The Wall Street Journal reported that two studies, one conducted by John Burns Real Estate Consulting Group and Standard & Poor's Financial Services, both conclude that most efforts to modify loans will only delay, not prevent, foreclosure.

The John Burns study indicated that five million houses and condominiums  will go into foreclosure and will re-appear on the market over the next few years.   In addition, the 'Shadow Inventory'

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On January 15, 2010 HUD announced that it was implementing a temporary waiver of their 90 Day Seasoning Rule to help accelerate the resale of foreclosed and distressed properties.

In the past when investors bought a property to renovate and resell there was a 90 day waiting period before that property could qualify to be sold using an FHA loan.   This waiting period was also called 'Seasoning'.    In the ...

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Recently the US Government has outlined some new programs that may change the way Banks and other lenders handle their Short Sales.

On December 1st the Treasury Department outlined a program to attempt to streamline the Short Sale process which has varied considerably from lender to lender. The program attempts to set nationally uniform document, timelines and financial incentives.

Buyers are often frustrated by the length of time it takes to get a short sale decision. Sometimes after waiting for months the seller and lender can't come to an agreement on the terms and ...

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As a follow up to my last blog on the Tucson Rental Tax proposition, the City Council voted on January 12th  6 to 0 to not pass a rental tax.

It appears a huge number of people came out against the tax which pitted renters against public safety.

The City of Tucson announced that major cuts in Police and Fire protection is necessary to balance the current budget deficit. The "Landlord Tax" surfaced after community the ferocious public outcry when the City Council announced it was considering the public safety cuts. Tucson's City Manager Mike Letcher ...

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Recently, the City of Tucson has announced that it is considering a 2% 'Landlords Tax' that is estimated to raise an estimated $3.5 million dollars this fiscal year.

There is stiff opposition to the idea by landlords and tenants who say the tax would hit them hard at a time they can least afford it.   There is a city forum on this at the Tucson Convention Center this Tuesday, January 12th at 5:30PM. ...

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President Obama signed into law on November 6, 2009 the Worker, Homeownership and Business Assistance Act of 2009.  This program makes changes to the First Time Home Buyers Tax Credit program as well as establishes a new program to give a tax credit to people who have owned thier current home consecutively for the past five of the last eight years, and who purchase a replacement principal residence with a signed contract no later than April 30th, followed by a closing no later than June 30th.

Purchases of homes after November 6th require the use of a new version of IRS Form 5405. 


FIRST TIME HOME BUYERS
The First Time Home Buyers Program was originally set to expire on November 30, 2009.  It is now set to expire on April 30, 2010.  If you purchased the home after November 30th, you must adhere to the new guidelines:

• House cannot cost more than $800,000
• No one under age 18 can claim the credit
• Anyone who was claimed as a dependant on another taxpayer's federal tax return cannot claim the credit
• The expanded income limititations for purchasers range to $125,000 in modified adjusted gross income for single tax payers and to $225,000  for those who file jointly.
• Single tax payers with incomes between $125,000 and $145,000 may be eligible for a phased-down credit amount.  Joint filers beween $225,000 and $245,000 may also be eligible for a phased-down credit.

REPEAT HOME BUYERS

Qualified repeat home buyes may be eligible for up to a $6,500 tax credit. 

Must meet home and income limitiations as above.
The home buyer must have owned their principal residence for a consecutive five of the previous eight years.
Signed a contract for a replacement principal residence no later than April 30, 2010 and close on the home by June 30, 2010.


MILITARY

Members of the armed forces, plus diplomatic and intelligence personnel who are in service in foreign countries have until April 30, 2011 to purchase a home and until June 30, 2011 to close.


The tax credit is 10% of the purchase price of the home up to the maximum of $6,500 for repeat buyers and $8,000 for first time home buyers.  Please consult your CPA to verify your eligibility for the tax credit.

        

A huge success for Arizona Assoication of Realtors.  It was announced just before the holiday that Governor Jan Brewer signed HB 2008 which repealed SB 1271 that changed Arizona's Antideficiency Statutes.

SB1271 originally started out as a bill dealing with Jail Districts and property tax limits.  A strike everything amendment was introduced in June and the whole direction of the bill changed.

The current anti-deficiency statue gives homeowners protection against a judgment if the property is on 2 1/2 acres or less and ...<< MORE >>

First time home buyers hoping to cash in on the $8000.00 First Time Home Buyers Tax Credit have until November 30th to close.  This has the potential to cause a rush at the last minute as buyers struggle to close on time.  Failure to close on time will result in the loss of the tax credit.   Because of the timing needed in short sales, short sales are becoming less and less an option as each day goes past.  First time home buyers will need to look ...<< MORE >>