Tax Credit closing date extension update:

As you will recall, we emailed you last week about U.S. Senate passage of an amendment that would extend the homebuyer tax credit “Closing Deadline” from the current June 30 date to September 30, 2010.

That amendment was part of a larger piece of legislation referred to as the “Extenders Bill.”

Unfortunately, the bill failed passage in the Senate three times this week.

The National Association of REALTORSâ is working closely with key Members of Congress, the Senate, and Senior Congressional Staff on the extension of the June 30, 2010 closing deadline for contracts eligible for the Homeowner Tax Credit.

The best advice is to proceed with any pending transactions as if the June 30, 2010 closing date will remain final and binding.

NAR is pursuing all possible options with senior congressional staff to determine what other legislation may be available for passing a June 30 extension.  Each of the possible options presents difficult obstacles, but NAR’s efforts to clear the way are ongoing.

The Senate will NOT have any votes today (Friday, June 25).  This will push the Tax Credit Extension deadline to the week of June 28, 2010.

Should Congress extend the date, information will be posted on http://www.realtor.org/government_affairs as soon as it happens.

The final outcome will be posted on http://www.realtor.org/government_affairs on July 1, 2010.

We will provide updates on this issue as they occur.  If you have any questions or need additional information, please contact me at 513-842-3014 or mquarry@cabr.org.

Advertisements

Tax credit closing date EXTENDED!!!!

U.S. Senate passed yesterday (60-37) an amendment that would extend the homebuyer tax credit “Closing Deadline” from the current June 30 date to September 30, 2010.

The amendment (introduced by Sens. Harry Reid, Johnny Isakson and Chris Dodd) is now part of a much larger emergency spending bill – which includes extension of certain unemployment benefits, increasing Medicare payments to physicians and flood insurance – to name a few.

Timing

Senate Majority Leader Harry Reid will likely file cloture today which means the Senate could vote on the entire emergency spending bill early next week (week of June 21st).

The U.S. House of Representatives would then need to approve the extension, likely to occur by the middle to end of next week (week of June 21st).

Assuming the House approves the extension, it then would go to President Obama for his signature, at which time it would become law.

What does this mean?

All indications are that the extension of the Closing Deadline is likely to occur.

However, as with any piece of legislation being considered by Congress, there are no guarantees until the final votes occur.

In the meantime

If you have a pending closing(s) for “tax credit” buyers, it would certainly be in your best interest to continue to work to complete them by the existing June 30 deadline.

We will provide updates on this issue as they occur. If you have any questions or need additional information, please contact me at 513-842-3014 or mquarry@cabr.org.

Take Care,

Mark

Mark J. Quarry

Director of Government Affairs

Cincinnati Area Board of REALTORSâ

Cincinnati Homes for Sale (Daily activity report-Weekend Review)

New Listings 228  
Back on Market 43  
Price Increases 6  
Price Reductions 211  
Pendings 200  
Solds 120  
Expireds 30  
Inactives 40  

The last weekend of the tax credit produced a high water mark for pending activity since we started reporting these numbers last summer. 200 pendings over the weekend shattered the previous high mark by over 20 homes, 181 in October 09.

The Home Finder Network was successful in helping dozens of buyers and sellers come together during the tax credit period. We have expanding our database and are in the process of working several other project. We want to extend our gratitude to all that have been apart of our business during the past 12 months and we look forward to helping families for years to come.

URGENT Reminder about UPMI!

Reminder…

Another reason for buyers to purchase and take advantage of the tax credits!

Beginning on April 5th Upfront Mortgage Insurance Premiums for FHA loans will increase from 1.75% to 2.25%.

Example on a $150,000 purchase price utilizing maximum FHA financing the financeable UFMIP will increase by $723.00 (again this is a financeable expense). This will increase the loan amount for all borrowers going forward (premium is calculated based upon the actual base loan amount with a minimum 3.5% down payment).

Tax Credit and slow closings

Homebuyer Tax Credits and slow closings.

As we all know, contracts must close by June 30, 2010 for the buyer to qualify for the tax credit.

At the same time, we know that some closings take longer than others, like short sales and bank owned properties. This delay may cause the closing to take place after the deadline, costing the buyer $6,500 or $8,000.

So if you have a buyer who is looking at a short sale property, you may want to warn them that the closing could be delayed past the deadline. You could even suggest a different property.

If they remain intent on buying the short sale property, then you should try to protect yourself. An easy way to do this is to have something in writing stating that you have warned them of the potential problem. This will keep you and REMAX out of hot water if and when the client tries to say you didn’t tell them this could happen. We already know how much they will want from you.

