Larry Costa, Realtor Carver MA Real Estate

The FBI has recently charged 14 people in Massachusetts with filing false paperwork to claim the $8000 first time buyer tax credit. People have been charged in other parts of the country as well.

As part of the governments stimulus package, First Time Home Buyers could qualify for up to $8000 Tax Credit if they purchased a home and closed on or before September 30, 2010.

The IRS has been auditing all claims for the credit, sometimes asking for additional paperwork to support the claim.

Of the fourteen people in Massachusetts, seven have been indicted and can face up to 5 years in prison and up to a $250,000 fine. Investigations are ongoing and involve the IRS Criminal Investigations team, the FBI and local and state authorities.

Details of the arrests on the FBI's website.

The IRS is auditing all claims for the First Time Buyer Homebuyer Tax Credit.

This week, I've gotten several calls from buyers who've had their claim for the First Time Buyer $8000 Tax Credit denied due to insufficient paperwork. The IRS has been auditing all claims due to heavy amounts of fraudulent returns that have been filed to try and claim a credit where none is due.

Everyone that has called were due the Tax Credit but had improperly filed their supporting paperwork. None had used a tax preparer or accountant.

According to the IRS website the qualifications and proper procedure are as follows:

How to Claim the Credit

2009 or 2010 Tax Return

For qualifying purchases made in 2010, you have the option of claiming the credit on either your 2010 or 2009 return. For qualifying purchases made in 2009, you have the option of claiming the credit on either your 2009 or 2008 return. If your return for a particular year has already been filed, use Form1040X to amend your return for that year, along with Form 5405, First-Time Homebuyer Credit and Repayment of the Credit (see the instructions for help with the form), and a properly executed copy of a settlement statement used to complete the purchase.

• Purchasers of conventional homes should include a copy of Form HUD-1, Settlement Statement, or other settlement statement, showing all parties' names, property address, sales price and date of purchase.
• Purchasers of mobile homes who are unable to get a settlement statement should include a copy of the executed retail sales contract showing all parties' names, property address, purchase price and date of purchase.
• Purchasers of newly constructed homes where a settlement statement is not available should include a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

For those who thought they might try and get away with filing a fraudulent claim, lookout. Claims are being investigated jointly by the FBI, IRS, HUD, The United State Attorney's Office and State law enforcement agencies. 14 people in Massachusetts were recently charged and face up to 5 years in prision and a $250,000 fine.

Mayflower Bank in Middleboro is currently offering no application fee and no appraisal fee! This is a great opportunity to save some money on your home purchase and deal with local bank with a real live person to talk to!

Mayflower bank is one of the areas oldest banks having been organized back in 1889. The small town friendly atmosphere is prevalent and they are a pleasure to do business with. The lending department is professional and courteous and always just a phone call away.

Mayflower Bank also has very competitive lending rates both for residential and commercial lending. For today's current rates click here: MayFlower Bank Rates. Mayflower also features an online application to further streamline your approval process though there Mortgage Web Center feature. Another feature which I love on their site is the Mortgage Payment calculator.

So for that personal touch, whether day to day banking or buying your first home, check out Mayflower Bank with branches in these locations: Mayflower Branch Locations.

Promotions don't last forever, so give them a call today at 508-947-4343.

MayFlower has been servicing Plymouth County well over 100 years. I've been servicing the area for , well......far less, about 23 years. If your thinking of selling or buying, give me a call, I'd be happy to help.

Mortgage Electronic Systems

If you've ever read the foreclosure notices in the paper you undoubtedly have noticed the name Mortgage Electronic Systems mentioned quite frequently. In case your wondering just who that is read on...

MERS or Mortgage Electronic Registration Systems was created back in the 1990's by Fannie Mae, Freddie Mac and a consortium of large banks for the sole purpose of transferring notes amongst themselves. This saved the member firms millions of dollars in Registry fees.

As of recent MERS has been under attack for many reasons. One being that some Registry's feel they are owed the money for the recordings that didn't take place as they should. In Massachusetts only that number can be as high as $200 Million dollars according to a recent article in the Banker and Tradesman. The State Attorney general is currently looking into this matter.

Another issue has been the foreclosure process itself. Defense attorneys have argued that by not recording the deeds in the chain of title the foreclosures conducted may have not been done properly. In a similar situation, and a Landmark case in Massachusetts, the Supreme Judicial Court upheld a Land Court judges' decision in "US Bank vs. Ibanez" invalidating the sales of two plaintiff banks in which the mortgages had been improperly assigned.

Mortgage Electronic Systems has previously stated that "they are in compliance with the statuary intent of recording acts in Massachusetts"

It's been estimated that more than 50% of all mortgages registered in the US are done so through the MERS system. So now you know just who is Mortgage Electronic Systems.

FHA Low Fico Loan Program

Several banks have begun offering a new program called the Low Fico FHA Loan. This will open up the buying opportunity to millions of more potential homeowners looking to buy now affordable homes, in todays market.

The program is for borrowers with a FICO score of 580-639. Until now the minimum FICO score was 625.

The program requires a 3.5% down payment and the rate is typically about 3/8% higher than the regular FHA loan. This is a purchase only loan, and can be closed in a normal amount of time.

Program Highlights Include:

• 3.5% Down payment!
• Fixed rate loan only
• Applies only to purchase loans
• Up to 6% seller concessions
• Gift Funds permitted in some instances

If you've been waiting for your opportunity to buy a home in Southeastern Massachusetts then this may be it. Rates have been inching up. Please give me call at 508-272-8028 and I'd be happy to point you in the right direction.

Larry Costa