Missing an opportunity...
The $8,000 income tax credit for first time homebuyers (as defined by the US Government) expires as of November 30th, unless the Congress extends or modifies the program.
If you are are first time homebuyer, it is now time to get off the fence.
With less than 90 days left until the program expires (you must close the transaction by November 30th) time is short.
And with the new appraisal and truth in lending requirements for home mortgages, transactions are taking longer to close than earlier this year.
Home prices have not been this low since early this decade and mortgage money is still cheap.
Don't be kicking yourself on December 1st for missing this opportunity, it might never happen again.
Monday, August 31, 2009
Friday, August 28, 2009
Homebuyer Protection Alert!...
Recent Federal legislation can impact your closing date.
When completing your Purchase Agreement, even if you are prepared to move forward and close quickly, a more conservative time frame of at least 30 days from the time of the contract acceptance would be a more realistic expectation at this time.
Listed below is information on two pieces of legislation that stand to impact your closing date, and a few bullet points that explain the reasoning behind and effects of each measure.
HVCC: Home Valuation Code of Conduct:
HVCC was designed to ensure that appraisals are conducted objectively and without pressure from parties with an interest in the transaction. Under HVCC, the appraisal and selection of the appraiser will be ordered by someone not directly involved in the origination of the mortgage. This could be either someone else within the mortgage company or a third-party appraisal management company.
A copy of the appraisal must be provided to the homebuyer/borrower no less than three days before closing. The minimum time expectations for receipt of the appraisal should be a few weeks and not days. (While receipt of the appraisal may be received in shorter time frames, conservative expectations are warranted.) Communication between the appraiser and the originating mortgage professional is prohibited. It is imperative that the agents involved in the transaction be prepared at the time of inspection to offer supporting value information if warranted.
HERA: Housing and Economic Recovery Act:
HERA was designed to ensure that the borrower(s) involved in the transaction are given accurate disclosure information (Truth in Lending Statement pertaining to Annual Percentage Rate or APR) regarding the loan they are applying for and adequate time to re-evaluate their decision to proceed in the event of any changes that would impact their costs to finance.
Under HERA, no fees may be collected for the transaction other than those for running a credit report at the initial time of application. Additional fees may be collected only after four business days. Should the APR change by more than .125% on a fixed rate loan or .250% on an adjustable rate loan, the lender must disclose the new APR and the borrower must have a minimum of three business days to review the information before the transaction may proceed.
Items that can trigger re-disclosure requirements include a change(s) in the loan amount, closing date, loan program, any fees that impact the APR or interest rate from the rate indicated on the original loan application.
In cases where documents are sent by mail to the borrower related to re-disclosure of APR and/or providing a copy of the appraisal, anticipate six business days (three to allow for mailing and three to allow adequate time to review them) before a closing can occur.
Recent Federal legislation can impact your closing date.
When completing your Purchase Agreement, even if you are prepared to move forward and close quickly, a more conservative time frame of at least 30 days from the time of the contract acceptance would be a more realistic expectation at this time.
Listed below is information on two pieces of legislation that stand to impact your closing date, and a few bullet points that explain the reasoning behind and effects of each measure.
HVCC: Home Valuation Code of Conduct:
HVCC was designed to ensure that appraisals are conducted objectively and without pressure from parties with an interest in the transaction. Under HVCC, the appraisal and selection of the appraiser will be ordered by someone not directly involved in the origination of the mortgage. This could be either someone else within the mortgage company or a third-party appraisal management company.
A copy of the appraisal must be provided to the homebuyer/borrower no less than three days before closing. The minimum time expectations for receipt of the appraisal should be a few weeks and not days. (While receipt of the appraisal may be received in shorter time frames, conservative expectations are warranted.) Communication between the appraiser and the originating mortgage professional is prohibited. It is imperative that the agents involved in the transaction be prepared at the time of inspection to offer supporting value information if warranted.
HERA: Housing and Economic Recovery Act:
HERA was designed to ensure that the borrower(s) involved in the transaction are given accurate disclosure information (Truth in Lending Statement pertaining to Annual Percentage Rate or APR) regarding the loan they are applying for and adequate time to re-evaluate their decision to proceed in the event of any changes that would impact their costs to finance.
Under HERA, no fees may be collected for the transaction other than those for running a credit report at the initial time of application. Additional fees may be collected only after four business days. Should the APR change by more than .125% on a fixed rate loan or .250% on an adjustable rate loan, the lender must disclose the new APR and the borrower must have a minimum of three business days to review the information before the transaction may proceed.
Items that can trigger re-disclosure requirements include a change(s) in the loan amount, closing date, loan program, any fees that impact the APR or interest rate from the rate indicated on the original loan application.
In cases where documents are sent by mail to the borrower related to re-disclosure of APR and/or providing a copy of the appraisal, anticipate six business days (three to allow for mailing and three to allow adequate time to review them) before a closing can occur.
Tuesday, August 18, 2009
Beau...As I wrote earlier this year, we lost our Yorkshire Terrier, Morgan in February.
We still have our female Yorkie, Bridgett and the two Rag Doll cats, R.C. and Raggs and they bring us much joy.
Dale had been told of a puppy that one of our fellow agents had acquired, a Shorkie, a Yorkshire Terrier/Shih Tzu mix.
I contacted a breeder in Stockbridge, Georgia, Jennifer Williams, and she graciously agreed to meet me so I could see her last male puppy from her then current litter.
I brought Beau home as a surprise on July 1 and I think he has won our hearts, at least Dale's and mine.
Bridgett, Raggs and R.C. are still not sure.
Thursday, May 14, 2009
Georgia Governor Signs Housing Tax Credit Bill...
