Thursday, November 4, 2010

The Economy

The Stock Market is at an incline and bouncing back slowly. People are spending money again. Interest Rates are still at all time lows. Yet, there are many foreclosures on the market.
The banks, who once gave loans to just about anyone who had a picture ID are now taking back those homes because the loans weren't being paid. Now, what did they expect? It sounds like they learned from their mistakes, but guess who is paying for it now? The people who never understood adjustable rate mortgages, unimproved property taxes, and weren't really familiar with economic woes. Yep, these are the poor, uneducated, mislead, anxious to be homeowners that are now paying the price. It is a true shame!
Loan Officers, and dare I say Realtors, who were so caught up in the market boom that they failed to explain the consequences to their clients. It saddens me to hear that people who were once happy homeowners can't even rent an apartment because their credit has been ruined. These folks will have to wait 3-5 years before they can even think of purchasing another home one day. In the meantime, they are living with family members in crowded conditions, renting mobile homes from slumlords, and many in shelters. This has been the perfect example of greed in more ways than one.
If you know someone who is looking to purchase a home now, they will be paying the price too. It is much more difficult to buy now than ever before. Just remember to give them kind advice in their search. "A person doesn't care how much you know, until they know how much you care." Living by that motto will help them find the caring & knowledgeable Real Estate & Loan Professionals that will put their clients interest first.

Monday, July 13, 2009

$8,000 Tax Credit Facts - Not for only First Time Buyers

Who is Eligible? - A Home Buyer who has not owned a Principal Residence in the Prior 3 Years and has Filed Taxes.

Payback Provisions? - DOES NOT have to be Repaid (unless you sell the home within the first 3 years after purchasing it).

What does Tax Credit mean? - If you owe less then $8,000 in Federal Income Taxes, the Government will write you a check for the difference. If you don't owe anything, you get the full $8,000 (added to whatever you might be getting back on your tax return).

Deadline to Collect $8,000? - You need to close on your new home between January 1, 2009 and December 1, 2009 to qualify.

Can it be used for Down Payment? - Yes, through TDHCA Bond 70 Program to a maximum of $6,000.

Income Limits? -
1) Head of Household, Single Taxpayer with Gross Income less then $75,000 (between $75,000 & $95,000 receive partial credit).
2) Married Couples, Filing Jointly, Gross Income of $150,000 (between $150,000 & $170,000 receive partial credit).
3) Over the above income(s) the Tax Credit is not available.

The above information is a quick and easy way to understand what "tax credit," really means. I have had numerous first time buyers skeptical of this stimulus plan with the preconceived notion that "if it seems to good to be true then it usually is." I have also had many buyers who don't understand that you actually get CASH back from the Government, and instead expect it to be a credit on their yearly taxes.

This is a once in a lifetime opportunity with the market availability, low interest rates, and government freebies all lining up in the stars at the same time. If you meet this criteria, and are eligible to be a homeowner at this given time, and you choose not to.....your missing the Biggest Ship to ever Sail out of the Homeowner-Ship Harbor in our Lifetime.