Archive for the ‘Home Statistics’ Category
Interest Rates, Home Prices, Tax Incentives Move Buyers Off the Fence
People who are gainfully employed, with solid credit, and have a down payment can buy a lot more house these days, thanks to record low interest rates and home prices.
The average interest rate for a 30 year fixed-rate mortgage fell to 4.79 percent on Wednesday, after the Fed announced that it would begin buying up bonds and mortgage-backed securities.
The real estate market has recently seen a pick up in activity due to the $8000 tax credit for first-time buyers. And, the huge drop in lending rates yesterday, put a huge layer of icing on the cake for home seller’s. When people, who can qualify for a loan to buy a home, see the combination of tax incentives, low interest rates and dramatic price drops, the ones that are sitting on the fence, jump in and buy. Urgency to buy and refinance is also important when rates fall this low, as often the drop is temporary, as it was in January 2009.
The convergence of ecomonic stimulus does benefit some Americans more than others, however. People who do not have a down payment or good credit are less likely to benefit from the postive news, as are the 14 million Americans who are upside down (owe more on their home than it is worth) or face foreclosure. More than 13,000 struggling homeowner’s are calling the Homeownership Perservation Foundation each day. The hotline for help number is 1-888-995-HOPE.
Thank you for visiting InfoTube. net homes for sale website. Spring is here. Rates are Low. House Prices are Fantastic. Tax Incentives Abound. Buyers, Get off the Fence and Lock in the Deal of Your Lifetime. The fact is you have to live somewhere, and if renting was so great, ask yourself why your landlord owns??
Loan Modification Loophole Leaves Taxpayers on the Hook
While I am sure that all Americans appreciate the efforts being made in Washington to save us from ourselves… they have again overlooked a simple requirement for loan modifications which could cost taxpayers billions of dollars.
Much like the “overlooked” loopholes that allowed bonus payments, in excess of $160 million, to be paid to employee’s of Goldman Sach’s and AIG, the Obama loan modification program sets up the same windfall profit situation, without regulation, for the financial institutions who modify loans.
Under the guidelines for the loan modification program, lenders are being offered taxpayer incentives (money) to modify loans. These cash incentives provide a huge Boom to the mortgage lending business, but unfortunately for taxpayers, some crucial regulations are missing. Does this sound familiar?
One immediate loophole that needs to be closed is the issue of how the borrower will qualify for their new, reduced loan. The Obama plan gives lenders incentives (ie: taxpayer money) to bring a borrower’s monthly payments down to 31 percent of their gross income. However, the plan totally ignores the amount of other debt that the borrower can have.
Why is a borrower’s debt important? If a homeowner has excessive credit cards, car notes, college loans or other debt, with substantial monthly payments, they may not be able to afford even 31 percent of their income for a modified mortgage payment. Under the present program guidelines, lender’s would be still be paid to modify a loans for borrower’s who would not qualify for a loan, if their debt was considered.
In order for the Obama housing plan to work, changes must be made. If not, taxpayers should expect another fiasco, like the ones we a discovered after AIG, Goldman Sachs and the automakers used their taxpayer bailout money for bonuses, trips, jets and office remodeling.
To date, over 50 percent of all modified loans have fallen back into default and the foreclosed homes are showing up on the market. Before the taxpayer’s pay out billions of dollars to unregulated lenders, as an “incentive” to modify loans to keep people in their homes, let’s make darn sure the borrower doesn’t have so much debt that they can’t repay their loan, again. After all, how much debt a borrower has is a standard measure used to qualify for a typical loan. Why is the borrower’s debt ratio being overlooked, when taxpayer’s are on the hook?
If you agree, write to your congressional representative. There is still time to “modify” our guidelines for lenders. Hopefully, with a little public outcry, this loophole will be eliminated before we hear that billions have been paid for modified loans that fall back into default in record time.
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Tax Perks and Tips for Homeowners and Buyers
Tax Perks of Homeownership
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100 percent of the mortgage interest you pay is tax deductible, which can add thousands of dollars to your bottom line each year. Click Here to FIND OUT HOW MUCH YOU CAN DEDUCT, if you own a home.
