Tara Cornett, Realtor in Orange Park FL

I felt this was important and wanted to share.


JACKSONVILLE, FL -- U.S. Sen. Mel Martinez has teamed up with the U.S. Department of Housing and Urban Development to offer a first-time home buyer forum to provide information about first-time home buyer programs. It says the program will provide information about first-time home buyer programs, FHA loans, tax credits, and credit counseling.

The forum will be held this Saturday, June 6th, 2009 from 10 a.m. to 1 p.m. at the University of North Florida.

An RSVP is required to attend the forum because of limited space. If you are interested in attending, please call (904) 398-8586 or email rsvpevent@martinez.senate.gov.

Lower prices and attractive mortgage rates are breathing new life into housing, with one measure of sales posting its fourth increase in the last five months.

Pending sales of existing homes, or contracts signed but not closed, rose 6.7 percent in April, according to the National Association of Realtors. April's pending sales were up 3.2 percent from a year ago, the NAR says.

The biggest increase in April was in the Northeast, where pending sales jumped 32.6 percent from the previous month.

The NAR's pending home sales index is a forward looking gauge, and the group cautions that it is more volatile than actual closed sales.

"The relationship between contracts on pending home sales and closings on existing home sales is taking longer than in the past for several reasons," said NAR chief economist Lawrence Yun. "Mortgage processing time has increased, it is taking many months to close on those homes requiring short sales with lender approval, and some sales are falling through at the last moment."

Still, Yun believes the housing market has already bottomed out in some areas.

The group last week reported closed sales of existing homes rose 2.9 percent in April.

The NAR's housing affordability index was also at its second-highest level on record in April.

Information from Jacksonville Fl Business Journal, June 2, 2009

New Tax Breaks on the House
By Broderick Perkins
March 5, 2009

Talk about tax shelters.

Your home likely provides more tax relief than any other acquisition, thanks, in part, to new federal laws designed to ease financial suffering in the recessionary economy.

Building on a host of existing tax benefits for homeowners, new breaks help you save money on buying a home, owning a home and selling a home.

Check your state for specific rules on income tax breaks levied by your state or other jurisdiction. They don't all match the federal deals.

First up? Breaks made available from the federal "Mortgage Forgiveness Debt Relief Act of 2007".

. Forgiveness of Debt Tax Break. When a lender allows the homeowner to forego repayment of principal and or interest the borrower owes and discharges the debt, the debt is considered ordinary, taxable income. The new law allows certain taxpayers to exclude discharged debt from taxes, provided the lender discharges the debt in 2007, 2008 or 2009.

The amount of debt that can be excluded is limited to $2 million and the exclusion is only available for loans used to buy, build or substantially improve a principal residence. Vacation homes, investment properties and other second homes don't qualify.

The is not a program, but a federal tax break that allows borrowers to avoid foreclosure, and related taxes, when they use a "short sale." A short sale occurs when a lender agrees to write off the portion of a mortgage that is higher than the value of your home (in an "upside down" mortgage), provided a buyer is willing to purchase the property or the lender is willing to finance the remaining balance. Previously, the forgiven portion could be considered income and taxed as such. The Mortgage Forgiveness Debt Relief Act of 2007, effective through 2010, removes federal taxes from forgiven debt for qualifying taxpayers.

Your certified public accountant, enrolled agent or other licensed tax professional can provide details about your qualification.

. Mortgage Insurance Deduction. The relief act also extends federal tax relief for qualified home owners who pay mortgage insurance. Qualified borrowers can deduct the full amount of their private or government mortgage insurance if their insured mortgage originates between 2007 and 2010.

Next? Another set of new tax breaks -- and one tax break take away -- come with the "Housing and Economic Recovery Act of 2008," (HERA) also called "Housing Assistance Tax Act of 2008".

. First Time Homebuyer Tax Credit. HERA's most notable provision is called a $7,500 "tax credit," but it really is more like an interest-free loan.

This deal is for buyers or couples who have never owned a home or who haven't owned a home in the past three years and closed or close the deal from April 9, 2008 to July 1, 2009. Only single taxpayers with adjusted gross incomes up to $75,000 and married couples filing a joint return with incomes up to $150,000 qualify for the benefit. In a "married filing separately" household a maximum credit of $3,750 can be claimed on each return.

Partial credits of less than $7,500 are available for some taxpayers whose adjusted incomes exceeds the limits. The credit is not available for individual taxpayers with adjusted incomes of $95,000 or more and for married taxpayers filing joint returns with incomes of more than $170,000.

All or a portion of the home buyer credit can be claimed as a refund even if the taxpayer has little or no federal income tax owed.

Here's the kicker. Designed to provide a financial incentive to get more people to buy homes in the down market, the $7,500 is actually a no-interest loan that must be repaid over 15 years, beginning two years after taking the credit. If the home is sold within 15 years, the balance of the tax credit payback is due, provided there is ample capital gains. The credit payback is forgiven if there's no capital gain at the time of the sale. (President Obama recently signed an economic stimulus package that boosted the credit to $8,000 for homes purchased in 2009. The tax credit is a real credit that doesn't have to be paid back.)

A move is afoot, with backing frome the National Association of Homebuilders to legislate a real tax credit for buyers, double the current interest-free loan amount or $15,000.

Former real estate broker, U.S. Senator Johnny Isakson (R-Ga), introduced legislation to make the deal a real tax credit (not to be paid back) of the lesser of $15,000 or 10 percent of the purchase price for any homebuyer purchasing any home. The legislation unanimously passed the Senate in early February.

. Standard Deduction for Property Taxes. HERA also allows homeowners to claim an additional standard deduction for property tax if they do not itemize deductions. The additional amount is limited to $500 or $1,000 for joint filers. The amount is claimed as an additional amount on top of their standard deduction. The deduction is valid for the 2008 tax year only.

