Lately, we have been contacted quite often by a certain type of buyer. These are people who are looking to purchase a home, but currently don't quite have the credit they need to get a mortgage.
Many of these clients have two sources of income for their household and a good down payment saved up.
Are you an INVESTOR looking to do a Rent-To-Own agreement with a good buyer client? Most of our clients have a down payment saved and a house picked out already.
Contact us if you are interested in finding out more!
www.RockRealtyWI.com
877-774-7625
FIRST-TIME HOMEBUYER TAX CREDIT
As Modified in the American Recovery and Reinvestment Act
Major Modifications Italicized
|
February 2009 FEATURE |
CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008 |
REVISED CREDIT - EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009 |
|
Amount of Credit |
Lesser of 10 percent of cost of home or $7500 |
Maximum credit amount increased to $8000 |
|
Eligible Property |
Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence. |
No change All principal residences eligible. |
|
Refundable |
Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser. |
No change Purchasers will continue to receive refund for unused amount when tax return is filed. |
|
Income Limit |
Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000). |
No change Same income limits continue to apply. |
|
First-time Homebuyer Only |
Yes. Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years previous to purchase. |
No change Still available for first-time purchasers only. Three-year rule continues to apply. |
|
Revenue Bond Financing |
No credit allowed if home financed with state/local bond funding. |
Purchasers who utilize revenue bond financing can use credit. |
|
Repayment |
Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing. |
No repayment for purchases on or after January 1, 2009 and before December 1, 2009 |
|
Recapture |
If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale. |
If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009. |
|
Termination |
July 1, 2009 (But note program changes for 2009) |
December 1, 2009 |
|
Effective Date |
Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year. |
All revisions are effective as of January 1, 2009 |
First, collect all your bills from everyone you owe money to. Total all your expenses per month and compare it to your total income each month. If you can foresee any difficulty now or in the near future making your payments it is time to take immediate action. Gathering this information will also help you be more prepared when speaking with the lender.
Contact your lender(s) and explain your situation to find out if they can work with you. The $275 billion Homeowners Affordability and Stability Plan that just passed should make it easier for banks to refinance or modify your mortgage. Low-cost refinancing will help with mortgages that are more than 80 percent of the current home value. Loan modification under the Homeowners Stability Initiative will assist owners with a total debt that is 55% of their total income. More information about the Stability Plan program is found at this website:
If you do not feel comfortable speaking with your lender you can contact a reputable mortgage counselor. Visit www.hud.gov or call 1-800-569-4287 for a list of HUD approved housing counselors. These agencies may also have credit counseling available. These services are usually free.
Selling your house may be the only option that works for your situation. If you have enough equity you may be able to sell your home and pay off the mortgage. If not then you may have to ask the bank to take less than what is owed in a short sale. At this stage please contact Rock Realty at 1-877-774-ROCK(7625).
Don't wait to be behind many payments to take action. If you can anticipate difficulty with paying your mortgage now or in the near future there are steps you can take to help avoid foreclosure. Calculate your financial situation to find your ability to pay your mortgage. Contact the bank for any programs they may have for making your payments more affordable. You can speak with a housing counselor for assistance in helping straighten out your finances. If all your other options no longer work contact Rock Realty to help you plan a short sale. The longer you wait the fewer options you may have.
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***---------We negotiate short sales for home owners. Ask me about our available discounted homes!- We pay referrals!- Do you have a listing that may go to foreclosure? No equity, call us!---------***
Do you owe more then your home is worth? Falling behind with payments? We have helped many Wisconsin home owners out of unfortunate situations. WE SPECIALIZE IN WISCONSIN SHORT SALES.
Concerned about keeping foreclosure off of your records?
We're here to help!
CONTACT INFORMATION:
AQUISITIONS & SALES:
Michael Collins
(608)921-8536
ADVERTISING &
TECHNICAL SUPPORT:
Matthew Heitmann
(608)347-4196
Via fax at (877)774-ROCK
Click on "FRESH START PACKET" for more information!
WHEN MIGHT I CHOOSE A SHORT SALE?
If you are falling behind on mortgage payments, owemore than the house is worth and/or have a second or third mortgage, you want to avoid
foreclosure and get a fresh start, you may want a short sale.
WHAT IS A SHORT SALE?
A "Short Sale" occurs when a Lender agrees to take less than theamount owed to payoff a loan as an alternative to foreclosure. Lenders know that it takes
on average $60,000 to take a property back. We can often convince them that they will
be better off financially if they sell the property now, to us, rather than taking the home
through foreclosure and trying to sell it later.
HOW LONG WILL IT TAKE?
The Short Sale negotiation process can be a lengthy one. It maytake several weeks or a few months to get an approval. Many Lenders have several layers of
bureaucracy and processes which we work through in order to get a Short Sale approved.
WHAT DOES IT COST?
We do not charge for short sales, our fees are covered by the lender.
WILL I HAVE ENOUGH TIME?
Time is of the essence in this situation, so you should always,at the very least, contact an advisor to find out what your options are and what can still be
done. If you are just starting to fall behind, you have other options and may be able to work
it out on your own with some advice. If you are a few days away from the sheriff's sale, there
may not be enough time. Please call us as soon as you see the issue arise.
CAN I STAY IN THE HOUSE?
Since lenders no longer allow homeowners to live in their home if
it is purchased via short sale, a home owner will need to find alternative housing arrangements.
HOW DO I KNOW THIS WILL WORK?
There's no way of knowing if the lender will agree to ashort sale. However, we are very good at what we do, and can often present a very strong
case and convince the lender to agree to the sale.
WILL I GET ANY MONEY FROM THE SALE?
Unfortunately, no. Since the Lender is taking a losson your loan, they will not allow any funds to transfer to you. It is viewed as fraud.
HOW CAN I HELP?
The Lender will require us to submit a short sale package which will include some financialinformation from you. The short sale cannot actually begin until these are submitted, and time
is of the essence. Visit http://www.RockRealtyWI.com or call us at (608)921-8536 for more details.
WHAT CLIENTS HAVE SAID ABOUT ROCK REALTY.
"We are writing this testimonial to inform any potential clients that Michael Collins successfully helped save our home. We found ourselves in a financial hardship which caused us to be late on mortgage payments. This eventually led our lender to foreclose on our home. Michael Collins was able to negotiate with our lender and cancel the court auction. This gave us time to resolve our financial difficulties and eventually work out a payment plan with the bank."
"We both strongly endorse Michael Collins as an agent who has the experience and resources to help people like us in a similar situation. We are deeply gratefull for his efforts and plan to use him as our agent in any future real estate transactions."
****************
Chris & Linda (Janesville, WI)
Rock Realty Client
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"I found myself in a bad financial spot when I lost one of the two jobs I was working. Soon I didn't have the money to pay even my most important bills. After falling behind in payments on my house I was contacted by Matthew Heitmann from Rock Realty. He suggested that instead of losing my house through foreclosure I should attempt to do a short sale on my home.
It was easy working with Matthew Heitmann and Michael Collins from Rock Realty. They were able to keep a foreclosure off of my records and lift a huge weight off of my shoulders. The couple that we sold the home to were very happy to get it at such a cheap price. I would recommend Rock Realty to anyone who may be struggling to make their house payments."
****************
Melvin (Madison, WI)
Rock Realty Client
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Click on "FRESH START" for more information.
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