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Property taxes (real estate taxes) paid to state and local governments are 100 percent deductible on your federal income tax return.
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Up to $500,000 ($250,000 for singles) in profit is tax free when you sell your home.
2009 Housing Stimulus Increases Tax Savings of Ownership
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Deduct $8000 from Your Tax Bill. To qualify for the $8000 tax savings you must be a first-time (have not owned in the last 3 years)homebuyer earning less than $150,000 (married, filing jointly) per year. You must live in the home for 3 years after purchase.
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Go Green and Take a $1500 Tax Credit. The requirements for energy tax credits have eased. Take advantage of a $1500 Tax Credit for home improvements such as energy-efficient windows, doors, insulation, appliances and mechanical systems.
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Save 30 percent on Alternative Energy for your Home. Earn a 30 percent tax credit for each dollar spent on things like solar heating, heat pumps or fuel cells.
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Save up to $2 million on foreclosures and short sales. Taxpayers get a free pass on mortgage debt forgiveness until 2012. Filers can exclude up to $2 million in forgiven mortgage debt, where the home sold for less than the amount owed on the loan.
Owning a home certainly has its privileges, both emotional and financial. And, real estate is still the granddaddy of tax deductions. Buy a home and save thousands of dollars, or rent and pay thousands to Uncle Sam. If in doubt, ask your landlord why they own???
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6 of 10 Buyers Believe Home Prices are High
Homegain recently polled Realtors from across the country to learn what buyer’s and seller’s think about home pricing. The results are shown below.
| Buyers think listing prices are … | |||
|---|---|---|---|
| Overpriced | Fairly priced | Underpriced | |
| US | 59% | 18% | 23% |
| West | 51% | 23% | 26% |
| Southeast | 59% | 15% | 26% |
| Midwest | 63% | 16% | 21% |
| Northeast | 62% | 18% | 20% |
| Vs. suggested price, owners think their home’s worth is … | |||
| Higher | Equal | Lower | |
| US | 63% | 14% | 23% |
| West | 54% | 16% | 30% |
| Southeast | 67% | 11% | 22% |
| Midwest | 62% | 17% | 21% |
| Northeast | 72% | 10% | 18% |
| Realtors think in the next 6 months, prices in their towns will … | |||
| Decrease | Stay same | Increase | |
| US | 53% | 36% | 11% |
| West | 66% | 27% | 7% |
| Southeast | 52% | 36% | 12% |
| Midwest | 43% | 42% | 15% |
| Northeast | 54% | 40% | 6% |
To see the survey questions with more data and information CLICK HERE.
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Real Estate Video is a Must for Homeseller’s
One of the largest obstacles that for sale by owner’s face is a lack of exposure for their home listing. Whether you have an MLS listing or not, Video is one solution that costs nothing (ie: FREE and Easy to do) and greatly increases web presence.
If you don’t think that video can help you sell your property, just take a look and see what the numbers for January 2009 tell you.
- 14.8 Billion (yes, Billion) video’s were viewed in January 2009.
- 147 Million (yes, Million) people watched internet video’s during the month.
If you didn’t think you need video before, these numbers should change your mind. And, I am not just talking about home virtual tours. Virtual tours or 360 room views are fine, but they are just the tip of the iceberg. Homeseller’s can add a lot of variety to their video’s and increase user interest dramatically. Video tours are fantastic for area’s such as:
- Subdivision and neighborhood drive thru’s.
- Parks, greenbelts and nearby outdoor recreation area’s.
- Shopping Centers that are conveniently located near the property.
- Schools that serve the area.
- Churches or government centers such as libraries and public transportation systems.
- Museums and cultural sites of interest.
All of these local highlight area’s are of high interest to someone looking for a home to buy. The internet is a world wide web, so seller’s can’t assume that their buyer will be familiar with their town or city. Make a lasting impression and use video to show buyer’s what your location has to offer.
