The Senate has amended a bill to give homebuyers who were under contract on a home purchase by April 30 an additional three months to close the deal and claim the federal homebuyer tax credit.
Lead by Senate Majority Leader Harry Reid, the amendment to HR 4213, the "American Jobs and Closing Tax Loopholes Act of 2010" would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000.
Originally, the tax credits gave home buyers until April 30 to get a signed sales contract and until June 30 to complete the sale. This proposed change, approved by a 60-37 vote, would allow people who in contract to finish at the later date. About 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline.
The House passed an earlier version of the bill in December, and the Senate approved its own version in March. The Senate is currently working on resolving differences between the two bills.
The National Association of REALTORS® supports the amendment, saying REALTORS® have reported that as many as one-third of qualified applicants have been told by lenders that their loans will not close before June 30 because of the sheer volume of loan applications in the pipeline.
Saturday, June 19, 2010
Floor Insurance and Rural Housing
From NAR's REALTOR® Action Center:
Once again, Congress left town without reauthorizing the National Flood Insurance Program (NFIP) and the Section 502 Rural Housing programs. The NFIP is now expired. The Section 502 Rural Housing program has exhausted its funding and lenders have stopped accepting applications.
Until Congress extends NFIP, no new or renewal flood policies can be issued. Without the flood insurance coverage provided by NFIP, thousands of residential and commercial transactions are on hold.
Congress has also abandoned the Section 502 Rural Housing Program. The housing program provides zero-downpayment mortgages to eligible families in rural area of every state. Many of these families signed contracts before April 30th and plan to utilize the homebuyer tax credit. If this program is not restored soon, they will lose their chance.
Regardless of your location, rebuilding our markets in every corner of America is in every REALTOR®'s interest. The REALTOR Party must speak with one voice to urge Congress to renew both NFIP and the Rural Housing 502 program today. Please contact Congress today.
Once again, Congress left town without reauthorizing the National Flood Insurance Program (NFIP) and the Section 502 Rural Housing programs. The NFIP is now expired. The Section 502 Rural Housing program has exhausted its funding and lenders have stopped accepting applications.
Until Congress extends NFIP, no new or renewal flood policies can be issued. Without the flood insurance coverage provided by NFIP, thousands of residential and commercial transactions are on hold.
Congress has also abandoned the Section 502 Rural Housing Program. The housing program provides zero-downpayment mortgages to eligible families in rural area of every state. Many of these families signed contracts before April 30th and plan to utilize the homebuyer tax credit. If this program is not restored soon, they will lose their chance.
Regardless of your location, rebuilding our markets in every corner of America is in every REALTOR®'s interest. The REALTOR Party must speak with one voice to urge Congress to renew both NFIP and the Rural Housing 502 program today. Please contact Congress today.
Monday, April 5, 2010
Home prices on the rise in central Ohio
Central Ohio saw a healthy 12 percent increase in the average price of a home sold in February 2010. The 1,106 homes transferred last month sold for an average of $149,498 which was 11.9 percent higher than the average sale price in February of 2009 and 2.4 percent higher than homes sold in January. The average sale price for the first two months of 2010 is $147,682, a 9.1 percent increase over the same period one year ago according to the Columbus Board of REALTORS®.
The number of homes for sale increased as well last month. There were 3,429 homes added to the market in February, which was slightly higher than the previous month and 17.8 percent higher than the number of homes listed for sale in February of 2009.
“The rise in inventory doesn’t come as a surprise,” said Sue Lusk-Gleich, President of the Columbus Board of REALTORS®. “The home buyer tax credits set to expire in April of this year are a substantial incentive for home owners who have been considered selling their home. Further, the credit for existing home owners to sell has attracted more homeowners interested in moving up into the market. And those owners are buying more mid range properties.”
First-time home buyers can recoup ten percent of the purchase price of the residence up to $8,000. Current homeowners who have been in the same principal residence for five consecutive years during the previous eight years can get up to $6,500 back.
These credits helped February home sales climb 7.9 percent over January sales. Year to date home sales exceed 2009 by 2.4 percent. The time homes spend on the market is also down 14 percent as buyers scramble to take advantage of the tax credits before the deadline of April 30, 2010.
“The housing market is extremely busy right now,” comments Lusk-Gleich. “We’ve seen over 6,800 homes listed in the last two months alone. There is an incredible selection of exceptional homes in all price ranges right now. Buyers are pretty excited about the choices they have.”
The number of homes for sale increased as well last month. There were 3,429 homes added to the market in February, which was slightly higher than the previous month and 17.8 percent higher than the number of homes listed for sale in February of 2009.
