This is a great article for homebuyers and real estate professionals alike. Please let me know what your thoughts are on the tax credit and the possible extention of it.
According to an article written By Stephen Ohlemacher, Associated Press Writer
On October 28, 2009
WASHINGTON (AP) -Senators agreed Wednesday to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers.
The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November. The Commerce Department said Wednesday that new home sales fell 3.6 percent in September, and some industry representatives blamed uncertainty about the tax credit.
Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev.
The tax credits would be available to homebuyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, according to a summary of the legislation being circulated among lawmakers.
Senators were still negotiating the expansion of a separate tax credit that lets money-losing businesses get refunds for taxes paid in previous years, providing them with an immediate source of cash.
Senators in both political parties were hoping to add both tax provisions to a bill that would give people running out of unemployment insurance benefits up to 20 more weeks of federal aid. The Senate could vote on the overall bill as early as Thursday, but lawmakers were still haggling over several unrelated amendments Wednesday evening.
Popular bills like the one to extend unemployment benefits often attract amendments that would have a difficult time passing on their own.
Republicans were demanding that they be given a chance to offer amendments to restrict federal aid to the beleaguered community activist group ACORN and on requiring that people receiving unemployment insurance be processed through E-Verify, an Internet-based system that employers use to check on the immigration status of new hires.
Majority Democrats have refused to add the amendments.
If the Senate passes the bill, it would go to the House, which passed a similar bill extending unemployment benefits last month. House leaders have also said they support extending the tax credit for homebuyers.
Sen. Chris Dodd, D-Conn., has been negotiating for several weeks with Sen. Johnny Isakson, R-Ga., to craft an extended tax credit for homebuyers that would pass the Senate.
Lawmakers didn't release a cost estimate for extending the tax credit, though similar proposals were projected to cost about $10 billion.
Industry representatives said uncertainty about the tax credit is hurting new home sales. September's decline was the first since March.
It takes 45 days to 60 days to close on a house, making it unlikely a sale made today would be consummated by the end of November, said Lucien Salvant, spokesman for the National Association of Realtors.
"Buyers right now have an incentive to hold off, not knowing whether the credit will be extended," Salvant said.
About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.
The tax credit for money-losing businesses is a favorite among Republican lawmakers. Businesses could get tax refunds by using losses from 2008 and 2009 to offset taxable profits made in the previous five years. Under current law, they can only offset profits from the previous two years.
The provision would help a variety of industries, including retailers, manufacturers and home builders, though it's expensive.
"It's clearly a way to put cash in the hands of some major economic players," said Clint Stretch, a tax policy expert at Deloitte Tax.
A similar proposal that was ultimately dropped from the economic stimulus package enacted in February would have cost nearly $20 billion over 10 years. Lawmakers are working to reduce the price tag.
Because people are so strapped for cash, this is a good way to get refunds when businesses need them for operating expenses, said Rachelle Bernstein, vice president and tax counsel for the National Retail Federation.
This was great info. interested in your feedback....Thanks Tiffany
Have you ever wondered what the difference is between a condo, and a town home? Well, if you answered yes to this question, you are certainly not alone. In fact, I was surprised to realize that most people do not know the difference, there seems to be much confusion and debate on this subject even between professionals. I thought it would make for a great educational blog regarding this subject to clear up these common mis-conceptions.
According to the Realty times; A condominium buyer owns their unit, plus a percentage of the surrounding property, including land and amenities on the property. Residents are members of a homeowners' association (HOA) and pay a monthly fee to the association in exchange for maintenance of the common property. Each condominium complex has a master deed which outlines the percentage of ownership. That percentage determines residents' monthly dues to the association. Condominiums come in a variety of styles, from two- and three-story buildings apartment-complex style to luxurious high-rise properties with views of the surrounding city. The terms of condominium ownership sometimes are cloudier, because owners share more common areas (for example, stairs and hallways) than town home owners.
A town home buyer owns their unit, as well as the ground underneath that unit. Each town home has its own roof and (most) have their own address. For example; (123 Any street,) as opposed to a condo address ( 123 Any street unit 1A) Town home residents also typically belong to a homeowners' association (HOA) and pay monthly fees in exchange for the general maintenance of common outdoor areas. Town homes sometimes include single-family home amenities such as garages and backyards ( maybe, very small backyards), in which maintenance is the responsibility of the owner and not the association.
So, now that your aware of the difference between a "condo" and a "town home maybe we should explore the pros and cons of these type of ownerships versus a single family property...
More of this series coming soon!
Something happened this week that brought to mind the technology that we use on a day to day basis that most of us, probably never think about. One of those wonderful things is the very useful but sometimes terribly mis-used text message. I know that it is very helpful and also saves alot of time, especially when your in a big hurry and can't bear to get tied into a phone conversation with that chatty agent who has nothing better to do that talk about her uncle Bob's hip-replacement surgery. LOL, that was a joke but on a serious note I thought it would be a great idea for a list of some do's and do not's of texting...Most of these "should be" common sense but apparently, (after the ordeal this week) I learned some of us may be a little slower than others....so here it goes!
Text messaging 101...
