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Treasury

Foreclosure Prevention Has Aided 116,000

February 25, 2010 by Elliott Robinson · Leave a Comment 

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)

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Elliott Robinson, JD – Associate Broker
Keller Williams Realty Metro Atlanta
315 West Ponce de Leon Ave., Ste. 100
Decatur, GA 30030
(404) 431-2117
Web: www.elliottyouragent.com
Blog – www.elliottonrealestate.com
Twitter – http://twitter.com/elliottrob

Filed Under: For Buyers, For Sellers, Foreclosures
Tagged: , , , , , , , , ,
Treasury

Important Homebuyer Tax Credit Q&As

February 22, 2010 by Elliott Robinson · Leave a Comment 

Important Homebuyer Tax Credit Q&A as provided by http://homebuyertaxcredit.com

First-Time Home Buyer Tax Credit Eligibility
Q. What are the basic eligibility requirements for a first-time home buyer?
To qualify for the first-time home buyer tax credit, you cannot have owned a home as your principal residence in the three years prior to closing.

Q. How much is the first-time home buyer tax credit?
The first-time home buyer tax credit is 10% of your purchase price up to $8,000.

Q. I bought a home once before, but sold it years ago. Do I still qualify as a first-time home buyer?
For the first-time home buyer tax credit, you qualify as a first-time home buyer so long as you have not owned a primary residence in the past three years prior to closing on your new property. So if you owned a home in the past, but sold it more than three years ago, you would qualify as a first-time home buyer.

Q. Can I qualify as a first-time home buyer if I rent my primary residence, but own an investment property or vacation home?
Yes, you could still qualify as a first-time home buyer. Even if you own property, you are still eligible if you have not used that property as your primary residence within the prior three years.

“Step-Up” or Long-Time Homeowner Tax Credit Eligibility
Q. Can I get a credit if I currently own a home?
To qualify as a long-time homeowner, you must have owned a home that you lived in as your personal residence for five consecutive years out of the previous eight years prior to closing.

Q. Can I get the tax credit if I lived in one home for four years, sold it, and then immediately bought and lived in another home for the last two years?
You would not qualify. In order to be eligible for the long-time homeowner tax credit, you must live in the same home for five consecutive years out of the last eight.

Q. Can I get the long-time homeowner credit if I otherwise qualify, even if I don’t sell my previous home?
Yes, the law does not require that you sell the home that you lived in for five consecutive years out of the last eight years. You can keep title to it. However, you have to make the qualifying home your principal residence, so you can’t live in the prior home.

Q. Can I get the credit if I owned one home for ten years, and my current home for three?
No, to get the long-time homeowner home buyer tax credit, you must have lived in your current residence for at least five consecutive years out of the last eight.

Q. Can I sell my current home, and buy a less expensive home, and qualify for the “step-up” tax credit?
Yes. The term “step up” is misleading, because nothing in the law requires that you have to “step up” in value. You do not have to buy a more expensive home. We try to use the term “long-time homeowner tax credit” to make it clear how the credit works.

Income Qualifications
Q. How much can I make and still qualify for the tax credit?
The tax credit is only available at certain income levels: up to $125,000 for single filers and $225,000 for joint filers. The income limits are the same for both first-time home buyers and long-time homeowners. If you make within $20,000 of those limits, you can still qualify for a partial tax credit. But if you make over $145,000 for single filers or $245,000 for joint filers, you are not eligible.

Q. How do I figure out my “modified adjusted gross income” or “MAGI”?
You really should talk to your accountant about it, but generally speaking, your MAGI is what we all colloquially think of as our “income” – wages, salaries, interest income, dividends, and capital gains. Your MAGI also includes certain foreign income, but very few people have that. Note that your MAGI will be reduced by certain deductions such as alimony, but not the ‘below the line” itemized deductions that are on Schedule A of your tax return. Since your MAGI is very close to the “adjusted gross income,” or “AGI,” you can check your last tax return to see what you make: the AGI is the last number on Form 1040or 1040A.

