Mike & Cindy Jones~Jacksonville, Fl Real Estate~(904) 874-0422

Hey Jacksonville and Orange Park first-time homebuyer: How does $8,000 from your Uncle Sam sound?

Want an extra $8,000? If you're a first-time homebuyer then we have a nice surprise for you.

Last fall, the Federal Government introduced a financial incentive to prospective first-time homebuyers - an income tax credit of up to $7,500. The rules were simple: you must have been a first-time homebuyer (as defined by not owning a home in the previous three years) and you met certain income restrictions.

The new $8,000 tax credit is available to those who buy between January 1, 2009 and December 1, 2009. It's not a deduction, it's an actual credit. Unlike the $7,500 first-time homebuyer tax credit introduced last summer; this does not need to be repaid.

First timers who qualify can make no more than $75,000 in adjusted gross income if they're single or $150,000 if filing jointly. The maximum tax credit is $8,000 or 10 percent of the sales price of the home, whichever is less. Three years residence in the property are required. As always, check with your accountant for details and be sure to submit IRS form 5405 when you file your taxes.

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Orange Park Waterfront for sale Pick of the week - Homes for sale in Argyle

The Jones Group
Mike And Cindy Jones
Real Estate Consultants
904) 874-0422

Keller Williams First Coast Realty

As certified short sales experts in Jacksonville and Orange Park Florida, we have helped counsel many buyers and sellers through the process and have had many common asked questions about how it works. If you have further questions, please feel free to add them and we would be happy to answer.

Q: What is a short sale?

A. With real estate prices currently below 2004 and 2005 levels and falling, many homeowners find themselves needing to sell and owe more than they can sell for. If they have the funds available to cover the shortfall, they will not be considered for a short sale with debt forgiveness. Many sellers can no longer make their payments due to loss their job, recent divorce, failure of business or were a victim of the sub-prime market and need to sell. There is a possibility these distressed homeowners may qualify for debt forgiveness, but need to prove they do not have the money or will not have the money in the future to pay back the debt. The home is listed without any conversation with the lender and a short sale packed including the seller's financials and hardship letter is prepared. Upon receipt of an offer, the seller signs off on terms, although most terms are not official without lender's approval. The status of the property becomes "Pending" or "Contingent" The packet is submitted and is in line for the lender to review. This time frame roughly takes between one and three months to get a response. The bank orders a BPO, (brokers price opinion which values the home and is assigned a negotiator to work with the investors and buyer to come to terms. Once the lender approves a price, they send an approval letter with an end date to close by. With Form 22SS, the time frame for the inspection and financing contingencies begin upon lender approval.

Q: When does the bank become involved?

A: The bank does not talk to the seller or listing agent until there is an offer in hand. The listing price may be far less than the bank is willing to receive initially which commonly confuses the buyer. Once they have an offer, the BPO is done which in turn values the property for the bank. The BPO is current market value done by a local agent. Many times the first buyer walks away as they are not interested in paying the BPO amount. The longer the home sits on the market and the closer the foreclosure date, the lower the price the bank will accept. It is the BUYER'S agent's job to research the seller's financial situation to determine the likelihood of the bank accepting their desired price. We always sit our clients down and explain each scenario and set their expectations correctly so there is no last minute confusion. It is important to understand that the lender will always negotiate, so it is imperative to start your offer below what your walk away price is, similar to any negotiation. Currently, lenders are starting to realize they will make more money on a short sale than if they move forward to foreclosure. Banks have so many foreclosures on their books that they are more inclined to work with interested buyers before they foreclose.

Q: Do most short sale transactions require the buyer to skip an inspection?

A: It is always highly recommended to get an inspection on any home, especially a short sale or foreclosure as many times homeowners in distressed situations do not care for the home as they should. The inspection can be done upon mutual acceptance with the seller to avoid waiting up to three months for lender approval OR can be done upon lender's approval after waiting to avoid paying the $300-$500 inspection cost. The issue is when you find items that need repair. If the seller is in a distressed situation where they need debt forgiveness, the seller is not in a position to make repairs. It is possible to renegotiate with the bank, although sometimes they will not re-negotiate. Either way, the inspection is mainly for the buyer's information to know what condition the home is they are buying and what items will need to be addressed in the future.

Q: I did some internet research and read that only 10% of the short sales come to a successful close and the rest become bank owned. So sounds like a very depressing success ratio.

A: The statistics you read may look depressing, but want to remind you the buyer is unique for a short sale transaction... they are looking into other options while waiting on the lender response, and also looking for an extremely aggressive price. The amount of offers submitted and sales that occur are skewed because many buyers walk away if they find a home they like better, or if they do not get the price they want. We have sold many short sales as they are the majority of the market and have had a much higher success rate.

If you find yourself in a position where you need to sell and are facing eminent default and would like to discuss your options, give us a call. We are always glad to help!

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The Jones Group
Real Estate Consultants
Certified Short Sale Specialist
(904) 874-0422
E-Mail JonesGroup@kw.com

Keller Williams Realty

Did you know.....

Congress has passed legislation providing a tax credit of up to $8000 for first time home buyers? Homes purchased between January 1^st 2009 and December 1^st 2009 area eligible.