1. Keep them short and sweet. If you need to write someone an in-depth message, send an email. Otherwise, give them a ring or see them in person. Long texts can be confusing or tough to respond to.
2. Consider your wireless costs.If upgrading to a different mobile plan includes unlimited texts and you're an avid text messager it maybe worth the extra cost,but above all consider the person your texting 500 times a day. Make sure that your texting habits is coherent to their plan as well as your own.
3. DON"T text while driving. LOL, okay This one falls into the common sense thing I was referring to in the beginning of the blog. Do I need to go into the why nots of this one? Okay, If you insist!
4. Be conscience of the tone of your text. It is extremely difficult to discern tone in text messages, same as in e- mail. What seems to you to be a completely innocent message may be grossly misinterpreted by the recipient, causing certain discomfort if not irreparable harm. Also, consider that your point may not be getting across though text message and your receiver may not understand (or worse, may mis-interpret) what your trying to convey to them. So, do yourself a favor, take the plunge and pick up the phone for important issues.
5. Be conscientious of others' schedules.Don't assume that because you are awake, not working, not busy, or (in extreme cases and we all know this person) NOT sober that the person you're texting is as well. Many peaceful dreams have been interrupted by the recurring text messenger that has no boundaries about who, when, and where they text.
6. Texting should remain casual. Texting can be fun but it should be for casual conversation. Use it to say hello, change of plans, etc...do not use text messaging to send out; into outer space, every thought that pops into your head. When you put something out there,try to remember that it is out there and it cannot be taken back. There is no guarantees who besides the person you are sending this to will run across your personal message. In these cases PLEASE use your phone to call the person or better yet have a good old face to face.
These are good rules of thumb that comes to mind, please feel free to add your on. I would be interested to hear your takes on this subject.
I'm not sure if this is just a Texas thing or a nationwide change but I received this in my in-box today and wanted to share! The 9% paid by seller better known as the Genesis etc.. programs are now over. We have three more months with a 3% contribution for our buyers. I have no affiliation with this loan officer but was happy to get this because I have been hearing about the coming changes but just didn't know when they would occur. Now we will all know.
CHECK IT OUT
The Housing and Economic Recover Act of 2008 (HERA) Revision:
Between October 1st and December 31st, current down payment/cash investment requirements still apply. The new 3.5% down payment is set to change January 1, 2009.
Additional Information:
· Closing Costs: Beginning January 1, 2009, closing costs may not be used to help meet the minimum 3.5% down payment/cash investment requirement.
· Seller Contributions: Sellers will continue to be permitted to provide financing contributions up to 6 percent of the sales price.
For more information please contact...
Cathy Escovedo
WR Starkey Mortgage, LLP
5350 S. Staples #302
Corpus Christi, TX 78411
361-774-8643 - Cell
According to the Sea Coast Echo , by sept. of 2008 there have been 87 arrest made for home repair fraud . It seems like there has been an increase in the number of these charges in the aftermath of Hurricane Katrina. With the recent hurricane and the large inventory of damaged or demolished homes along the Mississippi gulf coast this seems to be a large playing field of easy prey for these dime a dozen petty criminals. The crimes are certainly not petty, when you consider the targets are commonly elderly persons with ill health and many are already impoverished without the help of these reprehensible thieves. Lets just call it what it is!
Posted below is a copy of the Sea Coast Echo story; if you are a victim , or know of someone who was a victim of this man (Gilbert LaFrance, of LaFrance's remodeling ) or any other decerebrate contractors in regards to home repair fraud, there is a link here to make a complaint and there is also a telephone number posted. There are people here on your side, please call, there's someone waiting to hear your complaints.
87th Contractor Charged with Home Repair Fraud
September 12 2008
Contact: Jan Schaefer
Public Information Officer
601/359.2002
FOR IMMEDIATE RELEASE
Jackson, Miss. -Attorney General Jim Hood today announced his agency's 87th arrest for home repair fraud.
Gilbert Horash LaFrance, age 57, of Kiln, was arrested and charged September 11,2008 with Misdemeanor Home Repair Fraud and Misdemeanor Contracting without a Residential Builder's License. He appeared before Hancock County Justice Court Judge Tommy Carver who set bond at $2,000 ($1,000 for each charge).
LaFrance, owner of LaFrance Construction, was hired by a Bay St. Louis woman to repair her home after it was severely damaged by Hurricane Katrina. She alleges that LaFrance never completed the job he was hired to do, and the work that was performed did not meet building code.
LaFrance was also hired by a man from Bay St. Louis to build a new home after his was destroyed by Hurricane Katrina. An investigation confirmed that LaFrance did not have a Residential Contractor's License.
"What we see a lot is that so called contractors will contract with a homeowner and then have the homeowner pull the building permits," said Attorney General Hood. "This is the main way crooked contractors try to get out of having a builders license. The contractor should always pull the permit, not the homeowner.
Consumers can find tips on preventing home repair fraud at http://www.agjimhood.com
LaFrances court date has been set for October 14, 2008. As with all cases, the charge is merely an accusation and the defendant is presumed innocent until proven guilty.
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