InfoTube.net automatically uploads all home video’s to Google and Youtube, the number one search engine for video. You may not know that Google also searches video descriptive text, so your home listing will show up, even if the word “video” isn’t mentioned in the search term or keyword.
If you don’t use video to assist you in marketing your home, you are falling behind your competition every single day. But, thankfully spring is coming and it’s not too late!! Grab your digital camera and give the world a look at your home and location today.
Thank you for visiting InfoTube.net homes for sale website. Click here to learn how to create an internet website for your property, showcase your home with Video Tours and attract thousands of home buyers today!!
Obama Gives Lenders Approval to Modify Loans
The Obama administration has given lenders the “Go Ahead” to begin modifying mortgage loans for homeowner’s facing financial hardships. 
The Foreclosure Prevention Plan program is designed to ease the downward pressure on home prices, keep qualified people in their homes and prevent more foreclosures.
The Guidelines for Qualifying for this Program are as follows:
Eligiblity and Qualification:
- Loans must be originated on or before January 1, 2009.
- $729,750 is the maximum loan balance.
- The property must be Owner Occupied. Investor-owned, Vacant and Condemned properties are Excluded.
- Borrowers must FULLY document income by providing their last 2 paycheck stubs, tax returns, and must sign an affidavit of financial hardship.
- Owner occupancy status will be verified through credit reports and other documentation.
- Incentives will be given to lenders who modify loans for risky borrowers, who have not missed payments yet.
- Loans can be modified only once.
Loan Terms and Procedures:
- The modified monthly mortgage payment can not exceed 38 percent of the borrower’s gross (Earnings before taxes) monthly income.
- Lenders must follow steps to reduce montly payments to 30 percent of gross income. First, the initial interest rate can be lowered to a floor of 2 percent; Second, the lender can stretch the loan term to a maximum of 40 years; Then, principal debt can be forgiven, but only if the lender agree’s to do so.
- Monthly Payment Calculations must include principal, interest, taxes, insurance, flood insurance and homeowner’s or condo dues.
- Monthly Income includes wages, salary, overtime, fees, commissions, tips, social security, pensions and other sources of taxable income.
Incentive Payments to Lenders and Borrowers:
- Lenders will receive $1000 for each loan they modify. They will also receive $1000 per year on performing modified loans.
- Homeowners who pay their modified loan on time will receive a yearly $1000 principal reduction for 5 years.
- The lender receive a one-tine bonus of $1500 on each loan they modifiy for borrowers who are current on their mortgage payments.
- Similar incentives and bonuses will be paid to Hope for Homeowner refinances.
- Incentives will be given to lenders who extinguish 2nd mortgages on modified loans.
Accountability and Loan Transparency: No More Liar Loans
- Measures to prevent and detect fraud, such as documentation and auditing requirements, are a central point of the program.
- Lenders are required to collect, maintain and share records for verification and review. Records include borrower eligibility, underwriting, property verification and other documentation.
- In some cases, property appraisal will not be required.
To verify eligibility or check requirements, the goverment has a question and answer website. Visit Financial Stability to learn more about qualifying.
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Obama Foreclosure Plan Pits Renters and Homeowners
The Obama foreclosure plan has caused a lot of division among the people of this country. Of, course, there is the giant split between conservatives and liberals. But, the bigger divide, and the more interesting one, is the one it causes between the needs of renters (prospective buyers) and homeowners
I have a “hunch” that nearly all the people in favor of the mortgage support plan are homeowners and lenders. Why? From what I understand, Obama’s plan is to use taxpayer dollars to prop home prices. The logic is that this action will keep banks and people from having to sell their homes for huge losses. Or, in other words, the government is stacking the deck against homebuyers, hoping that they will quickly, rush out to buy an overpriced home, thereby “saving” us all.
Unfortunately, Obama’s plan is likely to fail because it does nothing to correct the overbuilding (supply) and lack of demand that cause prices to drop. It also does little to help the banks, who have discovered that they can only sell property for what they can get, not what they are owed. In other words, if the current owner can’t afford their house at anything close what they originally paid, chances are slim that anyone else can either.
