REALTOR® Magazine-Daily News-Fewer Short Sales Come Up Short
Posted by admin on October 21, 2009
REALTOR® Magazine-Daily News-Fewer Short Sales Come Up Short.
Will the tax credit be extended beyond December 1, 2009?
Posted by admin on August 28, 2009
H.R. 2801: Home Ownership Moves the Economy (HOME) Act of 2009 is a bill set to go before congress to extend the Home Buyer Tax Credit to U.S. citizens. The current home buyer tax credit allows first time home buyers (buyers who have not owned a home in the last three years) to receive a credit of 10% of the purchase price up to $8000.
There are some restrictions.
- Income must be under $75,000 or $150,000 filing jointly. There is a reduced credit for individuals earning up to $95,000 or $170,000 jointly.
- The home must be a first time purchase.
- The home may not be sold within three years of purchase or the credit will need to be paid back.
The tax credit allows the buyer to claim the credit either on their 2008 or 2009 tax return and if they do not owe enough taxes after the credit has been applied, the credit balance will be refunded to them in cash.
The tax credit is set to expire on December 1, 2009. Real estate agents and lenders are preparing for the rush to get escrows closed in time for buyers to qualify before the tax credit expires. There are still many buyers who have procrastinated or have not found a home yet and as we are heading to the final stretch of time available to close an escrow, those buyers who are just getting into contract in October may be putting themselves at risk not to close in time. With stricter lending policies and changes that have occurred in the last year, it may take longer to get an escrow processed. Many lenders these days are operating with a skeleton crew.
Home builders and Realtors are lobbying for the extension which if passed will extend the tax credit for one year and will remove the income restriction and requirement that the home be a first time purchase. Let’s hope they are successful in accomplishing this goal since it will increase home sales and create jobs.
If the H.R. 2801 bill is passed to extend the the tax credit beyond the December 1, 2009 deadline there would be:
- No income limits.
- Tax credit for all home buyers, not just first time buyers.
From the article I read, it stated that it is estimated to increase home sales by 383,000 and create nearly 350,000 jobs. Something much needed for our economy.
Does it make more sense to rent?
Posted by admin on August 17, 2009
Renting vs owning. Renting works fine for some people. In some areas rent prices have begun to come down. How does that effect the difference between the cost of home ownership over the cost of renting? I don’t think there is one right or wrong answer when it comes to the question, “Is it better to rent or own a home?” There are pros and cons to both sides.
Owning a home is no longer a get rich quick type of investment. Home ownership allows a set price for a house payment. While the interest rates are lower than they have been in years, taking advantage of getting in on a fixed 30 rate allows the home owner to live in the home without the price adjusting upwards in the coming years. Renting gives no guarantees to the amount of rent you’ll be paying ten years from now for the same size home. Home ownership does build equity, over time. If you plan to live in the home for awhile, chances are good that when you sell it you will get back what you put into it and then some.
Home ownership is very emotional for the homeowner. Home owners have the advantage of upgrades and renovations. How many people tune in to HGTV? You won’t get this with a rental. If I were renting I might paint a room (with the landlord’s permission, of course) but there’s no way I would invest in upgrading somebody else’ property.
Home ownership has tax advantages. Renting has no tax advantages.
Real estate is a fickle industry. Housing prices have dropped but how low will they go? Are we at the bottom yet? And what happens when we do bottom out and prices begin to rise again? Nobody will know that until the time comes. By the time we know, it will be too late for those who didn’t take advantage when the time was right. That is how real estate works. All anyone can do is educate themselves and make the choice that works out best for their own situation.
Since the second quarter of 2006, US home values have fallen by more than 30 percent and more than 1 million homes were lost to foreclosure in 2008. Given the risks associated with buy a home, does it make more sense to rent? Greg McBride, of Bankrate.com, and CNBC’s Diana Olick discuss.
How to obtain your certificate of eligibility for your VA loan
Posted by admin on August 15, 2009
Your lender can help you obtain your certificate of eligibility. Most lenders have access to the system online and can submit the eligibility form and receive the eligibility certificate within seconds. As long as the VA has all sufficient data it is quicker to let your lender get your certificate for you.
Or you can download the form and send your request along with proof of military service to:
VA Loan Eligibility Center
PO Box 20729
Winston-Salem, NC 27120
Don’t dilly dally! The $8,000 first time homebuyer tax credit will expire soon
Posted by admin on
Anybody hoping to use the first time buyer tax credit must close escrow by November 30th, 2009. That means having the keys and being in the new home on December 1st, 2009.
If you are looking for a home, or thinking about buying a home – the beginning to mid October should be your absolute deadline to having found a home and having an accepted, executed offer and being in the process of getting escrow closed before the November 30th, 2009 deadline. That is still pushing it. September would be my deadline, but so many people do procrastinate. These days, lenders are operating with a smaller crew so it takes longer to get things done.
Do everything in your power to help your Realtor and your mortgage professional get all necessary paperwork processed as soon as possible. Don’t dilly dally.
New disclosure laws–will create longer escrow transactions. The new minimum mandatory transaction time for transactions with a loan is 17 days. As of July 30th lenders are now required to wait 4 business days from when they receive a loan package until any fees, including the appraisal, can be charged. Unless someone other than the borrower pays for the appraisal you must wait to order it. Also, there is now a 7 day redisclosure period before loan docs can be delivered. To insure compliance many lenders now hold docs 7 calendar days from when they were ordered!
How to get a copy of your DD Form 214, Discharge Papers and Separation Documents
Posted by admin on
A form DD214 is issued when a service member performs active duty or at least 90 consecutive days of active duty training. The Report of Separation contains information needed to verify military service for benefits, retirement, employment, and membership in veterans’ organizations.
The report of separation form issued in most recent years is the DD Form 214, Certificate of Release or Discharge from Active Duty. Before January 1, 1950, several similar forms were used by the military services, including the WD AGO 53, WD AGO 55, WD AGO 53-55, NAVPERS 553, NAVMC 78PD, and the NAVCG 553.
To get copies of DD Form 214, Discharge Papers or Separation Documents, you can visit the National Archives to request copies.
