Megan McGinnis' Blog--Get Connected!

Home Buying Incentives from Fannie Mae

Megan — Fri, 05 Mar 2010 20:23:00 +0000

Home Buying Incentives from Fannie Mae

This just in, hot off the press. Fannie Mae is helping owner-occupied house buyers with closing costs & new appliances. These are the details. Enjoy the article and please join my newsletter to receive other valuable information. Peace, Megan

“Fannie Mae wants to sell its housing inventory that it acquired through foreclosures. The properties are listed for sale on HomePath.com. To do so, it’s offering buyers incentives for those properties.

The new incentives recently began and are eligible for buyers who will live in the home. According to Fannie Mae, the offers must be accepted on or after January 28, 2010 and they have to close before May first for properties on its site: Homepath.com

So what’s the special offer? Buyers can receive up to 3.5 percent of the sales price for closing costs or the purchase of a new Whirlpool appliance or even a combination of the two.

There are more incentives. The government’s current buyer incentive programs include the extension of the First-Time Homebuyer Credit through April 20, 2010 (there’s a 60-day cushion to complete closing beyond that date). This program broadens the reach to include existing homeowners. Here is a quick look at eligibility and the incentives:

$8,000 tax credit for first-time homebuyers

$6,500 tax credit for existing homebuyers who have lived in their current residence for at least five years but want to relocate to a new primary residence

Increased income limits for individuals and couples Tips for buying a home owned by Fannie Mae.

What you see is what you get. When you are buying a property owned by Fannie Mae, there are a few things that you should know. According to its website, Fannie Mae may make some repairs to a property but probably not much. “Fannie Mae sells each property “as is,” which means that the buyer accepts the property “as is.” Fannie Mae is not responsible for fixing any problems after settlement.”

Home inspections. Fannie Mae also recommends what I have written about for years—hire a qualified home inspector to give you an accurate report on the current condition of the home. For a relatively small amount of money, this can save you a lot and give you a greater understanding of what problems exist currently or might soon develop.

No contingencies. If your home is on the market and you’re shopping for a new one but need to close on your primary residence, Fannie Mae isn’t the way to go. “Fannie Mae will not accept offers contingent on the sale of your current home. Other types of contingencies will be considered on a case-by-case basis.”

Get prequalified. This is really important for a lot of reasons regardless of whether you’re buying a home owned by Fannie Mae. There are more restrictions these days when it comes to getting home loans. So, knowing that you’re prequalified to purchase a home at a specific price will make shopping for the home that fits yourbudget easier. But Fannie Mae cautions, “A loan prequalification doesn’t mean your loan is approved. You must apply for a loan separately, after you are prequalified and your purchase offer is accepted.”

Making an offer. Just as with most real estate transactions, making an offer on a home requires a lot of research. Your real estate agent can get you vital information and when you’re ready, the offer is submitted via your agent. “Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through our real estate listing agents. You may work with any real estate sales professional to submit an offer to the real estate agent who has listed the property.” Buying a home has become more affordable than ever and, with more incentives, it may be time to do some spring house hunting. Today’s Local Market Conditions Report”
Written by Phoebe Chongchua – Thu, Mar 4, 2010

A Brave Stand For Human Rights by Irom Sharmila Chanu

Megan — Sun, 28 Feb 2010 00:48:34 +0000

A Brave Stand For Human Rights by Irom Sharmila Chanu

Sometimes it’s important to use my position to draw attention to important things that go on in the world that are sometimes left unheralded. I cam across the story of a hunger striker in India that captured my attention and I want to introduce you to her. Irom Sharmila Chanu of Manipur, India, has been on a hunger strike for 10 straight years in India in protest to the “indefensible” martial law in Manipur state. This martial law, the Armed Forces (Special Powers) Act, 1958, also otherwise known as AFSPA, states that any one in the Indian Army may shoot anyone at the mere suspicion of a crime and so thousands of people have been killed.