The “housing” bailout hinges on keeping prices high or keeping people in homes they can not afford. It does nothing to erase the over supply of homes, increase demand, nor does it put more qualified buyer’s in the market. The bottom line is that the foreclosure plan pits renter against homeowner, in the hope of keeping lenders in business.
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Stall or Stop Foreclosure Proceedings
Homeowners: If you have received a notice of foreclosure on your property, there may be a easy and legal way to stall the lender.
Recent reports have shown that some homeowner’s have been successful in delaying a foreclosure sale, by simply requesting that their lender provide copies of their original paperwork for the loan. It seems that some of our banks and lender’s are often unable to locate the actual paperwork securing the loan against the property. Opps!
Ask your attorney to demand a copy of your original loan documents. If the bank can’t come up with them, they can’t foreclose on your loan until they do.
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$8000 Tax Credit for First Time Buyers
Home seller’s and real estate agent’s are waking up to the fact that nearly half of all buyer’s shopping for a home are first time home buyers.
Sellers should realize the timely opportunities that are available to this group, and they should be aware of all the benefits today’s first time home buyer will receive, in order to successfully do business with them.
One unique opportunity that provides immediate benefits for home sellers and first time buyers is an $8000 tax credit incentive from the US government. The purpose of the program is to encourage home sales and provide a much needed boost to the US economy.
Outline of the $8000 Tax Credit Program is as follows:
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The Tax Credit is available for First Time Home Buyers Only. (First Time Buyers are defined as anyone who has not owned real property in the past 3 years.)
- The home must be used as the buyer’s primary residence.
- The home must close January 1, 2009-December 1, 2009.
- The buyer claims the $8000 on their tax returns, which greatly reduces their tax liability.
- The $8000 does not need to be repaid, unless the buyer resells the home within 3 years of purchase.
The National Association of Realtors, who backed the plan, estimates that the tax credit will stimulate up to 300,000 home sales. The NAR also feels that the bill will help stablize home values and could possibly help some distressed seller’s avoid foreclosure.
To read more about working with first time buyers, click here.
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Move Those Home Buyers Off the Fence
We hear the questions on the news everyday… What will it take to get buyers off the fence and into a home? Is it lower interest rates? Tax Credits? Freebies, giveaways or bonuses to buyer agents?
The National Association of Home Builders released results from a poll which ask home buyer’s why they had not committed to a home purchase. The results: 44 percent of respondents said they are holding out for lower rates. 41 percent said they were uncertain that they could qualify for financing. 38 percent reported that they were waiting for lower prices.
Based on the poll, it looks as if free upgrades, “green” features and granite counter-tops are not budging these fence sitters. If you want to know the secret to moving buyers off the fence, take a moment to read a short article about the #1 Secret to Selling Any Property.
Tip: Remember that internet marketing, with a listing on the MLS, is essential in helping buyer’s find your property. Even if your property is priced to sell, without these powerful tools, you are simply left waiting and hoping someone drives past your home and spots your for sale sign.
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Buying a Foreclosure is Pure Torture
If you think that banks or lenders are like desperate seller’s, who are willing to do anything in order to find a buyer for their home, think again.
Picture Your Serious Offer Here. Banks are completely under staffed in their REO and loss mitigation departments. Buyer’s and their agent’s report a wait of up to four weeks or more, before a file is assigned to a negotiator, who may or may not, open the file and start to process the offer.
My Way or the Highway. In addition to understaffing problems, lenders adhere to a strict checklist of requirements. If one item is overlooked or missing from their checklist, the file is routinely placed back on the bottom of the pile, where it can take weeks to resurface again.
Don’t Call Us, We’ll Call You. Lenders are famous for being non-responsive to offers, even if they are at full asking price. As a practice, banks hold offers and wait for better ones to come in, before responding. If you find yourself in a “multiple offer” game, be extremely patient. With a little luck, you may hold the winning bid, as other buyer’s drop out due to anger and a lack of patience.
