phase of foreclosure this year, said Rick Sharga, senior vice president of Irvine, Calif.-based RealtyTrac, which began tracking the data five years ago.

High foreclosures forced the federal government and several states to come up with plans to prevent or delay foreclosures to help troubled borrowers.

"It was bad, but it could have been much worse, and it probably should have been worse," Sharga said.

One plan intended to help homeowners is the Obama administration's loan modification program known as Making Home Affordable. Lenders participating in the program have offered trial loan modifications to 760,000 eligible borrowers since it was launched in March. A loan modification changes the terms of the loan, such as lowering the interest rate, to make the monthly payments more affordable.

As of November, just 31,000 of them had been made permanent. Nearly the same number had dropped out of the program or found to be ineligible. The Treasury Department will release updated figures Friday.

Economic issues, such as unemployment or reduced income, are expected to be the main catalysts for foreclosures this year. Homeowners with good credit who took out conventional, fixed-rate loans are the fastest growing group of foreclosures.

The Mortgage Bankers Association on Wednesday recommended changes to the government's program to account for borrowers who've lost their jobs. The program, for example, should include a suspension of payments as the first step for borrowers with a temporary loss of income.

The government also should refrain from "endless incremental program changes," the trade association said.

Since April 2009, there have been nine instances where new program requirements were released, and more than 90 clarifications for new or revised forms, reporting changes and policies. The changes forced mortgage companies to implement new procedures and retrain employees, taking away time that could be spent helping borrowers.

The same three states that led the nation in foreclosure rate in December also posted the highest rates for the entire year: Nevada, Arizona and Florida. More than 10 percent of Nevada housing units received at least one foreclosure filing in 2009, with Florida and Arizona following with about 6 percent each.

The other states ranked in the top 10 for the year were California, Utah, Idaho, Georgia, Michigan, Illinois and Colorado.

Source: FAR Early Bird News

Uncle Sam is Paying Americans to Buy Golf Carts!

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Mon, 04 Jan 2010 19:53:29 -0800

By: Ann Marie Sale
CRI Tax Manager

The Emergency Economic Stabilization Act of 2008 ("EESA") created a new tax credit for various types of electric vehicles, which may include what are commonly referred to as neighborhood electric vehicles "NEVs" or golf carts. EESA created the tax credit for vehicles that have at least four wheels and draw propulsion using a rechargeable traction battery with at least four kilowatt hours of capacity. The minimum credit is $2,500 and the credit tops out at $7,500 to $15,000, depending on the weight of the vehicle and the capacity of the battery. The vehicles typically cost between $8,000 and $20,000 and can travel 30 to 40 miles on a charge. These qualifying golf carts are essentially the same as normal golf carts except for adding some safety features. They must be outfitted with headlights, seat belts, parking brakes and driver's side mirrors to be street ready.

The NEV or golf cart must be purchased by December 31, 2009 to qualify for the EESA tax credit. Before you buy your golf cart, call us to make sure it qualifies for the tax credit.

Frommer's Travel Guide Names Northwest Florida Beaches As A Top Destination Pick for 2010

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Mon, 14 Dec 2009 22:59:50 -0800

Travel Guide High on Northwest Florida

Frommer's selects region as one of top destinations of 2010

December 08, 2009 DUSTY RICKETTS / Florida Freedom Newspapers

Northwest Florida residents who want to visit one of the top tourist destinations in the world for 2010 need only step outside.

Frommer's Travel Guide, one of the best-selling travel guides in the world with more than 75 million books sold, recently named the Florida Panhandle beaches as one of its top 12 travel destinations for next year.

Other areas that made Frommer's list are Tunisia in North Africa; Hanoi, Vietnam; and Melbourne, Australia. The only other American locale that made the list was Hawaii's Big Island.

It's a big deal," said Beth Oltman, Panama City Beach Chamber of Commerce CEO and president. "We're very proud."

Not only are the sugar-white beaches a draw for tourists, but the whole area also is becoming a thriving community, Oltman said.

"I think it's great. Anytime you can get national recognition is a feather in your cap," said Tracy Louthain, director of public relations for the Beaches of South Walton Tourist Development Council. "It really gets people to pay attention to you. I think the timing is good with the opening of the new airport in Panama City in 2010. There are a lot of reasons to focus on this region of the state right now."

Northwest Florida has been suggested for inclusion in the list of top destination choices in the past, but this was the first year it made the final cut, said David Lytle, editorial director of frommers.com.

"It fit our list for the year," Lytle said. "It's an American destination; part of it is overlooked oftentimes. It's got some economical choices. A family can still afford to take a vacation to the Florida Panhandle.

