Steve Dean

While many people have been watching the Congress with its bills to save the financial markets, many haven't noticed that the Senate bill includes an extension of the DC First Time Homebuyer $5,000 Tax Credit.

The Federal $5,000 DC Homebuyer's Tax Credit passed the Senate on Wednesday. The Senate language includes a 2 year extension (retroactively for 2008 and prospectively for 2009). Now, it goes to the House for approval. That vote is expected today.

In the past, the eligibility for the credit has been phased out for single filers making $70,000 to $90,000 (adjusted gross income) and joint filers making $110,000 to $130,000. For example, single filers making $70,000 (or joint filers making $110,000) would receive the entire credit; single filers making $80,000 (or joint filers making $120,000) would receive a $2,500 credit; single filers making $90,000 (or joint filers making $130,000) would not receive the credit.

Those who have owned a principal residence before in the suburbs or in the District are still eligible as long as they have not owned a home in the District of Columbia during the year preceding the new purchase.

To claim the Tax Credit, ask for Form 8859 "DC Homebuyer" or download it from the IRS website at http://www.irs.gov

The exact details of the bill are not available at the time of this posting.

Washington, D.C., signed a land disposition agreement Tuesday with Hoffman-Struever Waterfront LLC, allowing D.C. to transfer several parcels along the Southwest waterfront to the development team.

D.C.-based PN Hoffman Inc. and Baltimore-based Struever Bros. Eccles & Rouse plan to convert the 26-acre waterfront into a $1.5 billion mixed-use mecca, which will include more than 2 million square feet of public parks, plazas and open green space.

Read about it in the Baltimore Business Journal.

(Washington, DC - September 2008) – Steve Dean & Eddie Rangel with RE/MAX Allegiance, ranked 6th overall in the Washington, DC for awardable commissions year-to-date in 2008.

“Without a doubt, your contribution to RE/MAX International’s record-breaking success is recognized and admired throughout the Region,” said Kerron Stokes, Regional Vice President of RE/MAX Central Atlantic Region, upon issuing the award. “Your outstanding achievement serves as a powerful model of professionalism for each and every Sales Associate on the RE/MAX team.”

"The DC real estate market this year has more distressed property and problematic transactions than in past years," said Steve Dean. "We're happy that we've been able to use our experience to grow our practice during difficult times."

Steve Dean & Eddie Rangel are well versed professionals with extensive experience in co-operative and condominium sales. To learn more about Steve & Eddie visit their website: www.myDCagent.com

RE/MAX has over 110,000 agents worldwide and continues to lead the industry in top markets with cutting-edge technologies like the comprehensive property search engine on www.remax.com and the RE/MAX Satellite Network (RSN), that provides Associates with award-winning programming, coaching and training in the convenience of their offices or homes.

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About RE/MAX

RE/MAX was founded in 1973 in Denver, Colorado by Dave and Gail Liniger. It has grown to a global network of over 110,000 Sales Associates in more than 65 countries. No one sells more real estate than RE/MAX. Nearly all home listings can be found at www.remax.com.
RE/MAX is proud to help raise millions of dollars and support charitable organizations like, Susan G. Komen Breast Cancer Survivor Recognition Program, Children’s Miracle Network and The Sentinels of Freedom Foundation.

A "Short Sale" takes place when a seller's proceeds from the sale of their home is not expected to cover the mortgage and other liens against the property. When this happens, the holder(s) of the mortgage(s) and/or lien(s) have to approve the sale. This is typically noted as "Subject to Third Party Approval."

The third parties could include mortgage holders, home equity loan holders, the U.S. Government (in the case of Federal tax liens)< the District of Columbia (in the case of tax liens or nuisance liens), WASA (in the case of water liens), contractors (in the case of mechanic's liens) and anyone else with a lien or judgment against the property.

The Seller of the property accepts the contract subject to third party approval. Third party approval works much like any other contingency which is to say the contract can be canceled if the third-party approval is not received.

While that sounds simple, third party approvals may take an extremely long time. DC law will require that the earnest deposit for the contract be deposited within one week of contract acceptance. Therefore, the purchaser's money is unavailable while the purchaser waits for third party approval.

So where is the pitfall? "While an infinite wait for an answer from the bank, is occurring..the house goes to foreclosure," according to Chuck Klein, the managing broker for RE/MAX Allegiance.

Many homes in the District are foreclosed upon while the third party is reviewing the contract.

Many people might assume that the Purchaser receives their earnest deposit back immediately upon the foreclosure, but that is not the case. To release the earnest deposit, the escrow agent must follow escrow law which means all parties to the contract must sign the release. If a Seller has just lost a house due to foreclosure, that person can be difficult to find and may not be cooperative if located.

The Purchaser, if the Purchaser wants the earnest deposit, may have to hire an attorney to file for a Court Inter pleader to bring a judgement. The cost for this is born by the Purchaser, and naturally there is time lost while this process is happening.

If you're considering purchasing a short sale, be sure to ask your agent how to protect yourself against this scenario. Also be sure that you've read and understand the Greater Capital Association of REALTOR's Form 1362 "Short Sale Addendum to Sales Contract" before enter into the sales contract.