Monday, November 9, 2009

Foreclosures VS Shortsales....


Buying a foreclosure or short sale can be complex. Because each situation is unique, understanding the buying process is critical. Short sales, foreclosures and lender owned properties can be classified as non-traditional home sales. While they may provide the opportunity to buy real estate at reduced prices, these types of sales are complicated and take longer than traditional real estate.

Short Sales: The seller is asking their lender(s) to agree to take less than the amount owed on the home as payment in full. It’s considered a short sale when the sale price is insufficient to pay off the total mortgage(s) and costs of the sale. Contrary to its name, a short sale can be one of the most time consuming types of real estate transactions because the seller and lender(s) must agree to the terms of modifications of the seller’s mortgage obligations.

In Foreclosure: Properties in foreclosure represent an owner who has missed one or more mortgage payments and has received an official notice of foreclosure from their lender. Lender Owned, Once the foreclosure process is complete, the property becomes lender owned. The seller is now the bank and the home is vacant. Things to Consider: Non-traditional home sales are more complex and potentially more time consuming because the lender is heavily involved in the transaction – either acting with approval powers or as the owner/seller. Foreclosed properties may be previously owned by people experiencing financial difficulties and may require costly updates and repairs. Liens or back taxes often create challenges with the property's title. When entering into this type of real estate transaction, it’s critical to work with an expert who understands the market and can help you navigate the process. To learn more about buying a short sale or foreclosure contact Traci or Eryn!

Friday, November 6, 2009

Tax Credit Extended and Expanded!

BREAKING NEWS!
Tax Credit Extension & Expansion is Approved!

President Obama has approved a bill for the Housing Tax Credit Expansion and Extension. Here’s what it means:
The $8,000 First-Time Homebuyer Tax Credit is Extended!
Now, qualified first-time home buyers would receive their $8000 tax credit if they sign a purchase contract by April 30, 2010 and close by June 30, 2010.
The home purchased must be their primary residence
Buyer cannot have owned a home during the past three years
Tax credit is up to 10% of the home value (not to exceed $8,000)
Annual income caps to qualify for the tax credit have increased ($125K for single filers / $225K for joint filers). Partial tax credit can be granted for incomes up to $145K for single filers / $245K for joint filers.
 
PLUS New $6,500 Tax Credit for Current Home Owners Purchasing a Primary Residence
Eligible home buyers must have lived in their current home for 5 consecutive years of the past 8 years.
The new home does not have to cost more than the old home.
Eligible for homes with purchase agreements signed between November 6, 2009 and April 30, 2010, and close by June 30, 2010
Annual income caps to qualify for the full tax credit are $125K for single filers / $225K for joint filers. Partial tax credit can be granted for incomes up to $145K for single filers / $245 for joint filers.
Changes Chart and FAQs from www.realtor.org (National Association of Realtors® website) are attached.