Expanded Tax Credit Repeat Buyers Need To Act Fast
Repeat Buyers Need to Act Fast to Capitalize on Expanded Tax Credit
By now it is well documented that today's affordable housing prices, historically low interest rates and federal home buyer tax credit have combined to create one of the most attractive first-time buyer markets in recent memory. What many Americans might not realize is that a recent expansion of the buyer tax credit has created an equally desirable opportunity for existing homeowners.
This past November, Congress elected to expand the home buyer tax credit to repeat buyers after seeing the success the temporary financial incentive had on the housing market and overall economy. As a result, current homeowners who will have lived in their home for 5 consecutive years out of the last 8 may now be eligible to receive a $6,500 tax credit.
The expanded tax credit offers a great financial opportunity for existing homeowners, particularly those looking to trade up, Not only can you receive a large sum of money from the government, youll also likely purchase your next home for less money and at a lower interest rate than you could have in years past or years to come.Â
To qualify for the tax credit, the repeat buyer must have signed a binding contract by April 30, 2010 and close on the home by June 30, 2010. Tax credit eligibility is subject to income limits, $125,000 for single buyers and $225,000 for couples. In addition, the sale price of the home being purchased can not exceed $800,000.
There is no requirement that existing homeowners must have sold their home to be eligible for the $6,500 tax credit. existing homeowners who want to benefit from this incentive to move quickly, particularly those who prefer to first sell their current home before purchasing a new one.
Typically, it takes three months or longer to sell a home. Thats why it is critical repeat buyers put their home on the market right away. Otherwise they might not leave themselves enough time to both secure a buyer for their current house and find a new home by the April 30 deadline.Rismedia Article.I doubt that the home buyer tax credit will have much effect on the La Jolla market as a whole but the repeat buyers tax credit may be more attractive. To get information on selling your home or buying a new homes go to www.ilovecaliforniacity.com.
Sunday, February 21, 2010
Short Sale Properties- There is typically nothing "Short" about a Short Sale home transaction
A "short sale" by definition is where the payoff amount agreed to by the lender in the transaction is less than the mortgage balance owed on the property. Short sales can be beneficial to the seller but extremely wearisome to a buyer that is looking to purchase a home right away. The settlement is usually negotiated by a Realtor or Attorney who handles most of the paperwork for the seller in an effort to come to an agreement that is beneficial for all parties. California City Real Estate has several experienced short sale negotiators available to speak with the seller before we list the home for sale to make sure the sale will qualify as a short sale with the banks. The seller will usually receive a form 1099 after the short sale for the amount of debt forgiven. The banks are agreeing not to pursue you for the money they lost by filing a deficiency judgment in the future. These types of transactions have become more common in this economy as the number of foreclosures rise and homeowners in trouble are left looking for a way out that doesn't involve the devastating impact on their credit that foreclosures and bankruptcy can cause. In most cases, a realtor experienced in these types of transactions can help both the worried homeowner and the lenders who may be flooded with hundreds of foreclosures come to a mutually agreeable solution. While they are time consuming to prepare as a sale and they take even longer for a buyer, there are benefits to the involved parties that compensate for any negative aspects.
A "short sale" by definition is where the payoff amount agreed to by the lender in the transaction is less than the mortgage balance owed on the property. Short sales can be beneficial to the seller but extremely wearisome to a buyer that is looking to purchase a home right away. The settlement is usually negotiated by a Realtor or Attorney who handles most of the paperwork for the seller in an effort to come to an agreement that is beneficial for all parties. California City Real Estate has several experienced short sale negotiators available to speak with the seller before we list the home for sale to make sure the sale will qualify as a short sale with the banks. The seller will usually receive a form 1099 after the short sale for the amount of debt forgiven. The banks are agreeing not to pursue you for the money they lost by filing a deficiency judgment in the future. These types of transactions have become more common in this economy as the number of foreclosures rise and homeowners in trouble are left looking for a way out that doesn't involve the devastating impact on their credit that foreclosures and bankruptcy can cause. In most cases, a realtor experienced in these types of transactions can help both the worried homeowner and the lenders who may be flooded with hundreds of foreclosures come to a mutually agreeable solution. While they are time consuming to prepare as a sale and they take even longer for a buyer, there are benefits to the involved parties that compensate for any negative aspects.
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