Q. How is the partial credit figured?
The partial tax credit is available for taxpayers whose income is within $20,000 of the income limits: so up to $145,000 for single filers and $245,000 for joint filers. If your income is within that “phase out range,” you get a partial credit based on how much of your income is within that range. For example, if your MAGI is $130,000 as a single filer, that means you’re $5,000 into that $20,000 range. That’s 25% of the range, leaving 75% still in the range. So you would get 75% of the tax credit you’re entitled to: $6,000 if you’re a first-time home buyer (75% of $8,000) or $4,875 if you’re a long-time homeowner (75% of $6,500).

Deadline Issues
Q. When do I have to be in contract?
In order to claim either first-time home buyer tax credit, or the long-time homeowner tax credit, you have to be in contract by April 30, 2010. This is a hard deadline, with no extensions.

Q. When do I have to be in closed?
In order to claim either first-time home buyer tax credit, or the long-time homeowner tax credit, you have to be closed by June 30, 2010. This is a hard deadline, with no extensions.

Q. What if my closing is delayed because of problems with appraisals, attorney delays, etc.?
It doesn’t matter. The IRS has been very exacting with the deadlines. If you don’t close by midnight June 30, 2010, you will not be able to claim the tax credit.

Q. What if I was already in contract at the time the law was passed in November?
It doesn’t matter when you went into contract, so long as you are in contract by April 30, 2010. So long as you otherwise qualify, and close by June 30, 2010, you will get the tax credit. Obviously, a number of people who got into contract without realizing they were going to be eligible for the tax credit are going to get a windfall.

Q. What if I was not eligible for a tax credit on the law prior to November 2009, and closed before the new law? Can I get a tax credit?
No, the law only applies to closings after November 6, 2009, and before June 30, 2010. If you closed on November 6, 2009 or earlier, and did not qualify for the tax credit at the time of your closing, you cannot get the new tax credit.

Buying with Someone Else
Q. If I am buying with someone else, and we both qualify, do we get two tax credits?
No, the tax credit is allocated according to the purchase, not the number of purchasers. So if two people who both qualify purchase a house together, they would split the applicable tax credit.

Q. What if I qualify for the credit, but my spouse does not?
In order to claim either the first-time home buyer tax credit, or the step-up home buyer tax credit, both spouses must be eligible. So if you are eligible, but your spouse is not eligible for whatever reason, neither of you can claim the tax credit.

Q. What if my income is within the limitations, but my spouse’s income is above the limitations?
In that case, unfortunately, neither of you qualify for the tax credit. Both of you must qualify.

Q. What if I previously owned a home in the past three years, but my spouse never owned a home?
In that case, unfortunately, neither of you qualify for either tax credit. You are ineligible for the first-time home buyer tax credit because you owned a home in the past three years, and she is ineligible for the long-time homeowner tax credit because she never owned a home before.

Q. What if my wife and I just got married after living in separate homes, and both qualify for the long-time homeowner tax credit for our prior homes?
Unfortunately, you don’t qualify. In order for a married couple to qualify for the “step-up” home buyer tax credit, both spouses must qualify by owning the SAME principal residence. You each owned separate principal residences, so even though you both might qualify separately, you don’t qualify togethe

For answers to more of your tax credit questions, please visit this excellent website: http://homebuyertaxcredit.com/faq.aspx

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Elliott Robinson, JD – Associate Broker
Keller Williams Realty Metro Atlanta
315 West Ponce de Leon Ave., Ste. 100
Decatur, GA 30030
(404) 431-2117
Web: www.elliottyouragent.com
Blog – www.elliottonrealestate.com
Twitter – http://twitter.com/elliottrob

Filed Under: Buyer Assistance
Tagged: , , , , , , , , ,
Treasury

Homebuyer Tax Credit Deadline Looming

February 22, 2010 by Elliott Robinson · Leave a Comment 

The Homebuyer Tax Credit is set to expire this summer.  The tax credit is available to both First-Time Homebuyers and Step-Up Homebuyers. The provision to make the tax credit eligible for Step-Up Homebuyers was added when the law was extended.

