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On November 6, 2009, President Obama signed a bill to extend the tax credit for first-time homebuyers (FTHBs) through June 30, 2010. The bill also opens up opportunities for others who are not buying a home for the first time.

To learn what the new tax credit means to you and your clients, take a look at the concise overview below.

In addition, we’ve put together a script featuring wording you can cut and paste as needed to beat out your competition by connecting with clients who may be able to benefit from the new plan details!

TAX CREDIT OVERVIEW

Who Gets What?

First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

What are the Income Caps?

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

What is the Maximum Purchase Price?

Qualifying buyers may purchase a property with a maximum sale price of $800,000.
  
What is a Tax Credit?

A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.

How Much are First-Time Homebuyers (FTHB) Eligible to Receive?

An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is Eligible for FTHB Tax Credit?

Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible.

This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How Much are Current Home Owners Eligible to Receive?

The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?

No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property?

Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed.

According to the IRS, factors that would demonstrate the ownership of the property would include:

1. Right of possession,
2. Right to obtain legal title upon full payment of the purchase price,
3. Right to construct improvements,
4. Obligation to pay property taxes,
5. Risk of loss,
6. Responsibility to insure the property, and
7. Duty to maintain the property.

Are There Other Restrictions to Taking the FTHB Credit?

Yes. According to the IRS, if any of the following describe a homebuyer’s situation, a credit would not be due:

• They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from “step-relatives.”)
• They do not use the home as your principal residence.
• They sell their home before the end of the year.
• They are a nonresident alien.
• They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
• Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
• They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?

Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.

If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?

Yes, provided that the child meets the other requirements for the tax credit 

Source: Courtesy of Julie Piccione, Wells Fargo Home Mortgage

Extension of 1st Time Home Buyer Tax Credit Bulletin

Posted by Miguel Berger

RISMEDIA, November 6, 2009—After the Senate gave final approval last night without a dissenting vote, the House of Representatives voted overwhelmingly this afternoon to pass legislation containing an extension and expansion of the homebuyer tax credit, completing Congressional action and sending the tax credit to President Obama for his signature, possibly as early as tomorrow.

The $8,000 homebuyer tax credit for first-time buyers, due to expire in 25 days, will be extended through April 30 of next year and buyers will have an additional two months, until the end of June, to close. First-time buyers who are in the process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline. The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.

For the first time, the new legislation makes buyers who already own a home eligible for a credit. A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less.

The legislation takes effect December 1 and is not retroactive. Both credits are available only for primary residences, not second homes or investment properties.

In the House debate, Speaker Nancy Pelosi (D-Calif.) took the floor to say the homebuyer tax credit was helping a new generation of Americans live out their dream of homeownership and financial independence. Debate on the homebuyer credit was overwhelmingly positive and the legislation passed 403 to 12.

However, several leading economists have voiced concern about the $16.7 billion cost of the credit and the wisdom of spending up to $400,000 per homebuyer to stimulate real estate sales and White House support for extending the credit has been lukewarm at best. However, it is virtually certain that the President will sign the legislative package, which contains an expansion of unemployment benefits as well as the tax changes.

In the Senate, the homebuyer tax credit was amended to a bill expanding unemployment benefits by 20 weeks for those who have exhausted their benefit. The latest unemployment numbers are due out tomorrow and Congressional leaders are rushing the unemployment bill to the White House so that the President can show compassion by signing on the same day more job losses are announced.

The legislation included provisions added to address complaints of fraud. The Internal Revenue Service is given greater authority to oversee the process to root out fraud, and provisions are added in response to past abuses of false sales or underage buyers. An investigation by the Treasury Department’s Inspector General for Tax Administration found that more than 580 children, some as young as four years old, had received $627,000 in first-time homebuyer credits. The IRS has identified 167 suspected criminal schemes and opened nearly 107,000 examinations of potential civil violations of the first-time homebuyer tax credit.

The legislation also contains a provision supported by the National Association of Home Builders which will help larger companies strapped for cash with net operating losses (NOL). Ordinarily these companies can carry back these losses for only two years to qualify for a tax refund. The provision would make this process extend the carry-back to five years for either 2008 or 2009. The tax break will now apply to losses in either 2008 or 2009, and the income cap will come off.

