Contrary to earlier statements the monetization of the 8 grand tax credit is much farther from implementation than was reported. As it stands now the Banks are not willing to provide bridge loans to people on the guarantee of an IRS tax credit alone. The reasoning behind this is that if the individual has to pay taxes then the 8 grand tax credit will be lower than the bridge loan given for a downpayment, thus leaving the bank on the hook for the difference.
For example, John Smith - first time homebuyer - uses his 8 grand tax credit for a down payment in the form of a bridge loan from Big Bank. When John Smith does his taxes later that year he discovers that he owes Uncle Same $5,200. The $5,200 is then taken from the $8,000 leaving Mr. Smith with only $2,800 left of his $8,000 tax credit. Now what is supposed to cover the bridge loan made to Mr. Smith for $8,000?
That is the question, isn’t it. So we will just have to wait and see what happens.
WASHINGTON – May 14, 2009 – The Obama administration is expected to expand its mortgage aid program on Thursday, announcing new measures that would help homeowners avoid a blemished credit record even if they don’t qualify for other assistance.
The new initiatives are expected to include ways to allow borrowers to avoid foreclosure by selling their properties or giving them back to lenders, according to people briefed on the plan who declined to be identified because it has yet to be announced.
One way would be to encourage a “short sale,” in which the home is sold for less than the amount owed on the mortgage but the lender considers the debt paid off. Another option is a deed-in-lieu of foreclosure – in which the borrower gives the property to the lender to satisfy a delinquent loan and to avoid foreclosure proceedings. Continue reading ‘Making Home Affordable Initiative’
Daily Real Estate News | May 14, 2009 |
Foreclosures Set Blistering Pace in April
Foreclosures continued to accelerate with April, exceeding even the record pace in March. More than 342,000 homes received foreclosure notices—that’s one of every 374 U.S. homes, marking the highest monthly rate since online foreclosure marketer RealtyTrac began counting four years ago.
Compared with April 2008, foreclosures were up 32 percent. “April was a shocker,” says Rick Sharga, a spokesman for RealtyTrac. “I would have bet on a dip because March foreclosures were so high.”
Sharga predicts that the numbers will continue to climb because legislative and industry moratoriums have ended and lenders and servicers are kicking into high gear.
Ten states accounted for 75 percent of all foreclosure activity in April. Those states with the highest rates of foreclosure are:
Nevada
Florida
California
Arizona
Idaho
Utah
Georgia
Illinois
Colorado
Ohio
Lori Parrish, you have my utmost praise and sincere respect. I wish there were more public servants as clever and as good as you! Public Officials! Take a lesson from Lori and enforce the existing tax laws of this country and you won’t have to write new ones, grow government and then raise taxes! Catch the cheats and reward the honest. Lori, you are a champion of the public!
Broward County appraiser cracks down on property tax abuse
FORT LAUDERDALE – May 11, 2009 – When South Florida’s real estate market collapsed, Bruce Cohen found work as a mortgage underwriter elsewhere and rented his Coral Springs home.
Little did he know he was jeopardizing his homestead tax breaks that reduced the taxable value of his home from $253,000 to $148,000. He’ll likely be paying $2,000 more in taxes this fall. Continue reading ‘Don’t Raise Taxes! Simply Enforce The Taxes That Already Exist!’
To many this recession may seem to be ending. Spending is not off as much as expected, construction starts are creeping back up, existing home sales are rising and the word from Washington is much more positive that it was just a few months ago. And yet it is human nature to mimic those we trust, and some put their ultimate faith and trust in the constantly changing sentiment pouring from Washington, saying one day things are all doom and gloom and the next that it’s all roses…
The truth is that most American’s don’t know what to believe anymore. I say that we have not suffered the greatest pain of this recession just yet and there will be more to come, especially with regards to commercial real estate and inflation. However, there are positive signs that some are endearing as harbingers of the end of our economic downturn.
What say you?
WASHINGTON – May 11, 2009 – The jobless rate is expected to tick up and continue climbing for months, a crisis in commercial real estate looms and the latest survey of bank lending suggests that it’s still pretty hard to get a new mortgage.
So it may sound surprising that some forecasters see an imminent end to the recession.
“The rate of decline in the second and third quarter, if indeed we have a decline, is going to be much more slight than what we’ve seen in the last couple of quarters,” said Peter Kretzmer, an economist with Bank of America in New York. He thinks the economy is beginning to turn. Continue reading ‘Recession looming, but seeming weaker to some’
San Remo Shores is located just a few sandy miles from the sugar sands and cobalt waters of Anna Maria Island and the Gulf of Mexico. This wonderful boating community of 230 homes is designed around a network of 6 deep-water canals, 5 running north-south and 1 running east-west, just off Palma Sola Bay in lovely Manatee County, Florida. All the homes in San Remo Shores are located on a saltwater canal and all have direct access to ICW and the Gulf of Mexico.
The home prices in San Remo Shores usually run from the mid 300’s to over a million and there are still opportunities to purchase a fixer-upper and create your own waterfront dream home. Moreover, the atmosphere in San Remo Shores is one of frivolity and mirth. In fact, most of the residents within the neighborhood have formed strong bonds with one another and it is not unusal for roving parties to break out during the weekends.
If you’d like more information on San Remo Shores, or any other Bradenton neighborhood, please contact us here.
HUD Secretary Announces Monetization of Tax Credit at NAR Real Estate Summit
WASHINGTON, May 12, 2009
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the
Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a downpayment.
Donovan’s remarks came in an address to several thousand Realtors® gathered this morning at The Real Estate Summit: Advancing the U.S. Economy, a special daylong session at the Realtors® Midyear Legislative Meetings & Trade Expo here.
Secretary Donovan said that important changes, which the National Association of Realtors® has been calling for, will help consumers purchase a home. “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment,” Donovan said. According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table. Continue reading ‘$8,000 First-Time Home Buyer Tax Credit Can Now Be Used As A Downpayment!’
Officials Go Fishing for Abandoned Pools
Filling abandoned swimming pools with mosquito-eating fish can clear the pools of the insects, which carry West Nile Virus and other diseases.
From Washington D.C. to California, mosquito infestations are growing because of the rising number of foreclosures. For instance, Phoenix officials believe the number of abandoned pools may reach 14,000 this year from 6,000 in 2007.
The pools can’t simply be drained to solve the problem. Without water weighing them down, pools can rise out of the ground. Also. mosquitoes will lay eggs in a puddle no larger than a couple of ounces.
Some cities are pulling old swim pool construction permits and checking the addresses against foreclosure records to get a better handle on the number of abandoned pools.
Source: The Associated Press, Janet McConnaughey (04/22/2009)
Presented By National Association of Realtors® (NAR) Chief Economist Lawrence Yun
Florida Association of Realtors® (FAR) 2009 Mid-Winter Business Meetings
Jan. 21-24, 2009
Highlights:
While the U.S. economy typically grows at a rate of 3 percent per year, during recessions, it grows at a rate below that. For example, while the 2nd quarter of 2008 was a good quarter—growth was near trend—the 3rd and 4th quarters of 2008 were progressively worse. National Association of Realtors® (NAR) economists predict a slowing decline beginning in the 1st quarter of 2009. Growth will resume in the second half of the year.
Consumer spending, typically the driving force behind U.S. growth, had slowed in early 2008 and dropped off substantially in the most recent quarter. Households are nervous about the future, faced with diminished wealth as a result of stock market and housing price declines, and some are facing job losses. Job losses cause additional damage as they tend to put those who are still employed on edge as they worry if their job might be the next to go. Continue reading ‘Housing Market Outlook Through Economic Recession’
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