Question: Can I use the $8,000 tax credit toward my down payment or closing costs?

Answer: No

BUT, to elaborate a little on this subject, remember that we can always request that the Seller contribute some or even all of your closing costs.  At Realty World – Davis Homes & Properties we have been very successful in requesting these be paid by the Seller and having that request be accepted.

Make it a great Offer Day!

Randy

What is happening with all the applications for loan modifications in Lodi and Stockton, CA these days you ask?

According to THIS ARTICLE on www.msnbc.com by the Associated Press, I would have to say that there’s not much more happening here than there is in the rest of the country.

In the entire nation, only approximately 1,700 homeowners had completed the process for a loan modification out of the approx 650,000 applications for the program.  Those numbers are staggering!

As for the real estate market here in the local Lodi and Stockton CA areas; it is what it is.  Homes for sale is a common search on Google, Bing, and Yahoo.

There are some great deals on REO’s (Foreclosures) and also with Short Sales, which some banks are starting to work a little harder on to get into the escrow process than others.  One of the good ones to work with is Wachovia, but I shouldn’t mention the not-so-good ones though.  (*Cough* B of A *Cough*)  Sorry, I couldn’t pass that up.

To read the entire news article about the pace of loan mods…CLICK HERE

The Lodi and Stockton area real estate markets have been hit hard in the recent years, and I have seen a lot of nice homes and neighborhoods become empty and turn into what appear to be ghost towns.

My heart goes out to the people that have had to suffer from lost jobs/wages, unexpected medical bills, etc., that has not allowed them to stay in their homes.

Well, I have found news that may shed some light on these issues for some in an article by Amy Hoak on www.RISmedia.com and I believe it may give hope to some of those that would like to find a way to stay in their current home even if they do still find themselves having to experience foreclosure.

CLICK HERE to read this article about how Fannie Mae could be renting foreclosed homes back to their owners so that they can at least maintain their current job locations, children’s schools, friendly neighbors, etc.

Make it a better day!

1. Review your current credit report for accuracy. Everyone is entitled to one free credit report per year from each of the three credit bureaus—Experian, Equifax, and TransUnion. Get a copy of your credit report and look at it for accuracy. First, make sure that the information in your file is about you and only you, not someone who has a similar name or a similar Social Security number. It is very common for your credit reports to have mistakes or incorrect information. At a minimum, make sure that the information you are being evaluated on is current and correct.

2. Repair credit report mistakes. If you find something on your credit report that is incorrect or missing, you should dispute the mistake by contacting the credit bureaus directly. All credit bureaus have their dispute procedures on their website. They are also required by law to investigate any disputed items and these investigations will usually be done within 30 days of your request.

3. Pay your bills on time. Sounds like a no-brainer, right? Payment history accounts for roughly 35% of your credit score. Paying bills on time is the most important thing to do. If you’re struggling to catch up, contact your creditors to work out a payment schedule.

4. Increase the length of your credit history. This accounts for about 15% of your score. Don’t cancel your old card or get a lot of new ones in a short time span because this can hurt your score.

5. Keep credit card balances low. It’s a good idea to keep the balances below 25% of your available credit. Even if you pay off your credit cards every month, a high average balance will impact your score. This accounts for about 30% of your credit score.

6. Keep new credit requests to a minimum. This accounts for 10% of your score. Every time a lender runs your credit, an inquiry is recorded. If you are trying to get a loan, don’t apply for new credit cards first.

7. Be aware that paying off a collection account will not remove it from your credit report. It will stay on your report for seven years.

8. Pay off debt rather than moving it around. The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.

9. Beware credit-repair scams. By all means, don’t pay someone to wipe away the negative items in your file. If they don’t follow through, the damaging items will reappear in two or three months.

Read more: http://rismedia.com

You can get copies of all 3 agency credit reports by going to www.AnnualCreditReport.com

Make it a great day!

Well, I’ve come across a really good source of information regarding the First-time Home Buyer Tax Credit that I think you’ll find to be easier to understand if you still have any questions about the How and Why’s.

Remember, you repeat buyers are now eligible as well, so you check this page out also.

CLICK HERE to be directed to a great Q&A page.

