Keith Shoemaker

Allstate is not happy with the State of Florida not approving a 47% increase for them.

They will have two years to pull out.

"State Farmwants to stop writing property insurance in the Sunshine State.

It’s a decision that doesn’t come as much of a surprise to state regulators, who said Tuesday they have been hearing about the company’s plan for several months.

Florida’s largest private property insurer blames its decision on its inability to obtain state approval for rate increases.

“Faced with steeply declining resources to cover future claims and expenses, State Farm Florida has little choice,” said Jim Thompson, the insurer’s president, in a press release.

The request, which requires regulatory review, would eliminate coverage for homeowners, renters, condo-unit owners, personal liability, boats, personal articles, and business property and liability policies."

http://jacksonville.bizjournals.com/jacksonville/stories/2009/01/26/daily14.html?ana=e_du_pap

1. Does the credit have to be paid back to the government? If so, what are the payback provisions?
   Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.
   
   
2. Why must the money be repaid?
   Congress’s intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.
   
   
3. Because the money must be repaid, isn’t the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?
   Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.

This was some information that I found on the link below to answer some questions for a buyer.

http://www.federalhousingtaxcredit.com/faq.php#16

If you are one of the people in America that has not seen "Dark Knight" yet, do yourself a favor and check it out on the IMAX screen. They have extended features included and it is very good.

We have one located at World Golf Village, south of Jacksonville. If you have seen it at the regular movie, check out the difference on the big screen. This is the way movies need to be made.

http://www.wgv.com/imax/imax_schedule.php