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New Program Will Pay Delinquent Borrowers $1,500 to Short Sale

 March 12, 2010 • No Comments
  • Short-Sale Program Will Pay Homeowners to Sell at a Loss – NYTimes.comHere are some details from a new plan to help reduce foreclosures, by encouraging people to use Short Sales. This program gives money to mortgage lenders, in effort to encourage them to approve more short sales, and to delinquent homeowners to “assist” them in relocation.

    tags: short, sales, foreclosures

    • This latest program, which will allow owners to sell for less than they owe and will give them a little cash to speed them on their way, is one of the administration’s most aggressive attempts to grapple with a problem that has defied solutions.
    • Taking effect on April 5, the program could encourage hundreds of thousands of delinquent borrowers who have not been rescued by the loan modification program to shed their houses through a process known as a short sale, in which property is sold for less than the balance of the mortgage. Lenders will be compelled to accept that arrangement, forgiving the difference between the market price of the property and what they are owed.
    • Under the new program, the servicing bank, as with all modifications, will get $1,000. Another $1,000 can go toward a second loan, if there is one. And for the first time the government would give money to the distressed homeowners themselves. They will get $1,500 in “relocation assistance.”

While I do think that streamlining the short sale process is something that is much needed, I don’t think that the $1,000 incentives to banks will make that much of a difference. I don’t think that the return on investment, our future investment as American Tax Payers, will be worth the cost.

The $1,500 incentive for people who are selling their homes as short sales is just ridiculous. In most cases, these home owners haven’t made a housing payment in months, sometimes years. Their poor decisions and actions have already cost the banks and American Tax Payers thousands and thousands of dollars. Why should they be rewarded for being irresponsible?

For credit reasons, home owners in distress are much better off short selling their home, rather than letting it foreclose. If the bank will approve the short sale, the sale of their homes at a reasonable near market value park, that should be incentive enough to get out and move on.

Paperwork Filing Requirements for Federal Government Tax Credits

 March 8, 2010 • No Comments

  • Paperwork Filing Requirements for Federal Government Tax Credits

    Claiming the federal home buyer tax credits will require physical paperwork. Electronic Tax Filing won’t be accepted. There has been a lot of tax fraud, so in order to reduce it, the federal government is requiring paper filing for those seeking the homebuyer tax credits. They are also now requiring several important things to verify that the buyers are indeed deserving of the tax credit.

    tags: tax credit, paperwork, filing

    • Homeowners filing for the home buyer tax credit are not allowed to use electronic filing and must file hard copies due to special documentation requirements.

    • Earlier this year, the Internal Revenue Service (IRS) deployed new home buyer tax credit forms and instructions requiring forms that will force taxpayers to file on paper, rather than electronically.

    • tax credit filing rules are to ward off a repeat of 90,000 taxpayers who fraudulently claimed the credit

      • In addition to Form 5405, also include at least one of the following documents:

         

      • A copy of the HUD-1, Settlement Statement, showing all parties’ names and signatures, property address, sales price, and date of purchase.

         

      • For mobile home buyers who don’t get a settlement statement, a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.

         

      • For new home buyers who don’t get a settlement statement, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

        Existing home owners applying for the $6,500 maximum tax credit must additionally prove they lived in their old home for the required period.

Six Reasons Why the Housing Market Peaks Can Not Return

 March 4, 2010 • No Comments

  • Six Reasons Why the Housing Market Peaks Can Not Return

    This is a great article I read from the housing guru, that really explains the realities of the future real estate market. The housing boom of past years was a freak thing. It’s not something that will happen again. In addition there are some reasons why it will be a long time before it does fully recover. Here are a few of the points from his article.

    tags: housing market, recovery

    • I believe the housing market is far from recovered, and, in fact, will not return to the levels of the past decade for many years—if ever.

    • Robust home sales are dependent upon consumer confidence in the economy.

    • Thus far, consumers are far from confident.

    • ● A vigorous recovery of the housing market cannot occur as long as we have unusually high unemployment.

    • ● The dramatic loss of home equity will significantly limit the pool of available move-up buyers.

    • high rate of foreclosures will depress both the housing market

    • The millions who have experienced foreclosure will be automatically ousted from the buying pool.

    • higher mortgage payments associated with rising interest rates, many will fail to qualify for loans on the homes of their choice. Others, having been “spoiled” by the low rates of the past decade, will stay out of the market hoping for a return to those rates.