"It's a gorgeous part of the country," he added. "People tend to think of Florida, and they either think of the theme parks or they think of southern Florida. We want to give another part of the state its due as well."

Frommer's list of the top tourist destinations for next year will be seen by people from all over the world and will help draw new visitors to the area, said Darrel Jones, executive director of the Okaloosa County Tourist Development Council.

"It's a great thing for opening this area up to the world," Jones said. "Advertising like this, you couldn't pay for."

All three tourist organizations plan to use the recognition from Frommer's in their upcoming publicity measures, including updating their Web sites to include information on the list.

"With the economy, I think that's important that people understand you can come to this area and have a great time, great vacation and not cost you a small fortune," Jones said.

News Herald Writer Scarlet Sims contributed to this story.

Alisa Stone Herring is Bay County's Realtor Ambassador of the Year 2009!

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Mon, 14 Dec 2009 17:43:17 -0800

2009 Awards Luncheon results December 14th, 2009

Broker of the Year: Cynthia McQuaig
Realtor of the Year: Michelle Ginn
Citizen of the Year: Judith Devita
Affiliates of the Year: Hunter Palmer and Irene Wynn
Realtor Ambassador of the Year: Alisa Stone Herring
Roy Crecelius Award for Distinguished Service: Tom Neubauer
Presidents Awards: Janet Roan and Mary Sowell

Honor Society Awards:
Jan Cox
Judith Devita
Denise Fitchben
Rex Free
Alan Graham
Alisa Stone Herring
Anthony Jensen
Christi Jensen
Doreen Morgan
Vince Price
Janet Roan
Anne Stroud
Vicki Swenk
Jim Vider

http://bay.flrealtor.net/?p=2075

Buyer tax credit effective but not available

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Mon, 07 Dec 2009 21:19:54 -0800

WASHINGTON - Dec. 7, 2009 - With President Obama's signature on Nov. 6, 2009, the first-time homebuyer tax credit was extended, and some move-up buyers became eligible for up to $6,500 starting on Dec. 1, 2009.

However, the new law changed the way a home sale must be documented to the Internal Revenue Service (IRS), including additional back-up information to minimize the chance of fraud. And that documentation change became effective immediately when the bill was signed.

But that new form is not yet available.

The homebuyer tax credit is claimed using IRS Form 5405, and that won't change under the new program; however, Form 5405 must be revised to adhere to rules in the law signed Nov. 6.

Currently, the IRS has only the old version of Form 5405 on its website - the one that applies to sales that took place Nov 6, 2009, or earlier. The revised Form 5405 applicable to sales on Nov. 7, 2009, and later, will not be on the IRS website, according to IRS officials, until late December.

Buyers who close after Nov. 6 and use the old claim form may have trouble collecting their tax credit quickly.

For more information on the tax credit and Form 5405, visit the IRS website.

© 2009 Florida Realtors®

Pier Park's Late November and December Calendar of Events on Panama City Beach

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Tue, 17 Nov 2009 22:40:37 -0800

November

-Nov. 20th-22nd- Modonarro. Italian street painting fair featuring 3-D sidewalk chalk art. Presented by the Visual Arts Center of Bay County.

-Nov. 21st- St. Jude 5K Run

- Nov. 27th- Black Friday- The busiest shopping day of the year featuring lots of special sales and door busters.

- Nov. 27th- Santa's Arrival and Breakfast. Santa will arrive on property at 10am for cookies and hot chocolate with all the naughty and nice boys and girls. He will then be available for pictures at the Santa House located on the boardwalk.

- Nov. 27th-2nd Annual Mayors Tree Lighting. The PCB Mayor will light the 20ft. Christmas tree located in Town Center at 6 pm. Holiday carolers will also perform to help ring in the holiday season.

- Nov. 28th- Rescue Mission Festival of Trees. Christmas trees that have been decorated by local businesses will be on display and auctioned off in the promo area. All proceeds go to benefit the Rescue Mission.

December

- Dec. 5th & 12th- 5pm to 7pm. Pet Photos with Santa. Bring your furry friends out to have their picture made with Santa at the Santa house on the boardwalk.

- Dec. 5th & 6th- Run for Redfish Half-Marathon

- Dec. 12th- 4pm. Panama City Beach Christmas Parade. Parade will begin in Town Center and travel throughout Pier Park down the Boardwalk to Front Beach Road

Obama signs bill: Buyer tax credit extended

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Tue, 10 Nov 2009 17:34:09 -0800

WASHINGTON - Nov. 6, 2009 - President Obama signed H.R. 3548 this morning, enacting into law an extension, and adjustment, of the $8,000 tax credit for first-time buyers. Among other things, the extension adds money for certain move-up buyers; creates one deadline for signing a contract and a later deadline for closing; changes income requirements; and limits a purchased home's cost to $800,000.

