It’s Official – The First-Time Tax Credit has been Extended

Here are the details:

WHO QUALIFIES

First-time home buyers are eligible for up to $8,000 tax credit and move-up buyers who have owned their home, as their primary residence, for the past 5 consecutive years are eligible for a reduced credit of up to $6,500.

INCOME RESTRICTIONS

The income limits have been raised.  Individuals whose incomes are $125,000 or below, and families earning less than $225,000

MAXIMUM PURCHASE PRICE

$800,000

EXTENDED UNTIL

Must be under contract by April 30, 2010 and settle before June 30, 2010.

I’m in the Newspaper!

http://www.washingtontimes.com/news/2009/nov/06/realtor-profile-dawn-pace/.

I did notice a typo though, it should read “instead of getting a baby sitter, he used to take me along with him.”

Short Sales and Foreclosures – A general overview

SHORT SALES

A short sale happens when the proceeds from a sale of a home are not enough to pay off the seller’s mortgage balance.  In other words, the seller has come up short of money.  The seller’s lender(s) must approve this type of transaction, as the bank loses money on the loan. 

Property values have dropped since their peak in 2005, and that means that many sellers cannot recoup what they paid for the house several years ago.  The best option for homeowners would be to hold on to the property until the home appreciates in value, but sometimes the home must be sold quickly due to relocation, death, divorce, etc.  

Sometimes the homeowner can no longer afford the monthly mortgage payments due to the rising interest rates of Adjustable Rate Mortgages (ARMs), job loss, illness, unforeseen expenses, and the general downturn of the economy.  Many of these sellers were qualified for no-downpayment (100% financing) loans in which they have no equity in the property.  In this circumstance, the owner has limited choices, one being to refinance the home (which is not always possible), another being to sell the home, or to let the home go to foreclosure.