Download Homebuyer_Tax_Credit_1022_1621

Americans are notorious over-tippers in foreign markets, which may make us popular with service providers, but may also demonstrate our cultural ignorance to local business partners. In many places, a service charge is already included in the bill, or local customs dictate a percentage below the standard 15%- 20% in the U.S. Be knowledgeable about local tipping customs with Condé Nast Traveler's Tipping Guide.

I know many of my clients feel this way! You have to see this!

http://sandiegohomeblog.com/2009/10/05/how-to-buy-a-bank-owned-home

The next time you are washing your hands and complain because the water temperature isn't just how you like it, think about how thing used to be. Here are some facts about the 1500s:

They used to use urine to tan animal skins, so families used to all pee in a pot & then once a day it was taken & sold to the tannery.......if you had to do this to survive you were "Piss Poor."  But worse than that were the really poor folk who couldn't even afford to buy a pot...........they "didn't have a pot to piss in" & were the lowest of the low.

Most people got married in June because they took their yearly bath in May, and they still smelled pretty good by June.. However, since they were starting to smell . .. . brides carried a bouquet of flowers to hide the body odor. Hence, the custom today of carrying a bouquet when getting married.

Baths consisted of a big tub filled with hot water. The man of the house had the privilege of the nice clean water, then all the other sons and men, then the women and finally the children. Last of all the babies. By then the water was so dirty you could actually lose someone in it. Hence the saying, "Don't throw the baby out with the Bath water!" 

Houses had thatched roofs-thick straw-piled high, with no wood underneath. It was the only place for animals to get warm, so all the cats and other small animals (mice, bugs) lived in the roof. When it rained it became slippery and sometimes the animals would slip and fall off the roof. Hence the saying "It's raining cats and dogs."

There was nothing to stop things from falling into the house. This posed a real problem in the bedroom where bugs and other droppings could mess up your nice clean bed. Hence, a bed with big posts and a sheet hung over the top afforded some protection. That's how canopy beds came into existence.

The floor was dirt. Only the wealthy had something other than dirt. Hence the saying, "Dirt poor." The wealthy had slate floors that would get slippery in the winter when wet, so they spread thresh (straw) on floor to help keep their footing. As the winter wore on, they added more thresh until, when you opened the door, it would all start slipping outside. A piece of wood was placed in the entrance-way. Hence: a thresh hold.

In those old days, they cooked in the kitchen with a big kettle that always hung over the fire.. Every day they lit the fire and added things to the pot. They ate mostly vegetables and did not get much meat. They would eat the stew for dinner, leaving leftovers in the pot to get cold overnight and then start over the next day. Sometimes stew had food in it that had been there for quite a while. Hence the rhyme: Peas porridge hot, peas porridge cold, peas porridge in the pot nine days old.

Sometimes they could obtain pork, which made them feel quite special. When visitors came over, they would hang up their bacon to show off. It was a sign of wealth that a man could, "bring home the bacon." They would cut off a little to share with guests and would all sit around and chew the fat.

Those with money had plates made of pewter. Food with high acid content caused some of the lead to leach onto the food, causing lead poisoning death. This happened most often with tomatoes, so for the next 400 years or so, tomatoes were considered poisonous.

Bread was divided according to status. Workers got the burnt bottom of the loaf, the family got the middle, and guests got the top, or the upper crust.

Lead cups were used to drink ale or whisky. The combination would sometimes knock the imbibers out for a couple of days. Someone walking along the road would take them for dead and prepare them for burial. They were laid out on the kitchen table for a couple of days and the family would gather around and eat and drink and wait and see if they would wake up... Hence the custom of holding a wake.

England is old and small and the local folks started running out of places to bury people. So they would dig up coffins and would take the bones to a bone-house, and reuse the grave. When reopening these coffins, 1 out of 25 coffins were found to have scratch marks on the inside and they realized they had been burying people alive. So they would tie a string on the wrist of the corpse, lead it through the coffin and up through the ground and tie it to a bell. Someone would have to sit out in the graveyard all night (the graveyard shift.) to listen for the bell; thus, someone could be, saved by the bell or was considered a dead ringer...

And that's the truth...Now, whoever said History was boring! ! !

All of those "facts" remind me of a Saturday morning television  program I used to watch many years ago; "Fractured Fairy Tales."

