As promised below is an overview and comparison between the present Tax Credit and the New. The information below was just given to us by Senator Dodd's Office.

Homebuyer Tax Credit Overview:

• First‐time homebuyers (those who have not owned a principal residence in the three years prior to the purchase date of their subsequent home) are eligible for a refundable tax credit of 10 percent of the purchase price of a principal residence up to $8,000 for homes bought between January 1 and December 1, 2009.
• If the home is sold within three years, the taxpayer must pay back the credit (called "recapture").
• Income limits for the current credit are $75,000 for single filers and $150,000 for joint filers, phasing out completely after $95,000 for individuals and $170,000 for couples. Income limits are based on Modified Adjusted Gross Income (MAGI).

Extended and Expanded Homebuyer Tax Credit:

• Extends the availability of the $8,000 first‐time homebuyer credit to taxpayers who have a principal residence under a binding contract before April 30, 2010, allowing 60 days to close.
• Creates a new $6,500 credit for move‐up buyers. Move up buyers are defined as people who haveLike the credit for first‐time buyers, lived in their current home for 5 or more consecutive years during the 8 year period ending on the date of purchase of the their subsequent principal residence. this credit is available to taxpayers who have principal residences under a binding contract before April 30, 2010, allowing 60 days to close.
• Raises the income limits for both the first time and move‐up buyer to $125,000 for single filers, $225,000 for joint filers with a $20,000 phase‐out. The $20,000 phaseout means that no credit can be claimed by those with MAGI above $145,000 for single filers, $245,000 married joint filers.
• Both the first‐time and move‐up credit are available for principal residences with a purchase price up to $800,000. Purchase price is defined as the adjusted basis of the principle residence on the date such residence is purchased.
• Includes strong anti‐fraud provisions:
  • Gives the Internal Revenue Service math error authority which they have requested when processing IRS form 5405. This would allow the IRS to correct certain errors during credit processing, and avoid the need for a post‐refund, labor intensive audit.
  • Requires a copy of the settlement statement (HUD‐1) which would verify the date of purchase, the residence address, and the purchase price.
  • Introduces an explicit age limitation, allowing no one under 18 to claim the credit
  • Excludes individuals who are claimed as dependents and married individuals who purchase the home from the family of their spouse from claiming the credit
• Eliminates the recapture requirement for military personnel and members of the Foreign Service and intelligence community who are forced to sell their homes within three years as a result of an official extended duty of service. In addition, these individuals have one additional year to qualify for the credit if they served for at least 90 days outside the U.S. in 2009 or 2010.
• Purchases made in 2010 can be claimed on the 2009 tax return.
• The score of $10.8 billion over 10 years is paid for by a seven year delay of the worldwide allocation of interest rule until 2017, not stimulus funds.
• Effective after the date of enactment.
• Homebuyers who were eligible for the first‐time homebuyer tax credit pre‐WHBAA will be able to continue to claim the credit. Homebuyers who qualify for the credit under the expanded terms will only be able to claim the credit if they close on their home purchase after the date of enactment of this bill (the binding contract can be signed before enactment).

Some of this, like any new Legislation, is going to take a few days to fully understand. As further clarification is made available I will try to provide it.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Yesterday marketed my 9 month ActiveRain anniversary. In 9 months I have amassed 186,000 points! That's over 20,000 points per month. It has put me to the top of the ActiveRain membership who have joined this year (see picture below).

It has been a fun ride. I have met lots of great people and learned quite a bit here in the Rain.

Today I celebrate 9 months!

☺

Matt

Toll Free: 888-NCFIXER (623-4937)
Toll Free Fax: 888-FAX-4020 (329-4020)
Local: 860-282-6181
330 Roberts Street 4th Floor
East Hartford, CT 06108

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A blonde, a brunette, a movie star, the pope, and a pilot were on a plane.


The plane was going down fast, and there were only four parachutes for all five of them.


The pilot took one and jumped, then the movie star took one and jumped, and then the blonde took one and jumped.


The pope told the brunette to take the last one.


The brunette said, "There are still 2 parachutes left! The blonde took my backpack!"

