Posted October 29th, 2009 by Sheila
MSNBC reported today that the First-time homebuyer tax credit that is set to expire at the end of November, will be extended through April. All sales contracts will be need to be signed by the end of April and then closed by the end of June. This is great news for the sagging real estate market and for first-time homebuyers who are still waiting for a lengthy short sale to be approved.
It appears there may be further help to promote home sales. Buyers who have owned a home for at least 5 years may qualify for a $6500 tax credit, which would further help improve the overall real estate market.
We won’t hold our breath just yet though!! It still has to go through the Senate and the President.
MSNBC article: http://www.msnbc.msn.com/id/33522046/ns/business-real_estate/
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Posted September 15th, 2009 by Sheila
Amherst Securities Group issued a report suggesting that programs designed to support short sales could be the most effective loss mitigation approach, as they minimize loss severity. “In all cases, the loss severity on the short sale is 15-20% less than on the foreclosure sale,” Amherst researchers reported. Amherst researchers also said the Hope-for-Homeowners (H4H) program is a “powerful alternative” to the Home Affordable Modification Program (HAMP). Amherst researchers point to H4H’s ability to mimic the impact of short sales, such as a one-time loss on the loan, which provides a softer loss severity than foreclosure sales.
Borrowers completing the H4H program become re-equified and refinanced into a new Federal Housing Administration-insured mortgage, while HAMP provides capped incentives to servicers to modify mortgages in danger of foreclosure. The US Treasury Department then adjusts the HAMP incentive caps based on the level of actual participation. Plans for the “new and improved” H4H program could be released within the next two months, resolving enough issues to maximize the net present value of loans in bank portfolios but “unlikely” to be used for loans in private label securitizations, according to the report.
Brought to you courtesy of broker, Chris McLaughlin
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Posted May 6th, 2009 by Sheila
If you are a first-time homebuyer with a job and fairly decent credit, your dream of owning a home instead of throwing away your money in rent can come true. There are so many incentives available to you that you simply cannot afford to wait. Below is a list of the top 10 reasons I think a first-time homebuyer needs to make a move now:
- Mortgage Interest Rates – they are at an unprecedented, all-time low (I am talking below 5%). Mortgage rates are steadily going up and they will not be this low forever. You will lose if you are waiting for home prices to go down, but have to pay a higher interest rate. What if home prices don’t go down and you still have to pay higher interest rates? Time is money and don’t forget about inflation. The government is printing money and it will come back to bite us in the immediate future.
- Best Inventory Now – there is an abundance of homes for first-time homebuyers to choose from. Inventory is dwindling and the good ones are getting whipped up.
- $8,000 Tax Credit – This is FREE money to all first-time homebuyers (this means people who have never purchased a home or haven’t purchased a home in the last 3 years). This tax credit expires December 1, 2009 so if you do not close prior to this date, you will lose out (it is currently taking approximately 45 days to close on a loan so don’t think you can wait to buy until late October). You can even amend your 2008 tax return to get the credit.
- Inventory and Prices – there’s a lot of inventory so prices are competitive. The inventory is going down and people are buying so as the inventory goes down, prices will go up. Supply and demand!
- FHA 203k Rehab Loan – this is a great program implemented by the FHA to assist in the rehab of homes that wouldn’t otherwise qualify for an FHA loan. This loan will let you tack the repair costs to your FHA loan so you can make the necessary repairs to qualify for the 3.5% down loan program.
- USDA loan – this is a 100% loan that requires zero money down and no mortgage insurance (like a VA loan). You can even roll in 3% of the closing costs. There are income and area restrictions so you would want to check with your mortgage broker or Realtor. This money may not be around next year so don’t wait!
- Job Protection Programs – if the fear of losing your job is holding back from buying a home, the job protection program may ease your mind. There are sellers offering this protection to buyers that would help assist in mortgage payments.
- Lower Taxes in 2009 – taxes dropped in 2008 and are expected to go even further in 2009. Florida residents are now able to take a $50,000 homestead and property values are being adjusted. Taxes were incredibly high during the housing boom, making it difficult for homebuyers to afford the mortgage and the taxes too.
- 1% Rule for Investors – if you are a first time homebuyer looking to buy an investment property, it makes economic sense to purchase if you are able to rent the property and collect 1% of the sales price that will cover the mortgage. You can live in the house initially and then rent it out.
- Short Sales are taking less time – most of the homes in the Florida market are short sales. These homes are being sold at or below current market value and buyers are getting the benefit of a great home for much less than it was originally sold for. Short sales have traditionally taken several months to a year to get approved, but they are getting better as lenders have been forced to stream-line their business.
Take advantage of this great time to buy and stop procrastinating!
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Posted April 20th, 2009 by Sheila
Finding a job in today’s economy is very tough. Employers have their pick from the cream of the crop and are no longer seeking the fresh, young college grad. Why would they when they can hire an experienced person with impressive credentials for the same amount of money? Employers know people are desperate and are willing to take jobs they ordinarily wouldn’t have dreamed of interviewing for in the past. They also know these people will stick around for a while because the job market isn’t going to get any better for the next few years to come. Companies are laying off many of their “worker bees” so having a few highly experience people to do the work of ten will greatly benefit their business. The big question is how does the job applicant find the right employer and vice versa? Searching for jobs on Monster.com or Careerbuilder.com just aren’t going to cut it. They are getting an overwhelming amount of resumes and the chances of your resume actually being read is slim. The only way to find these coveted jobs are through the people you know. A good way to find these important contacts is via Internet social networking sites like Twitter, Facebook, LinkedIn or Plaxo. These sites allow you to get to know people you wouldn’t otherwise meet. By simply posting “What are you doing,” you are essentially letting other people in to your world. These sites will allow you to post blogs, photos, videos and the URL to your website. All of these things help a potential employer get to know what type of person you are as well as your job experience. Personality goes a long way in attracting employers and is just as important as your job experience, sometimes more important.
Beginners are usually skeptical and have a difficult time understanding how the Internet social networking sites can help them, but I recommend you keep an open mind and try to see the big picture. As a Realtor in the Tampa Bay area, it is a very effective tool in my business in getting to know potential buyers and sellers as well as colleagues around the nation. It is so easy and most of all, it’s a lot of fun!
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Posted April 7th, 2009 by Sheila
A new and growing concern in the Florida real estate market is drywall that was manufactured in China. U.S. manufacturers of drywall couldn’t keep up with new homebuilders demand during the housing boom from 2000 to 2006. In addition to the housing boom, Florida suffered through a bad hurricane season that dramatically increased the need of drywall. For those of you asking "What in the heck is Chinese drywall?" It is a defective drywall that contains Sulfur Dioxide that when wet emanates a foul odor. The sulfur-based gases can cause corrosion to air conditioning coils and anything metal in your home. It is not known at this time the extent of damages the drywall could do to your home or any health problems the defective drywall could cause. The main health concern the CDC has posed are possible respiratory problems.
In an already declining market where sellers are stuck in their homes, the fear of this defective drywall could drive property values to a new low.
Buyers and Buyer’s agents need to be aware of the possibility of Chinese drywall in homes built during the 2000 to 2006 (and beyond). It is imperative to find a home inspector that is familiar with Chinese drywall testing if you find evidence of a problem.
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