Mother & Daughter Blog

8 Things You Should Know About the 2009/2010 Homebuyer Tax Credit Extension

Sat, 14 Nov 2009 15:13:09 -0600

This is good information and well worth a re-read. Tax Credit... assistance programs: Posting to the people is what it is all about. This is loaded with good information. Its there for buyers to take it and get something good out of it. Use it or lose it!

Thanks,

Via Chanda Barrick REALTOR (Indianapolis, Avon, Greenwood) (1st Choice Real Estate Group):

8 Things You Should Know About the 2009/2010 Homebuyer Tax Credit Extension

What was originally considered a “First-Time Homebuyer” tax credit has been extended into 2010, so I thought I’d give you the key points you need to know regarding the new extension.

It’s Important to note, the key points in this post are applicable to transactions that take place AFTER November 7, 2009. If you closed on your home before this time, please see my other post regarding the 2009 Homebuyer Tax Credit.

This post will be updated accordingly when the revised form number 5405 has been made available on the IRS website.

First and foremost, this credit no longer applies to first-time homebuyers and/or those that haven’t owned a home in the last three years. The credit now applies to existing homeowners as well. Here’s the breakdown of who qualifies for the credit:

First-time homebuyer – If you’ve never purchased a home before you are a firs-time homebuyer.

Owned a home 3 or more years ago – If you held no ownership interest in a home for AT LEAST THREE YEARS PRIOR to the date you close on a home you plan to buy

Existing homeowners – This category includes those individuals who have used their existing home as a principal residence for FIVE CONSECUTIVE YEARS during the last eight years. There are a few scenarios that apply here. If you’d like to run your situation past me, feel free to contact me to help you determine whether or not you qualify.

The income caps have been raised.

If you make $125,000 ($225,000 if married) or less you are eligible for the full amount either $8,000 or $6,500

If you make between $125,001 and $145,000 ($225,001 to $245,000 if married) the credit amount is reduced

If you make over $145,000 (over $245,000 if married) you are not eligible for the credit

The amount available for the credit varies based on how you qualify:

$8,000.00 - First-time homebuyers and those that haven’t owned a home within the last three years qualify for up to $8,000 based on the purchase price of the home.

If you are married filing separate, the amount each of you can claim is 50% of what the transaction qualifies for (i.e. if the transaction qualifies for the full $8,000 credit, each of you may claim $4,000)

If you purchased the home with others you can claim a certain percentage of the total amount received for the credit. For example if two people purchased the home equally, the ownership interest would be 50%; three people 33%, etc...

$6,500.00 – Existing homeowners qualify for up to $6,500 based on the purchase price of the home.

If you are married filing separate, the amount each of you can claim is 50% of what the transaction qualifies for (i.e. if the transaction qualifies for the full $6,500 credit, each of you may claim $3,250)

If you purchased the home with others you can claim a certain percentage of the total amount received for the credit. For example if two people purchased the home equally, the ownership interest would be 50%; three people 33%, etc…

The Date for this particular extension is April 30, 2010. If you qualify for the credit and you have an accepted purchase agreement on or before April 30, 2010 you may claim the credit; however, the transaction MUST CLOSE ON OR BEFORE JUNE 30, 2010.

Maximum purchase price for the home cannot exceed $800,000.

You must attach the HUD/Proof of Purchase for the home to your amendment. The 2009 tax credit did not require one to attach proof of purchase which sparked a slew of individuals taking advantage of the program. As a result, you must supply proof of purchase when you submit the claim for the credit.

There is a possibility that you’ll have to pay back the credit

If you sell the home you purchased within three years you may be required to repay the money you received. There are other possibilities, please see form number 5405’s instructions for further information regarding repayment requirements.

It’s important to note, this may change based on the information provided in the revised form. I will update this post accordingly if this requirement change

To claim the credit you’ll need to complete IRS form number 5405 and submit it with your 2010 or 2011 tax return. In addition you can file an amendment to your return if you’d already completed a return before you purchased your new home.

Again, it’s important to note that the current form number 5405 will be amended to reflect he new provisions of the tax credit. If you close on your home AFTER November 6, 2009, you will need to submit the revised form…DO NOT USE THE CURRENT 5405 FORM if you closed after this date. I will update this post to reflect the new form when it is made available.

Here are a few more posts you may find useful:

Buying a Home
8 Things to Consider When Buying a Home
Answers To: How Much Money Is Needed To Buy A Home?
How the HUD Bidding Process Works
Pre-Qualification vs. Pre-Approval, Which is better?

