Your House Your Home

I have such smart buyers!

Here in the suburbs north of Boston, first-time homebuyers are coming out of the woodwork and buying homes. It's so exciting to be a part of the economic recovery, witnessing first-time buyers getting into the game and taking advantage of this incredible moment in history. The TAX CREDIT of $8,000 doesn't hurt either. Did you know you can get your money early? To find out more about the tax credit, read my other posts. Give me a call if I can help you buy your home.

Buy Now! Why? Read on!

FIRST-TIME HOMEBUYER TAX CREDIT  Calling all first-timers!  Here is a Q&A written and published by the Massachusetts Association of REALTORS regarding YOUR First-Time Homebuyer's Tax Credit.  Contact me with any questions: Frequently Asked Questions  In 2008, Congress enacted a $7500 tax credit designed to be an incentive for first-time homebuyers to purchase a home. The credit was designed as a mechanism to decrease the over-supply of homes for sale. For 2009, Congress has increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009. Tax Credits -- The Basics  1. What’s this new homebuyer tax incentive for 2009?    The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.  2. Who is eligible?    Only first-time homebuyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.  3. How does a tax credit work?    Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual’s income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of the tax due. ($9,500 - $8000 = $1500)  4. So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000?    This tax credit is what’s called “refundable” credit. Thus, if the eligible purchaser’s total tax liability was $6000, the IRS would send the purchaser a check for $2000. The refundable amount is the difference

YOUR Economic Recovery: Consider Loan Modification.

With layoffs looming and hitting home, homeowners are looking for help to avoid short sale and foreclosure.  They just need a little more time to get back on track.  Well, help is here with the loan modification.  Read on for Elizabeth Weintraub's article: Let December Be Known as Loan Modification Month

Posted by Elizabeth Weintraub on 02 Dec 2008 | Tagged as: Barbara Corcoran Ink

The hottest buzz word in the industry right now is not short sales nor foreclosures. It’s all about loan modifications. Lots of unscrupulous businesses are springing up that offer consumers help with their loan modifications, and they are charging home owners $3,000 and more to do what home owners can do for themselves. To find your lender’s loan modification requirements, click on the photo and you will find my article on About.com, which details major mortgage lender guidelines for loan modifications. Nobody wants to admit it, but the lenders are making loan modifications seem confusing and difficult. Perhaps it’s an effort to discourage applications? If you’re considering a loan modification, the first thing you should do is pick up the phone and call your lender to find out if you qualify. If you do not qualify, and can no longer afford to make your monthly mortgage payments, then call a short-sale specialist and put your home on the market as a short sale. Many lenders are placing a 3- to 4-month moratorium on foreclosures, so this will give you extra time to get that home sold. The criteria for a loan modification is tight. Many banks insist on the following qualifications:

• Existing loan origination date prior to Dec. 31, 2007 
• Existing subprime loan (fixed or adjustable) or Option ARM
• Loan-to-value ratio above 75%
• Owner occupied as primary residence
• Employed homeowner
• Existing mortgage payments exceed 31% of gross monthly income.

However, if you qualify for a loan modification, you can assemble the paperwork the lender wants by putting together the following package:

• 2 years of W2’s 
• 2 years of tax returns
• Financial Statement that lists assets and liabilities
• Last 2 pay stubs
• Hardship letter

Don’t pay a company to do this for you. Do it yourself. If you are successful, a loan modification may give you:

• A lower mortgage balance. 
• An interest rate between 2% and 4%.
• A loan term of 30 to 40 years.
• A low monthly mortgage payment.
• Elimination of negative amortization and / or a waiver of prepayment penalties and fees.

Remember, California short sale sellers, you have until December 31 to sell that home to avoid paying state taxes on debt forgiveness. Happy Holidays, everybody, and Happy Debt Forgiveness. Elizabeth Weintraub Sacramento Real Estate Broker

What Are You Waiting For ... Christmas?

 Homebuyers and sellers seem to be waiting and wondering and worrying and wringing their hands.  "Will the prices go even lower?"  "Should we wait longer - just in case?"  "Can we get a mortgage?"  "Will I get enough if I sell now?"   In some ways, it's a stunning market.  In other ways, it's not really any different. So for all you Buyers and Sellers out there, here's a little Christmas present for you all.  Please listen to me, a professional Realtor, and NOT the national media - they feed on gloom and doom! Sellers: If you do not have to move right now, if you have crunched the numbers and you'd lose your shirt if you sold now, then hang tight and wait for the market to bounce back - it always does.  However, if you MUST move, if you NEED to move, there is no reason to wait - do it now!  The buyers that are looking now are looking to BUY - why else would they not be shopping for Christmas?!  So do yourself a favor and hire an real estate agent who understands your current local (I said LOCAL) market, who understands people as well as the Internet, is tech-savvy but can also pick up the phone and make a simple phone call, someone who has a website, a blog, and a PDA, someonw who wants your business and will market the heck out of your house, someone who is well connected and well respected in your town, who will think out of the box, and who will TELL YOU THE TRUTH about the current value of your home.  Hire her (she'll be worth every penny) and then LISTEN to her - she is the expert - not your parents, or your neighbors, or your best friend's mom-who-is-a-realtor-in-another-market.   Okay, just hire ME and you'll be all set! (sorry - shameless plug) Buyers: BUY!  NOW IS THE TIME!  Don't wait any longer! The rates are low, the selections are vast, the sellers are ready and willing to make a deal.  For all you first-time buyers:  why pay rent when you can own your own home?  And, you can take advantage of the tax credit!  And, you no longer have to PAY SOMEONE ELSE'S MORTGAGE - you can start paying your own!  Okay, YOU can hire me, too!  (yes, another shameless plug). Listen, not even Donald Trump knows where the bottom of the market is or when we'll get there.  Do you know WHEN we'll know?   That's right, when it starts to go up.  Then you've missed it.

Dear Santa, Please Bring Me A House!

Starting a home search is exciting - and daunting.  So just in case Santa does not deliver that cute-two-bedroom-one-bath-Cape-with-a-nice-yard-in-a-friendly-neighborhood, Here's a quick-and-dirty list of how to buy a home: 1. Get pre-approved by a reputable lender.  If you've already gotten pre-approved, make sure it's up-to-date.  Nothing will kill a deal faster than a bad pre-approval. 2. Make a wish list of what you really must have and what you can live without.  And remember... every house has a history, and  there is no "perfect house!" 3. Based on your price range and wish list, pick a few towns to look in.  Don't look all over Middlesex County or you will be looking for a long, long time. 4. Find yourself a good Buyer's Agent (shameless plug).  It's free so why not? Okay, okay.... if you REALLY want to find a house, email me and we'll look together!