On Monday, May 11, Governor Sonny Perdue signed legislation into law that creates a new state income tax credit for home purchases in Georgia. The tax credit will apply to purchases of eligible properties between June 1 and November 30, 2009, and is expected to spur activity in the housing market.
Passage of this bill was the top legislative priority for the Georgia Association of REALTORS® in 2009. House Bill 261 provides an income tax credit for the purchase of a single-family residence during the six months between June 1 and November 30, 2009.
The credit amount is the lesser of $1,800 or 1.2 percent of the purchase price. The tax credit is applied over three years, with one-third of the credit available each year. If a the amount of the credit exceeds the taxpayer's tax liability, the unused credit may carry forward to the next tax year. The credit created by HB 261 may be claimed one time per taxpayer.
The final version of the bill contains the GAR amendment to clarify condominiums and residences occupied at the time of sale are eligible for the credit.
In addition, eligible single family residences include:
New single-family residences; Previously occupied residences that were for sale prior to May 11, 2009. and are still for sale after May 11, 2009;
Owner-occupied residences in which the owner’s acquisition debt is in default on or before March 1, 2009; and
Residences where a foreclosure has taken place and are owned by the mortgagor or the mortgagor’s agent.
This tax credit is in addition to the federal first-time home buyer tax credit, which is available to only those buyers who have not owned a home during the last three years. "I'm proud of Governor Perdue for signing this legislation, and I'm proud to have brought it before the state legislature," said bill sponsor Rep. Ron Stephens (R-Savannah). "This bill will put people back to work, reduce the inventory of unsold homes, and kick-start Georgia's economy."
On Monday, May 11, Governor Sonny Perdue signed legislation into law that creates a new state income tax credit for home purchases in Georgia. The tax credit will apply to purchases of eligible properties between June 1 and November 30, 2009, and is expected to spur activity in the housing market.
Passage of this bill was the top legislative priority for the Georgia Association of REALTORS® in 2009. House Bill 261 provides an income tax credit for the purchase of a single-family residence during the six months between June 1 and November 30, 2009.
The credit amount is the lesser of $1,800 or 1.2 percent of the purchase price. The tax credit is applied over three years, with one-third of the credit available each year. If a the amount of the credit exceeds the taxpayer's tax liability, the unused credit may carry forward to the next tax year. The credit created by HB 261 may be claimed one time per taxpayer.
The final version of the bill contains the GAR amendment to clarify condominiums and residences occupied at the time of sale are eligible for the credit.
In addition, eligible single family residences include:
New single-family residences; Previously occupied residences that were for sale prior to May 11, 2009. and are still for sale after May 11, 2009;
Owner-occupied residences in which the owner’s acquisition debt is in default on or before March 1, 2009; and
Residences where a foreclosure has taken place and are owned by the mortgagor or the mortgagor’s agent.
This tax credit is in addition to the federal first-time home buyer tax credit, which is available to only those buyers who have not owned a home during the last three years. "I'm proud of Governor Perdue for signing this legislation, and I'm proud to have brought it before the state legislature," said bill sponsor Rep. Ron Stephens (R-Savannah). "This bill will put people back to work, reduce the inventory of unsold homes, and kick-start Georgia's economy."
Tuesday, May 12, 2009
$8,000 Federal Tax Credit Can Be Used for Down Payment...
Great news for first time home buyers:
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday, May 12 said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.
Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.
“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..
He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
Great news for first time home buyers:
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday, May 12 said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.
Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.
“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..
He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
Wednesday, May 6, 2009
New Georgia law freezes property assessment hikes...
Attention homeowners: Your property assessment cannot increase until after January 2011. Legislation Georgia Gov. Sonny Perdue signed into law on Wednesday, May 6 makes sure of that. House Bill 233, sponsored by Rep. Ed Lindsey (R-Atlanta), prevents local governments from increasing the assessments used to calculate property taxes for two years.
Of course, assessments may be lowered, a distinction that is important as counties deal with the effects of another new law that requires assessors to consider foreclosures and other distressed properties when setting property values.
That has led to thousands of homes seeing assessed values fall. Some counties have needed a little extra push to convince them to do that, however.
Attention homeowners: Your property assessment cannot increase until after January 2011. Legislation Georgia Gov. Sonny Perdue signed into law on Wednesday, May 6 makes sure of that. House Bill 233, sponsored by Rep. Ed Lindsey (R-Atlanta), prevents local governments from increasing the assessments used to calculate property taxes for two years.
Of course, assessments may be lowered, a distinction that is important as counties deal with the effects of another new law that requires assessors to consider foreclosures and other distressed properties when setting property values.
That has led to thousands of homes seeing assessed values fall. Some counties have needed a little extra push to convince them to do that, however.
Friday, March 20, 2009
Making homes affordable...
If you have a mortgage that is backed by one of the government agencies (Fannie Mae or Freddie Mac), The federal government has launched a new website with online tools that will allow a homeowner to determine if they are eligible to participate in the "Making Home Affordable" loan modification and refinancing program.
The website is: http://makinghomeaffordable.gov
It shares information about how this program works and who is eligible for assistance. This is the same $75 billion program you may have heard of recently in the media.
You should have the following available:
Information about your first mortgage, such as your monthly mortgage statement.
Information about any second mortgage or home equity line of credit on the house.
Account balances and minimum monthly payments due on all of your credit cards.
Account balances and monthly payments on all your other debts such as student loans and car loans.
Your most recent income tax return.
Information about your savings and other assets
Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
It may also be helpful to have: A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.) if applicable.
We as Realtors, are committed to helping homeowners avoid foreclosure. We hope you will forward this information to anyone who may need it, and feel free to call or email us if we can further assist you in any way.
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