Archive for April, 2009
6 Steps to Determining Your Eligibility for a Home Buyer Tax Credit?
14 Comments Published by April 9th, 2009 in Buyer Advice, First Time Home Buyers, Tax Credit of 2009. byThe recently enacted American Recovery and Reinvestment Act of 2009 or ARRA, commonly referred to as “The Stimulus Bill,” created a tax credit for first time Home Buyers. Most first time home buyers wonder what the specific qualifications are for this $8,000 tax credit. Below are six steps to determining your eligibility:
1. Who is a First-Time Buyer? The bill defines a first time home buyer as anyone who has not owned a property/home/real estate for the past three (3) years.
2. How does the Tax Credit Work? The tax credit is received when you file your taxes the year after your home/real estate purchase. In other words, the first time home buyer does not receive any cash at the time escrow closes, nor does the 1st time home buyer receive any assistance with closing costs through the escrow. Instead it is added to any refund you would be due on your taxes in the year following your home purchase.
3. Can I Receive theTax Credit of $8,000 Even If I Owe No Taxes?: You, as a first-time home buyer, can still qualify even if you own little or no taxes. (more…)
Help for Homeowners Who Want to Avoid Foreclosure
0 Comments Published by April 8th, 2009 in Financing, Help for Homeowners, Mortgage Workout Programs for Homeowners, Seller Advice. by
On February 18, 2009, President Obama announced his Homeowner Affordability and Stability Plan. The plan has two components to it–one offers homeowners who qualify a plan that would refinance mortgages that are greater than the current market value of their home or condo into a more affordable monthly payment thereby reducing the possibility of a future foreclosure.
The second component offers homeowners a way to modify their existing mortages into a housing payment that would enable the borrower to stay in their home/condo and avoid possible mortgage default and/or foreclosure.
Beware of Foreclosure Rescue Scams–Help is Free! Let me preface by saying there are many scams out there that prey on troubled homeowners. There are people who purport to be experts in loan modifications and ask homeowners to pay for their services when you can obtain all the information and help you need for free.
This is one reason why I prefer to pass along the real source of information, so that you, the consumer, can determine after reviewing the eligibility requirements of each of these government sponsored programs whether you are a candidate for either one or the another.
The following web site explains in detail each of the programs–the Home Affordable Refinancing and Home Affordable Modification–eligibility requirements and the information you will need to gather before you contact your mortgage/loan servicer.
Go to: http://www.makinghomeaffordable.gov/
If you would like to read the detailed report released by the U.S. Department of the Treasury on March 4, 2009:
See: http://www.ustreas.gov/press/releases/reports/housing_fact_sheet.pdf
Unintended Consequences of Condo Foreclosures
8 Comments Published by April 7th, 2009 in Buyer Advice, Condos/condominiums, Foreclosures, Mid-Rise/Hi-Rise Condos, REOs (Bank-Owned, Foreclosed Properties). by
When you, the buyer, purchase a condo in a multi-unit/hi-rise building, you may not be aware of the unintended consequences that can arise due to your neighbor(s) defaulting on their mortgage(s) and/or condo/association fees.
Depending upon how many homeowners in your condominium building are in default–those of whom have stopped paying their mortgages and association dues–will directly impact the condominiums reserves and the funds necessary to operate and maintain the integrity of the building. As a result, the HOA (Homeowner’s Association) may have to vote to increase the association dues/and or propose a special assessment for each and every homeowner in the building to cover the short fall resulting from your neighbors’ defaulting on their loans and/or dues. This problem can be compounded depending upon how many of the condos in the building are in default. (more…)