Selling Your Home
Should You Sell Your Home Before Buying a New One?

Chanda Barrick, REALTOR®
1st Choice Real Estate Group
(O)317-889-1111
(C)317-572-7770
(F)317-889-9198
www.chandasellsindy.com

Buyers: FHA Appraisal and Home Inspection - why do I need both???

Sat, 14 Nov 2009 15:08:08 -0600

Every agent that represents a buyer should be able to explain to their buyer why they need a home inspection and that FHA appraisals are not a substitute for a home inspection.

While home inspections are for the buyers information and not of much interest to a seller... they should never be waived. Let me just say... the FHA Appraiser will not be seen climbing on top of the roof and sitting there inspecting that roof!

Here is some information on FHA appraisals:

1. FHA appraisal is for the benefit of the lender

2. It is not a home inspection, it does not take the place of a home inspection

3. FHA appraisers are checking to be sure the property is:

Save

Sound

in Sanitary condition

4. FHA appraisals are not even required for 203K streamline refinances

5. FHA apprisal does not guarantee that a home is without flaw, huge money drawing problems

6. FHA appraisal may find repair or replacements items that may affect the safe, sound and sanitary habitation of the house.

7. If FHA appraiser finds repairs or replacement during his evaluation, he will add an conditions addendum to the appraisal and buyers will get the appraisal conditions from the lender. Seller is usually responsible for the repairs and replacement that the Appraiser find at the property that are conditions to the property's appraisal value.

8. FHA appraiser will go out even if the utilities are not on, they will usually charge an additional fee if they have to make a revisit when the utilities get turned on.

Are you under water? Check out Fannie Mae's new Deed for Lease program

Sat, 14 Nov 2009 14:18:26 -0600

I am re-blogging this one, good information for homeowners that are not ready to just up and move out and don't mind renting from their own property ----> well, it won't be their property anymore once they sign over their deed! But you will have roof over your head that you are paying rent on. This is another band-aide but it may help some homeowners, so its worth educating the consumers of this option. see my post Click here to read: Deed for Lease Program: Helping you avoid foreclosure. Fannie Mae adds another avenue/option forhomeowners.

Will this BAND-AIDE work for Homeowners that can't afford to pay their mortgage?

If it helps at least a few.... its working!

Thanks, Dave.

**************************************************************************************

Via Dave Sutton (Windermere Walnut Creek):

As an alternative to outright foreclosure, last week Fannie Mae announced a "Deed-for-Lease Proram (D4L). Here's the description from their announcement press release:

"D4L allows qualifying borrowers of properties transferred through deed-in-lieu of foreclosure (DIL) to remain in their home and community by executing a lease of up to 12 months in conjunction with a DIL. Investment properties that are tenant-occupied may also be considered as long as the borrower is cooperative in providing information from the tenant to facilitate the D4L."

Deed-in-lieu of foreclosure (DIL) in short means that the owner gives the title to the home to the lender without going through either a short sale or foreclosure process. It also has a smaller impact on the borrower's credit rating than a foreclosure.

The press release has more details, at
http://www.efanniemae.com./sf/guides/ssg/annltrs/pdf/2009/0933.pdf

There is more information, including a link to an FAQ pdf at
http://www.efanniemae.com./sf/servicing/d4l/

Homeowners: I cannot/will not tell you to..... go default (or STOP Paying YOUR MORTGAGE)! I would be out of line...

Sat, 14 Nov 2009 13:50:31 -0600

Dear Homeowners

This letter is let to you know that I appreciate your calls because it is sign that you are searching and finding my name on the web, blogs and I know you can find me on ActiveRain. But because some of my callers are putting me in a bad place with trying to get me to tell you to stop paying your mortgage, go default and make other personal, professional and life altering decision for you and family ---> I have to draw the line.

I am just a real estate agent, not an attorney, tax consultant, IRS expert or adviser - therefore - I am not the best to ask. If you find that you are any of the listed below but not limited to:

under water
late payers
still paying your mortgage but foresee trouble down the road
borrowing from your credit cards
just plain don't want your property anymore because it is not worth anything to you - because you owe more than it is worth (way more)
Sick and tried of seeing houses in your neighborhood that are being sold for pennies on the dollar and here you are stuck with the home that you owe more than 2 or 3 of the houses in neighborhood all added together
just plain sick and tired
have renters that are not paying you on time or are fearful that you are in or about to be in foreclosure
in default
about to be in default or whatever the case may be - other than listing, CMAs, selling and other real estate agent duties -- I cannot step out of my boundaries or break the rules and step into the other professional place

The Department of Real Estate

Does not allow me the authority to tell you to go .... default, stop paying on your mortgage, put yourself in foreclosure (harms way)! I can't even tell you WHAT your hardship is or when it started or if you are still in it. Some decisions are better left unsaid by me.

