Sandy Van

Congress recently enacted a housing tax credit for first time home buyers who purchase a house and have it close before December 1, 2009. The tax credit does not have to be repaid. In addition, if you pay less than $8,000.00 in taxes you get a check from the government. Please see the link below for more information and check with your tax or legal advisor to see if you qualify.

http://www.federalhousingtaxcredit.com/2009/home2.html

WHY DO A SHORT SALE

I often get the question from sellers who are upside down in their house, should we short sell our house, or just walk away? We all have seen it affect our neighborhood, or know of someone facing financial hardship. Please refer them to me and I will have a short sale expert help them with this difficult decision.

A short sale on your home means that a person owes more on their home than it is appraised for. The bank may make a concession and accept an offer on your house for less than the amount owed.

About.com offers many resources on why a homeowner should do a short sale rather than have their house foreclosed upon. Those reasons include being able to buy a house sooner than if they were to foreclose on their house and having it remain on your credit for a shorter period of time. Circumstances differ as to each seller depending on how delinquent they are on their payments, so please contact your legal or tax advisor.

Check out About.com and its valuable resources on the short sales, credit affects, and rationale of why you should do a short sale.

http://homebuying.about.com/od/shortsale/a/052208SScredit.htm

Here is some more helpful advice from your friendly realtor. On February 4, 2009, Treasury secretary Timothy Geitner and President Barack Obama announced a plan to help struggling homeowners. This website was recently talked about on a CNBC special called "Who's Protecting Our Money?" with FDIC chairwoman Sheila Blair, Erin Burnett, and Jim Cramer. There are two programs, but I will only highlight a few points of one...

How do I know if I qualify for a payment reduction under the Homeowner Affordability and Stability Plan?

In general, you may qualify for a mortgage modification if (a) you occupy your house as your primary residence; (b) your monthly mortgage payment is greater than 31% of your monthly gross income; and (c) your loan is not large enough to exceed current Fannie Mae and Freddie Mac loan limits. Final eligibility will be determined by your mortgage lender based on your financial situation and detailed guidelines that will be available on March 4, 2009.

How do I apply for a modification under the Homeowner Affordability and Stability Plan?

You may not need to do anything at this time. Most mortgage lenders will evaluate loans in their portfolio to identify borrowers who may meet the eligibility criteria. After March 4 they will send letters to potentially eligible homeowners, a process that may take several weeks. If you think you qualify for a modification and do not receive a letter within several weeks, contact your mortgage servicer or a HUD-approved housing counselor. Please be aware that servicers and counseling agencies are expected to receive an extraordinary number of calls about this program.

What should I do in the meantime?

You should gather the information that you will need to provide to your lender on or after March 4, when the modification program becomes available. This includes

• information about the monthly gross income of your household including recent pay stubs if you receive them or documentation of income you receive from other sources

• your most recent income tax return

• information about any second mortgage on the house

• payments on each of your credit cards if you are carrying balances from month to month, and

• payments on other loans such as student loans and car loans.

For more information please visit:

www.financialstability.gov

http://www.treas.gov/initiatives/eesa/homeowner-affordability-plan/ConsumerQA.pdf

Here is some more helpful advice from your friendly realtor. On February 4, 2009, Treasury secretary Timothy Geitner and President Barack Obama announced a plan to help struggling homeowners. This website was recently talked about on a CNBC special called "Who's Protecting Our Money?" with FDIC chairwoman Sheila Blair, Erin Burnett, and Jim Cramer. There are two programs, but I will only highlight a few points of one...

How do I know if I qualify for a payment reduction under the Homeowner Affordability and Stability Plan?

In general, you may qualify for a mortgage modification if (a) you occupy your house as your primary residence; (b) your monthly mortgage payment is greater than 31% of your monthly gross income; and (c) your loan is not large enough to exceed current Fannie Mae and Freddie Mac loan limits. Final eligibility will be determined by your mortgage lender based on your financial situation and detailed guidelines that will be available on March 4, 2009.

How do I apply for a modification under the Homeowner Affordability and Stability Plan?

You may not need to do anything at this time. Most mortgage lenders will evaluate loans in their portfolio to identify borrowers who may meet the eligibility criteria. After March 4 they will send letters to potentially eligible homeowners, a process that may take several weeks. If you think you qualify for a modification and do not receive a letter within several weeks, contact your mortgage servicer or a HUD-approved housing counselor. Please be aware that servicers and counseling agencies are expected to receive an extraordinary number of calls about this program.

What should I do in the meantime?

You should gather the information that you will need to provide to your lender on or after March 4, when the modification program becomes available. This includes

• information about the monthly gross income of your household including recent pay stubs if you receive them or documentation of income you receive from other sources

• your most recent income tax return

• information about any second mortgage on the house

• payments on each of your credit cards if you are carrying balances from month to month, and

• payments on other loans such as student loans and car loans.

For more information please visit:

www.financialstability.gov

http://www.treas.gov/initiatives/eesa/homeowner-affordability-plan/ConsumerQA.pdf