More Help for Homeowners in the Future.
Another thing to keep an eye on in the coming weeks is President Obama’s plan to help struggling borrowers before they are faced with a default on their mortgage. According to reports, the Obama administration is discussing plans to help borrowers who are struggling to stay afloat, but who have not yet fallen behind on their payments. At this point, details are scarce; however, reports indicate that President Obama is looking to spend approximately $50 Billion to directly help homeowners before they face foreclosure and financial disaster. While this is good news for individual homeowners, it will likely be good for the housing industry as a whole. That’s because, assisting struggling borrowers before they default should help stop the wave of foreclosures, which are estimated to top two million this year. That, in turn, will help stabilize home prices. The Economic Stimulus Plan is huge, and impacts a number of industries. I’ve highlighted some of the major provisions that may impact you now and in the future.
Copied from Brett Flanders Countrywide Mortgage
Friday, February 20, 2009
Tax Credit for Homebuyers
First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.
The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.
Copied from Brett Flanders Countrywide Mortgage
The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.
Copied from Brett Flanders Countrywide Mortgage
Friday, February 13, 2009
Stimulus Plan Finalized
(information from Countrywide lender Michael Caputo)
Government announcements dominated the financial news this week. Updates on two major programs both were favorable for mortgage markets, and mortgage rates fell modestly during the week.
The most highly anticipated news concerned Tuesday's speech from Treasury Secretary Geithner on the financial institution assistance plan. This "Financial Stability Plan" involves multiple programs to remove bad assets from banks' books and to support new lending. It also contains funds to help prevent foreclosures. Investors were sorely disappointed by the lack of details about how the plans would work, however, and they responded to the uncertainty by purchasing relatively safer assets. The stock market plunged, while Treasury and mortgage-backed security markets rallied, pushing rates lower. Geithner suggested that more information about a plan to purchase troubled assets and a comprehensive housing program will be released in the next few weeks.
In the middle of the week, Countrywide/Bank of America made a material change to our jumbo pricing. With 30 yr fixed jumbo rates up to $1,000,000 in the mid 5% range, make sure you keep your clients up to date on the exciting changes to our pricing structure.
Later in the week, the House and the Senate agreed on a compromise $789 billion fiscal stimulus plan, which is expected to pass within days. The Obama administration estimates that the plan will create 3.5 million jobs. Both the House and the Senate had passed versions which were larger than the final compromise plan, and the reduction in scope helped mortgage markets. A smaller plan means that the government will have to issue less debt. Unfortunately, one of the spending cuts in the final plan was a provision for a $15,000 homebuyer tax credit, which came with an estimated price tag of $35 billion. Instead, the government will leave in place an $8,000 tax credit, applicable to only first time homebuyers. The primary change to the tax credit is that it will no longer need to be repaid. The estimated cost of this $8,000 tax break is less than $3 billion. There are several provisions in the overall stimulus package that will be beneficial and help stimulate demand for housing.
Chief among these is the $8,000 home buyer tax credit for new home buyers. While we are disappointed and would have preferred a more enhanced tax credit like the Senate version, the conferees did retain some key elements from the Senate and made other modifications that are beneficial to home buyers and home builders. For qualified home purchases in 2009, the legislation:
Stipulates that the $8,000 tax credit does not have to be repaid, unlike the tax credit passed last summer;
Keeps the tax credit refundable, or claimable regardless of tax liability;
Extends the sunset date from July 1, 2009 until Dec. 1, 2009 so that consumers can utilize it during the critical summer and fall buying months;
Allows tax credit home buyers to participate in the mortgage revenue bond program; and
Permits state housing finance agencies to help buyers at closing by advancing the credit amount as a loan using tax-exempt bond proceeds.www.federalhousingtaxcredit.com is being updated to reflect the new changes. By Tuesday, you should be able to direct your clients to the site for all the tax credit information. The FAQ section is very comprehensive and should be able to answer most of you buyer's questions.
