About Macomb County, MI

Yes, it is official now. Yesterday President Obama signed the tax credit extension and expansion into law! Not only is this great news for first time buyers, but buyers who have lived in their existing homes for 5 out of the last 8 years will also be eligible for up to $6,500 tax credit. Click here for Tax Credit Comparison Chart.

Extension highlights

• The first time buyer tax credit of up to $8,000 is extended to April 30, 2010
• You must have a signed purchase agreement by April 30, 2010
• You must close the transaction by June 30, 2010

Expansion highlights

• Current home owners who purchase a home can qualify for up to $6,500 tax credit
• Current home owners must have lived in their homes for 5 out of the last 8 years
• You must have a signed purchase agreement by April 30, 2010
• You must close the transaction by June 30, 2010

Details on the Tax Credit Extension / Expansion

Even more importantly included in this bill is that unemployment benefits are going to be extended for 20 weeks! With the high rate of unemployment in MI this is good news for many families.

For more info on the St. Clair Shores Real Estate market, contact Mike Mitchell,REALTOR ®

If you'd like to start looking for homes and take advantage of this buyers market in S.E. Michigan sign up for a free Listingbook account and search the mls on your own personal website! Absolutely FREE!

Mike Mitchell - REALTOR ®
GMAC The Kee Group
Direct: (586)291-2652

http://www.mmhomesearch.com/

Tired of Throwing Your Money Away

Today, I had a closing with a First Time Home Buyer. She was a nervous wreck. I remember the smile on her face when she was handed the key to her NEW HOME. She was renter who wanted and needed more space for her and her 2 dogs. She wanted a place to call her home.

She was tired of throwing money away.

Today may be your lucky day! You have lucked up on some information that may change your life as a renter as you know it. You might be on your way to buying your first home versus throwing you money away I mean writing you last rent check to your landlord.

The First Time Home Buyer credit has been extended- (with extra perks for current homeowners). So this is your 2nd Chance to jump on this opportunity! I know the idea of the home buying experience seems scary, but it does not have to be.

The look on my First Time Home Buyer's face, let me know that I am in the right business -to help make dreams come true!

Her monthly mortgage payment is less than her monthly rent payment. She qualified for the $8,000 tax credit too!

Click to see if you should rent or buy

Don't Continue to Do This!

Do This !

Click Here for your Buying Guide

TAX CREDIT OVERVIEW

Who Get What? First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines? In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

What are the Income Caps?
The amount of income someone can earn and qualify for the full amount of the credit has been increased.
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
What is the Maximum Purchase Price?
Qualifying buyers may purchase a property with a maximum sale price of $800,000.

What is a Tax Credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.
How Much are First-Time Homebuyers (FTHB) Eligible to Receive?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is Eligible fort FTHB Tax Credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible.
This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.
As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How Much are Current Home Owners Eligible to Receive?
The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.
Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed.
According to the IRS, factors that would demonstrate the ownership of the property would include:
1. Right of possession,
2. Right to obtain legal title upon full payment of the purchase price,
3. Right to construct improvements,
4. Obligation to pay property taxes,
5. Risk of loss,
6. Responsibility to insure the property, and
7. Duty to maintain the property.
Are There Other Restrictions to Taking the FTHB Credit?
Yes. According to the IRS, if any of the following describe a homebuyer's situation, a credit would not be due:
They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from "step-relatives.")
They do not use the home as your principal residence.
They sell their home before the end of the year.
They are a nonresident alien.
They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?
Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.

If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?
Yes, provided that the child meets the other requirements for the tax credit.

6 Reasons Why Short Sales Fail

In today's housing crisis, there are 2 words that alot of real estate agents cringe when they hear-"short sale". A Short Sale occurs when a Lender agrees to accept less than the amount owed to pay off a loan. The Short Sale negotiation process is anything but short...it is a lengthy one and it may take several weeks or months to gain an approval.

The "Short Sale" process has gotten a bad rap for NEVER CLOSING.

How Can You Make Sure That Your Short Sale Closes?

6 Reasons Why Short Sales Fail

1. Incomplete Short Sale Package-the most common reason why short sales fail.If the package is not complete, many of the lenders will not call and tell you what is missing.

2.Package Not Submitted Properly-Every lender has different procedures for how they want the package submitted.

3.Offer Too Low-Each Lender has its own formula for what price they wil accept on a short sale.

4.Buyer Not Strong Enough-A pre-approved buyer has a much better chance of getting their contract approved by the lender than one who is ony pre-qualified.

5.Lender Took Too Long and Buyer Backed Out-So many foreclosure/short sale procedures-too litle manpower.

6.Inaccurate BPO's(Broker Price Opinion)-If the BPO and/or appraisal of the property was inaccurate and the lender has a distorted picture of what the fair market value, this could influence the lender's approval.

Although short sales and foreclosures are not new trends in real estate, current economic conditions,rising rates of umemployment, and depressed home values in many markets point to continued increases in mortgage defaults, short sales and sales of foreclosed and bank owned properties.

Avoid these 6 Reasons and perhaps your for sale sign will read SOLD:

Looks like our elected officials have finally agreed to move forward with voting the extension of the First Time Buyers Tax Credit along with a $6500 tax credit for other buyers. They are hoping to vote on it by the end of this week.

If you know anyone thinking of buying a new home, whether they are a first time buyer or not, please have them contact me so we cab discuss these new tax benefits to home buyers.

Senate Clears Homebuyers Tax Credit Extension; May Pass as Early as This Week

RISMEDIA, November 5, 2009—After two weeks of delay, the Senate cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers. By an 85 to 2 roll call vote, the Senate voted to cut off debate on a package of measures that includes the homebuyer credit, making it virtually certain that the legislation will reach President Obama for his signature this week.

The homebuyer tax credit, due to expire at the end of November would be extended through April 30 of next year. First-time buyers who are in the process of making a purchase would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.

For the first time, the legislation that was recently cleared makes move-up buyers as well as first-time buyers eligible for a credit. The $8,000 maximum first-timer credit will continue and will now be available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law. A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years.

For homebuyers across the country, the expanded tax credit would allow more people to qualify for the credit. While two-thirds of American families own their own home, and most earn less than the income limits that have been established within the extension, more buyers may be eligible. Move-up buyers don’t have to sell their current home to qualify for the new credit, but the money cannot be used to buy a vacation home. “It’s only for a primary residence,” said Regan Lachapelle, a spokeswoman for Sen. Harry Redi (D-Nev.), who helped engineer the deal. “In expanding the tax credit, we are helping first-time home buyers, as well as homeowners looking to move up to a new home, but we would exclude from the credit speculators who may have recently purchased a home intending to flip it for a fast profit,” said Senator Max Baucus, Democrat of Montana and chairman of the Finance Committee.

The tax credit has fired-up the housing market, driving existing home sales to the highest level in over two years. The National Association Realtors reported sales jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units in September and are 9.2% higher than the 5.10 million-unit pace in September 2008.

The legislation included provisions added to address complaints of fraud as well. The Internal Revenue Service is given greater authority to oversee the process to root out fraud, and provisions are added in response to past abuses of false sales or underage buyers. An investigation by the Treasury Department’s Inspector General for Tax Administration found that more than 580 children, some as young as four years old, had received $627,000 in first-time homebuyer credits. The IRS has identified 167 suspected criminal schemes and opened nearly 107,000 examinations of potential civil violations of the first-time homebuyer tax credit.

For more information, visit www.realestateeconomywatch.com ^[2] and www.wsj.com ^[3].

http://rismedia.com/2009-11-04/senate-clears-homebuyer-tax-credit-extension-may-pass-as-early-as-this-week/