As anticipated, the $8,000 tax credit for first-time homebuyers has been extended. Set to expire November 30 of this year, first-time homebuyers now have until May 1, 2010 to sign a sales contract on a new home. Income eligibility limits have also been increased from $75,000 to $125,000 for singles and from $150,00 to $225,000 for married couples.
Also, current homeowners may be eligible for a $6,500 tax credit when they purchase a new home, as long as they've lived in their current home for five consecutive years over the past eight. The new purchase must be a primary residence, and it must cost less than $800,000.
This is great news for the housing market and potential homebuyers. The $10.8 billion price tag on the extension/expansion is no small figure, but with pundits anticipating an additional 200,000 to 400,000 home sales by the end of the year due to the extension, one can be forgiven for calling the cost an acceptable one.
Who has taken advantage of the tax credit? Who plans to before it expires?
Homeowners staring down the barrel of the foreclosure gun now have a stay of execution option that will keep them in their homes. Fannie Mae's recently announced Deed for Lease Program™ permits homeowners facing foreclosure to sign a lease to stay in their home in exchange for...the deed to their home. What was it they said about "desperate times?"
The program is aimed at those homeowners who don't qualify for a loan modification or other loan-workout solutions. In order to qualify, the home must be a primary residence, the borrower must be released from any subordinate liens, and the new market rental rate cannot exceed 31% of the borrower's income.
Leases created under the program are up to 12 months, with the possibility of a term renewal or a month-to-month extension after that.
After a little digging on FM's B2B sister website, efanniemae.com, I learned that once the deed has been turned over and the lease signed, Fannie Mae (the deed holder) reserves the right to market the property, even as the ex-homeowners are residing in their ex-home.
A call into Fannie Mae yielded little else in the way of specifics on the Deed for Lease™ (or D4L, as they call it) as the program is so new. While I'm not overly excited about the idea of exchanging a deed for a monthly rent, I suppose it beats getting snookered by a Loan Modification Scam or some other hoodwinkery.
Eileen Fitzgerald, Chief Operating Officer of NeighborWorks America, and Los Angeles Mayor Antonio Villaraigosa at the roll-out of the Loan Modification Scam Alert campaign.
It's a sad reality that a great number of Americans facing foreclosure become victims of scam artists. As part of a nationwide "Loan Modification Scam Alert" campaign that involved a number of cities across the country, a new website called LoanScamAlert.org has been launched by NeighborWorks America® to help in the fight against these depraved predators. Distressed homeowners who feel they are being preyed upon by scam artists can make a report through the website or by calling 1-888-995-HOPE (4673).
In addition to giving tips on how to spot a scam, the site also features interviews with victims of loan modification scams. It's worth it for all homeowners -- not just those facing foreclosure -- to watch some of these videos. They are an education. As Sun Tzu said: Know thy enemy.
Has anyone out there been approached by a loan modification scam artist? If so, tell us about it.
True or false: We've reached the bottom of the home remodeling decline?
Harvard says it's true, so it must be, right?
2010 is the Year of the Hammer, particularly by the second quarter, the study (released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University) suggests. Despite unstable housing market prices and roof-shattering foreclosure rates, potential remodelers may see "favorable financing costs" and increased home sales as reasons for taking on some nonessential improvement projects.
If the prognosticators in Crimson Country are correct, this is great news for contractors, remodelers and homeowners alike. It's still too soon to pop the champagne, but tell us, what's the first project you'll hire-out?
NBA superstar Michael Jordan unveiled plans for a 37,942-square-foot in Jupiter, Florida.
His Airness's home plans include an elevator, 11 bedrooms, cottage and guard gate. For those who lack a sense of scale, 37,000 square feet is about the size of your local Kmart.
Being a full three times the size of the neighbors' houses, some people are not thrilled with the proposal. "It's insane, a waste. Cities see nothing more than a tax base in these giant homes, but I can't imagine anyone needing anything like that, except to show off," said Joanne Davis of 1,000 Friends of Florida. What do you think?
After failing to find a buyer, the house built entirely out of Legos in Surrey, England, is being dismantled brick by mult-colored brick. Built by James May of the BBC's Top Gear, the home was never intended as a permanent structure and was built on a vineyard without the necessary permits. It did however feature a working toilet, shower and a "very uncomfortable bed." One visitor apparently made off with the Lego constructed cat.
Alas, the vineyard needs to grow its grapes and May had to sell or dismantle. Legoland was interested but could not afford the moving fee. So the 3.3 million Lego bricks are coming down and will be donated to charity.
What do you think: Silly waste of time or Genius tourist attraction?
In today's real estate market, foreclosures abound. Is it time to cash in on the opportunity? As this article in the Wall Street Journal points out, finding a good foreclosure can be difficult.
Banks don't like to advertise a home as "bank owned" but do provide lists of homes for sale on their websites. Search for "REO" (real-estate owned) on lenders' sites. Other sites to check include RealtyTrac.com, BankHomesDirect.com, and Foreclosures.com, all of which are for-pay sites. You can also check the Foreclsoure Google Map (free) for listings in your area. Finding a real estate broker with experience dealing with REOs is also a good move.
If you do go ahead with buying a foreclosure, make sure to get a thorough inspection. The phrase "buyer beware" applies in spades to foreclosed properties. Also, do your homework - good foreclosure properties go quickly and it helps to have all your paperwork in order before making an offer. Tip: Don't try to bargain the price down further. Banks are already pricing the property at a steep discount already.
It's a potentially treacherous road but it can have a big payoff. Anyone out there pursuing this angle?
