Frank & Sharon Alters, CDPE-Short Sales Jacksonville-Orange Park-Fleming Island

CREDIT SCORES - It's easy to lose your US credit if you're away for a long time. You're overseas, you pay cash for everything. You sold your home so you have no mortgage payment, you sold your cars, and you have no credit card debt. You've always had credit, right? Beware: if you go too long, your score will drop off the face of the earth and you will be a credit newbie come time to move stateside again.

We just sold a home to a darling family who had credit last summer. Yeap, had a letter approving them for a VA loan and they were coming in the late fall. Life was good. They came, we shopped, we found a great buy, we wrote a contract, we had to get a new lender since it was new construction and guess what? No credit, nada! Evaporated! What??

It took awhile, but we finally figured out that it had just been too long. Fortunate for us, the builder's rep contacted a very creative, out of the box loan officer who worked with an underwriter to create credit for them again. We closed last week. It's a happy ending for this family.

You may not be so fortunate if you don't have a loan officer like Patrice. Another lender had already given up. Protect your good credit by using at least minimal credit while overseas. You'll be glad you did when you come back home and want to purchase a large ticket item like a home or a car.

DRIVER'S LICENSE - Don't let your license expire when you're overseas. Before you leave, check with the state you are licensed with to find out how you can renew overseas. If you get an international license and show it to the state when you come back, you may have to take the entire driver's course again. You want to show your US license, not an international one - at least not in Florida. Laws are changing constantly. Be sure you are up to date on the requirements for a license in the state where you have yours.

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Want to know more about fabulous Orange Park FL and Fleming Island FL in the Jacksonville FL area? Email me at sharon@teamalters.com or call 904-673-2308.

Visit our website at www.teamalters.com for all Orange Park FL, Fleming Island FL homes in the greater Jacksonville FL area.

Original Photography, All Rights Reserved. *Military Relocation - Don't Lose Your Credit or Your Driver's License While Overseas *

The deadline for applying for Homestead Exemption for Property Taxes on your Primary Residence is March 1.

Save money on your Property Tax Bill!

Who qualifies?

1. People who purchased a home* January 1 - December 31, 2008.

2. The home* must be their primary residence, not a vacation home or second home.

What do I need to do?

1. You must have a copy of the deed to your property. If you are a first time buyer, you also need your social security number.

2. Take it to the Orange Park branch office at 1518 Park Avenue or the Courthouse in Green Cove Springs.

3. You may also mail the application. Go to the web site link below and download the appropriate form:

http://www.ccpao.com/forms-download.html#DR-501%20Exemptions

4. For questions, call Orange Park at 278-0803 or the Courthouse at 284-6305.

Why is this important?

Properties with a Homestead Exemption pay less property taxes. The average savings is about $700 for most homes in Florida but varies depending on the number of exemptions and the value of the property.

The Tax Credit for First Time Homebuyers was amended this week when President Obama signed it into law along with the stimulus package. Here are the basics for understanding how this can help you with your home purchase.

Below is a Summary, along with a chart provided by the National Association of Realtors.

1. A First Time Homebuyer is someone who has not purchased a primary residence in the last three years. If you have owned a home but sold it over three years ago, you would qualify. Check with your accountant to see if second homes or vacation homes would disqualify you.

2. The Federal First Time Homebuyer Tax Credit is now $8,000 or 10% of the value of the home. This means that any house over $80,000 in value would qualify for the full tax credit.

3. Homes purchased between Jan. 1, 2009 and Dec. 1, 2009 qualify for the tax credit.

4. You have to buy the home first, including whatever downpayment and closing costs that are involved. Then, when you file your taxes, you will owe less, which will be a credit.

5. Say you owe $5,000 in taxes. You would receive a $5000 tax credit. If you owed $8000, the credt would be $8000, etc.

6. Only Primary Residences are eligible (no second homes). Your Primary home could be a single family home, townhouse or condo.

7. Move within three years? You have to pay back the incentive. (I know you're wondering about proration; don't know the answer to that yet, still checking). If you live in the home three years or more, the creditis all yours, no payback.

8. As with any government program, there are income guidelines: $150,000 for a married couple, $75,000 for a single person.

9. If Buyers want to use this as a downpayment, they could check with their accountant to see if it was advisable to withhold less taxes this year, buy the house prior to Dec. 1, then file 2010 taxes early next year to receive the credit for 2010 quarterly taxes.