    • Increase in mortgage rates will reduce the number of qualified buyers.

    • Tighter lending restrictions will also result in fewer buyers qualifying for home loans.

Noteworthy Real Estate News (weekly)

 February 27, 2010 • No Comments

  • Fed: Interest Rates to Remain Low

    Interest rates are expected to stay low.

    tags: interest, rates

    • Investors breathed a sigh of relief Wednesday when Federal Reserve Chair Ben Bernanke told Congress that interest rates are likely to remain low for an extended period. The economy, he said, “still requires support for recovery.”

  • New wave of foreclosures by end of 2010 is feared – latimes.com

    Most reports are showing that the foreclosure crisis isn’t going to get better any time soon. Another new wave is expected as unemployment is taking its toll.

    tags: foreclosures, wave

    • About 4 million U.S. homeowners are 90 days or more delinquent on their loans or in foreclosure proceedings, Moody’s Economy.com says. A federal loan modification program is helping a relative few.
    • BofA holds about 1 million mortgages that are at least 60 days delinquent.
    • About 4 million homeowners nationwide are 90 days or more delinquent on their mortgages or in foreclosure proceedings, according to Moody’s Economy.com
    • Trial modifications and other delays have kept many of those mortgages out of foreclosure, but by the end of this year, 2.4 million borrowers are expected to lose their homes, said Celia Chen, a housing economist at Economy.com.
    • That would be up from 2.1 million foreclosures and short sales last year and five times the annual numbers earlier in the decade.
    • their large numbers are likely to push home prices back down this year, to a bottom in the fourth quarter, Chen said. And that would make things worse for the 25% of homeowners who already owe more on their mortgages than their houses are worth.
    • 11.4% of California homeowners were 90 days or more late on their loans, according to First American CoreLogic, a Santa Ana real estate data firm. That compares with a delinquency rate of 8.4% nationwide.

  • 67% of Sellers Have Difficulty Making Mortgage Payment

    Nearly 1/3 of home sellers last year sold because they had trouble making payments. 67% of sellers claimed they had difficulty making payments.

    tags: mortgage

  • Landlord licensing in Logan one step closer

    It looks like landlords in Logan are going to have to pay $50 a year to be a landlord.

    tags: landlords, rentals

    • The licensing of landlords in Logan moved a step closer to reality Tuesday.

      The Municipal Council at its regular meeting discussed a proposed ordinance requiring owners of rental property, or agents acting on their behalf, to be licensed. The next step is a public hearing scheduled for March 2.

      The proposed cost of the license is $50 but landlords or agents could have the fee reduced to $10 — in the third year of being licensed — if they take part in a “Good Landlord” training session. The fee is levied per landlord, not per rental unit.

    • The first proposed licensing ordinance came before the council last year. A 14-person committee consisting of people on all sides of the issue then worked to bridge gaps between the parties.

      The result is an ordinance strengthening the city’s ability to inventory rentals, identifying those being operated in areas where they are not allowed and identifying those responsible for each property.

      As for ensuring the safety of properties, which was initially the city’s main argument for licensing, the city would conduct an inspection upon receiving a complaint — the same as is done currently. The original ordinance required inspections of all properties in order for the landlord to receive a license.

  • Number of banks on problem list tops 700 – Feb. 23, 2010

    And it’s mostly because they’re losing so much money from unpaid mortgages…

    tags: banks

  • Home Home Affordable Foreclosure Alternatives Program « Logan Utah Real Estate Blog

    “There is another new Federal Government program out their designed to reduce the consequences and liability of people trying to avoid foreclosure by selling their homes as short sales, or else voluntarily giving up their homes with a Deed in Lieu of Foreclosure. This program is called the Home Affordable Foreclosure Alternatives Program. Say that five times fast.

    This program will be implemented on April 5th. It is supposed to “streamline” the short sale process, and remove the ability for banks to seek a deficiency judgement for the amounts they are actually owed from the borrowers. According to the official HMPadmin website:

    The Home Affordable Foreclosure Alternatives (HAFA) Program provides additional options to avoid costly foreclosures and offers incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid foreclosures.

    With either the HAFA short sale or DIL, the servicer may not require a cash contribution or promissory note from the borrower and must forfeit the ability to pursue a deficiency judgment against the borrower.

