Home Tax Credit Extension Update

Senate Banking Committee Chairman Chris Dodd, D-Conn., said top Dems agreed to extend the 1st-time homebuyer tax credit, set to expire Nov. 30. Bloomberg reported Senators are near a deal to extend the program to home sales signed — not closed — by April 30. The credit would be cut 10% to $7,290, but those who've owned their current home for at least 5 years also would be eligible. 

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Smart Off-Season Tips For Buyers

Everyone’s been saying “Now's the time to buy,” for quite a while, but for many who've been waiting on the sidelines, the autumn "off-season" of real estate may indeed be the right time to act.

“Anybody who is trying to sell a house going into the winter months has to be flexible, and you should be able to get good deals,” says Guy Cecala, publisher of Inside Mortgage Finance. With mortgage rates at record lows and favorable home prices, buyers should be active. 

Here are some tips for buyers to help ensure a successful close:

  • Secure Employment: Buyers must have a stable job in order to feel comfortable about the purchase and to get approved for a mortgage.
  • Spotless Credit: Credit scores above 720 still get the best mortgage rates, as lending remains tight. Help buyers to correct any errors on their credit reports.
  • Build Cash: Let house hunters know that the days of no-down-payment loans are a relic of the past. Depending on the situation, they’ll need to put down at least 3.5 percent of the purchase price.
  • Follow Uncle Sam: Though the first-time home buyer tax credit is set to expire November 30th, there’s talk it may be extended into 2010. Buyers may still be able to take advantage of this opportunity, but pay attention to the news out of Washington to see if eligibility will be extended.
  • Be Ready to Bargain: Purchasers are in a position to ask for a lot more if a seller needs to move. If you think the floor needs to be replaced, ask for it. “In my market, buyers still have a great deal of influence and sellers will do just about anything, assuming it is doable and legal,” says NAR First Vice President Ron Phipps, a broker with Phipps Realty in Warwick, R.I.

Source: U.S. News & World Report, Luke Mullins (10/14/09)

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Banks making short sales tougher

Banks are backing away from short sales, forcing sellers to pay extra at closing or demanding a promissory note for the amount due. One-third of borrowers owe more on their mortgages than their properties are worth, according First American CoreLogic. 

When their situations were really tough, most banks preferred short sales because they were their best opportunity to get the most money back. But with an improving economy, and because the losses on many of these properties have already been written off the books, banks are increasingly reluctant to negotiate a short sale. 

Today, banks demand 9.5 weeks to respond to a short-sale request, compared to 4.5 weeks a year ago, according to research firm Campbell Communications. Their reluctance is frequently stymieing sales and frustrating real estate practitioners. 

"It drives me up a wall," says Robert G. Hertzog of Summit Home Consultants in Phoenix. "[The bank is] holding my client hostage."

Source: BusinessWeek, Christopher Palmeri (10/09/2009)

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Oh my... I'm down with worst virus!

Not so much fun when everything you have on your Pc is completely wiped out in a flash! All the beautiful pics, memories, emails, notes and maybe some love letters :) oh my, what a beautiful day... It's nothing but a test and I shall pass lol wish me luck in trying to get my precious memories and my computer life back. CPR!!!

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HOW MUCH CAN THE BUYER AFFORD?

National Association of Realtors offers a simple calculator for buyers to find out how much house they can afford. Share this resource with anyone looking to buy and to start the home search off on the right.

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