There were 24 foreclosures of single family homes in Clay County FL in January 2009. There were 74 residential single family home sales in the MLS in Clay County FL in January 2009. Single family homes include townhouses. Foreclosures are sales at the courthouse and are usually sold back to the first lien holder. Sometimes individuals buy them, but they must be financially able and purchase near market value or the bank will outbid them.

The highest parcel value was $348,000 in Eagle Landing at Oakleaf Plantation. The least parcel value was a manufactured home in Jacksonville South, valued at $65,000.

The presence of foreclosures continues the downward pressure on home prices. Although sales activity is up, home prices are still declining. Homeowners who need to sell their homes must choose Realtors who price their homes correctly to stay with the market. Homes that are priced right are selling.

There were three foreclosures in Oakleaf Plantation communities. The other foreclosures were in individual communities around the county. A graph below gives the zip codes and number of foreclosures in each zip code.

The Real Estate industry is a leading indicator of economic cycles. We are the first into a down cycle and also the first out. There are signs that the market is bottoming. There are other factors that could skew a recovery, but the activity reported by some agents on Active Rain throughout the country and in our own market is worth considering.

Historically, real estate values cannot be sustained long without income rising accordingly. This fact was lost in the boom years between 2003-2007 (in some areas of the country the years vary).

During 2007 one by one, sub-prime lenders folded. I remember when GreenPoint folded. They were the go-to guys for challenged buyers long before sub-prime was a buzz word. Apparently greed got the better of them.

The CEO and Founder of Watson Realty has hinted that we are at the bottom of the market. Sales in our office are up 18% over 2008 and we closed over $8,000,000 in January. Showings are almost triple since the first of the year.

Quote from Househunt article.

"- Delinquencies. Another indicator is the rate of late payments on subprime mortgages. Because the delinquency rate on each "graduating class" of mortgages tends to peak about 18 to 24 months after the loans were originated, the mortgages from 1999 to 2005 have already peaked, the class of 2006 is starting to peak and the class of 2007 is "still going through the roof with no sign of abating," Dotzour says. There is no class of 2008 because such mortgages have been virtually extinct this year.

"The party stopped in about July 2007, so if you take that out 18 months, that's the spring of 2009. At that point, the last class of subprime mortgages will have peaked in terms of delinquency ... so the pressure on prices coming from foreclosures is likely to peak" at that time or perhaps 90 days later, Dotzour says."

http://tiny.cc/eAOl7

Since the first of the year, people have commented on Active Rain posts that investors are back in the market (John Novak, Las Vegas, mentioned this in a comment on a post), that there are declining inventories and rise in sales - (Elizabeth Weintraub, Sacramento)

http://tiny.cc/wDHrT

and that properties priced correctly are selling quickly (Bill Gassett, Metrowest, MA)

http://tiny.cc/k9hFw

Did I mention we have had multiple offers on several properties?

Here's a new post (concerning multiple offers) by Elizabeth Bolton in Cambridge, MA

http://tiny.cc/NofTF

Zip Realty noted inventory in 29 major markets was down 13 percent from January 2008 in the Wall Street Journal. In January, inventory normally climbs, recovering from holiday lag. Inventory must bottom first before prices stabilize.

While all real estate is local, these reports are coming from different areas of the country, not just one area.

Fannie and Freddie have extended the moratorium on foreclosures until the end of February. There is talk of banks allowing people to stay in their homes and rent them, or banks share equity when the properties are sold, or putting a balloon on the end of the mortgage for the amount the property is upside down. Banks are short selling homes back to the owners, refinancng them at the lower rate.

The Senate quickly passed a $15,000 tax credit incentive last week that is expected to also pass in the House. This is amended. The credit is now $8000 for first time homebuyers and as it stands as of 2/12/09, does not have to be paid back. There are guidelines that have to be met to get the full amount. This is still subject to another vote, so nothing is final yet. Please see below for full information:

http://tiny.cc/vB6uB

If this passes, some of the buyers on the fence will return to the market, finding low interest rates and a tax free loan irresistible. Consider also the pent up demand that exists in the market place - people hesitant to buy until 'bottom.'

Are we seeing signs of the market bottoming, or is it a mere lull?

Please share what's going on in your market.

Photo by Big Stock Photo