    HAFA simplifies and streamlines the short sale and DIL process by providing a standard process flow, minimum performance timeframes and standard documentation.

    More details are available at this the official site: HMPadmin: Foreclosure Alternatives.”

    tags: foreclosure prevention, short sales

  • HMPadmin: Foreclosure Alternatives

    tags: no_tag

    • The Home Affordable Foreclosure Alternatives (HAFA) Program provides additional options to avoid costly foreclosures and offers incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid foreclosures.

    • With either the HAFA short sale or DIL, the servicer may not require a cash contribution or promissory note from the borrower and must forfeit the ability to pursue a deficiency judgment against the borrower.

      HAFA simplifies and streamlines the short sale and DIL process by providing a standard process flow, minimum performance timeframes and standard documentation.

  • 2010 to be The Year of the First-Time Buyer?

    Using a real estate agent is very important for first time buyers. Real estate agents know how to manage the real estate transaction, plus they have time and experience to actually look out for the buyer, create market analysis to see market value of homes and more.

    tags: real estate agents, first time buyers, buying tips

    • 2010 may come to be known as the “Year of the First-Time Home Buyer.”
    • Mark Zandi, chief economist at Moody’s Economy.com, says there will be 1.84 million homes sold to first-time home buyers in 2010, compared with 1.73 million in 2009.

      These buyers will invariably make some mistakes that they will come to regret a few years down the road, some experts say, including failing to use a real estate professional to help them manage the transaction.

      Real estate professionals have the time and the knowledge to sift through thousands of listings, creating market analyses to judge pricing and other key features, points out Ray Boss Jr., a practitioner with RE/MAX Realty Group in Maryland.

      “I would want someone who is going to look out for my interests first and foremost,” says Boss. “Someone who knows the contracts, who has experience negotiating, and who can walk me through the entire process smoothly — step by step — and make sure I get the house that’s right for me.”

  • Foreclosure Prevention Has Aided 116,000

    It looks like the Federal government Foreclosure prevention programs actually have done some good things.

    tags: foreclosures, foreclosure, prevention

    • The federal foreclosure prevention program has helped about 12 percent of borrowers who applied for help since the plans were announced a year ago, the Treasury Department says.

      About 1 million borrowers initiated the application process, and as of January, about 116,000 home owners–12 percent–had their loans modified. But administration officials say another 76,000 applications have been approved and are awaiting signatures.

      Another 830,500 home owners are currently in a trial modification review period during which banks make sure payments are feasible for the borrower and ensure the qualifications of the assistance program are met.

      For those who qualify, the Home Affordable Modification Program brings monthly loan payments down to 31 percent of home owners’ pre-tax income.

      Nearly 60,500 people have been denied permanent modifications.

      Source: CNNMoney, Tami Luhby (02/17/2010) and USA TODAY, Stephanie Armour (02/17/2010)

Posted from Diigo. The rest of my favorite links are here.

Noteworthy Real Estate News (weekly)

 February 20, 2010 • No Comments

  • How to buy a home when you need to sell… | Cornerstone Real Estate Video Blog

    The real estate transaction is more complicated when you need to both sell a home and buy a new one. There are some tricks you can use to make this work.

    tags: buying tips, selling tips, contingencies, time clause

  • Is Foreclosure Dam breaking?

    More and more people who can afford to make their mortgage payments are defaulting anyways because it economically makes sense.

    tags: foreclosures

    • RealtyTrac senior Vice president Rick Sharga said, “The real spike was in bank repossessions. And that suggests to me that some of the processing delays that we saw keeping numbers down may be ending.” More and more borrowers are defaulting strategically – seriously delinquent and walking away from their mortgages even if they can afford the payments.

      Las  Vegas posted the nation’s highest metro foreclosure rate for the year, with  more than 12 percent of its housing units receiving a foreclosure notice in  2009 — more than five times the national average. Las Vegas reported a quarter-over-quarter decline in foreclosure activity in the fourth quarter — as did all the other metro areas with foreclosure rates ranking among the top 10 for 2009.

      With 11.87 percent of its housing units receiving a foreclosure notice in 2009, Cape Coral-Fort Myers, Fla., documented the second highest metro foreclosure rate. Other Florida cities in the top 10 were Orlando-Kissimmee at No. 7 (8.17 percent), Port St.  Lucie at No. 9 (7.58 percent), and Miami-Fort   Lauderdale-Pompano Beach at No. 10 (7.16 percent).

