As Realtors actively closing short sale transactions, sellers frequently ask us how the short sale will effect their credit. Now, thanks to CNNMoney.com, we have a great new resource to share.
Following you will see a snippet from Les Christie’s full article:
“Here are the average hit your credit will take:
30 days late: 40 - 110 points
90 days late: 70 - 135 points
Foreclosure, short sale or deed-in-lieu: 85 - 160
Bankruptcy: 130 - 240
To come to these figures, Fair Isaac created two hypothetical consumers, one who starts out with a fair-to-middling score of 680 and the other with a very good one of 780. (FICO scores range from 300 to 850.)
The hypothetical person with the 780 FICO has 10 credit accounts versus six for the 580, plus a longer credit history, lower utilization of total credit limit and no missed payments on any account. The other consumer has two slightly damaged accounts. Neither have any accounts in collection or adverse public records.”
To read the full article,
click here.
The 2010 Home Buyer Tax Credit has officially expired. So, what does that mean to the real estate market? According to a survey released by Prudential Real Estate and Relocation Services, Inc., Americas looking to purchase homes still believe that now is a good time to buy and are confident that home prices will rise. The survey was comprised of 1,000 Americans, ages 25-64, with at least $35,000 household income, completed April 15-20, 2010.
According to the survey, more than 90% of consumers believe that the home buyer tax credits have helped both first time buyers as well as the overall US housing market. 65% of consumers actually shopping for a home believed that the end of the tax credit would have little to no effect on their interest in purchasing a home.
- 46% optimistic about real estate values
- 12% expect real estate prices will decline
- 79% expect real estate prices to increase
- 20% expect real estate prices to increase substantially
- 75% of current renters still believe owning a home is a better long term investment then renting
Of those who recently purchased homes, 61% surveyed cited low mortgage rates as “very important” to their decision. That 61% exceeds both tax credit and cheaper prices. In fact, 66% of those surveyed believe that interest rates will rise.
So, back to the initial question, what will the end of the 2010 Home Buyer Tax Credit mean to the real estate market? Not as much as one would expect. With low interest rates and cheaper prices still driving the market, buyers are still likely to buy.
Source
To take advantage of the 8K first time buyers tax credit, you need to be under contract by April 30th. So, decision time has come....
Remember the contract must close by June 30th. Some new construction homes still qualify, so don’t forget to explore that great option!
For members of the military, foreign service and intelligence communities may have an additional year to buy a home and claim the homebuyer tax credit. To qualify for the extended credit deadline, service members must have served an official extended duty outside the US for 90 days or more any time between Jan 1, 2009 and April 30, 2010. The details can be found here.
With the large number of investment homes being foreclosed upon, it shouldn’t come as a surprise that many tenants are being asked to leave. What might surprise you is that they don’t have to go. A lease supersedes a sale. Meaning that it transfers with the property to the new owner.
Based on the Protecting Tenants at Foreclosure Act, which Congress passed last May, as long the tenant has a valid lease and proof of regular payments, they cannot be forced to leave. Even tenants on a month-to-month lease, with proof of regular payment, must be given 90 days notice to vacate. This is great news for tenants.
This isn’t to say that scare tactics aren’t being used to try to “push” people out sooner. It just means that as TENANTS, you need to do the research and LEARN YOUR RIGHTS.
As tenants, you need to do two things:
1. Keep a valid, signed, complete copy of your lease on hand.
2. Make sure you have proof of payment (canceled checks, electronic report showing payment history, receipts, etc.)
Source
If someone asked you to name the many tax advantages to owning a home, how many would you come up with?
Here are 10 Homeowner Tax Advantages:
- Homebuyer Tax Credits
- Deductions for loan fees
- Property Tax Deductions
- The Mortgage Interest Deduction
- Private Mortgage Insurance
- Home Office Expenses
- The Costs of Selling Your Home
- The Gain on Your Home
- Energy-Efficiency Tax Credits
- Capital Improvements To Your Home
For more great articles on Taxes and Incentives, visit www.HouseLogic.com.
Combined Sources: http://blog.miamire.com/ramb/2010/03/7-homeowner-tax-advantages & www.HouseLogic.com.
Looking for your Avalon Park’s home value? This great customizable tool provides answers to the following questions:
- How do actual selling prices compare to listing prices in Avalon Park?
- How are homes within a 5 mile radius selling?
- Unsold homes in Avalon Park?
- Where can I get answers to any pressing questions I may have?
The best part it is, you have control over how frequently you receive the information and your criteria. The market snapshot is great for monitoring your existing homes value, helping to decide if now is a good time to buy or sell and to have the best feel for your communities values. It only takes a minute to setup! Click here.
So if you are looking for up to the minute Avalon Park Real Estate information, you found it!
8 Weeks Before the Move- Contact a professional mover or truck rental and get estimates: make early reservations.
- Decide what furniture stays and what furniture goes.