“The rise in inventory doesn’t come as a surprise,” said Sue Lusk-Gleich, President of the Columbus Board of REALTORS®. “The home buyer tax credits set to expire in April of this year are a substantial incentive for home owners who have been considered selling their home. Further, the credit for existing home owners to sell has attracted more homeowners interested in moving up into the market. And those owners are buying more mid range properties.”
First-time home buyers can recoup ten percent of the purchase price of the residence up to $8,000. Current homeowners who have been in the same principal residence for five consecutive years during the previous eight years can get up to $6,500 back.
These credits helped February home sales climb 7.9 percent over January sales. Year to date home sales exceed 2009 by 2.4 percent. The time homes spend on the market is also down 14 percent as buyers scramble to take advantage of the tax credits before the deadline of April 30, 2010.
“The housing market is extremely busy right now,” comments Lusk-Gleich. “We’ve seen over 6,800 homes listed in the last two months alone. There is an incredible selection of exceptional homes in all price ranges right now. Buyers are pretty excited about the choices they have.”
Tax Credit Ends Soon
Homebuyer tax credits expire April 30
To qualify for the $8000 first time homebuyer tax credit and $6500 established homeowner tax credit, buyers must close on or before April 30, 2010 or be in a binding contract by that date with a home sale occurring by June 30.
This means that homebuyers must act fast to take advantage of these exceptional savings.
To qualify for the $8000 first time homebuyer tax credit and $6500 established homeowner tax credit, buyers must close on or before April 30, 2010 or be in a binding contract by that date with a home sale occurring by June 30.
This means that homebuyers must act fast to take advantage of these exceptional savings.
Friday, January 29, 2010
Treasury to Cut Foreclosure Relief Paperwork
The Treasury Department is announcing a plan Thursday to reduce the burdensome paperwork surrounding the foreclosure relief plan.
Two changes expected to make a big difference are:
Lenders will be required to collect two pay stubs at the start of the process.
Borrowers will be required to give the Internal Revenue Service permission to provide their most recent tax returns.
Participating mortgage service companies will be required to acknowledge that they have received a borrower’s application within 10 days and approve or deny the application within 30 days. Borrowers will still be required to make three months of trial payments before the modification is made permanent.
Treasury officials are also reportedly devising a plan to give unemployed borrowers a break on payments – probably for six months – but because the details aren’t decided, the announcement won’t be made this week.
Two changes expected to make a big difference are:
Lenders will be required to collect two pay stubs at the start of the process.
Borrowers will be required to give the Internal Revenue Service permission to provide their most recent tax returns.
Participating mortgage service companies will be required to acknowledge that they have received a borrower’s application within 10 days and approve or deny the application within 30 days. Borrowers will still be required to make three months of trial payments before the modification is made permanent.
Treasury officials are also reportedly devising a plan to give unemployed borrowers a break on payments – probably for six months – but because the details aren’t decided, the announcement won’t be made this week.
Thursday, January 28, 2010
Tax Credits for Buyers
DON’T MISS OUT!
The tax credit has offered incentives to first-time home buyers, but you may not be aware that the recent expansion of the tax credit has created an opportunity for existing homeowners. Current homeowners who will have lived in their home for 5 consecutive years out of the last 8 may now be eligible to receive a $6,500 tax credit.
There is not much time. The average selling period is three months so it is critical that repeat buyers put their current home on the market right away to secure a buyer and find a new home by the April 30th deadline.
To qualify for the tax credit, the repeat buyer must have signed a binding contract by April 30, 2010 and close on the home by June 30, 2010. Tax credit eligibility is subject to income limits: $125,000 for single buyers and $225,000 for couples. In addition, the sales price of the home being purchased can not exceed $800,000.
For more information or a free comparative market analysis of what your home may sell for in today’s market, contact me, Kristin Reese, at 614-273-6459.
The tax credit has offered incentives to first-time home buyers, but you may not be aware that the recent expansion of the tax credit has created an opportunity for existing homeowners. Current homeowners who will have lived in their home for 5 consecutive years out of the last 8 may now be eligible to receive a $6,500 tax credit.
There is not much time. The average selling period is three months so it is critical that repeat buyers put their current home on the market right away to secure a buyer and find a new home by the April 30th deadline.
To qualify for the tax credit, the repeat buyer must have signed a binding contract by April 30, 2010 and close on the home by June 30, 2010. Tax credit eligibility is subject to income limits: $125,000 for single buyers and $225,000 for couples. In addition, the sales price of the home being purchased can not exceed $800,000.
For more information or a free comparative market analysis of what your home may sell for in today’s market, contact me, Kristin Reese, at 614-273-6459.
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