  • Barack Obama

    Interesting information about our President.

    tags: obama

Posted from Diigo. The rest of my favorite links are here.

Noteworthy Real Estate News (weekly)

 February 13, 2010 • No Comments

  • Weber County Home Sales Way Down in January

    Worse single month of home sales in Weber County since I was in high school. Inventory is also up.

    tags: weber county, weber, ogden, home, sales

  • » Ogden Utah Real Estate

    New Ogden Real Estate Site. http://www.ogdenrealestate.com

    tags: real, estate, ogden

  • Rep. Jason Chaffetz rails against federal control | Deseret News

    tags: no_tag

    • “I am seriously concerned about the future of our nation and our inability to say ‘no,’” he said. “We need to get the federal government out of our way and also get federal spending under control.”
    • a glut of overpaid federal employees is draining tax dollars, he said.
    • “The retention rate is 70 percent higher in the federal government than the private sector, which indicates to me we’re paying them too much because they don’t want to leave,” he said. Ultimately, he said, while jobs are the key to economic growth, they should be provided by private businesses.

    • Chaffetz said increases in the national debt ceiling over the past four years have added more than $1 trillion to the country’s outstanding obligations, which are currently accruing interest at the rate of $660 million a day.

      “I’m concerned about the viability of our nation and our inability to get this spending under control,” he said.

  • Are Interest Rates About to Rise?

    Starting next month, expect to see a steep rise in interest rates.

    tags: interest rates, mortgage rates

    • Federal Reserve Bank of New York President William Dudley says the central bank will scale back its purchases of mortgage-backed securities late next month
    • the Fed will act if rates spike too much. Still, analysts worry that the end of the MBA purchase program and expiration of the home-buyer tax credit, along with higher premiums and tighter underwriting of FHA mortgages, will work together to stifle home sales and price stabilization in the coming months.

  • Short Sales are Not Short « Logan Utah Real Estate Blog

    Short Sales take much longer than regular real estate transactions because they need approval from not only the owner, but also from banks.

    tags: short sales

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Noteworthy Real Estate News (weekly)

 February 6, 2010 • No Comments

Posted from Diigo. The rest of my favorite links are here.

Noteworthy Real Estate News (weekly)

 January 30, 2010 • No Comments

  • County Residential Land – Far From Recovery

    Land Prices are 15-30% too high in Cache County, and there is over three years of active inventory based on last years sales pace.

    tags: land, cache, county

  • Buying a Home: Why You Should Use a Buyer’s Agent « UtahCornerstone Video Blog

    Video Blog of why you should use a buyers agent when buying Utah Real Estate.

    tags: buying tips, home buying

  • Ten Inexpensive Ways to Wow Buyers

    Tips for Selling your Home for Top Dollar

    tags: selling, selling tips, staging tips

      • Here are 10 cheap ways to make a property more attractive to shoppers.

        1. Improve first impressions. Touch up the paint on the front door and other areas that buyers see first.
        2. Clean up the landscaping. Trim the hedges and trees and plant some annuals in the flowerbeds.
        3. Paint the interior. A coat of light yellow or cream with contrasting white woodwork looks fresh and clean.
        4. Refurbish the floors. Buff the hardwoods. Install new carpets – or at least get them professionally cleaned.
        5. Take care of the big problems. If the house needs a roof or the front stoop is crumbling, get them fixed.
        6. Buy warranties. Putting appliances under warranty gives homebuyers a secure feeling.
        7. Improve energy efficiency. New windows or improved insulation tell a potential buyer the seller is on top of things plus they come with tax benefits.
        8. Replace light fixtures. Updated fixtures, especially at the entrance way and in the foyer, create a good first impression.
        9. Buy a stove. Home owners whose kitchen isn’t top of the line can jazz it up for a few hundred dollars by buying a new stove, which gives the room a fresh feel.
        10. Tidy up the bathrooms. Get rid of mildew, replace caulking and replace stained sinks.