The properties showing the most delays are;
Short Sales
Bank owned REO (especially those that do not have a deed recorded yet.)
Condominiums

There are certainly others that will sound alarms for you, like property with tremendous amounts of work to be done, or estate sales. You just need to keep the dates in mind, and try to bring up the issue as early as possible so you can get the buyer to another property before the April 30th deadline.

ATTACHED is a sample form you could have the buyer sign showing you have advised them of the possible delayed closing.

Nick

Further Reasons Why to Buy a home NOW!

 

Top 5 Reasons Why You Should Buy Now and Not Later….
 
 
1.   The $8000 or $6500 tax credit available to buyers
2.   Rates will rise at some point in the near future…so first 4 months of the year could be the most ideal time to purchase
3.   FHA proposing to raise upfront mortgage insurance premiums from 1.75% to 2.25% in the very near future
4.   FHA proposing to reduce the amount of seller paid contributions from 6% to 3% (in high cost states this could increase out of pocket to buyers)
5.   Potential further credit tightening by FHA
 
Great time to buy!

Market Upate- Tax Credit FAQ’s

The complexity of new home buyer tax credits leaves potential buyers with many questions. Here are answers to some of the most confusing:

  1. How does a current home owner qualify for the $6,500 credit?
    Buyers must have lived in their homes for at least five out of the last eight years. The home they buy must become their primary
    residence, but buyers don’t have to sell their previous home. They can use the previous home as a rental or a second home and still claim the credit.
  2. Does the new home have to be more expensive than the one the buyer currently owns?
    No. It is fine to use it to downsize. If the property sells for more than $800,000, the buyers don’t qualify.
  3. Can buyers who are building a new home claim the credit?
    Yes, although the contract must be in place by April 30 and the buyer must move in by Jul
    y 1.
  4. Can buyers claim the credit if they purchase a home from a relative?
    No. The legislation prohibits taxpayers from claiming the credit if the sale is between “related parties,” including parent,
    grandparent, child, or grandchild

Source: USA Today

Market Update-Tax Credit details delivered

From the Desk of Bob Klorer

 

Financial markets as of now are relatively flat which is somewhat surprising based upon the unemployment rate exceeding 10% for the first time in over 25 years…
 
Stock market and bond markets are almost unchanged currently.
 
Thirty year fixed rates continue to trade in the 5.00 to 5.125% range fairly consistently as of right now and should for a period of time with the FED indicating no worries regarding any inflation in the near term!
 
Big news for the week, however is the extension of the Homebuyer Tax Credit…big win is for existing home buyers whom have owned there current home as a primary residence over the past 5 years…also, keep in mind that these home owners purchased prior to 2004 and for the most part bought prior to the rapid appreciation seen in home prices.   These potential move-up buyers should be in a much better position to purchase than most due to not buying at the height of the Real Estate market.
 
Again, a quick re-cap of homebuyer tax credit changes effective December 1st thru contracts written April 30, 2010…
 
–  $8000 first time buyer tax credit unchanged (again definition is not owning a principal residence 3 years prior to purchase)
–  Income limits increased for single home buyers to $125,000 and married home buyers to $225,000
–  $6500 credit for those who have owned principal residence for minimum of five years
 
If you should have any questions on any of the above, please feel free to contact me at anytime.
 
Have a great weekend!

Market Update-Tax Credit

 

From the Desk of Bob Klorer-Foundation Mortgage.
 
House has passed the tax credit extension (from info last evening)…bill to be signed by President tomorrow.
 
Once I have final details will forward out to everyone, however first time buyers definitely have until April 30th to purchase new home and I will get more specifics about existing home buyers who have owned within the last 5 years!

 

Market Update-Financials & Tax Credit

From the Desk of Bob Klorer-Foundation Mortgage

 

The FED kept rates unchanged which was expected…key points to take away from the meeting;
 
–  No real inflation concerns
–  Rates will continue to remain low for an extended period of time
 
This means mortgage rates will remain at record lows!
 
Senate voted late today unanimously to extend the current tax credit and House is expected to vote on bill by weeks end…key points;
 
–  $8000 credit will be extended to contracts signed on or before April 30th (allowing for a 60 day close)
–  Home buyers who have owned existing property for at least 5 years will be eligible for $6500 credit with new home purchase
–  Income limitations raised for individuals from $75,000 to $125,000 and family wage earners from $150,000 to $225,000
 
The above is consistent with what came out of committee and looks like will be the final bill which will be passed and signed.
 
Great news for everyone as many over the last week to two weeks have been waiting for extension and this will allow for a more prosperous home buying season during a typically slower period of time through the winter months!

%d bloggers like this: