Liz Mackenzie, Associate Broker

$8,000 First-time Home Buyer Tax Credit Major Points:

The $8,000 tax credit is for first-time home buyers only.

• For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home''s purchase price up to a maximum of $8,000.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit now applies to sales occurring on or after January 1, 2009 and or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
• For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
• For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

The $6,500 Move-Up / Repeat Home Buyer Tax Credit Major Points:

• To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home''s purchase price up to a maximum of $6,500.
• The tax credit applies only to homes priced at $800,000 or less.
• The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by May 1, 2010, the home purchase qualifies provided it is completed prior to July 1, 2010.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

REALTORS....here is another bit of info for your toolbag!

FHA requires that only owners of record may sell properties that will be financed using FHA-insured mortgages.

Any resale of property may not occur before 90 days from the last sale date, unless it falls within one of the following exceptions:

• Sale by HUD if its Real EstateOwned
• Sale by other Government agencies of single family properties
• Sale of properties that are acquired by the sellers by inheritance
• Sale of properties purchased by employers or relocation agencies in connection with relocations of employees
• Sale of properties by state and federally charted financial institutions
• Sale of properties by a Government Sponsored Enterprises
• Sale of properties by local and state government agencies
• Sale of properties by nonprofits approved to purchase HUD-owned single family properties for resale

FHA defines the seller's date of acquisition as the date of settlement on the seller's purchase of the property.

The resale date is the date of execution of the sales sales contract by the buyer that will result in a mortgage to be insured by FHA.

Check out my Localism page with my blog entries and comments.

http://localism.com/neighbor/lizmackenzie

RESPA, enacted by Congress in 1974, is a federal consumer disclosure designed to inform consumers of their settlement costs and to prohibit certain practices, such as referral fees between settlement service providers, that result in higher costs to consumers.

The RESPA was recently amended, with changes becoming effective Jan. 1, 2010.

Please make sure that you have this new information and if training is available in your area try to get in a session.

Possible Mortgage Fraud Red Flags

The Latest from the mortgage industry - help our homeowner's and business owners avoid the scam artists! Some of their tactics are listed below.

1. The business guarantees it can stop a foreclosure

regardless of the borrower's actual circumstances.

2. The business tells you to break off any contact

with your lender / servicer, independent counselor

or attorney.

3. The business asks for payment up front, before it

has performed any services.

4. The business instructs you to turn over your monthly

mortgage payment to it, and not your loan servicer.

5. The business attempts to get you to sign over

the title to your home or business.

6. The business asks you to sign incomplete or blank

paperwork or pressures you to sign a document

you haven't had time to read thoroughly.

7. The business promises to repay all of your defaulted

mortgage payments for you.

8. The business claims that title transfer will only

be temporary and you will be able to reclaim your title

on a later date.

9. The business promises to pay off your current

mortgage, even though you are currently in default,

in exchange for you taking out a new loan with their

company.