Real Sellers Take Solice. While these cash ready buyers are pulling out their hair in frustration, both buyer and agent are powerless in communicating with or motivating the lending giants. If you are selling a property, you can easily give yourself a huge advantage by responding to offers in a timely manner, extending courtesy to prospective buyers, and by providing access to and information about your home when ask.
Get Ready, Get Set, Stop. Buyers seeking a foreclosure need to accept that both they and their agent’s are in powerless positions. Anyone who attempts to play the distressed property game, needs to accept that their efforts to buy a home will be futile, unless they have all the time in the world and the patience of Job.
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Know the Facts Before Agreeing to Buy Out Your Ex-Spouse
A lack of buyer’s in the housing market is making things tougher on divorcing couples. Sadly, many people are stuck, unable to find a buyer for their co-owned property. While one solution may be for one spouse to buy out the other, please take the time to understand the consequences and future liability. If not, you may end up paying the ex much more than you planned.
Things to Know Before You Buy Property From Your Spouse or Ex
Internal Revenue Code 1041: Section 1041 states that gains or losses are NOT recognized by the IRS on transfers between spouses during marriage, or on transfer’s between ex’s, if the transfer was a part of the divorce settlement.
For example, if you agree to pay the ‘ex’, or to ’ex’ to be, $200,000 for their equity in your co-owned property, the cost basis of the property will not increase. If you sell in the future, you will pay income taxes based upon the original cost basis of the property, excluding your $200,000 payment.
State Taxes: Many states do not recognize gains or losses on property transfer’s to spouses or ex’s. Check on the tax consequences about a future sale before making an offer.
Real Estate Fee’s and Transaction Costs: Take into consideration what the costs of the sale would be. Calculate what each of you would expect to receive (net) today, after paying real estate commissions, repairs and closing costs in order to determine a fair purchase price.
Summary: When determining the value of co-owned, marital property, consider that the spouse who is buying will effectively pay the selling costs, along with the federal and state income taxes, on the other’s share, so account for it. And remember, it is always advisable to seek the council of a tax professional when discussing issues dealing with real property.
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Mortgage Refinance Boom is Underway
Mortgage applications jumped over 25 percent in the first week of January, spurred on by low interest rates. The indicators showed the demand for home refinancing has not been as high in the last 5 years.
While many experts report that rates will stay low for months, 30 year rates of 4.5 percent were too attractive for borrower’s to pass up. Due to the fact that rates change, locking in now a great rate now appears to be a smart move.
While low rates have not yet spurred buying activity, low prices and cheap money certainly provide hope that we may be reaching a bottom in the US housing market.
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IRS Tax Relief Help for 2009
The IRS is offering some much needed tax help in 2009. The Tax Relief Programs, which address real estate matters are outlined below.
- 1. First Time Homebuyer Tax Credit: People who recently bought a home or those who are considering buying one should pay close attention. The program, which could be worth $7500 to those qualified, defines “first time buyer” as anyone who has not owned a primary residence in the past three years. If this is you, check out the IRS program details.
- Offers in Compromise on Home Values: An Offer in Compromise (OIC) is an agreement between a taxpayer and the IRS. An OIC is a viable option for taxpayers experiencing money difficulties, as the agreement settles a tax debt for less than the full amount owed. Under IOC guidelines, the IRS realizes that real estate valuations may not be accurate. In instances of financial hardship, where the accuracy of local real estate values are in question, the IRS will give a new review of the information before determining their final offer.
- Real Estate Tax Deduction: Taxpayers can claim an additional standard deduction, based on state and local real estate taxes paid in 2008. The maximum deduction is $500 per person or $1000 for joint filers.
- Workouts and Foreclosures: For most homeowners, debt forgivenness is now tax free. Homeowners can exclude forgiven debt on their principal residence if their loan was for owe less than $2,000,000. The limit is $1 million for individuals and married couples filing separately.
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