There are some very important deadline dates that you should be aware of if you intend to take advantage of the Tax Credit.  The first is April 30th, 2010.  If you are purchasing a property and you intend to receive the tax credit, you must have the property under contract by April 30th, 2010.  The second date is June 30th, 2010.  You have to close on the above referenced property by June 30th, 2010 in order to receive the tax credit.
There is ZERO indication that the credit will be extended beyond those dates, so please do not tempt fate and prolong your home buying/selling process under the premise that the tax credit will be extended.  The strongest Congressonal and Administration proponents of this Law have clearly indicated that this is a one-time opportunity and there is no intention to extend it beyond this summer.
The website http://homebuyertaxcredit.com is an excellent resource for information regarding the Tax Credit.  Below you will find some questions and answers from their website which help to clarify who is eligible, how they are eligible and the process.  If you have any questions, please feel free to give me a call at 404-431-2117.
First-Time Home Buyer Tax Credit Eligibility
Q. What are the basic eligibility requirements for a first-time home buyer?
To qualify for the first-time home buyer tax credit, you cannot have owned a home as your principal residence in the three years prior to closing.
Q. How much is the first-time home buyer tax credit?
The first-time home buyer tax credit is 10% of your purchase price up to $8,000.
Q. I bought a home once before, but sold it years ago. Do I still qualify as a first-time home buyer?
For the first-time home buyer tax credit, you qualify as a first-time home buyer so long as you have not owned a primary residence in the past three years prior to closing on your new property. So if you owned a home in the past, but sold it more than three years ago, you would qualify as a first-time home buyer.
Q. Can I qualify as a first-time home buyer if I rent my primary residence, but own an investment property or vacation home?
Yes, you could still qualify as a first-time home buyer. Even if you own property, you are still eligible if you have not used that property as your primary residence within the prior three years.
“Step-Up” or Long-Time Homeowner Tax Credit Eligibility
Q. Can I get a credit if I currently own a home?
To qualify as a long-time homeowner, you must have owned a home that you lived in as your personal residence for five consecutive years out of the previous eight years prior to closing.
Q. Can I get the tax credit if I lived in one home for four years, sold it, and then immediately bought and lived in another home for the last two years?
You would not qualify. In order to be eligible for the long-time homeowner tax credit, you must live in the same home for five consecutive years out of the last eight.
Q. Can I get the long-time homeowner credit if I otherwise qualify, even if I don’t sell my previous home?
Yes, the law does not require that you sell the home that you lived in for five consecutive years out of the last eight years. You can keep title to it. However, you have to make the qualifying home your principal residence, so you can’t live in the prior home.
Q. Can I get the credit if I owned one home for ten years, and my current home for three?
No, to get the long-time homeowner home buyer tax credit, you must have lived in your current residence for at least five consecutive years out of the last eight.
Q. Can I sell my current home, and buy a less expensive home, and qualify for the “step-up” tax credit?
Yes. The term “step up” is misleading, because nothing in the law requires that you have to “step up” in value. You do not have to buy a more expensive home. We try to use the term “long-time homeowner tax credit” to make it clear how the credit works.
Income Qualifications
Q. How much can I make and still qualify for the tax credit?
The tax credit is only available at certain income levels: up to $125,000 for single filers and $225,000 for joint filers. The income limits are the same for both first-time home buyers and long-time homeowners. If you make within $20,000 of those limits, you can still qualify for a partial tax credit. But if you make over $145,000 for single filers or $245,000 for joint filers, you are not eligible.
Q. How do I figure out my “modified adjusted gross income” or “MAGI”?
