Congress Passes Tax Break Extension. President Expected To Sign!

It only took a year to do, but Congress has finally passed a bill extending some tax credits, including the one that does not count your short sale debt forgiveness as taxable income.  Florida continues to be one of the hardest hit states, and this really should be continued through 2015, at least, but we will, most likely, have to wait until the end of the year, yet again, to see if it will get extended.  To see this and other tax breaks in the bill, click on the "2014 Tax Breaks" link, below!

2014 Tax Breaks

Mortgage Debt Forgiveness Tax Relief Update

Mortgage Debt Forgiveness Tax Relief Update

It appears this major tax relief item has made it out of the Senate Finance Committee.  Please click on the link above for the complete article.  If passed, it would be retroactive to the beginning of the year.  If you are one of the many still involved in this process, please contact your legislators!

Short Sale Debt Forgiveness Tax Break Set To Expire!

Short Sale Debt Forgiveness Tax Break Set To Expire!

The tax break for debt forgiveness from a short sale is set to expire at the end of the year.  There are no signs of it being extended at this time.  Personally, I fell it needs to be extended at least one more full year as there are still quite a few short sales in the pipeline.  Click on the above link for the complete article.

Home Buyer Tax Credit

If first-time homebuyers wait until November to sign a sales contract, it's probably too late to get the $8,000 tax credit. To qualify, buyers must CLOSE before Dec. 1 - a signed contract is not enough. New construction should be started by mid-summer to qualify.

Are You Still Waiting For The Government?

Article provided by Michael Payette at M&I Bank.

During the first quarter of 2009, the first 100 days of the new President's term, you are no doubt going to hear a lot of news stories about the economic stimulus plan and the financial rescue package and their possible ramifications to the real estate and mortgage markets.

You're going to see headlines about new incentives for home buyers and hear stories about 4% interest rates. But the truth is that right now, at the time of the writing of this article, the government already has in place one of the largest tax incentives for qualifying home buyers it has ever offered - up to an $8,000 tax credit for first-time buyers, and mortgage rates are within a half a point of being the lowest they've been in our country's history.

The truth is that, while all of this is great news for those looking to buy or refinance a home in 2009, none of it matters if you can't qualify for financing. None of it matters if you sit on the fence and watch the great opportunity of homeownership pass you by.

Make sure your financial house is in order

If the idea of buying or refinancing a home in 2009 has even crossed your mind, give us a call. We'll review your financial situation and see what makes sense for your individual goals. Remember, because of increased delinquencies and today's tougher economy, lenders have tightened standards for both new purchases and refis. And while mortgage financing is certainly available and affordable to everyone who qualifies, you're going to need a solid credit score, you'll need to be able to document your income, and, if you're purchasing a new home without a special government program from the VA or USDA, you're likely going to need a down payment as well – at least 3.5% for an FHA loan. And there's no stimulus bill or bail-out plan that is going to change this. So, if you're looking to purchase a new home in 2009, take the time to locate the following items:

Your W-2s and tax returns for the last two years;
Your last three months of bank statements; and
Pay-stubs for the most recent 30 days.

If you haven't checked your credit in awhile, now is the time to do so. A lot could have changed since the last time you checked it, good or bad, and you don't want any surprises that might alter your plans. We'll gladly review your credit for you and see if there is anything that needs to be addressed, but don't wait. It would be a shame to miss out on a great opportunity simply because you didn't check your credit report.

For homeowners with enough equity to refinance, now may be the time to lock in a low rate. Sure rates could go lower, even to the 4% level you've heard about in the news. But rates could just as easily start to rise again, and home values could drop even lower, making it difficult for your house to appraise. In the financial and credit markets, there are no guarantees, and there's nothing in the stimulus bill or bail-out plan to address mortgage rates. Why lose money waiting around for an opportunity to save a little bit more each month in the future when you can have significant savings every month right now?

Let us review your mortgage and see if you can benefit. The worst thing that could happen is you find out that you already have the best mortgage and interest rate possible.

For more information, please email Michael Payette at M&I Bank, michael.payette@micorp.com or phone him at (813)334-8412. Mention you saw this article on my blog, if you would.

Home Buyer Credit

CREDIT WHERE CREDIT IS DUE

First-time homebuyers have exactly 285 days to buy a home if they want to pocket $8,000 tax-free. It's not long. Every homebuyer has unique circumstances, however, and specific questions. The National Association of Home Builders (NAHB) has launched a consumer Web site with detailed information and an extensive list of frequently-asked questions. The homebuyer resource is found at: www.federalhousingtaxcredit.com

© Copyright 2009 INFORMATION, INC. Bethesda, MD

First-Time Home Buyer Tax Credit

Click on photo to see full sized chart.