Lee Davenport

Job loss is not the end nor does it have to be the end of your home. Although refinancing a home when the borrower is unemployed is practically impossible, U.S. Rep Barney Frank, a Massachusetts Democrat who chairs the House Financial Services Committee, is proposing to spend $2 billion to help.

The proposal would revive a 1975 program that lends money to the unemployed so they don't lose their homes.

"There has to be a reasonable likelihood that the homeowner will be able to resume making the mortgage payment without state help,'' said Brian A. Hudson Sr., the chief executive of the Pennsylvania Housing Finance Agency, in a prepared statement, noting that the assistance is temporary.

Frank's proposal would also earmark $1 billion to build and preserve affordable housing, $1.5 billion to redevelop foreclosed and abandoned homes, and $2 billion to protect tenants in apartment buildings when the owner is facing foreclosure.

Stay tuned for updates on if this proposal is passed.

Source: The Boston Globe, Jenifer B. McKim (07/09/2010)

With home prices low, now could be a good time for parents to give their children a home or even an investment property. Here are some suggestions for managing the tax consequences from Mark Luscombe, tax analyst with Wolters Kluwer.

Give a cash gift. Individuals are allowed to gift up to $13,000 per person in a given year without incurring gift tax. That means a couple could give their offspring and spouse $52,000 in a single year to go toward a down payment.

Lend money. The government requires that family members meet or exceed minimum loan rates to avoid having the loan be considered a gift. The rates are currently low. One way to handle this is for parent to use the $52,000 gift exclusion to forgive both interest and principal.

Use a trust. Set up a qualified personal residence trust, or QPRT. You'll need an attorney to handle this transaction, but in a nutshell, parents put the home they want to give their children into a trust. At the end of a pre-set term, the home passes to the children with no taxes due.

Source: The Wall Street Journal, Shelly Banjo (06/25/2009)

Purchasing a home does not have to empty out your bank account, especially if you know the following ways to save, save, save! Here are some things that buyers should know as they go through the mortgage loan application process:

Ask for the "Good Faith Estimate" early. This is the document that reveals just how much your loan is going to cost you. It won't be released until it is officially "complete" and all the questions are answered so push yourself to find answers right away to all the lender's questions.

Read and ask questions about the fine print. Identifying and negotiating all the fees and charges can cut the costs associated with your mortgage loan.
Shop title insurance. Visit websites like www.Closing.com, where you can comparison shop.

Get a commitment.Insist that the lender or loan broker agree that there won't be any other charges on the HUD-1, which most borrowers don't see until they are at the settlement table. "If [the lender] won't agree to that, you have to be a little suspicious," says Claire Fennessey, senior vice president of Entitle Direct.

Question flood insurance. If a property requires flood insurance, contact a civil engineering firm with experience with the Federal Emergency Management Agency's resources to ensure that they aren't paying too much. Eligibility for a preferred risk policy can cut costs substantially.

Source: Chicago Tribune, Mary Ellen Podmolik (07/05/2009)

Chastain Park Condominums are Metro Atlanta's premiere real estate housing for the first-time homebuyer in the Sandy Springs area. Beyond the perk of being within walking distance to Chastain Park Amphitheater (www.classicchastain.com), where the great music and entertainment is soul-stirring, Chastain Park Condos features a state-of-the-art fitness center, clubhouse, and pool all within walking distance to Buckhead restaurants and shops. There are currently 1 and 2-bedroom floorplans available priced from the low $100,000s to the mid-$100,000s. Each unit has its own custom features so you may find maple hardwood floors or pine, dark granite countertops or light granite countertops - in essence, you must see the units to decide what would be a good fit for your first home and real estate acquisition.

What more details about the real estate community of Chastain Park Condominums? Contact places2love@gmail.com or call 404.444.5777. Happy House Hunting!

Have you ever wished someone would match you dollar for dollar on your savings for your next home purchase? Well, the Atlanta Federal Home Loan Bank (FHLBank) does something even better. It matches 5 to 1, meaning if you have saved $1000 towards an home purchase, you can get $5000!

The FHLBank homebuyer grant has a $10,000 maximum grant but this would definitely help any would-be buyer. As an added perk, this grant does not require any payments, has no interest, and is forgivable. And the best part is that this program (as of 6/23/09) has $6,922,175.57 funds available. So if you are saddened that the GA DREAM NSP program is already out of funds (they do have a waiting list you can register for), the FHLBank grant may be even better!

Do you qualify? Visit http://corp.fhlbatl.com/CommunityInvestment.aspx?id=118. If you need to know what lenders offer the FHLBank grant, contact places2love@gmail.com or 404.444.5777.

Happy House Hunting!