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Active Military May BE Eligible for 1 year extension on Tax Credit

March 9th, 2010 1:10 AM

Military personnel and federal employees, such as members of the foreign service and employees of the intelligence community, are able to enjoy additional benefits when it comes to the homebuyer tax credit.
Typically, in order to claim the tax credit, eligible buyers must enter into a contract to purchase a principal residence by April 30, 2010, and close the transaction no later than June 30, 2010. However, according to the IRS, servicemen and women get an extra 12 months, allowing them until April 30, 2011, to sign a binding contract and until June 30, 2011, to close the purchase.
The extension is available to individuals or their spouses who serve on qualified official extended-duty service outside the country for at least 90 days between Jan. 1, 2009, and April 30, 2010. In order to qualify, only one spouse needs to be overseas during that time frame.
In addition to the extension, eligible members of the armed services, intelligence community or foreign service do not have to repay the credit if their home is sold or ceases to be a primary residence within the first three years as a result of orders sending them to a new duty station at least 50 miles away.
Click here for more information about the special tax credit benefits for members of the military.

Posted by Radoslaw Zimnoch on March 9th, 2010 1:10 AMPost a Comment (0)

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HUD has proposed to eliminate ALL seller financing unless the seller lives in the home or becomes a licensed mortgage originator

February 17th, 2010 1:14 AM

The following information is extremely important!
HUD extends timeframe for comments regarding proposed SAFE Mortgage Licensing ACT Rules
HUD has proposed to eliminate ALL seller financing unless the seller lives in the home or becomes a licensed mortgage originator. The proposed HUD Rules interpreting the federal SAFE mortgage act can be viewed at www.regulations.gov Use the search parameter “HUD” and the keyword “safe”. Please review and comment regarding the impact of this broad interpretation of the law.
“In addition to establishing HUD’s responsibilities under the SAFE Act, through this rule, HUD proposes to clarify or interpret certain statutory provisions that pertain to the scope of the SAFE Act licensing requirements, and other requirements that pertain to the implementation, oversight, and enforcement responsibilities of the States. HUD solicits comment on the proposed clarifications and on the regulations proposed to be codified.”
How YOU can help:
We learned about the publishing of the rules very late in the process… and the deadline for comment is upon us. The deadline was originally today, February 16th, but was just extended to March 5th. We still desperately need for thousands of REIA members across the country to go on record with HUD on this issue. We will be working to try to affect this law in other legislative ways, but cannot hope to gain traction unless our members have clearly communicated that they are opposed to this portion of the rules. This is your chance to be counted on this issue.

PLEASE SUBMIT YOUR COMMENTS TO HUD! We have very little time to flood this system with comments.

Follow these simple steps:
1. Logon to http://www.regulations.gov You will see two white boxes for searching
2. On the left box labeled “Document Type”, pull the menu down and select “proposed rules”
3. On the right box labeled “Enter keyword or ID”, enter “safe mortgage”. Then, press search
4. Locate the blue search result “FR-5271-P-01 Safe Mortgage Licensing Act: HUD Responsibilities Under ….” To read the rules, click on this title. You will be taken to another page. You will see “views”. You can click on PDF file or another symbol which will show you the rule document online.
5. On the right of the screen, click on “submit comment”
6. Complete the form providing required information and your comments and then submit
What do you say?
Say what you feel, but say it politely! The message should include that you would like the definitions in the proposed rules to be changed so that private individuals can originate and service loans on properties they personally own. Some ideas from others:
• bank loans are not available on some types of properties
• the tight lending climate has made bank financing “out of reach” for many
• seller financing is an “age old” tradition based on private property rights
• these rules would prohibit even partial seller financing – i.e. a “seller second”
• according to HUD’s “Residential Finance Survey” in 2001, roughly 40% of all non-farm residential properties in the US are owned free and clear
• an estimated 6 million Americans own a property other than their own primary residence
• an estimated 4.5% of Americans own three or more properties, many purchased solely as investment properties
• 40% of non-owner occupied residences are mobile homes which are more difficult to sell with bank financing
• approximately 5% of homes in US are for sale or for lease… seller financing may be key to liquidating this inventory

Posted by Radoslaw Zimnoch on February 17th, 2010 1:14 AMPost a Comment (0)

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FHA Suspends 90-Day Seasoning Rule as more First-Time Buyers Flood into the Market.