☺

Matt

Toll Free: 888-NCFIXER (623-4937)
Toll Free Fax: 888-FAX-4020 (329-4020)
Local: 860-282-6181
330 Roberts Street 4th Floor
East Hartford, CT 06108

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As most of you know, I worked the polls at the election here in Cromwell, CT this past Tuesday, November 3rd, 2009. The new selectman was the biggest question, along with who would be filling the positions of the Board of Selectman. There are 6 seats on the Board of Selectman here in town... and there were 11 people running for this position. When you voted you could only choose up to 4 people. This was stated on the top of the form and was overwhelming for some people. There were four on the Republican Ticket, four on the Democratic Ticket and three on the Petioning Line to choose from.

At the end of the evening, when everything was tallied, there was only a 9 vote difference for the sixth place position on the board with Allan Spotts being the foreseen winner over Frank Emanulele Jr. However when the count is that close, a recount must occur and this was a unofficial result. The recount was held today at the townhall today from 10:00am until 4:00pm. I volunteered along with other members of town to manually retabulate the results if necessary.... there were over 3,000 ballots in all to go through in all.

At the end of the day Allan Spotts still won by 6 votes over Frank Emanulele Jr. instead of 9. But here is the kicker. Six ballots could NOT be counted because they were filled in incorrectly... anywhere from 5 to 7 candidates choosen on each one. Therefore NOT knowing which 4 the voter truly intended on voting for, the ballot was not counted. Frank Emanulele was on just about each one of them.. and they were NOT tabulated. This could have made the total votes for the sixth place position a tie if the ballot was filled in correctly in the first place.

Moral of story.. it pays to read the directions, otherwise it could cost you more than you think.

FOR ACCURATE INFORMATION ON REAL ESTATE.. CONTACT YOUR LOCAL AGENT

Info about the author:

Valerie Osterhoudt is a Cromwell Connecticut Residential Realtor who can assist you with the purchase and/or sale of real estate in the Middlesex County of CT, which includes Cromwell, Rocky Hill, Berlin, Middletown, Wethersfield, Newington, as well as all other surrounding areas. Please visit me at www.CTrealtorMLS.com for all your relocation and/or local needs.

For real estate... all you need to know, is VALERIEO

If you're thinking about buying a home in Cromwell CT there are plenty of great buys in today's market. There is no better time than now to take advantage of these homes while interest rates remain at an all time low. For more information on Cromwell CT real estate's homes and/or condos please visit Johnson Real Estate to access the newest listings.

Valerie Osterhoudt, ABR - Johnson Real Estate, Inc. - 860.883.8889 cell- valerierealtor@sbcglobal.net.

Copyright © 2009 By Valerie Osterhoudt, ABR, All Rights Reserved...*ELECTION RECOUNT HELD TODAY IN CROMWELL CT*

Looks like the long awaited New Tax Credit Bill will be signed into law tomorrow. The New Tax Credit Bill was passed by the Senate earlier today, and by the House a few minutes ago. The President has already stated that he will sign the Bill tomorrow once it hits his desk.

The New Tax Credit Bill will look a little different than the current one, but until it is passed by both the Senate and the House, and signed by the President, it is always subject to change. As it stands right now the New Tax Credit Bill is suppose to contain the following:

• First-time homebuyers will continue at $8,000
  
• Tax credit for “move up” purchasers will be up to $6,500
  
  • Must have used previous home as a principal residence for 5 of the 8 previous years.
• Income limits increased and are the same for first-time and “move up” purchasers: $125,000 for single filers/$225,000 for joint filers
  
• Limitation on eligible home prices has been increased to $800,000
  
• Time Frame: December 1, 2009 to April 30, 2010 plus 60 day extension if binding contract is in place by April 30, 2010.
• Anti-fraud measures have been added

The two big differences between the present Tax Credit and the New Tax Credit Bill in my opinion are:

• The New Tax Credit will be expanded to include present homeowners that have owned their home for at least 5 years. The New Tax Credit still only applies to Primary Properties, which means that Investment Properties or Vacation Homes do not qualify for the New Tax Credit.
• Instead of the cut-off date being the Closing Date, it will now be the Date that the Buyer goes under Contract, and then having to Close 60 Days from that date. This makes a lot more sense to me then having the Closing Date be the cut-off.

The $6,500 Tax Credit for existing Homeowners will be effective upon the New Tax Credit Bill being signed by the President.

Let's see if what we are being told is actually with ends up being signed, and we should know that some time tomorrow.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com