. Prorated Capital Gains Exclusion for Residential Real Estate. Second homeowners are helping foot the bill for HERA.

Under current law, married homeowners can exclude from taxation, up to $500,000 in gains from a home sale, provided the property was the primary residence for two out of the previous five years. The maximum exclusion for a single person is $250,000.

Vacation and rental property owners can legally double dip the exclusion by first selling their primary residence and capturing the tax-free gain. Then, after moving into the second residence for two years to qualify it as their primary residence, they are able to cash in again on the tax-free gain after selling the second home.

That ends January 1, 2009 when HERA eliminates the capital gains exclusion for the portion of gain that came while the home served as a vacation or rental property. The act retains the tax benefit for any gain achieved during the period when the property served as a principal residence.

Here's an example for a homeowner who sells a residence after 10 years of ownership and the home was a vacation property for eight years. If the home owner realizes a $100,000 gain when the home is sold, $80,000 would be subject to capital gains tax. The remaining $20,000 would qualify for the exclusion. Of course, if the home is never used as a vacation property, and is the primary residence for two years out of the last five, the full $100,000 gain would still be tax free.

Because the law doesn't take effect until 2009, home owners who move into the vacation home before the end of 2008 will still be eligible for the benefits of the old law.

Whenever it comes to taxes? See a professional.

For all the tax benefits that come with homeownership, see: A dozen tax breaks, on the house

For related reading, see: Foreclosure prevention efforts grow Bush signs landmark housing act $700 billion bailout overshadows $300 billion 'Hope'

Tax Glossary

Deduction -- A tax "deduction" reduces your taxable income. Less income to tax means less taxes to pay. For example, a $100 tax deduction reduces your $50,000 taxable income to $49,900.

Credit -- A tax "credit" is a dollar-for-dollar reduction in your actual taxes due. A $100 tax credit reduces your $1,000 tax bill to $900.

Copyright © 2009 Realty Times. All Rights Reserved.

ORLANDO, Fla. - Feb. 25, 2009 - Florida's existing home sales rose in January, making it the fifth month in a row that sales activity showed increases in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). Existing home sales rose 24 percent last month with a total of 8,450 homes sold statewide compared to 6,810 homes sold in January 2008, according to FAR.

"Many people are looking at today's market and seeing opportunities to find the home or business they've always wanted," said 2009 FAR President Cynthia Shelton. "With a range of available housing options, historically low mortgage interest rates and affordable prices, buyers who may have been hesitant before should take a closer look at the current opportunities for homeownership. As real estate professionals who know all aspects of their local market conditions, Florida Realtors are here to help counsel consumers making sound long-term decisions for their homes and their businesses."

Florida Realtors also reported a 13 percent gain in statewide sales of existing condominiums in January, making it the fourth recent month (following September, October and December) that statewide existing home and existing condo sales were higher compared to year-ago lev els.

Thirteen of Florida's metropolitan statistical areas (MSAs) reported increased existing-home sales in January while 11 MSAs also showed gains in condo sales; it marks the seventh consecutive month that a number of markets have reported increased sales.

Florida's median sales price for existing homes last month was $139,500; a year ago, it was $206,900 for a 33 percent decrease. According to industry analysts with the National Association of Realtors® (NAR), there remains a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in December 2008 was $174,700, down 14.8 percent from a year earlier, according to NAR. In California, the statewide median resales price was $281,100 in December; in Massachusetts, it was $275,000; in Maryland, it was $267,925; and in New York, it was $220,000.

NAR's latest housing outlook shows that home prices continue to fall, but also notes a trend of increasing sales activity in the Florida, California, Arizona and Nevada markets. "It appears some buyers are taking advantage of much lower home prices," said NAR Chief Economist Lawrence Yun. "The higher monthly sales gain and falling inventory are steps in the right direction, but buyers will continue to have an edge over sellers for the foreseeable future."

In Florida's year-to-year comparison for condos, 2,556 units sold statewide compared to 2,266 sold in January 2008 for a 13 percent increase. The statewide existing condo median sales price last month was $113,400; in January 2008 it was $190,200 for a 40 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $181,400 in December 2008.

Interest rates for a 30-year fixed-rate mortgage averag ed 5.05 percent last month, down from the average rate of 5.76 percent in January 2008, according to Freddie Mac. FAR's sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state's large to medium-size markets, the Daytona Beach MSA reported a total of 419 homes sold in January compared to 321 homes a year ago for a 31 percent increase. The existing home median sales price was $131,800; a year ago, it was $179,100 for a 26 percent decrease. In the year-to-year comparison for the existing condo market, a total of 77 units sold in the MSA last month, up 43 percent compared to 54 condos sold the previous January. The market's existing condo median price was $167,800; a year ago, it was $230,000 for a 27 percent decrease.

© 2009 FLORIDA ASSOCIATION OF REALTOR

A new tax credit of up to $8,000 for first-time homebuyers has been approved with the economic stimulus package. This is really awesome and first time homebuyers means you haven't owned a home in the last 3 years. The credit for 10 percent of the value of a home, up to $8,000, so the home has to be atleast $80,000 to get the full $8,000. The home has to be purchased by December 1, 2009 and you will file your credit when you do your taxes in 2010. If you do not owe anything to the IRS, you will get a $8,000 tax return check, if you owe $2,000, you will get a check for $6,000. Also, you do not have to pay the credit back as long as you stay in the home atleast 3 years. Income limitations do apply.

You always need things when you buy a home, whether its a resale, you want to replace carpet and paint or if you buy new construction, you might need blinds, fans, fence, etc. This tax credit comes in handy. Granted since you don't get the money right away, you could always use a low interest credit card on the items above and pay it off when you get your taxes back.