        Source: U.S. News & World Report, Luke Mullins (01/21/2010)

  • Cornerstone Video Released « Logan Utah Real Estate Blog

    How not to show a house. Home Boyz

    tags: cornerstone, real estate video

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Ten Inexpensive Ways to Wow Buyers

 January 26, 2010 • No Comments

  • Ten Inexpensive Ways to Wow Buyers

    Tips for Selling your Home for Top Dollar

    tags: selling, selling tips, staging tips

      • Here are 10 cheap ways to make a property more attractive to shoppers.
        1. Improve first impressions. Touch up the paint on the front door and other areas that buyers see first.
        2. Clean up the landscaping. Trim the hedges and trees and plant some annuals in the flowerbeds.
        3. Paint the interior. A coat of light yellow or cream with contrasting white woodwork looks fresh and clean.
        4. Refurbish the floors. Buff the hardwoods. Install new carpets – or at least get them professionally cleaned.
        5. Take care of the big problems. If the house needs a roof or the front stoop is crumbling, get them fixed.
        6. Buy warranties. Putting appliances under warranty gives homebuyers a secure feeling.
        7. Improve energy efficiency. New windows or improved insulation tell a potential buyer the seller is on top of things plus they come with tax benefits.
        8. Replace light fixtures. Updated fixtures, especially at the entrance way and in the foyer, create a good first impression.
        9. Buy a stove. Home owners whose kitchen isn’t top of the line can jazz it up for a few hundred dollars by buying a new stove, which gives the room a fresh feel.
        10. Tidy up the bathrooms. Get rid of mildew, replace caulking and replace stained sinks.

        Source: U.S. News & World Report, Luke Mullins (01/21/2010)

I’d pay special attention to #10. It’s not really a tip to help sell a house, it’s really a necessity if you don’t want to scare buyers off. Something moldy or smelly can outweigh all the positives of a house.

Noteworthy Real Estate News (weekly)

 January 23, 2010 • No Comments

  • Logan Short Sales about the Same as Last Month

    The number of Short Sale Homes in Cache County about the same as last month.

    tags: short sales

  • FHA lifts 90-day waiting period for Flippers

    This ban on the required “90-day” waiting period is an effort to get investors to buy more foreclosures.

    tags: foreclosures, fha, 90-day

    • Starting Feb. 1, housing regulators will suspend for one year a 90-day waiting period on property resales that it says has put FHA borrowers at a disadvantage in bidding on foreclosed properties.

    • Some sellers of foreclosed properties have been reluctant to enter into contracts from potential FHA buyers because of the cost of holding a property for 90 days, and the risks that a vacant property would be vandalized, HUD said.

      Lifting the waiting period “will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities,” HUD said.

  • Why Interest Rates Will Rise in 2010 | HousingStorm.com Honest Local Real Estate

    tags: no_tag

    • The only way to increase demand will be to raise interest rates, which will then spread to all layers of the economy. All interest rates will rise, including mortgages.

      There really is no escape from this conclusion. And this isn’t just about 2010–it’s about 2010 through 2035, as bond rate cycles tend to run between 18 and 26 years. Just as interest rates fell for 26 years, now they will rise for a generation or so.

  • Construction jobs down 23% in Cache Valley

    Cache Valley ranks 16th nationally for biggest decline in construction related jobs.

    tags: construction

    • The Logan area lost 23 percent of its construction jobs from November 2008 to November 2009, according to a new report from the Associated General Contractors of America (ACG).

      The decline ranks Logan 16th among metropolitan areas in the U.S. that have lost the most construction jobs. As for actual numbers, Logan’s employed construction workforce dropped from 3,100 workers in late 2008 to 2,400 workers in late 2009.

    • Chris Nelson with the University of Utah’s Metropolitan Research Center said this week that by 2030 the Wasatch Front, including Logan, would need 450,000 additional housing units — 50 percent more than now — and 1.1 billion feet of commercial space, more than double what’s out there now.

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Noteworthy Real Estate News (weekly)

 January 16, 2010 • No Comments

  • Foreclosures top record in 2009, no end in sight – MarketWatch

    Foreclosures in The US were the worst they’ve ever been last year. Double what they were in 2007.

    tags: foreclosures

    • The number of U.S. residential properties receiving at least one foreclosure filing jumped 21% in 2009 to a record 2.82 million
    • 2.21% of all U.S. housing units (1 in 45) received at least one foreclosure filing during the year, up from 1.84% in 2008, 1.03% in 2007 and 0.58% in 2006.
    • Saccacio said that monthly foreclosure filings peaked in July at 361,000, then declined for four months before rebounding in December. He said short-term factors, including trial loan modifications, state legislation extending the foreclosure process and an overwhelming volume of inventory clogging the foreclosure pipeline contributed to the second-half declines.
    • Just four states — California, Florida, Arizona and Illinois — accounted for more than half of the nation’s 2009 total, with more than 1.4 million properties receiving a foreclosure filing.

