Joseph Harrison

Recently signed into law, House Bill 261, allows Georgia residents to receive a $1800 tax credit on homes purchased between June 1, 2009 and November 30, 2009.

Here's how to qualify:

• The home must be a primary, single-family or condo residence purchased within the 6 month time frame outlined above.
• The home must have been on the market prior to May 11, 2009 and still for sale
• Or, the home must be in default on or before March 1, 2009 (or already foreclosed and held by a bank or mortgage company)

Other facts about the tax credit:

• The Georgia Tax Credit is $1800 or 1.2% whichever is less. So if the home is under $150,000.00 then you will receive only 1.2% of the purchase price, instead of the maximum $1800
• The Georgia Tax Credit can be claimed on end of year Georgia State tax return over a 3 year period including 2009, 2010, and 2011.
• The Georgia Tax Credit can be used in addtion to the 1st Time Homebuyer tax credit, as neither affects each other. Which means you could receive up to $9800 total in Federal and State tax credits!!!

Thanks "Mr. Govenor" aka Sonny Purdue

Want to do something a little out of the ordinary, something that will really impress that significant other, or something that could be a new and exciting experience for the whole family? You've got to visit the folks at SouthEast Adventure Outfitters!

Have you ever considered a guided kayak tour? Not just throwing a kayak in a man-made pond behind a kayak outpost and paddling around for an hour or so. I'm talking about exploring miles and miles of the eastern seaboard's marshes, river lowlands, and barrier islands. Perhaps casting a line near a shellbed in remote areas where a propeller has never stirred the waters.

For the more avid adventurer, one might consider an overnight camping trip on the north end, of one of Georgia's largest barrier islands--Cumberland Island. Once you've reached your remote, north end campsite, you'll hike winding trails and explore some 16 miles of pristine beach for a glimpse of the wild horses that inhabit the island. And to make it simpler, SouthEast Adventure provides excellent meals, guides, camping equipment, paddling gear, boats, transportation, and fees. All you need to bring is yourself and some select personal items.

SouthEast Adventure also has Altamaha and Satilla River tours and camping! The possibilities are endless, with opportunities for custom trips with birding, fishing, photography, and educational tours.

Go To: www.southeastadventure.com for more information or contact the staff to plan your next trip @

912-638-6732 / 912-ME-TO-SEA

or

Kayak@SouthEastAdventure.com

In this day and time, it isn't uncommon to hear someone talking about what a fantastic deal "so & so" got on an R.E.O property. You may have wondered what this "R.E.O" actually meant ( And no, it has nothing to do with the 70s & 80s era rock band REO Speedwagon.) R.E.O stands for "Real Estate Owned." This in turn means the property has foreclosed and then failed to sell on the courthouse steps via auction. Due to the property's failure to receive a bid that met at least the bank's reserve price, the property reverts back as an asset on the bank's balance sheet.

At this point, the bank will hire a real estate agent to put the property on the market, usually at reduced price to encourage a quick sale. These lending institutions are extremely motivated to get these "non-income producing assets" off their balance sheets. Banks are in the business of lending money and earning interest. In a declining market, holding an asset that is continuously losing value and is costing money in insurance, taxes, maintenance, etc....... it just doesn't make sense (or cents!)

"Hey I thought this article was going to be about tips for buying REOs, not an all inclusive course in understanding REOs!"

Ok, Ok, I hear ya. I'll get the show on the road.

1.)Easy to Find- Today, REOs are easier to find than ever before. There are many websites such as realtytrac.com or foreclosurepoint.com that can help you locate foreclosures in your area. However, the best resource for finding REO properties is to ask a local real estate agent to provide you a list of REO properties that meet your specifications.

2.)Leverage- When buying a foreclosure at auction, you will need to have cash on hand and you usually can't inspect the property prior to purchase (=) Disadvantages. Also, there may be liens against the property that you don't know about (=) more trouble for you.

On the other hand, when you buy a REO property, you can inspect it before hand and you can finance your purchase with a mortgage, which means more cash remains in your hands ( a much better feeling!) Plus, when a bank repossesses a home it clears any outstanding liens.

3.)Get Repair Bids- Most of the time, homes where owners neglected to pay their mortgage, also neglected maintenance. Also REOs may have been sitting vacant for some time, which makes the homes more susceptible to vandalism. To avoid underestimating how much work is needed and the cost, it is best to get a contractor to give you an estimate of restoration costs and a time frame. Isn't it great this can be done before you purchase the home!

4.)Low Ball- Don't expect the bank to accept the first offer you throw at them. REOs are usually already priced aggresively at below market values. However, depending on the size of the bank's foreclosed inventory and the time the home has been on the market--the greater your chances of nabbing a great deal.

5.)"Tick Tock"- While some lenders have streamlined the process, a lot of lenders are experiencing extreme backlogs which can cause their responses to take weeks and in some cases months. During that time, someone else could come along and outbid you. Therefore, you should probably have multiple homes in mind. Also it helps to have your fnancing pre-approved and to follow up with the lender often.

Hopefully, these tips will put you on your way to snagging some of those "fantastic deals" of your own!

The Georgia Association of Realtors (GAR) has given the following seven reasons as to why this is an unprecedented time for buyers of real estate:

1.) The American Recovery and Reinvestment Act of 2009 enables first-time home buyers to qualify for up to an $8,000 in a federal tax credit for the purchase of a home.

2.) It's a buyer's market! Buyers who are pre-approved have incredible negotiating power. Financing options are available for those with a steady income and good credit.

3.) The recent decline in prices has sellers pricing their homes competitively, allowing your dream home to finally be within reach.

4.) Competitive pricing also means more inventory from which to choose in a variety of locations.

5.) Interest rates are at historical lows--lower rates equal lower payments, or a larger home--you choose.

6.) Builders are offering unprecedented incentives for new homes such as flooring upgrades, new appliances, and discounted financing.

7.) Historically, homes are a solid long-term investment. For the past 40 years, real estate has delivered the most consistent positive return over any investment. When you buy a home, you are building equity and adding to your assets.

So now's the time to:

GET OFF THE ________ !

Six Things You Should Know About The Tax Credit:

1.) 8k for new buyers: This tax credit is equivalent to 10% of the purchase price of the home and is capped at $8,000. It applies to first time home buyers and principal residences. Unlike earlier tax credits, this one does not have to be repaid.

2.) First time buyers defined: For this purpose, a first time home buyer is someone who has not owned a principal residence for three years before buying a house (date of purchase is the day the title transfers). This means that if you've owned a vacation home, but not a principal residence--within the last three years, you would still qualify for the credit.

3.) 2009 only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit.

4.) Income Limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of less than $75,000 or less to qualify for the full credit. The threshold for married couples is $150,000 or less. Those persons exceeding these income limitations may be eligible for reduced credits.

5.) Refundable: Because the tax credit is refundable, qualified buyers can take advantage of it even if they don't have much tax liability.

6.) 3 Year Rule: Buyers have to own the home for at least three years to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions include death and divorce)

For more information go to: http://www.federalhousingtaxcredit.com/2009/faq.php