February 17th, 2010 1:12 AM

In a move that surprised even the most attentive among our ranks, on January 15th, 2010 The US Department of Housing and Urban Development waived a set of requirements related to foreclosure sales that had have often shut out FHA buyers “from buying affordable properties,” said FHA Commissioner David H. Stevens. “This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.”

Sellers, many of whom are investors who have learned to capitalize on the many opportunities in the foreclosure market, now have a new market of buyers that are currently a major part of the housing resurgence, courtesy of the First-Time Homebuyer tax credit which was extended through June of this year. Coupled with this Suspension of the 90-Day Seasoning Rule and the First-Time Homebuyer credit, those investors who are able to make moves on foreclosed properties in a weary market may be poised for big success in 2010.

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. In an effort to protect FHA borrowers against what they deemed the predatory practices of “flipping where properties are quickly resold at inflated prices to unsuspecting borrowers,” this waiver is limited to those sales meeting the following general conditions:

All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

While the government has still failed to admit the legitimacy of our business in whole, they have certainly taken a step in the right direction with this action as they create an excellent opportunity for community conscious investors to assist in the renovation and resale of thousands of foreclosures across the country.

Click here to view the Waiver of Requirements of 24 CFR 203.37a(b)(2), or visit www.NationalREIA.com/LegislativeInfo or http://www.hud.gov/ for more information.

Information provided by the National REIA

Posted by Radoslaw Zimnoch on February 17th, 2010 1:12 AMPost a Comment (0)

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Congress Votes for Home Buyer Tax Credit Expansion

November 5th, 2009 10:36 PM

A Message from the Passaic County Board of REALTORS®
Special Edition President's Podcast:
"Nov. 5, 2009: Tax Credit Extended and Expanded
Congress Votes for Home Buyer Tax Credit Expansion
Get details on the home buyer tax credit extension that will be sent to President Obama for his signature.
In this special edition of the President's Podcast, 2009 NAR President Charles McMillan announces that Congress has answered our call to extend and expand the homebuyer tax credit.
Download the Podcast (MP3: 2.0 MB)
(Right-click and select 'save target as')
Podcast Duration: 2:10
http://www.realtor.org/about_nar/presidents_report/_podcast_archive/mcmillan_taxcreditextended_20091105 "

Posted by Radoslaw Zimnoch on November 5th, 2009 10:36 PMPost a Comment (0)

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Breaking News – $8k Tax Credit Extended (Almost) For FHA Buyers In New Jersey

October 31st, 2009 3:22 PM

Although nothing has been formally passed, The National Association of Mortgage Brokers issued this update on the $8k tax credit yesterday.

The $8,000 first-time homebuyer tax credit is set to be extended until April 30, 2010. The Obama Administration has urged Congress to pass legislation to extend the program from its original December 1, 2009 deadline. In addition, legislation may provide a tax credit for some current homeowners. NAMB will continue to monitor legislation and will inform members when the extension is formally enacted.
http://nationalmortgageprofessional.com/news14521/namb-legislative-alert-first-time-homebuyer-tax-credit-verge-extension

Under the terms of the agreement, the deadline for first-time homebuyers to claim the $8,000 credit would be pushed back to April 30, 2010. But the term “deadline” doesn’t mean the same thing as it does in the current credit. The Senate agreement stipulates that buyers must have a sales contract on a house by April 30 to be eligible, but it gives them an additional 60 days to close the purchase.

That means buyers will have until approximately end of July 2010 to be CLOSED on their homes in order to receive the $8,000 first-time buyer tax break.

