Price Reduction! Must Sell!

First Time Home Buyer Tax Credit

I have been meaning to do a post about the first time home buyer tax credit. You may have seen some of the advertisements that we have been running recently about our first time home buyer fairs. We want everyone to know about the $8,000 tax credit that is available to those who are first time home buyers. A first time home buyer is considered someone who has not owned a home in the past 3 years. To be eligible for the $8,000 and yes, $8,000 that does NOT have to be paid back, one has to meet certain requirements.

1. Not owned a home in 3 years.
2. To get the maximum credit of $8000 the home must have a purchase price of at least $80,000. Partial credit given on homes with a purchase price of less.
3. Meet certain income requirements
4. Purchase between January 1, 2009 and December 1, 2009.

That is it! Very simple. You fill out an extra form at tax time and you get the money then. You can also fill out an amended return and get the money now or wait until you file your 2009 return next year.

I repeat. It does NOT have to be paid back!

Call me today to start your home search! and for more information!

New Listing: 510 Boulder Street

Short Sale Information

So many people today unfortunately are upside down on their mortgages. There are several factors that have contributed to this. Some simply bought when the market was really booming in 2004-2006 and others took out equity during that time frame. Property values increased very quickly in 2004-2006 and now since them have declined and declined further. It has made for some people to be $50K or more upside down. This can make it difficult for one to sell if they have to. Unfortunately, corporate relocation, military orders or divorce situations cause moves that were not intended when the home was purchased. Many thought they would be in their homes for a long time when purchasing and now find themselves 3-4 years later needing to move. Others are selling because they simply cannot afford their payments any longer because of a change in job or loss of a job. Foreclosure rates have climbed and many are having to look at a short sale in order to sell their home. This is considered a pre-foreclosure. This is what happens in these above situations. The owner has to go to their mortgage holder and talk with them about a short sale. The lender has to agree to accept less than what the payoff is. The lender is a part of the deal. An offer would go to the owner who would sign off on it and then it goes to the lender for acceptance. This process can take months especially if there are more than one mortgages on the property. The owner will have to apply for the short sale and the lender will give them the specifics of what they need. Usually the lender requires a hard ship letter which paints the picture to the lender of why this is a short sale. They will also ask for financial information including W-2, paystubs, tax returns and a financial worksheet. It is also important to sign a release for the mortgage company to be able to speak with your realtor. Short sales can be a solution for those who are struggling to make payments, but another solution can be a loan modification. If you are simply struggling to make payments and don't have to move, I encourage you to call your current lender to see if your loan can be modified to better suit your current situation. If you have to move, then a short sale may be the only way you can go. As a buyer of a short sale, one would expect to get perhaps a better price for a property than a regular sale, but they should expect to not close for at minimum 60 days and in some cases 120 days or more. Be prepared to wait!