• Old-fashioned basics are more important than ever. The safest way to purchase a home is to put down 20 percent on a fixed-rate, 30-year (or less) mortgage.
• Don’t become overconfident about income growth. Even though buyers in their 20s and 30s will likely see their incomes grow more quickly than previous generations, it is important to act sensibly when borrowing.
• Anyone contemplating adding children to the family should calculate whether they could live on one income because having both halves of a couple work may turn out to be impractical.
• Include a maintenance budget. Even new homes need upkeep and repairs.
• Buyers who can't afford their dream home now should opt for a starter home where they can save money each month for what they really want.
• Consider a property that can be expanded and improved down the road when money is available.
• No two buyers are the same, but they should all feel confident with the loan they enter into, no matter the size of the mortgage.

RISMEDIA, September 15, 2009—First-time home buyers have just 12 weeks to find and close on a home to qualify for the $8,000 Federal tax credit before the November 30th deadline. Those just beginning the process will have to beat the average time it takes to buy a home, a challenge smart buyers can meet even though it’s taking longer today to close most transactions. 

Two significant challenges first-time buyers face today include the potential for a lengthy process related to search and closing if not managed carefully at every step, and intensified competition. On average, first-time buyers search 12 weeks to find a home, while closing can take up to 60 days, depending on individual circumstances and local regulations. Additionally, the tax credit has proved to be extremely popular this year, since taking advantage of the first-time homebuyer’s Federal tax credit and relevant state incentives is the most important reason motivating 10.8% of buyers today. In fact, approximately 1.14 million buyers have already filed for the credit. Many more are expected to file for the credit when income taxes are due April 2010. 

Still, while time is short and competition high, historically high affordability is a major factor driving first-time home buyers today, a growing group accounting for one third of all purchases in July 2009. The National Association of Realtors’ affordability index in July 2009 was 36.0 percentage points higher than July 2008. Under these conditions the typical median-income family can allocate 15.8% of their gross income to mortgage payments, well below the traditional allowance of 25%. Interest rates, which play a major factor in affordability, remain low, at 5.22% in July for a 30-year fixed rate loan. 

Realtor.com President Errol Samuelson explains, “The national median home today costs approximately 174,100. By moving quickly to find and close on a home by November 30, first-time buyers qualifying for the $8,000 tax credit can actually purchase this same home for only $166,100, an almost four and a half percent discount off of the price of a typical new home. Because affordability this year is at its highest level in 28 years, and the market offers an incredible selection of homes within reach of most first-time buyers, we expect their numbers to grow as they pursue today’s once in a generation opportunity to become homeowners.” 

Samuelson suggests that by combining effective use of technology and the greater access to information it delivers with expert advice from local Realtors, today’s first-time home buyers can beat the clock and use the $8,000 Federal tax credit along with any available state-level credits to purchase a home under the November 30 deadline. “By moving quickly, being prepared to make decisions in the face of increased competition, and taking the learnings from others to reduce time without cutting corners, first-time home buyers starting today can close on time and qualify for the $8,000 Federal tax credit,” added Samuelson. “To help this important group trying to enter today’s market, Realtor.com offers tips and expert advice that can help expedite the search, negotiation, finance and closing processes so they can beat the clock.” 

Tips for the first time home buyer starting their search today:

-Searching – Search While You Sleep – Since 87% of all buyers start online, you probably will too. On Realtor.com it’s easy to sign up for email alerts and create personal portfolios for homes of interest. Soon you’ll be searching while you sleep, at the office or even while you’re at an open house. You’ll be the first to know if a home you want comes up for sale or receives a price reduction.

-Negotiating - Freshness counts. You don’t have time to look at unavailable homes. Stale data on prices, time on market, features, or property values puts you at a disadvantage when negotiating.

-Appraisals - Appraisals can be a problem today; make sure the lender can deliver the appraisal on time. Your loan will not be approved if it doesn’t appraise for the agreed price, so don’t delay. If the property doesn’t appraise for the bid price, ask for a desk appraisal; you’ll receive a second look.

-Finance - Don’t let the financing process slow you down; 35% of first-time buyers find the mortgage application and approval process more difficult than what they expected. Start saving pay stubs and bank statements now. Collect your tax returns; anything proving your income qualifies you for the home you want.

-Closing - Get your insurance company and the home owner association, if applicable, to forward a cost estimate to the escrow company early. This will make it easier for them to more accurately estimate your closing costs, which in many states must be paid in cash at closing. 

For more information, visit www.realtor.com. 