What a great incentive for first time home buyers to purchase property right now! And the credit does not have to be paid back if the property is used as the purchaser's principle residence for at least 3 years.

This tax credit coupled with record low interest rates, and abundant inventory levels make this the perfect time to buy real estate. Perhaps the best time you will ever see in your lifetime.

First time home buyer by law is defined as:

The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the home ownership history of both the home buyer and his/her spouse.

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

West Jacksonville with Lake View All Brick Bungalow Home with land...horses okay

Super Priced Pool Home Jacksonville Riverfront Oakleaf Plantation Like New

Condo- gated riverfront community Clay County on the St Johns River Builder model FORECLOSED

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The Jones Group
Real Estate Consultants
Short Sale Specialist
(904) 874-0422
JonesGroup@kw.com

For all your Real Estate
needs in Jacksonville and
Orange Park, Florida

A family of moles was burrowing its way to a Jacksonville house that was for sale.
The sellers were preparing breakfast.
Papa mole, in the lead, caught the first whiff of food.
"MMMMmm, I smell biscuits and gravy", he proclaimed.
Mama mole, just behind Papa, says, "And I smell pancakes and maple syrup."
Taking up the rear, baby mole says "All I can smell back here is molasses!"

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PROPERTY OF THE WEEK!                       AWESOME FORECLOSURE PROPERTY

CLAY COUNTY WATERFRONT                   MIDDLEBURG - POOL - 2.5 ACRES - HORSES OKAY

OAKLEAF PLANTATION SHORT SALE          ORANGE PARK RIVERFRONT

The Jones Group
Mike & Cindy Jones
Real Estate Consultants
Certified Short Sale Specialist
(904) 874-0422
JonesGroup@kw.com

Jacksonville and Orange Park first time home buyers...LOOK!

In addition to all time low interest rates, a huge supply of inventory and the many DEALS to be had....you now have an additional 8000 reasons to buy NOW!!

2009 Housing Stimulus bill: $8000 Home buyer tax credit for first time home buyers
The proposed $789 billion economic stimulus package contains a key housing stimulus bill designed to help first time homebuyers in order to revive the US housing market. This 2009 Economic stimulus plan has finally been signed by the President and is now a law. If you are a first time homebuyer planning to purchase a home in 2009, this housing stimulus can help you provide a refundable tax credit of 8000 USD. Read this entire post to understand the details of this housing tax credit and to find out if you qualify to recieve this housing stimulus.

How does $8000 home buyer tax credit work?
In order to understand the details of the housing stimulus bill or $8000 home buyer tax credit (also called as $8000 housing tax credit) as a first time home buyer you need to understand the following six important points.

1. What does first time home buyer exactly mean? -The law defines "First time home buyer" as a home buyer who has not purchased a principal residence for the last three years. For married tax payers, both the home buyer and his/her spouse must fit this criterion. Even non resident aliens who are not US citizens may qualify for this tax credit.
   
2. Dates of home purchase - In order to qualify for the home buyer tax credit, the first time home buyer must purchase the house between January 1 2009 and December 1 2009, both dates inclusive.
   
3. How much tax credit will homebuyers get? - Although this tax credit is referred to as $8000 housing tax credit, remember that the total amount of tax credit a home buyer gets is equal to 10% of the purchase price of the new house upto maximum of $8000. Thus in order to get a full tax credit of $8000 your purchased property must be above $80,000 in value.
   
4. Income Limits for $8000 home buyer tax credit: First time home buyers with modified gross annual income of $75,000 get full benefit of this housing tax credit. The tax credit is gradually reduced for those with income between $75,000 to $95,000 and finally a home buyer gets no tax credit if his/her modified gross annual income is more than $95,000. For married taxpayers, the home buyer tax credit is gradually reduced to zero for modified gross annual income between $150,000 to $170,000.
   
5. This is a Refundable Tax Credit - Remember that this is a tax credit and not a tax deduction. That is qualified first time home buyers deduct $8000 from their total tax owed to the IRS and NOT the total taxable income. Moreover a refundable tax credit means that in case the total taxes you owe to the IRS are less than $8000, you can actually get a refund for the balance amount!
6. This $8000 home buyer tax credit, unlike $7500 tax credit does not need to be repaid to the IRS - the earlier $7500 housing tax credit was essentially an interest free loan which the home buyers needed to repay in 15 years. However, although this $8000 home buyer tax credit may look only $500 more than the previous housing tax credit, it is all yours ! no need to repay it to the Federal government.

Here are one Income Tax tips for first time home-buyers: If you know you qualify for the $8000 home buyer credit there is no need to wait to file your 2009 tax return in order to get benefit of this housing stimulus. First time home buyers are actually permitted to reduce their income tax withholding by the amount equal to housing credit, i.e. $8000. You can then use this 'extra cash' got by increase in your take home pay for downpayment !

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YOUR HOMES VALUE

Pick of the week!

The Jones Group
Mike & Cindy Jones
Real Estate Consultants
Certified Short Sale Specialist

Contact us:
(904) 874-0422
JonesGroup@kw.com