Make it a great day!

The extension and expansion of the homebuyers tax credit that passed Congress November 5 allows more first-time buyers to qualify and creates an entirely new credit for existing homeowners who buy a new home.

The effective date is Tuesday, December 1 for the enhanced first-time buyer credit and for the new credit. It is not retroactive. However, first-time buyers who have been rushing the meet the November 30 deadline for the existing program need not worry. They can qualify under the new one. Existing homeowners who are also in the process of buying a home should consider delaying closing until December 1 or later to qualify for the credit.

Both credits expire next spring. Buyers must have a contract on a home before May 1, 2010 and they have until June 30, 2010 to close in order to qualify.

Key Provisions

Amounts:

• The first-buyer credit remains 10 percent of the cost of the home or $8ooo, whichever is less.

• The credit for existing homeowners is 10 percent of the value of the new home or $6500, whichever is less.

Definitions:

• A first-time homebuyer cannot have owned a home during the past three years.

• Existing homeowners must have owned and lived in their current home five out of the preceding eight years.

• Only principal residences qualify. No second homes or investment properties.

Income limits:

• The measure raises the income limits for those claiming the credit to $125,000 a year for individuals and $225,000 for couples, up from $75,000 and $150,000 in the previous first-time buyer credit. After that, the value of the credit phases out.

• The cost of the new home cannot exceed $800,000.

Cost:

• Expanding the home buyers’ credit will cost about $11 billion. The total cost of extending the first-time buyer credit and adding the existing owners’ credit is $16.7 billion.

How to Apply::

• Use IRS form 5405, which you file with an amended tax return.

• For more information on applying, go to http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Make it a great day!

The wait is over!  Yesterday, President Obama signed into law to extend the home buyer $8,000 tax credit until April 30,2010.  This is expected to contribute nearly $22 billion to our economy.

Originally, the tax credit was designed for first-time home buyers, but this new plan will now make it possible for more people to participate.  Current home owners who have lived in their home for five of the last eight years will be eligible for a tax credit of $6,500.

The income limits have been increased to $125,000 for single buyers and $225,000 for couples.  There is a cap on the price of the home at $800,000.

I am hopeful that this extension in the tax credit will help keep the real estate market growing in the right direction.  Especially in the Stockton, CA area where we have an abundance of great deals on homes just waiting for a buyer.

If you’ve already purchased a home this year (Congrats!) and would like a copy of the IRS Form 5405 for the tax credit, you can obtain one at www.IRS.gov

Make it a great day!

Randy

Well, we should be finding out anytime now about whether or not Congress has officially agreed to extend the tax credit.  It was passed by the Senate unanimously, so that may be a good sign.

With the flood of foreclosures an short sales still in the system, I feel it would be a good thing for the tax credit to have one more go-around to see if we can keep the flow of homebuyers coming in.

Working mostly in the Lodi, CA and Stockton, CA real estate markets, I still see a lot of great opportunities for both the first-time homebuyers, the move-ups, and the real estate investors alike.

Here is a link to a good description of what’s on the table for the tax credit extension…CLICK HERE.

Make it a great day!

First circulated in 2000, the Nigerian Scam even instigated a secondary scam to snare victims again. This follow-up scam claims that the Federal Bureau of Investigation is offering ATM cards to help victims recover money from the original scam. This too, of course, is false.

Sadly, there are many scams and confidence schemes to separate unsuspecting people from their money. Here are a few more money myths that can cost you:

“People under the age of 18 cannot be held accountable for credit card debt.” While it is true that people younger than 18 cannot sign a legally binding contract, a minor can be issued a credit card – with parental authorization or an adult’s co-signature.

“A check written in red ink takes longer for the bank to process.” If you need a few extra days for a check to clear, don’t rely on this misinformation. The color of ink makes no difference.

“It’s safer to not sign the back of your credit card.” Some people believe that leaving the signature spot blank will protect them from identity theft. In actuality, this may make it easier for thieves, who then, only have to sign the card themselves – in their own handwriting.

If you have questions about a contract, be sure to seek reliable advice from a professional before signing. And if you aren’t sure if an offer is legitimate, remember that if it sounds too good to be true, it probably isn’t.