- Use up things that cannot be moved (frozen food & flammable household aerosol cleaning supplies)
6 Weeks Before the Move- Inventory your possessions and determine what will be sold or donated.
- Get copies of records from doctors, dentists, lawyers, accountants, etc.
- Transfer children's school records.
4 Weeks Before the Move- Hold a garage sale then arrange for storage, if you need it.
3 Weeks Before the Move- Assemble package materials: dolly, scissors, packing tape, bubble wrap, newspaper, rope, boxes, etc.
- Begin packing items you won't need
- Arrange cancellation of utilities at old home and have them installed at the new home.
- Make travel and hotel reservations.
- Get car license, registration, and insurance in order.
2 Weeks Before the Move- Transfer bank account and cancel direct deposit or automatic payments on account you are closing.
- Make special arrangements for moving pets. Consult your Veterinarian for tips on making the move easier.
- Get your car checked and serviced for the trip.
1 Week Before the Move- Transfer all medical prescriptions to the pharmacy in your new location.
- Return library books and videos, send out dry-cleaning and pick up after the move.
- Finish major packing, labeling boxes by contents and room destinations.
2 or 3 Days Before the Move- Defrost refrigerator
- Have cash on hand
- Pack a weekend bag in case of delay
- Pack a ‘first day handy items' box: scissors, utility knife, coffee cups, tea kettle, paper plates, paper towels, instant coffee, tea, soft drinks, water, soap, pencils, paper, local phone book, bath towel & toiletries kit.
Moving Day- Pick up rental truck early.
- Inspect basement, attic, and garage.
- Turn off water, lock all doors and windows
- List every item loaded onto the truck to use for a check list as they come off.
April 30th is the deadline to be under contract in order to take advantage of the government tax credits. Here are some tips to help eager Orlando Home buyers to capture the tax credit and simplify the shopping process:
1. Get to know your market.
- Use the internet to see homes, maps, neighborhoods, etc.
- Find a good real estate agent who is ready to expedite the shopping process.
2. Secure your financing up front.
- Talk to a reputable lender up front and go through the pre-approval process so you know how much you can borrow.
- Ask for a referral from your Realtor® for the Mortgage Broker or if you have a mortgage broker already, ask them for a referral of a good agent who knows the area where you are looking.
3. Narrow your search parameters.
- Set specific criteria to help screen out homes that won’t meet your needs.
- When it comes to geography, factor in your commute. Most people want to stay under 45 minutes.
- Depending on your needs, consider access to public transit and schools. Try to narrow your search to two or three areas.
4. Separate needs from wants.
- When it comes to must haves, start with the basic
- How many bedrooms do you need?
- Do you have to have an office?
- Do you need a one car, two car or three car garage?
- What type of home?
- Townhome
- Condo
5. Consider Condition.
- Decide up front if you are willing to do work on a home and if so, how much.
- Try to view properties as soon as possible with your agent and provide feedback. This will help the agent understand more clearly your priorities and expedite the home search process.
6. Keep things in perspective.
- As nice as the tax credit may be, don’t let the desire to take advantage of it take over control of your home search.
- If you need more time to decide on a property take it. Buying a home is a large decision and you don’t want to feel you rushed into it and made the wrong decision.
7. Leave time to handle standard contingencies.
Some standard contingencies include:
- Home Inspection
- Attorney’s Approval
- Obtaining financing
- Sale of buyers current residence
Thankfully, most standard contingencies won’t prevent you from qualifying for the government tax credit. However, the more contingencies, the more possibilities for something to go wrong and cause the sale not to close.
8. Be careful of short sales.
- During a short sale, the entire contract is contingent upon third party lender approval and many other potential “stallers.”
- Starting April 5th, new short sale processes may apply that reduce turn around time, ask your agent about how or if these will effect your purchase.
These tips are brought to you by altonates and The Real on Real Estate.
Everyone has heard the jingles on t.v. and the radio encouraging you to pop online and get your FREE CREDIT REPORT. However, what those ads don’t talk about is the big up-sell...
Well, the FTC received over 1000 complaints from consumers who thought they were getting the one free report the FTC provides each year, but instead were unknowingly signing up for credit monitoring and other services.
The result is a new law that goes into effect next Friday requiring any website providing free credit reports to post across the top of the page “THIS NOTICE IS REQUIRED BY LAW. Read more at FTC.GOV. You have the right to a free credit report from AnnualCreditReport.com or 877.322.8228, the ONLY authorized source under federal law.”
For the full article, click here.
If you are planning to take advantage of the $8,000 and $6,500 government tax credits, some important dates are fast approaching.... You must be under contract by April 30th and closed by June 30th. While by design these are tax credits and do not provide funds at closing, programs have been created help homebuyer’s take advantage of the funds at closing. Ask for details.