Stay Tuned for more updates.

Posted by Radoslaw Zimnoch on October 31st, 2009 3:22 PMPost a Comment (0)

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Foreclosures will RISE again!!! Housing Crash to Resume!!!

October 1st, 2009 11:43 PM

Housing Crash to Resume on 7 Million Foreclosures, Amherst Says

Housing Crash to Resume on 7 Million Foreclosures, Amherst Says
September 24, 2009, Bloomberg

The crash in U.S. home prices will probably resume because about 7 million properties that are likely to be seized by lenders have yet to hit the market, Amherst Securities Group LP analysts said. The “huge shadow inventory,” reflecting mortgages already being foreclosed upon or now delinquent and likely to be, compares with 1.27 million in 2005, the analysts led by Laurie Goodman wrote today in a report. Assuming no other homes are on the market, it would take 1.35 years to sell the properties based on the current pace of existing-home sales, they said. “The favorable seasonals will disappear over the coming months, and the reality of a 7 million-unit housing overhang is likely to set in,” they said.

The Foreclosure Pain May Drag on for Years
September 23, 2009, Wall Street Journal

(This is the first installment of a series of posts on the shadow market) Delays in dealing with home foreclosures are stretching out the pain for the U.S. housing market, as we reported in Wednesday’s Journal. That has stirred lots of debate over whether it is better for the nation to face the pain of millions of foreclosures immediately – to get it over with fast — or to draw the process out over several years in hopes that the economy and housing demand will recover. In some of the former bubble markets, including Florida, the problem will be aggravated by looming defaults on option adjustable-rate mortgages (ones that start with minimal payments but require borrowers to face the music later) and high unemployment rates, says Jack McCabe, a housing analyst in Deerfield Beach, Fla. Mr. McCabe says he knows people who haven’t paid their mortgages in more than a year and are still haven’t been evicted. “Some people are saying, ‘I could pay my mortgage bill, but why?’” Mr. McCabe adds: “The distressed real estate market has become the real estate market in many locations, and that isn’t going to change for years.”

Existing Home Sales Slide Unexpectedly
September 24, 2009, CNNMoney.com

Existing home sales fell in August, snapping a four-month streak of increases, according to a report released Thursday. Sales of previously-owned homes fell 2.7% last month from July, but were up 3.4% from a year ago, said the National Association of Realtors. Sales had jumped 15.2% in the previous four months. August home sales hit a seasonally-adjusted annual rate of 5.1 million units, down from 5.24 million in July. That's well below the analyst consensus estimate of 5.35 million annual units compiled by Briefing.com. The median price of homes sold in July was just $177,700, a 12.5% year-over-year drop.

US Home Foreclosure Mediation in Jeopardy, Report Says
September 23, 2009, Reuters

A slew of state and local home foreclosure mediation programs have enormous potential to help homeowners, but most suffer from lack of industry accountability, according to a study released on Wednesday. The nonprofit National Consumer Law Center, or NCLC, in a new review of 25 foreclosure mediation programs in 14 states, warns that there is no data to confirm that foreclosure mediation programs anywhere have led to a substantial number of affordable and sustainable loan modifications. “If the programs continue to demand little or no accountability from servicers, they will likely go the way of federal efforts to control foreclosures that have failed as a result of relying on voluntary compliance by the lending industry," wrote the report's author, NCLC staff attorney Geoffrey Walsh. “It is unfortunate that the industry has so far prevailed in blocking Congressional action on court-ordered loan modifications, the one step that would level the playing field for consumers and ensure the necessary accountability from all parties."

Posted by Radoslaw Zimnoch on October 1st, 2009 11:43 PMPost a Comment (0)

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$8,000 First Time Home Buyer Tax Credit can be used for Downpayment Now!

May 29th, 2009 4:56 PM

HUD Announces Details on First-Time Home Buyer Tax Credit

On May 29, 2009, U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan announced that the Federal Housing Administration (FHA) will allow home buyers to apply the Obama Administration's new $8,000 first-time home buyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that this will help stabilize the nation's housing market by stimulating home sales across the country.

