There is a lot of confusion in the marketplace over the difference between a short sale and a foreclosure. A short sale may show up on your credit report with late payment status and clear up in about 2 years. A foreclosure impacts your credit rating for the next 7 to 10 years.
Obviously, the short sale is the preferred method in saving your credit rating. When considering either, it is important to seek legal and or tax advice prior to entering into a listing agreement.
Short sales require the sale of the home, where the lender agrees to accept payment less than the full amount owed on the home in order to sell the property. If the lender agrees, the home is placed on the market while yet in pre foreclosure status. The pre foreclosure status is approximately 90 days before home is auctioned unless otherwise negotiated with the lender.
Sellers must act quickly to avoid foreclosure.
If the seller decides that the short sale is in their best interest, they should have their Realtor contact the lender immediately. The Realtor will provide the lender short sale documents along with a letter of hardship, describing the homeowner's current financial position explaining why the homeowner is unable to make mortgage payments. The Realtor will then negotiate price and terms of the short sale acting as the liaison between home owner and lender. All lenders treat each situation differently and make decisions according to their specific circumstances.
Working with the lender requires patience and persistence. The seller, buyer and Realtor are all at the mercy of the lender. It is imperative that the homeowner stay focused on the end result. Short sales are usually a long, tedious process that requires a great deal of the Realtor's time and resources. If you are considering the short sale of your home, please call us for details on your specific situation. We are here to help!
In health,
Brian & Cherie
Thursday, November 6, 2008
Wednesday, November 5, 2008
Stimulus Package for First Time Home Buyers
The time is right to close on your dream home! With the recent signing of a major housing stimulus bill, it’s an even better time to buy. On July 30, 2008, the Housing and Economic Recovery Act of 2008 (H.R. 3221) was passed, which includes a new, temporary tax credit as an incentive for first-time homebuyers. With this bill, first-time homebuyers may qualify for up to $7,500 in a tax credit for the purchase of a principal residence.
What is the First-Time Homebuyer Tax Credit?
It is a temporary first-time homebuyer tax credit, which functions like an interest-free loan. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes in income taxes. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009 and the taxpayer must meet the annual income requirements. For the purposes of tax credit, the purchase date is the date when closing occurs.
How much is the new homebuyer tax credit?
The tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For many first-time homebuyers, this means the credit will equal $7,500.
Who is eligible for the tax credit?
A "first-time homebuyer" is defined as a buyer who has not owned a principal residence during the three-year period prior to the purchase. First-time homebuyers purchasing any kind of home—new or resale—may be eligible for the tax credit.
For more information on the details of the bill visit:
http://www.federalhousingtaxcredit.com/.
Does the tax credit need to be repaid?
Yes, homebuyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a homebuyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. If the home was sold, the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.
This tax credit is designed to help make home buying possible for first-time buyers. We can help you understand how to take advantage of this temporary incentive. Get started on the path to your first home by contacting either of us at 951-526-4560 or sending us an email at goldyrealestate@yahoo.com.
Before you decide to use the first-time homebuyer tax credit, please consult with a tax professional.
What is the First-Time Homebuyer Tax Credit?
It is a temporary first-time homebuyer tax credit, which functions like an interest-free loan. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes in income taxes. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009 and the taxpayer must meet the annual income requirements. For the purposes of tax credit, the purchase date is the date when closing occurs.
How much is the new homebuyer tax credit?
The tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For many first-time homebuyers, this means the credit will equal $7,500.
Who is eligible for the tax credit?
A "first-time homebuyer" is defined as a buyer who has not owned a principal residence during the three-year period prior to the purchase. First-time homebuyers purchasing any kind of home—new or resale—may be eligible for the tax credit.
For more information on the details of the bill visit:
http://www.federalhousingtaxcredit.com/.
Does the tax credit need to be repaid?
Yes, homebuyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a homebuyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. If the home was sold, the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.
This tax credit is designed to help make home buying possible for first-time buyers. We can help you understand how to take advantage of this temporary incentive. Get started on the path to your first home by contacting either of us at 951-526-4560 or sending us an email at goldyrealestate@yahoo.com.
Before you decide to use the first-time homebuyer tax credit, please consult with a tax professional.
Tuesday, November 4, 2008
Getting to Know Us...
We are a husband and wife team that enjoy working together to help your realize your real estate dreams! We have been in the real estate business for a little over 4 years now and have lived through the ups and downs. We understand what it is to work hard to earn your business and even harder to retain it.
If you are looking to buy or sell a home or would just like to know some more information, feel free to call or email us. The market is in constant flux and we welcome the chance to sit down to discuss what your options are today and in the future. We would love the opportunity to serve you.
Just a little bit about us......we are originally from San Diego and moved to Temecula about 3 years ago. We love the area and have found that this is a great place to raise our daughter. We are a family of avid runners and enjoy participating in 5K runs together. In 2007, we joined the Leukemia and Lymphoma Society's Team in Training. We raised over $6000 to help fight blood cancer in honor of our dear friend, Cathy Andrews, who lose her battle with the disease. We also participate in the Susan G Komen Race for the Cure annually and have raised thousands of dollars to date.
We are big fans of the beach and travel to Hawaii annually. We have two cats and two dogs that are also part of our family that we enjoy!
We look forward to meeting you and helping you realize your dreams!
In health,
Brian and Cherie
http://www.teamgoldy.com/
If you are looking to buy or sell a home or would just like to know some more information, feel free to call or email us. The market is in constant flux and we welcome the chance to sit down to discuss what your options are today and in the future. We would love the opportunity to serve you.
Just a little bit about us......we are originally from San Diego and moved to Temecula about 3 years ago. We love the area and have found that this is a great place to raise our daughter. We are a family of avid runners and enjoy participating in 5K runs together. In 2007, we joined the Leukemia and Lymphoma Society's Team in Training. We raised over $6000 to help fight blood cancer in honor of our dear friend, Cathy Andrews, who lose her battle with the disease. We also participate in the Susan G Komen Race for the Cure annually and have raised thousands of dollars to date.
We are big fans of the beach and travel to Hawaii annually. We have two cats and two dogs that are also part of our family that we enjoy!
We look forward to meeting you and helping you realize your dreams!
In health,
Brian and Cherie
http://www.teamgoldy.com/
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