  • December Home Prices UP for Salt Lake

    Home prices in December were up compared with the last few months.

    tags: salt lake, salt lake county

  • Q4 Home Sales up for Davis County Again

    For the second straight Quarter, Year over year home sales are up in Davis County Utah

    tags: q4, davis county

  • More Luxury Homes are Selling in Davis County

    Davis County Sold Prices Were Way up During December, and the gap between list and sold prices is seriously narrowing.

    tags: davis county, december 2009

  • New RESPA Rules Regarding Good Faith Estimates

    RESPA is doing things to give more transparnacy to the real estate industry.

    tags: good faith estimate, hud, real estate

  • Utah outlook on housing is improving – Deseret News

    Home prices in Salt lake will likely decline this year, but the market bottom is past us, and prices will start going up in 2010 as there will be increased demand for Utah Real Estate

    tags: salt, lake, market, predictions, home, sales, trends

    • In Salt Lake County, we’ve probably touched bottom in 2009 and we’re going to see a slight improvement in 2010,” Jim Wood, director of the University of Utah’s Bureau of Economic and Business Research
    • In 2009, only 900 new single-family homes were built in Salt Lake County — the lowest level since the war years of the 1940s
    • Salt Lake County home sales this year will show some slight improvement over last year, he said
    • median housing prices in the Salt Lake metropolitan area peaked during the third quarter of 2007 at $246,600, dropping just over 11 percent over a two-year period to $218,900.
    • Wood predicted that home values along the Wasatch Front would continue to decline this year, falling another 3 percent to 5 percent.
    • This will bring the decline in median sales price of homes in Salt Lake County to 15 percent through 2010,” he said in the report. “By then, the price declines should be over, replaced by stable to slightly improving prices in 2011.

    • demand in the Utah housing market is on the upswing, as is the state’s overall population.

      “Between 2010 and 2011, we’re going to have to build 100,000 new housing units in Utah to meet the needs of pent-up demand and growth by the end of 2011,” Nelson said.

    • The bottom has passed and we are going to be inching up, and 2011 and 2012 are going to be extraordinary years for homebuilding.

  • Fewer sellers cut US home prices, for now-Trulia | Reuters

    Less price cuts are happening for real estate, this is a sign that real estate markets are improving.

    tags: price cut, home sales

  • Fraud with the Federal Housing Tax Credits – eRealEstate

    tags: no_tag

      • Last year, the only things that were required on Form 5405 to receive the home buyer tax credit were: Social Security Number, Address, and Contract Price….

        Now, with only those requirements, can anybody see any problems that might arise?

        Well, thousands did.

        • 580 people filed tax returns claiming the credit for children under 18. One of these kids was just 4 years old. Yeah, I bet he really bought a house, most 4 year olds I know can qualify for mortgage financing…
        • More than 19,000 people filed tax returns claiming the credit for homes that they DID NOT purchase.
        • And 74,000 people claimed the tax credit when they were not actually first time home buyers.

  • Tips to Save up to Buy A Home

    The more money you can save up to buy your home, the less your mortgage payment will be. Learning to save, is something many Americans have problems with, but now this is required for home ownership.

    tags: buying tips, saving money

  • Move Down Buyers Qualify for $6,500 Tax Credit Too

    Buyers who have owned their homes for more than five years that are buying a smaller home, also qualify for the federal government tax credits.

    tags: $6, 500, tax credit, move up, homeowners

    • Move up, move down, move sideways; it just doesn’t matter. Whichever direction you move, financially, you may still qualify for the new tax credit available to current homeowners. It is unfortunate that the credit has too often been characterized as a credit for “move-up” homeowners. The phrase carries the implication that the new home must cost more than the sale price of the former one.
    • the previous home must have been occupied as the buyer’s principal residence for at least five consecutive years out of the past eight years
    • You must have purchased (that is closed on) the replacement home sometime after 11/6/2009 and before 4/30/2010. With one exception: the new home will also qualify if you had entered into a binding contract no later than April 30, 2010 and you closed no later than June 30, 2010.
    • The tax credit is for 10% of the purchase price up to a maximum credit of $6,500 for joint filers and $3,250 for those filing separately.
    • full credit for singles whose income does not exceed $125,000 and for couples whose income is no more than $225,000.
    • The cost of the new home may not exceed $800,000.
    • The new home must be used as a principal residence for a three year period subsequent to closing, or else the credit must be repaid.