Also, don't forget to consider the buyer’s income limits applied in the Worker, Homeownership and Business Assistance Act. For single purchasers, $125,000 and for married couples filing jointly, $225,000.
Now is a great time to buy, between the low interest rates, great deals and buyer incentives.
According to Moody’s Economy.com, lenders are offering home equity loans again. In fact, lenders are expected to loan as much as $36 billion in new home equity loans. What’s the difference between these and what we’ve seen in the past? How the money is being spent. According to Frank Nothaft, chief economist at Freddie Mac, most of the funds will go for necessary home improvements. He believes that consumers are managing their money better due to the “difficult recession we went through.” I find the past tense on the recession a debatable. What do you think?
SOURCE: http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=235879
Orlando, Florida, April 5, 2010 - Z House Realty Group will begin offering Buffini & Company’s 100 Days to Greatness® program to help both new and experienced agents jump-start their business. Facilitated by a Buffini & Company Certified Mentor™, 100 Days to Greatness teaches the fundamentals of real estate lead generation by referral, helping agents produce a consistent stream of high-quality leads and referrals.
To become a Certified Mentor, Janice M. Ziesig visited Buffini & Company to complete Mentor School. This program provides the tools needed to facilitate the 100 Days to Greatness course, as well as gain valuable leadership skills for running an office.
The 100 Days to Greatness program is a 14-week, step-by-step training course that combines training from industry expert Brian Buffini, video role-playing exercises and live accountability sessions – creating a comprehensive, practical learning experience. Students learn how to build and maximize relationships in order to cultivate advocates for life and accelerate their business. The course is applicable to both new and seasoned agents.
Janice M. Ziesig will be holding the next class for their agents on April 5, 2010 at 829 Woodbury Rd #104, Orlando, FL 32828. For additional information, please contact Janice M. Ziesig at Z House Realty Group by calling 407-208-1221 or via email at janice@ziesig.org.
Back in 2008, Zillow introduced their “
Zillow Home Value Misperception Index(iii)” with a shocking 32. Currently, the index is at -2. So, what does that mean? It means that while two years ago, people believed their homes where worth more than they where, people NOW have a fairly good idea of the ACTUAL value of their homes. If anything, they are cynical about their homes worth, which is indicated by the negative index value.
The -2 index is actually the closest to zero it has ever been. While most people are concerned about the value of their homes, at least they are realistic about it. Not sure about the value of your home? Ask a Realtor® for a thorough Comparative Market Analysis.
Last week I met with one of my Canadian investor-owners who has two properties in Property Management in Orlando. We had a frank discussion on why she chose to invest here. She said that her reasons were three-fold, the incredible deals, the excellent exchange rate and her child’s possible choice of Florida for college.
Now, obviously the college reason is not applicable to everyone. However, her other motivations are substantiated by the surge of Canadian investors flocking to the U.S. real estate market. According to the National Association of Realtors, 30 percent of purchases by foreigners in the Sunshine State were accounted for by Canadians.
It is not surprising that these savvy investors are taking advantage of the favorable exchange rate, low interest rates and still falling prices. After all the Canadian dollar is strong and they can pick up a Short Sale, Foreclosure or REO property for pennies on the dollar of what they initially sold for.
SOURCE: http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=236197
The U.S. Treasury Department’s Home Affordable Modification Program, known as HAMP, was created to help homeowners stay in their homes by lowering interest, principal or extending payment periods. However, they found that even with loan modifications, some people are still unable to afford their homes. Therefore, they worked to create a standardized process for short sales to assist the most needy of homeowners.
HAFA applies only to the most needy homeowners and conditions:
- The property must be the borrower’s principal residence
- The loan was originated before Jan. 1, 2009
- The loan is delinquent or a default is reasonably foreseeable
- The unpaid balance on the mortgage is less than $729,750 (higher for two-to-four unit properties)
- The total monthly mortgage payment exceeds 31 percent of a borrower’s gross income
For properties that qualify under HAFA rules, Realtors® must follow the following:
- There can be no agreements to share any portion of a commission after the deal closes to the buyer or seller. This negates any form of commission rebate offered by some licensees.
- The transaction must be “arms Length,” meaning the buyer, seller and Realtor® cannot have a personal or familial relationship
- A real estate licensee cannot earn a commission through the sale of his or her own house
- A buyer must agree to not resell the home within 90 calendar days
- A seller cannot have any expectation of buying or renting the property back after the sale
HAFA also protects the commission of the Realtors® involved in the transaction. Lenders cannot reduce the commission percentage if it is 6 percent or less. In addition, HAFA offers pre-approved short sale terms for quicker closings and for sellers, the sale fully releases them from future liability to the first mortgage debt.
HAFA will go into effect April 5, 2010, but lenders and services may implement the program earlier.
Source: http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=234168