Daily Real Estate News Consequences for 'Walk-Away' Borrowers The government and the lending industry are taking aim at “walk-away” home owners who stop making payments and months later send the house keys back to their lender. Such borrowers will not be able to get another mortgage through Fannie Mae for five years, unless there are “documented extenuating circumstances.” In that case, the prohibition is three years. Even after the prescribed time has elapsed, a borrower with a foreclosure in his file will have to make at least a 10 percent down payment and have a FICO credit score of at least 680 to qualify for a Fannie Mae loan.Freddie Mac, which counts foreclosures as major credit black mark for seven years, is now aggressively pursuing walk-away borrowers where permitted under state law, a senior official said.Federal legislation enacted last year allows home owners who negotiate loan modifications with lenders and have portions of their principal debt eliminated to escape income tax liability for the amount forgiven. Walk-away borrowers, by contrast, have nothing forgiven, and the Internal Revenue Service may demand taxes on the balance they never paid, the IRS says.Source: Washington Post Writers Group, Kenneth R. Harney (04/12/2008)
Hopefully this scenario is not happening to you. But if you are thinking about this,Stop and call for help. The options available to you might be a better plan. A Short Sale or other options could help, the consequences of just turning over the keys are to great. Call Me!!!801-440-0067
Monday, April 21, 2008
Thursday, April 10, 2008
PHOTOS HELP SELL HOMES
Photographs that accompany home listings on the Web or in brochures, newspaper advertisements, flyers, magazine articles, and other marketing materials play a significant role in attracting buyers. These images serve as the first impression, and buyers often decide whether or not to see a home in person based on their quality and presentation. Research reveals that the more photos a listing has, the quicker it sells. A property with a single photo spent 70 days on the market (DOM) on average, while DOM fell to 40 with six photos, 36 with 16 to 19 photos, and 32 with 20 photos. Additionally, listings with one photo sold for 91.2 percent of the original price, while homes with six or more sold for 95 percent of the original price. The photos to be used in an agent's marketing materials should be taken by a professional, with experts noting that sellers will recoup the costs of professional photos if their homes sell faster and at a higher price.
This article from the NAR
This article from the NAR
Wednesday, April 9, 2008
TAX BENEFITS FOR HOMEOWNERS!
We all know the old adage about nothing being certain except death and taxes. However, on a more positive note, you can also be certain of tax benefits if, that is, you are a homeowner.
Purchasing a home can provide valuable tax savings to homebuyers. Mortgage interest, property tax, and other payments associated with financing a home can apply to your tax deductions. They may decrease the amount of income tax you must pay to the federal government.
Another financial advantage to owning a home is that as you begin to pay off your mortgage loan, you build equity in your property. In other words, the value of your home can increase as your total mortgage amount decreases over time.
For those who rent, the tax savings of ownership go to the landlord, not to the tenants. Wouldn't you rather build equity for yourself every month instead of paying someone else and giving away "your" tax savings?
Purchasing a home can provide valuable tax savings to homebuyers. Mortgage interest, property tax, and other payments associated with financing a home can apply to your tax deductions. They may decrease the amount of income tax you must pay to the federal government.
Another financial advantage to owning a home is that as you begin to pay off your mortgage loan, you build equity in your property. In other words, the value of your home can increase as your total mortgage amount decreases over time.
For those who rent, the tax savings of ownership go to the landlord, not to the tenants. Wouldn't you rather build equity for yourself every month instead of paying someone else and giving away "your" tax savings?
Tuesday, April 8, 2008
NEW FHA GUIDLINES
Good Morning Everyone! I have some REALLY BIG NEWS in the mortgage arena today- and I wanted to pass it on NOW.
FHA has increased the loan limits in Salt Lake, Tooele, and Summit County to -----(are you ready for this?)
$729,750!!!
That is More than DOUBLE the old limit! What does that mean for you as a home buyer? Homes up to approx. $750,000 can now be financed with FHA (with the great low rates FHA offers, and the 3% down requirement, and the low, low mortgage insurance rates FHA offers!!!). Also they except down payment assitance programs.This will REALLY open the door to buyers with little down payment who want a more expensive home. It also allows people to buy these more expensive homes with out having to pay Jumbo interest rates!
Maybe you are that “move-up” buyer who has little equity in their home, and want a larger more expensive home, but don’t have much down payment………perfect opportunity here! This is also a great opportunity for someone to refinance a home that was over these limits before and combine that high interest rate first and second mortgage!
Please don’t hesitate to call for more information, or for payment quotes! This is really an exciting day for YOU!
FHA has increased the loan limits in Salt Lake, Tooele, and Summit County to -----(are you ready for this?)
$729,750!!!
That is More than DOUBLE the old limit! What does that mean for you as a home buyer? Homes up to approx. $750,000 can now be financed with FHA (with the great low rates FHA offers, and the 3% down requirement, and the low, low mortgage insurance rates FHA offers!!!). Also they except down payment assitance programs.This will REALLY open the door to buyers with little down payment who want a more expensive home. It also allows people to buy these more expensive homes with out having to pay Jumbo interest rates!
Maybe you are that “move-up” buyer who has little equity in their home, and want a larger more expensive home, but don’t have much down payment………perfect opportunity here! This is also a great opportunity for someone to refinance a home that was over these limits before and combine that high interest rate first and second mortgage!
Please don’t hesitate to call for more information, or for payment quotes! This is really an exciting day for YOU!
Here is a bit of good news for a couple of areas!!!
Forbes.com rates Salt
Lake City the #1 best
city For Bargain House-
Hunters.
"Good places to look? Salt Lake City
and Raleigh, N.C., where there are
plenty of sellers slashing prices, but
not because of a lending meltdown.
Timing a market is tricky business, and
prices alone may not be the best way
to determine a bargain opportunity.
What you need is a buyers' market,
where there is healthy job growth and
more houses available than people to
buy them. This is not due to
foreclosures and economic downturn,
but to overbuilding that should
balance out in time." - Matt Woosley,
Forbes
Lake City the #1 best
city For Bargain House-
Hunters.
"Good places to look? Salt Lake City
and Raleigh, N.C., where there are
plenty of sellers slashing prices, but
not because of a lending meltdown.
Timing a market is tricky business, and
prices alone may not be the best way
to determine a bargain opportunity.
What you need is a buyers' market,
where there is healthy job growth and
more houses available than people to
buy them. This is not due to
foreclosures and economic downturn,
but to overbuilding that should
balance out in time." - Matt Woosley,
Forbes
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