You really should talk to your accountant about it, but generally speaking, your MAGI is what we all colloquially think of as our “income” – wages, salaries, interest income, dividends, and capital gains. Your MAGI also includes certain foreign income, but very few people have that. Note that your MAGI will be reduced by certain deductions such as alimony, but not the ‘below the line” itemized deductions that are on Schedule A of your tax return. Since your MAGI is very close to the “adjusted gross income,” or “AGI,” you can check your last tax return to see what you make: the AGI is the last number on Form 1040or 1040A.
Q. How is the partial credit figured?
The partial tax credit is available for taxpayers whose income is within $20,000 of the income limits: so up to $145,000 for single filers and $245,000 for joint filers. If your income is within that “phase out range,” you get a partial credit based on how much of your income is within that range. For example, if your MAGI is $130,000 as a single filer, that means you’re $5,000 into that $20,000 range. That’s 25% of the range, leaving 75% still in the range. So you would get 75% of the tax credit you’re entitled to: $6,000 if you’re a first-time home buyer (75% of $8,000) or $4,875 if you’re a long-time homeowner (75% of $6,500).
Deadline Issues
Q. When do I have to be in contract?
In order to claim either first-time home buyer tax credit, or the long-time homeowner tax credit, you have to be in contract by April 30, 2010. This is a hard deadline, with no extensions.
Q. When do I have to be in closed?
In order to claim either first-time home buyer tax credit, or the long-time homeowner tax credit, you have to be closed by June 30, 2010. This is a hard deadline, with no extensions.
Q. What if my closing is delayed because of problems with appraisals, attorney delays, etc.?
It doesn’t matter. The IRS has been very exacting with the deadlines. If you don’t close by midnight June 30, 2010, you will not be able to claim the tax credit.
Q. What if I was already in contract at the time the law was passed in November?
It doesn’t matter when you went into contract, so long as you are in contract by April 30, 2010. So long as you otherwise qualify, and close by June 30, 2010, you will get the tax credit. Obviously, a number of people who got into contract without realizing they were going to be eligible for the tax credit are going to get a windfall.
Q. What if I was not eligible for a tax credit on the law prior to November 2009, and closed before the new law? Can I get a tax credit?
No, the law only applies to closings after November 6, 2009, and before June 30, 2010. If you closed on November 6, 2009 or earlier, and did not qualify for the tax credit at the time of your closing, you cannot get the new tax credit.
Buying with Someone Else
Q. If I am buying with someone else, and we both qualify, do we get two tax credits?
No, the tax credit is allocated according to the purchase, not the number of purchasers. So if two people who both qualify purchase a house together, they would split the applicable tax credit.
Q. What if I qualify for the credit, but my spouse does not?
In order to claim either the first-time home buyer tax credit, or the step-up home buyer tax credit, both spouses must be eligible. So if you are eligible, but your spouse is not eligible for whatever reason, neither of you can claim the tax credit.
Q. What if my income is within the limitations, but my spouse’s income is above the limitations?
In that case, unfortunately, neither of you qualify for the tax credit. Both of you must qualify.
Q. What if I previously owned a home in the past three years, but my spouse never owned a home?
In that case, unfortunately, neither of you qualify for either tax credit. You are ineligible for the first-time home buyer tax credit because you owned a home in the past three years, and she is ineligible for the long-time homeowner tax credit because she never owned a home before.
Q. What if my wife and I just got married after living in separate homes, and both qualify for the long-time homeowner tax credit for our prior homes.
Unfortunately, you don’t qualify. In order for a married couple to qualify for the “step-up” home buyer tax credit, both spouses must qualify by owning the SAME principal residence. You each owned separate principal residences, so even though you both might qualify separately, you don’t qualify together.
———————————————————
Elliott Robinson, JD – Associate Broker
Keller Williams Realty Metro Atlanta
315 West Ponce de Leon Ave., Ste. 100
Decatur, GA 30030
(404) 431-2117
Web: www.elliottyouragent.com
Blog – www.elliottonrealestate.com
Twitter – http://twitter.com/elliottrob

