As the existing home buyer tax credit winds down many are wondering if there will be another extension.
As of now, the only extension has been granted to certain members of the military, the foreign service and the intelligence community.
For qualified service members who are ordered on a period of official extended duty, the tax credit dates are extended for one year. The purchase contract must be dated by April 30, 2011 and closed by June 30, 2011.Also, this extension applies to a service member who is forced to return to the U.S. for medical reasons before completing an assignment of at least 90 days of official extended duty outside the U.S.
A "Qualified Service Member" is a member of the Armed Forces of the U.S. military, a member of the U.S. Foreign Service or a member of the intelligence community.
As of today...there are still 3 weeks left to get a property under contract. Closing must then take place no later than June 30th...this eliminates most, if not all, short sales as candidates.
Showing posts with label 1st time homebuyer tax credit. Show all posts
Showing posts with label 1st time homebuyer tax credit. Show all posts
2/28/10
CNN Money reports 25% home price decline ahead for our area!!
Take a look at this eye-opening post on our Winston Trails blog...If you're a home owner, you NEED to read it. Just click right here
Thanks for reading our blog,
Steve
Thanks for reading our blog,
Steve
2/3/10
The next chapter in the book entitled: The housing crisis..what they DON"T want you to know!
Here are a few interesting charts and accompanying analysis from a blog called ZeroHedge and a guy writing under the name ‘Tyler Durden’ (anyone see Brad Pitt in The Fight Club?), released yesterday, (along with my comments).
Everything that the government has done so far, with a few minor detours, has been almost exclusively focused on maintaining home prices high, by tweaking either the supply or the demand side of the housing equation. As the bulk of consumer net wealth is concentrated in the housing sector, and a wealthy and confident consumer, much more so than the banking system, is critical to the recovery of America’s economy, the Administration will do everything in its power to achieve its goal of artificially manipulating the housing market...the continued pursuit of such flawed policies by the Fed and President Obama merely pulls the market ever further away from its equilibrium, thereby making the anticipated second dip so much more likely and not that far off in the distant future...After being extended once by the Obama Administration, the tax credit will expire at the end of April—putting downward pressure on demand for existing home sales. That prospect will make it more difficult to clear out the next wave of foreclosures, prompting another down leg in US house prices.
I have blogged about the "shadow" inventory before...it is spoken about amongst real estate agents and mortgage professionals...but they don't report about it in depth on CNBC, MSNBC or the like...take a look at the chart below:
In Florida, almost 49% of all homes with mortgages are in a "negative equity" position...on top of that, about 1 in 4 Florida homeowners with a mortgage is 30 or more days delinquent.
I don't know the actual (or make believe) lender figures...but common sense tells me that someone who is unemployed, upside-down on their mortgage and is behind on their mortgage payments, is NOT going to ravage their IRA or borrow from their mother-in-law to pay all of the banks penalty fees, late fees, interest fees and lawyer fees to get caught up with the bank ...but that's just my opinion.
In a recent post, I spoke about one of the major roadblocks to a housing recover being the "real" unemployment rate. And this issue is a driving factor in the "strategic default" wave. A record 15 million Americans are unemployed and another 9 million are underemployed. However, just as significant is the roughly 10 million households in a negative home equity position of worse than -20%, for whom strategic default - failing to pay when one could - is a very real option.
Now for the elephant in the room: Interest rates...this was one prong of the two pronged lightening rod for the housing crisis blame...the other being lax lending standards. "They" blame artifcially low mortgage rates as the first major contributing factor. Then WHY is no one saying the same thing now? The Fed is buying MBS in the open market in an effort to KEEP the mortgage rates (artificially) low. Aggressive central banks’ rate cuts along with large amounts of agency MBS purchases by the Federal Reserve have lowered mortgage rates by over 100 bps since the height of the financial crisis.
Although we don’t expect policymakers to raise the fed funds rate until 2011, mortgage rates have already started to head higher, and could keep climbing towards the end of the first quarter when the Fed’s $1.25 trillion agency MBS purchase program is completed. Those purchases made up almost 50% of all MBS issuance last year, and despite the improvements in the securitization market, their absence will likely have a material impact on rates (See Chart above).
As stated by the writer of the original article: "And there you have it: the best that the government can hope for is to extend and pretend, and to avoid presenting the sad but very simple reality to the American public. Because lack of knowledge is half the battle."
I couldn't have said it better myself!
Thanks for reading...Steve Jackson
Everything that the government has done so far, with a few minor detours, has been almost exclusively focused on maintaining home prices high, by tweaking either the supply or the demand side of the housing equation. As the bulk of consumer net wealth is concentrated in the housing sector, and a wealthy and confident consumer, much more so than the banking system, is critical to the recovery of America’s economy, the Administration will do everything in its power to achieve its goal of artificially manipulating the housing market...the continued pursuit of such flawed policies by the Fed and President Obama merely pulls the market ever further away from its equilibrium, thereby making the anticipated second dip so much more likely and not that far off in the distant future...After being extended once by the Obama Administration, the tax credit will expire at the end of April—putting downward pressure on demand for existing home sales. That prospect will make it more difficult to clear out the next wave of foreclosures, prompting another down leg in US house prices.