This singular protest was launched when, at a bus stop on November 1, 2000, in Malom, a town in the Imphal Valley of Manipur, ten innocent people were gunned down by the Assam Rifles, one of the Indian Paramilitary forces operating in the state. The incident, which later came to be known as the Malom Massacre, affirmed the continuation of the endless killing spree by the Indian armed forces in Manipur since 1958. An inquiry into the affair was disallowed by the local officials and nothing was done to prevent future incidents. Iron Sharmila put her foot down to draw attention to this national travesty and has garnered little media attention though she is still on her hunger strike, even after 10 years of being forced fed through a feeding tube. She continues to be regularly arrested for her public appearances of protest but again these events are not followed much by the local, national or international media. For this reason, I wanted to introduce you to Irom Sharmila, a civil rights activist, political activist, journalist, and poet, called the Iron Lady of Manipur. She is a powerful woman of resolve who has sacrificed her life to a noble cause, securing some basic human rights for all her countrymen.

I know this isn’t my usual topic but sometimes it’s important to step outside the norm, like Sharmila.

Peace, Megan

Please join my newsletter and add your comments to this topic or if you know of any of unsung heroes please introduce us.

Press Release Marketing to Increase Blog Traffic

Megan — Sun, 21 Feb 2010 14:40:13 +0000

Press Release Marketing to Increase Blog Traffic

Press releases are a common form of announcing something professional happening: when you accept a new position, get a promotion, receive an award– it’s always recommended you toot your own horn and announce these personal benchmarks via a press release. Now you can do the same thing online. Here’s a video on how to do just that. Another tip to add to your social media toolbox. Thanks for stopping in and please join my newsletter. Peace, Megan

Click here…..

to learn how to use press release marketing to increase blog traffic.

After watching the video be sure to stop here to find out Mashable’s top 20 free press release site recommendations.

Wall Street Journal Names Top 5 Tax Blogs

Megan — Wed, 17 Feb 2010 14:11:33 +0000

Wall Street Journal Names Top 5 Tax Blogs

For tax help consult these tax experts:

1. TaxProf Blog: Penned by Paul Caron, a law professor at the University of Cincinnati, this blog offers a diverse menu of industry news, event updates from coast to coast, and stories worth a second glance.

2. Tax Policy Blog (Tax Foundation)

3. Don’t Mess With Taxes (Kay Bell)

4. Tax Watch (Thomson Reuters)

5. A Taxing Matter (Linda Beale)

Hope you found this information handy. I got it here…

Peace, Megan Also, please join my newsletter for other tips.

Using Article Distribution to Increase Your Blog Traffic

Megan — Mon, 15 Feb 2010 14:25:00 +0000

Using Article Distribution to Increase Your Blog Traffic
Ok, so I’m not featured in this video like I was in the other one but as you can see by my Ezine Article box on the right, I get this tip well and have added it to my social media toolbox. I’m an expert author already! Are you?

Peace, Megan

PS Please join my newsletter for other great tips!

Here’s a great video on increasing traffic to your blog by writing articles and distributing them.

Click here…

Here’s another interesting link on how to build your personal brand that my friends on Mashable discuss if you’d like some more ideas….

Real Estate Professional Status as viewed by Uncle Sam

Megan — Sat, 13 Feb 2010 14:04:19 +0000

Real Estate Professional Status as viewed by Uncle Sam

The IRS started challenging the real estate professional status over two years ago. Since then, we’ve seen a lot of audits, unfavorable audit results and a few court cases.

The real estate professional status allows taxpayers to take full advantage of real estate losses against other income. Without that, your loss is limited if you make less than $150,000 and you can’t take any loss if you make more than $150,000.

No wonder the IRS is after this status!

The key with the real estate professional status is that you spend more time actively involved in real estate activities then you do in any other trade or business. And you need to spend at least 750 hours in active real estate activities. Notice how many times I said ‘active’ or some derivative of it? That’s because the IRS is honing in on how active your activities really are.

They get out the red pen and slash your hours from diary for anything that smacks of passivity. Sitting at your computer looking at properties? NOPE Reviewing reports your property manager gives you? NOPE The IRS wants to see you out of the chair and doing something.

One other way to qualify as a real estate professional is if you are a 5% or more owner in a business that is itself a real estate activity. So, if you’re a real estate appraiser, contractor and the like and you own the company, you’re probably going to qualify. One of the challenges that the IRS tried out was regarding real estate agents. They took the position that only a real estate broker could be a professional.

There haven’t been any cases completely on point on this yet. But, in some somewhat related cases, it looks like Tax Courts may rule against the IRS on this. It’s hard to say exactly though. If you’re a real estate agent, hoping to count those hours as real estate professional status realize you may get a challenge.