Filed Under: Buyer Assistance, For Buyers, For Sellers
Tagged: , , , , , , , , , , , , , , , , , , ,
Treasury

Commercial Loans Jeopardize Banks

February 21, 2010 by Elliott Robinson · Leave a Comment 

The Congressional Oversight Panel reported Wednesday that commercial real estate loan failures could jeopardize bank stability.

The panel said most of the bad loans were made at the height of the real estate bubble and are concentrated at smaller banks, which make 40 percent of all small business loans.

“We haven’t seen the worst of the problems yet in terms of loan defaults. This is a large issue for a major portion of the banks out there,” said Matthew Anderson, a partner at research firm Foresight Analytics, which provided data for the report.

Source: MarketWatch, Josh Lipton (02/17/2010)

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Elliott Robinson, JD – Associate Broker
Keller Williams Realty Metro Atlanta
315 West Ponce de Leon Ave., Ste. 100
Decatur, GA 30030
(404) 431-2117
Web: www.elliottyouragent.com
Blog – www.elliottonrealestate.com
Twitter – http://twitter.com/elliottrob

Filed Under: Commercial, For Buyers, Foreclosures
Tagged: , , , , , , , , , ,
Treasury

House Approves Home Tax Credit

November 5, 2009 by Elliott Robinson · Leave a Comment 

WASHINGTON (MarketWatch) — The House of Representatives on Thursday approved an extension of jobless benefits and a tax credit for home buyers, sending the measure to President Barack Obama for signature.

The bill, approved unanimously by the Senate late Wednesday, extends unemployment benefits for up to 20 weeks.

It also keeps a first-time home buyer tax credit alive until next spring, and expands it to include some people who already own a house.

The vote was 403 to 12.

The bill extends jobless benefits in all states for 14 weeks, and for up to 20 weeks in states where the unemployment rate is above 8.5%.

Obama may sign the bill as early as Friday.

The U.S. unemployment rate is at a 26-year high of 9.8%, and the White House is warning that job losses will continue even as the economy recovers. The latest U.S. jobs figures are due Friday morning, and economists surveyed by MarketWatch estimate that the country lost 150,000 jobs in October. See Economic Calendar.

An $8,000 credit for first-time home buyers now set to expire this month is extended through April 30 under the bill.

The bill also allows people who have lived in a home for at least five years to claim a $6,500 credit if they purchase a new home.

House lawmakers voted after the Labor Department reported Thursday morning that the number of people filing initial claims for state jobless benefits dropped by 20,000 to a seasonally adjusted 512,000 in the latest week. It was the first decline in two weeks and the fewest initial claims since early January. See full story.

But the jobless claims figures don’t point toward quick job-creation, analysts say.

“If the pace of decline from the peak is maintained, we are still some five months away from claims reaching the level that will signal net job growth,” wrote RDQ Economics economists.

The bill also includes a tax provision allowing small businesses to write off losses they incurred during the recessio

By Robert Schroeder, MarketWatch

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Elliott Robinson, JD – Associate Broker
Keller Williams Realty Metro Atlanta
315 West Ponce de Leon Ave., Ste. 100
Decatur, GA 30030
(404) 431-2117
Web: www.elliottyouragent.com
Blog – www.elliottonrealestate.com
Twitter – http://twitter.com/elliottrob

Filed Under: Buyer Assistance, For Buyers, For Sellers
Tagged: , , , , , , , , , , , ,
Treasury

Banks Plan to Keep Lending Tight

August 21, 2009 by Elliott Robinson · Leave a Comment 

Banks tightened standards for all types of loans in the second quarter, the Federal Reserve reported Monday.

About 35 percent of senior loan officials said they tightened standards somewhat and none of the 51 responding banks said they loosened standards for prime mortgages. The rest said their standards for mortgages remained the same or were substantially stronger.

Banks also told the Fed that they expected to maintain strict lending standards until at least the second half of 2010.

“Most banks have woken up to the fact that there is a lot more risk in their loan books than they ever thought possible,” says Joel Conn, president of Lakeshore Capital LLC in Birmingham, Ala. That has caused many banks to reconsider their requirements for future lending, Conn says.

Source: Bloomberg, Craig Torres

Filed Under: Commercial, For Buyers, For Sellers
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Treasury

Mortgage Applications Rise on Falling Rates

August 21, 2009 by Elliott Robinson · Leave a Comment 

Mortgage applications bounced back last week with the Mortgage Bankers Association market index rising 5.6 percent on a seasonally adjusted basis compared to the previous week.

On an unadjusted basis, the index increased 4.8 percent and was up 25 percent compared with the same week a year ago.