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Utah outlook on housing is improving – Deseret News

 January 12, 2010 • No Comments

  • Utah outlook on housing is improving – Deseret News

    Here is some information from a great article in the Deseret News about the housing market future of Northern Utah. According to Jim Wood the director of the University of Utah’s Economic and Business research. Home prices in Salt Lake will likely decline this year, but the market has bottomed. Home prices will start going up in 2010 as there will be increased demand for Utah Real Estate.

    tags: salt, lake, market, predictions, home, sales, trends

    • In Salt Lake County, we’ve probably touched bottom in 2009 and we’re going to see a slight improvement in 2010," Jim Wood, director of the University of Utah’s Bureau of Economic and Business Research

    • In 2009, only 900 new single-family homes were built in Salt Lake County — the lowest level since the war years of the 1940s

    • Salt Lake County home sales this year will show some slight improvement over last year, he said

    • median housing prices in the Salt Lake metropolitan area peaked during the third quarter of 2007 at $246,600, dropping just over 11 percent over a two-year period to $218,900.

    • Wood predicted that home values along the Wasatch Front would continue to decline this year, falling another 3 percent to 5 percent.

    • This will bring the decline in median sales price of homes in Salt Lake County to 15 percent through 2010," he said in the report. "By then, the price declines should be over, replaced by stable to slightly improving prices in 2011.

    • Demand in the Utah housing market is on the upswing, as is the state’s overall population.

      "Between 2010 and 2011, we’re going to have to build 100,000 new housing units in Utah to meet the needs of pent-up demand and growth by the end of 2011," Nelson said.

    • The bottom has passed and we are going to be inching up, and 2011 and 2012 are going to be extraordinary years for homebuilding.

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Fraud with the Federal Housing Tax Credits – eRealEstate

 January 12, 2010 • No Comments

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Move Down Buyers Qualify for $6,500 Tax Credit Too

 January 11, 2010 • No Comments

  • Move Down Buyers Qualify for $6,500 Tax Credit Too

    Buyers who have owned their homes for more than five years that are buying a smaller home, also qualify for the federal government tax credits.

    Move up, move down, move sideways; it just doesn’t matter. Whichever direction you move, financially, you may still qualify for the new tax credit available to current homeowners. It is unfortunate that the credit has too often been characterized as a credit for "move-up" homeowners. The phrase carries the implication that the new home must cost more than the sale price of the former one.

Here are some of the details regarding the $6,500 tax credit.

    • The previous home must have been occupied as the buyer’s principal residence for at least five consecutive years out of the past eight years.

    • You must have purchased (that is closed on) the replacement home sometime after 11/6/2009 and before 4/30/2010. With one exception: the new home will also qualify if you had entered into a binding contract no later than April 30, 2010 and you closed no later than June 30, 2010.

    • The tax credit is for 10% of the purchase price up to a maximum credit of $6,500 for joint filers and $3,250 for those filing separately.

    • The full credit for singles whose income does not exceed $125,000 and for couples whose income is no more than $225,000. Partial tax credits may be available for people making more money.

    • The cost of the new home may not exceed $800,000.

    • The new home must be used as a principal residence for a three year period subsequent to closing, or else the credit must be repaid.

The $6,500 tax credit has placed an interesting twist on the real estate market. It has motivated many people to buy, but in some ways is just adding to the amount of real estate inventory on the market which does nothing to improve the real estate market unless people actually do "move up" and purchase the huge glut of vacant high end homes for sale.

Moving Down, does nothing to improve the housing market, unless the person turns their prior residence into a rental. Overall this tax credit is good for real estate agents, lenders, and title companies as it will result in more real estate transactions closed, for the general public however, I question the effectiveness of this tax credit. Regardless of my opinion, it is a great time for people to buy if they’ve lived in their homes for at least five years.

Noteworthy Real Estate News (weekly)

 January 9, 2010 • No Comments

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