I have blogged about the "shadow" inventory before...it is spoken about amongst real estate agents and mortgage professionals...but they don't report about it in depth on CNBC, MSNBC or the like...take a look at the chart below:
In Florida, almost 49% of all homes with mortgages are in a "negative equity" position...on top of that, about 1 in 4 Florida homeowners with a mortgage is 30 or more days delinquent.
I don't know the actual (or make believe) lender figures...but common sense tells me that someone who is unemployed, upside-down on their mortgage and is behind on their mortgage payments, is NOT going to ravage their IRA or borrow from their mother-in-law to pay all of the banks penalty fees, late fees, interest fees and lawyer fees to get caught up with the bank ...but that's just my opinion.
In a recent post, I spoke about one of the major roadblocks to a housing recover being the "real" unemployment rate. And this issue is a driving factor in the "strategic default" wave. A record 15 million Americans are unemployed and another 9 million are underemployed. However, just as significant is the roughly 10 million households in a negative home equity position of worse than -20%, for whom strategic default - failing to pay when one could - is a very real option.
Now for the elephant in the room: Interest rates...this was one prong of the two pronged lightening rod for the housing crisis blame...the other being lax lending standards. "They" blame artifcially low mortgage rates as the first major contributing factor. Then WHY is no one saying the same thing now? The Fed is buying MBS in the open market in an effort to KEEP the mortgage rates (artificially) low. Aggressive central banks’ rate cuts along with large amounts of agency MBS purchases by the Federal Reserve have lowered mortgage rates by over 100 bps since the height of the financial crisis.
As stated by the writer of the original article: "And there you have it: the best that the government can hope for is to extend and pretend, and to avoid presenting the sad but very simple reality to the American public. Because lack of knowledge is half the battle."
I couldn't have said it better myself!
Thanks for reading...Steve Jackson
1/15/10
IRS says "sorry, you can't file for your tax credit"!
NEW YORK (CNNMoney.com) -- Did you purchase a home after Nov. 6? Don't expect your $8,000 homebuyer tax credit any time soon. Since Congress passed the initial tax credit last February... more than 1.4 million buyers have taken advantage of it...But that all changed on Nov. 6...it appears that the IRS has NOT ALLOWED ANYONE TO FILE since November 6th...
Congress extended the credit to include contracts signed by April 30 and closed by June 30. It also made a refund of up to $6,500 available to existing homeowners looking to buy something new. And that marked the start of a new IRS paperwork wrangle. Those homeowners who closed their sale before Nov. 6 use Form 5405 to claim the credit right away. But those closing after that date are in limbo because no form yet exists for them to file! The IRS had been expected to come out with a revised form by early January, but it has yet to release anything.
Also, with the new fraud-prevention regulation attached to the extension/expansion credit, there is no E-filing available for those claiming the extension...adding to the already extended timeframe for the tax credit refund.
If you are planning to buy within the timeframe guidelines of the tax credit and are hoping to receive the money quickly...don't count on it!
As always, check with your tax advisor...
Congress extended the credit to include contracts signed by April 30 and closed by June 30. It also made a refund of up to $6,500 available to existing homeowners looking to buy something new. And that marked the start of a new IRS paperwork wrangle. Those homeowners who closed their sale before Nov. 6 use Form 5405 to claim the credit right away. But those closing after that date are in limbo because no form yet exists for them to file! The IRS had been expected to come out with a revised form by early January, but it has yet to release anything.
Also, with the new fraud-prevention regulation attached to the extension/expansion credit, there is no E-filing available for those claiming the extension...adding to the already extended timeframe for the tax credit refund.
If you are planning to buy within the timeframe guidelines of the tax credit and are hoping to receive the money quickly...don't count on it!
As always, check with your tax advisor...
11/4/09
Senate acts to extend unemployment benefits, expand homebuyer tax credit
The Senate has voted to give the jobless up to 20 weeks of additional unemployment benefits and significantly expand a tax credit program aimed at getting buyers back into the dormant housing market.
The strong Senate vote for the legislation is a recognition that the government still needs to do more to keep the economic recovery from faltering. If enacted, workers in some of the harder-hit states would be eligible for nearly two years of benefits, a record.
The bill also provides tax relief for businesses that have been losing money. It now goes back to the House, which is expected to quickly approve it and send it to President Obama for his signature.
The strong Senate vote for the legislation is a recognition that the government still needs to do more to keep the economic recovery from faltering. If enacted, workers in some of the harder-hit states would be eligible for nearly two years of benefits, a record.
The bill also provides tax relief for businesses that have been losing money. It now goes back to the House, which is expected to quickly approve it and send it to President Obama for his signature.
11/3/09
Senate Clears Homebuyer Tax Credit Extension
After two weeks of delay, the Senate, last night, cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers... making it virtually certain that the legislation will reach President Obama for his signature this week.
The homebuyer tax credit, due to expire in 28 days, would be extended through April 30 of next year. First-time buyers who are in process of making a purchased would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.
For the first time, the legislation cleared last night makes move-up buyers as well as first-time buyers would be eligible for a credit. The $8,000 maximum first-timer credit will continue and will now available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law. A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years... 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.
The homebuyer tax credit, due to expire in 28 days, would be extended through April 30 of next year. First-time buyers who are in process of making a purchased would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.
For the first time, the legislation cleared last night makes move-up buyers as well as first-time buyers would be eligible for a credit. The $8,000 maximum first-timer credit will continue and will now available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law. A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years... 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.
Subscribe to:
Posts (Atom)