The recent seesaw of mortgage rates has affected refinances more than purchases. The refinance index rose 6.9 percent last week after falling 7.2 percent the previous week, reflecting declining mortgage rates. The purchase index, which has trended upward gradually, rose 3.9 percent.

Here are the average performances of mortgage rates this week:

* 30-year fixed-rate mortgages decreased to 5.15 percent from 5.38 percent.
* 15-year fixed-rate mortgages decreased to 4.52 percent from 4.71 percent.
* 1-year ARMs decreased to 6.66 percent from 6.71 percent.

Source: Mortgage Bankers Association

——————–
Elliott Robinson, JD – Associate Broker
Adams Realtors
458 Cherokee Ave. SE
Atlanta, GA 30312
(o) 404-688-1222 ext. 26
Blog: elliottonrealestate.com
Twitter: elliottrob@twitter.com

Filed Under: For Buyers, For Sellers
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Treasury

Unemployed Might Get Anti-Foreclosure Help

July 21, 2009 by Elliott Robinson · Leave a Comment 

The Obama administration is reportedly considering a program that would give loan forbearance to the unemployed. The aim of the program is to provide help without distorting the housing market.

The program would augment the federal loan modification program, giving unemployed workers more time and financial leeway to qualify for a new loan.

So far the loan modification program hasn’t been very successful for a variety of reasons, including the declining equity many troubled borrowers have in their homes and rising unemployment figures that make lenders unwilling to participate.

Last week, the U.S. Treasury Department asked the 25 largest mortgage service companies to appoint a liaison officer to work with the government to slow defaults. On July 28, Treasury will host a meeting with these servicers to examine whether qualified applicants are being ignored.

Source: Reuters News, Patrick Rucker and David Lawder (07/13/2009)

——————–
Elliott Robinson, JD – Associate Broker
Adams Realtors
458 Cherokee Ave. SE
Atlanta, GA 30312
(o) 404-688-1222 ext. 26
Blog: elliottonrealestate.com
Twitter: elliottrob@twitter.com

Filed Under: For Buyers, For Sellers
Tagged: , , , , , , , , , ,
Treasury

Treasury Makes Refinancing More Attractive

July 10, 2009 by Elliott Robinson · Leave a Comment 

The Treasury Department on Wednesday expanded its foreclosure prevention plan, lifting the current 105 percent loan-to-value cap to refinance up to 125 percent of a home’s value.

Applications to refinance mortgages have fallen as rates have increased in the last couple of weeks, but this move may bring more borrowers to the table.

At the same time, Fannie Mae and Freddie Mac have agreed to reduce the processing fee for borrowers who select a 25-year mortgage.

Fannie said in a statement, “The reduction is intended to lure borrowers to select shorter terms and build positive equity in their homes sooner than with a typical 30-year mortgage.”

Source: Reuters News, Patrick Rucker (07/01/2009)

——————–
Elliott Robinson, JD – Associate Broker
Adams Realtors
458 Cherokee Ave. SE
Atlanta, GA 30312
(o) 404-688-1222

Filed Under: For Buyers, For Sellers, Foreclosures
Tagged: , , , , ,
Treasury

Fed to Keep Short-Term Rates Low

June 26, 2009 by Elliott Robinson · Leave a Comment 

The Federal Reserve announced Wednesday that it expects to keep short-term interest rates “exceptionally low” for the next few months. It also underscored its commitment to make $1.25 trillion in total purchases of mortgage-backed securities by the end of year.

Both actions are likely to keep mortgage rates low through the end of 2009.

The Fed failed to raise a cap of $300 billion in purchases of Treasury securities, which could lead indirectly to higher mortgage rates because mortgage rates tend to rise in conjunction with Treasurys.

In response to the possibility of rising mortgage rates, the Mortgage Bankers Association this week cut its forecast for total 2009 mortgage originations by 27 percent.

Source: Inman News (06/25/2009)

——————–
Elliott Robinson, JD – Associate Broker
Adams Realtors
458 Cherokee Ave. SE
Atlanta, GA 30312
(o) 404-688-1222

Filed Under: Buyer Assistance, For Buyers, For Sellers
Tagged: , , , , , , , , , , , , ,

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