Read more: http://rismedia.com/2009-09-14/first-time-buyers-race-to-beat-the-clock-qualify-for-8000-federal-tax-credit/#ixzz0RBlgRJYx

Reprinted with permission from RISMedia.com, publisher of Real Estate magazine.

By Matt Dollinger - Colts.com
Monday, September 7

Colts Bolster Defense and Special Teams with Two Recent Additions
INDIANAPOLIS — There are 12 new players on the Colts’ 53-man roster this season, two of which were added over the weekend.

After whittling their roster down to 53 on Saturday, the Colts claimed two players off waivers afterwards, fifth-year safety Aaron Francisco and rookie linebacker Cody Glenn.

Francisco played for the Arizona Cardinals the past four years and served as the team’s special teams captain the past two. In 2008, Francisco played in all 16 games for the Cardinals, which is one of the reasons he said he was “totally surprised” to learn the only NFL team he had ever played for was letting him go.

It was a tumultuous 48 hours for Francisco. After being cut by the Cardinals on Saturday, he got a call from the Colts and quickly packed his bags for Indianapolis.

“It was tough at first, but my spirits are up now that I got picked up so quickly,” Francisco said. “I’m excited for the new opportunity, and I feel like the slate has been wiped clean and I get a whole new start.”

Francisco, who registered 53 tackles in 2008, met with Colts coaches Monday morning and said the team’s defense is similar to the one he mastered in Arizona, with terminology serving as the main hurdle.

But Head Coach Jim Caldwell is confident Francisco can catch on quickly and is hopeful the team’s new safety could play Sunday against Jacksonville.

“We are trying to get him acclimated as quickly as we can,” he said.

In addition to Francisco, the Colts also claimed Glenn off waivers, a 2009 fifth-round draft pick by the Washington Redskins. Prior to being drafted, Glenn played four years at Nebraska, but did not play linebacker until his senior year after playing running back his first three.

At 6-foot, 240 pounds, Glenn is similar in size to other Colts linebackers but is hoping his size is not the only thing that helps him fit in with his new team.

“Right now, I just want to learn as much as possible and do as much as I can do to contribute to this team,” he said.

Caldwell said the Colts have had their eye on Glenn for quite some time.

“He’s a pretty versatile player and has also played some special teams,” Caldwell said. “He certainly gives us a little bulk with a little punching power and some speed as well.”

Glenn thinks he will be able to pick up the team’s defensive system quickly, and the Colts coach said the linebacker has shown he is able to adjust and adapt up to this point.

“I don’t think they would have brought me in if they didn’t think I could fit right in,” Glenn said.

Glenn said he is looking forward to helping the Colts on special teams as he gets caught up to speed with the intricacies of the team’s linebacking assignments.

“A lot of people just look at (special teams) like you just run down the field, but there is a lot more that goes into it,” Glenn said. “You have to study and game plan, so it helps I’ve played special teams in the past and know a bit about what I’m doing.”

When making roster moves over the weekend, Caldwell said special teams were something he took into consideration.

“That’s something we always try and balance and take a real good look at as an area we need to improve upon and an area we considered for a number of the decisions we made,” Caldwell said.

Caldwell said he anticipates Glenn will bolster their special teams unit, but the former Cornhusker said there is still a “long way to go to be as good as a linebacker as I want to be.”

“I know those days are ahead of me,” he said.

Source: http://www.colts.com/sub.cfm?page=article7&news_id=49b5d0ce-0dff-43c8-ba21-886cf788248b

WOW! Check out this beautiful home! Rare find! Wonderful gated community of Lagos Vistoso near all kinds of shopping. Beautiful hardwood floors in living, dining and family areas. Large kitchen with granite, stainless steel microwave and dishwasher, pull out shelves in lower cabinets, blinds on all windows..Lots of upgrades in this home inside and out! Wonderful pebble-tec pool and easy maintenance yard. Only $217,900!

Mark your calendars for Tuesday, August 25th!! It's that time of year again & the Clarendon Elementary School needs your help! Come to the Sangria Luxe Lounge from 5 - 8 pm. Bring your generous donations! There will be Food, Fun & Prizes! Please see the attached flyer for more information. Click on the link: Download SchoolDrive. For more informaiton about Clarendon Elementary School, go to: http://www.osbornnet.org/cla/default.asp. I hope to see you at the Sangria Luxe Lounge!!