"Extending the homebuyer tax credit and expanding it to reach more homebuyers is the right thing to do," says 2009 Florida Realtors® President Cynthia Shelton. "It is critical to maintaining the positive momentum we've been experiencing in the housing market and in the overall economy. Florida Realtors applaud congressional leaders for taking action to extend the homebuyer tax credit into 2010, which will help Florida families realize their dream of homeownership, improve our communities and strengthen our economy."

Adds John Sebree, Florida Realtors vice president of public policy, "Florida residents enjoy two additional advantages. The Florida Homebuyer Opportunity Program (FHOP), created by the Florida Legislature earlier this year, still has approximately $28 million that first-time homebuyers can access and use toward their downpayment. And move-up buyers now have the ability to ‘port' their current property tax savings to a new home."

First-time homebuyers

Most details for first-time homebuyers mirror the rules currently in existence. The maximum tax credit remains $8,000 ($4,000 for married individuals filing separately), and anyone who has not owned a home within three years is considered a "first-time buyer."

· A purchase must be under contract by April 30, 2010.

· A purchase under contract by April 30 must close no later than June 30, 2010.

· After Dec. 1, 2009, income limits rise to $125,000 for singles and $225,000 for married couples; up from limits effective through Nov. 30 of $75,000 for singles and $150,000 for married couples. The tax credit phases out incrementally at each $20,000 increase in income.

· Effective immediately: The maximum home value purchased cannot exceed $800,000. Prior to the law being signed, first-time homebuyers had no limitation on a home's cost.

Current homeowner tax credit

An existing homeowner who purchases a home may now claim a tax credit of up to $6,500. To qualify, that owner must have owned and used the same residence as a principal residence for any consecutive five-year period in the previous eight years.

· This new tax credit is effective immediately. Eligible homebuyers do not have to wait until Dec. 1 to close in order to qualify.

· Personal income limits, maximum home value, and contract/closing deadlines are the same as those for first-time homebuyers.

Long-time Florida homeowners who enjoy discounted property taxes resulting from the state's Save Our Homes amendment qualify for property tax portability, notes Sebree. For more information or to calculate how much tax savings can be transferred to a new home, visit floridarealtors.org at: http://www.floridarealtors.org/LegislativeCenter/TopInitiatives/index.cfm

Florida Homebuyer Opportunity Program

Under FHOP, first-time Florida homebuyers can obtain interest-free bridge loans to access their federal tax credit before they complete a home purchase, enabling them to use that money upfront for downpayment and closing costs. Once buyers submit their returns to the IRS and receive their tax credit money, they repay their loans to the state.

The Florida Realtors-backed program came out of the 2009 session of the Florida Legislature. However, as part of the 2009-2010 budget year, did not become effective immediately. They tax credit extension will allow many first-time buyers to tap into the approximately $28 million in the program's remaining funds.

While funded by the state, the money is distributed through the city and county housing offices that operate the State Housing Initiatives Partnership (SHIP) program. There is no standardized program, and each local agency may operate under different rules for distribution. For more information, buyers should contact their local SHIP office.

To find a local SHIP office, go to: http://apps.floridahousing.org/StandAlone/FHFC_ECM/AppPage_SHIPLGContacts.aspx.

Additional changes

The tax credit extension includes other new rules, such as:

· The new law also impacts dependent purchases of homes, which weren't addressed under the old rules.

· The new law requires a buyer to attach documentation about the home purchase to his or her income tax return. An audit found that some buyers are claiming the tax credit when they don't deserve it, and investigators continue to seek out fraud. To minimize tax abuse going forward, buyers won't receive the credit without submitting proof to the Internal Revenue Service (IRS).

The homebuyer tax credit is collected as part of the normal income tax process. As a credit, it's calculated separately from an individual's income tax, and paid regardless of taxes owed or withheld from income. As always, however, only a tax planner can render specific advice to anyone seeking the credit. For more information on the credit, contact a tax planner or visit the IRS website at: http://www.irs.gov.

Florida Realtors will update tax credit information and clarify details when available on the Homebuyer Center, part of floridarealtors.org at: http://www.floridarealtors.org/AboutFar/homebuyercenter/index.cfm.

© 2009 Florida Realtors®

More on Southwest going to Bay County- links to find out all the new info...

Alisa Stone Herring , CRS, GRI (Stone Real Estate Group, LLC) — Fri, 23 Oct 2009 16:41:33 -0700