There are other items that the IRS wants to see as well: material participation in the property and how you’re holding the property. Plus, if you have your property inside an LLC, they’re going to want to see that your LLC has special language in it that allows you to get the necessary material participation. If you have your property in a limited partnership, you probably are going to lose this one.

Posted December 4th, 2009 by Diane Kennedy

Thanks for stopping in and please add your comments. Peace, Megan

PS If you’d like to see some of the Top Tax Blogs click here

Reverse Mortgage Pitfalls Revealed

Megan — Thu, 11 Feb 2010 14:51:38 +0000

Reverse Mortgage Pitfalls Revealed

With babby boomers on the verge of retirement, seniors living longer and longer and an increasing loss in retirement accounts, families are looking for ways to help Grandma and Grandpa live independently and financially free for the rest of their lives. They, both the Grandparents and their adult children, are turning to reverse mortgages as one avenue for supplementing retirement. But do they have enough information to make the right decisions? Kenneth Harney discusses the important but not always publicized pitfalls of reverse mortgages. This knowledge will help you make a better short term and long term decision for your family. Thanks for stopping by. Please tell me if you found this article helpful by commenting. Peace, Megan

By Kenneth R. Harney

Saturday, January 2, 2010

If you, your relatives or your friends are contemplating applying for a reverse mortgage in 2010, check out the new guidelines proposed in December by federal regulators. Though aimed at banks and credit unions, the guidelines neatly sum up the potential pitfalls for consumers in the fast-growing reverse-mortgage field. Reverse mortgages typically are restricted to homeowners 62 and older who have untapped equity in their real estate and want to turn it into cash.

Borrowers can receive lump-sum payments, credit lines, periodic disbursements or a combination. The funds that are drawn down incur interest charges and fees for insurance and servicing, which generally must be paid back only after the borrower sells the home, moves, dies, fails to make property tax and insurance payments, or allows the house to deteriorate substantially.

When properly understood by seniors and underwritten responsibly by lenders, reverse mortgages can provide money to supplement retirement income, pay for uninsured medical expenses and keep homes in good repair. But all too frequently, according to regulators, seniors are poorly counseled in advance and don’t comprehend what they are getting into.

They are misled by direct-mail pitches that imply that reverse mortgages are a “government benefit,” cost relatively little, never need to be repaid, represent “income for life” and carry “no risk.” In fact, reverse mortgages often entail high upfront origination fees and substantial insurance and servicing charges — well beyond the costs associated with other financing alternatives that may be available to seniors, such as home-equity loans, credit lines, sale-leaseback plans and deferred-payment loans.

Banks and credit unions need to spell all this out for seniors in advance of taking reverse-mortgage applications, regulators said. This is a financial product that requires extra time and personal financial counseling upfront — not only because the applicants are elderly, but also because reverse mortgages themselves are inherently complex.

As to being a “government benefit,” they are not. Though the predominant form of reverse mortgage is the HECM, or Home-equity conversion mortgage, insured by the Federal Housing Administration, the loan itself comes from private lenders. Those lenders — not the borrowers — are insured by the government against loss.

Some borrowers are not even aware that the transactions they sign up for are debt instruments requiring repayment. Lenders’ marketing materials may make that problem worse by glossing over the payback requirements. According to the regulators’ guidance, some lenders’ marketing material “has prominently stated that the consumer is not incurring a mortgage, even though the fine print states otherwise.”

How to Get Targeted Traffic to Your Blog

Megan — Tue, 09 Feb 2010 14:42:20 +0000

How to Get Targeted Traffic to Your Blog

Rocking Mike Ballantyne is my social media mentor (and you know he’s good because he’s not even the legal drinking age yet!) and it’s from him I’ve learned many of my blogging-insider-tricks. If you are a beginning blogger and want to learn how to drive some traffic to your blog or your twitter accounts then check out this video here. I want you to know in advance that it features my absolute favorite blogger of all—myself! I’ll be sharing some other tips in the coming weeks as well so if you want to stay “in the know” then be sure to join my newsletter and RSS feed!

Check me out here in this great instructional video with Rockin Mike Ballantyne….

As always, thanks for stopping in! Peace, Megan