This is your choice and it should be in accordance to your situation. Or you should call the right professional to match the situation.

Got a tax question... call the tax professionals (tax man, attorney, IRS, others)
Can't make your mortgage payments and want to know your loan modification options (call your lender)
Want to file for bankruptcy? (call bankruptcy professional, attorney)
Worried about the xx,xxx amount of money you have in the bank that shows that you have solid finances (call CPA, attorney, tax professional, or your lender - not sure calling IRS is cool on this one)
Worried if your lender will just let you short sale because you are not feeling keeping your property (your lender would have to decide)
especially when you do not have a hardship... do not expect me to give you one!
Have a rental... renters are paying you but you are not paying the bank??? (Gosh I don't know who you should call on this one!) not me

Want to short sale your property and you are clean, upfront and in hardship? THERE.... you can call me for this!

The banks are going to get mad if they sense that you deliberately did not pay your mortgage -- believe me this will not be the last of that. So if someone tell you to go default... you should not listen in my opinion.

Now if situation puts you in a hardship that you cannot pay your mortgage... join the rest of the world. There are rules to giving short sale approvals and one that is still holding fast is that you need to show a hardship (and this has to be the truth), and yes there is one other that I know has not changed and that is you stand a better chance if this is your primary residence if you expect to be "forgiven". But don't ask me how it works because that is between you and your tax adviser or the IRS. I am not a professional in those areas.

I know my place and do not intend on getting out of line! I am a real estate agent: I do have the authority to advise you regarding anything but real estate matters. No tax, no tax, no bankruptcy, no taxes... or did I say no taxes and sure I can not tell you to JUST DO IT and go default!

But please do not call me to hear me tell you to go default. I can't. Its not my business or place to give you that kind of advise.

Thank you!

Call us at 866-543-0461

Mother & Daughter Blog

8 Things You Should Know About the 2009/2010 Homebuyer Tax Credit Extension

8 Things You Should Know About the 2009/2010 Homebuyer Tax Credit Extension

Buyers: FHA Appraisal and Home Inspection - why do I need both???

Are you under water? Check out Fannie Mae's new Deed for Lease program

Homeowners: I cannot/will not tell you to..... go default (or STOP Paying YOUR MORTGAGE)! I would be out of line...

Buyers: CALHFA -- is it a good match for you?

BUYER: Settlement Procedures Act & AB 957 - Buyer's Choice Act

A new down payment assitance program is now available!

Buyers: Are you Just Out There Making Bids on this one and that one? or... is it the house you really want?

Property Description: "Needs TLC" and its a Fannie Mae Property ...... better check out a Renovation Loan

FHA is back to stay?? ... better find out about the 203k Streamline Renovation Loan

FHA 90 Day Rule can be a deal breaker!

Foreclosures & Short Sales: "AS IS - WHERE IS" is not reason to skip the Final Walk-thru!

Will the Seller consider FHA financing.... a common question

Buyers: Definition of Short Sale is NOT offer "Short" of Listed Price and expect to get an approval!

Buyers... sorry that offer is pending .... so one buyer wants to go out EVERYDAY

Short Sale Automation... does it mean FAST, SMOOTH and BENIFICAL or / how will it play out?

Need more information on avoid a foreclosure? ....Take in a Local Workshop

Late Paying Borrowers ~ get your documents together FIRST... message from Freddie Mae (youTube style) .. click in

Buyer's Choice .... another improvement in the REO world!

All Buyers.... now is the time to make a move!

Deed for Lease Program: Helping you Avoid Foreclosure: Fannie Mae adds another Avenue/Option for homeowners

Attention All Wachovia World Savings and Golden West Home Owners Get Paid $5000 To List and Sell Your Home

Attention All Wachovia World Savings and Golden West Home Owners Get Paid $5000 To List and Sell Your Home

Bank Owned Properties/REOs: Multiple Pre-Approvals... ~ Buyers you may have to get pre-approved by more than one lender - after all!

Bank Owned / REO & Earnest Money ~ new twist!