The announcement detailed FHA's rules allowing state Housing Finance Agencies and certain non-profits to "monetize" up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA's detailed guidance, see their new mortgagee letter.

Stay tuned to www.njar.com for details from the New Jersey Housing and Mortgage Finance Agency (HMFA) on how the program will work for New Jersey residents.

Article Provided by NJAR

Posted by Radoslaw Zimnoch on May 29th, 2009 4:56 PMPost a Comment (0)

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Just Listed! 34 Johnson Ave. Cranford, NJ 07016

May 21st, 2009 9:50 PM

$274,900.00
34 Johnson Ave.

Cranford, NJ 07016

Beds: 2.0	Rooms: 5
Baths: 2.00	Sq. Ft.: 0
Garage: 0	Built: 1965

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Donna Lepanto
Striker Realty

www.agentsofnj.com

Visit this listing at Here

Posted by Donna Lepanto on May 21st, 2009 9:50 PMPost a Comment (0)

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Get $5000 Cash Advance from NJHMFA if you are a First-Time Home Buyer

April 16th, 2009 11:51 AM

NJ Housing Mortgage Finance Agency Offers Cash Advance for
First-time Buyer Costs
Program offers up to $5,000 cash to qualified first-time home buyers

The New Jersey Housing Mortgage Finance Agency (NJHMFA) is offering cash payments of up to $5,000 for qualified first-time home buyers to help defray closing costs or satisfy down payment requirements and help new buyers to get into the housing market.

The loan, offered as part of NJHMFA's "Prefund" program, would function like a cash advance against the $8,000 tax credit being offered to first-time buyers who purchase a home between April 8 and December 1 of this year. In its simplest terms, purchasers would be provided with the payment as a loan and would be required to repay the advance when they receive their federal tax credit.

"This is a powerful incentive that will allow potential first time home buyers to actually enter the market because this cash advance will help them meet down payment requirements or pay for closing costs that might otherwise be an obstacle to a first-time buyer," said Jarrod C. Grasso, RCE, executive vice president of NJAR^®.

The cash advance is available to first-time home buyers who:

Arrange their financing through the NJHMFA. (Obtain a list of participating lenders by calling (800) NJ HOUSE)
Are qualified for the tax credit offered as a part of the federal stimulus program
Pledge to apply the proceeds of their tax credit to repay the cash

View the full details of the NJHMFA's First-Time Home Buyers Tax Credit Loan Program (TCLP).

Credits to NJAR for this article

Posted by Radoslaw Zimnoch on April 16th, 2009 11:51 AMPost a Comment (0)

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$ 8000 Refundable Tax Credit for First Time Homebuyers

April 14th, 2009 10:52 PM

President Obama signed the economic stimulus package in Denver, CO which includes a gift for first time homebuyers– $8,000 (or 10% of the home’s value, whichever is less) on their 2008 or 2009 taxes.

Here’s the skinny, from CNN:

Refundable: The credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of withholding they paid during the year- was less than that amount.
Purchase Date: To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as “first time” buyer. They must also live in the house as their primary residence for at least three years, or they will be obligated to pay back the credit.
Paperwork: Applying for the credit will be easy - or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.
Income Restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)

Posted by Radoslaw Zimnoch on April 14th, 2009 10:52 PMPost a Comment (0)

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Our New Blog

Although nothing has been formally passed, The National Association of Mortgage Brokers issued this update on the $8k tax credit yesterday.

HUD Announces Details on First-Time Home Buyer Tax Credit

NJ Housing Mortgage Finance Agency Offers Cash Advance for First-time Buyer Costs Program offers up to $5,000 cash to qualified first-time home buyers

NJ Housing Mortgage Finance Agency Offers Cash Advance for
First-time Buyer Costs
Program offers up to $5,000 cash to qualified first-time home buyers