On Wednesday, the President will outline his plan to help slow the wave of foreclosures. With 10,000 foreclosures a day, the administration is set to pledge up to $50 billion to help more homeowners avoid foreclosure. The major money center banks all announced plans to stop foreclosing on owner-occupied units through March 6th until the President's new plan can be rolled out.
Government announcements dominated the financial news this week. Updates on two major programs both were favorable for mortgage markets, and mortgage rates fell modestly during the week.
The most highly anticipated news concerned Tuesday's speech from Treasury Secretary Geithner on the financial institution assistance plan. This "Financial Stability Plan" involves multiple programs to remove bad assets from banks' books and to support new lending. It also contains funds to help prevent foreclosures. Investors were sorely disappointed by the lack of details about how the plans would work, however, and they responded to the uncertainty by purchasing relatively safer assets. The stock market plunged, while Treasury and mortgage-backed security markets rallied, pushing rates lower. Geithner suggested that more information about a plan to purchase troubled assets and a comprehensive housing program will be released in the next few weeks.
In the middle of the week, Countrywide/Bank of America made a material change to our jumbo pricing. With 30 yr fixed jumbo rates up to $1,000,000 in the mid 5% range, make sure you keep your clients up to date on the exciting changes to our pricing structure.
Later in the week, the House and the Senate agreed on a compromise $789 billion fiscal stimulus plan, which is expected to pass within days. The Obama administration estimates that the plan will create 3.5 million jobs. Both the House and the Senate had passed versions which were larger than the final compromise plan, and the reduction in scope helped mortgage markets. A smaller plan means that the government will have to issue less debt. Unfortunately, one of the spending cuts in the final plan was a provision for a $15,000 homebuyer tax credit, which came with an estimated price tag of $35 billion. Instead, the government will leave in place an $8,000 tax credit, applicable to only first time homebuyers. The primary change to the tax credit is that it will no longer need to be repaid. The estimated cost of this $8,000 tax break is less than $3 billion. There are several provisions in the overall stimulus package that will be beneficial and help stimulate demand for housing.
Chief among these is the $8,000 home buyer tax credit for new home buyers. While we are disappointed and would have preferred a more enhanced tax credit like the Senate version, the conferees did retain some key elements from the Senate and made other modifications that are beneficial to home buyers and home builders. For qualified home purchases in 2009, the legislation:
Stipulates that the $8,000 tax credit does not have to be repaid, unlike the tax credit passed last summer;
Keeps the tax credit refundable, or claimable regardless of tax liability;
Extends the sunset date from July 1, 2009 until Dec. 1, 2009 so that consumers can utilize it during the critical summer and fall buying months;
Allows tax credit home buyers to participate in the mortgage revenue bond program; and
Permits state housing finance agencies to help buyers at closing by advancing the credit amount as a loan using tax-exempt bond proceeds.www.federalhousingtaxcredit.com is being updated to reflect the new changes. By Tuesday, you should be able to direct your clients to the site for all the tax credit information. The FAQ section is very comprehensive and should be able to answer most of you buyer's questions.
On Wednesday, the President will outline his plan to help slow the wave of foreclosures. With 10,000 foreclosures a day, the administration is set to pledge up to $50 billion to help more homeowners avoid foreclosure. The major money center banks all announced plans to stop foreclosing on owner-occupied units through March 6th until the President's new plan can be rolled out.
Friday, February 6, 2009
Price Reductions in Savannah Real Estate
January was a great month for Don in the world of Savannah Real Estate. We sold several properties in the Historic District and are ready to sell more! This week Don has been busy with out of town buyers and price reductions on several listings. Here is a list of current price reductions:
- 115 Stafford Road - $208, 000 - 3 bedroom, 2 bath home on Wilmington Island
- 302 West 38th Street - $65,000 - Corner lot in Thomas Square District
- 517 East 38th Street - $16,000 - Great lot on a great block
- 10 Eagle Point Drive - $350,000 - Beautiful lot with marsh views in all directions
- 528 Dancy Avenue - $695,000 - Outstanding Vernonburg Bungalow
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