Real Estate Market Sees Signs of Hope

Posted: Feb 19, 2010 9:40 PM PST Updated: Feb 19, 2010 11:01 PM PST

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Real Estate Market Sees Signs of Hope 2:59

By HUBBLE SMITH
LAS VEGAS REVIEW-JOURNAL

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Banks Start to Embrace Short Sales
Even before the government put pressure on them to embrace short sales, more banks were starting to take their lumps, do the short-sale deals and move on.

Three years into the housing meltdown, short sales have tripled to 40,000 in the first six months of 2009, compared to the same time period a year ago, according to data from the Office of Thrift Supervision and the Office of the Comptroller of the Currency.

Wells Fargo, Bank of America Corp., and JPMorgan Chase & Co. this year have hired and trained more staff to handle short sales and also developed software for expediting them.

more: http://www.realtor.org/RMODaily.nsf/pages/News2009120401?OpenDocument

Expect to see more and more short sale transactions especially here in the Las Vegas market.  Buying a short sale is a viable option and worth the wait.  But remember, a short sale can take a long time to process and a buyer definitely needs to have patience with the transaction and there are no guarantees the bank will even except a short sale payoff.  It is a better option for the bank and it helps the homeowners tremendously.  A short sale payoff looks much better than a foreclosure on their credit.

From the Las Vegas Review Journal dated 11/22/2009.   Short sales are definitely on the rise here in Las Vegas.  With the ridiculous bidding wars we are experiencing in Las Vegas over the foreclosure or REO inventory, offering to purchase on a short sale is not so bad.  One of the downfalls many feel(including myself at one point in time) is short sales don’t close, they take so long and its just a waste of time.  Believe it or not I have had 3 successful short sale closings in the past 3 months.  That’s pretty darn good.

Many banks are now working with the sellers to settle their debt and accept a short sale instead of letting the home go to foreclosure.   What is a short sale  you ask? click the link and get a quick overview http://homebuying.about.com/od/4closureshortsales/a/shortsalebasics.htm

Also with companies now negotiating the short sale, like Complete Short Sale Processors, it makes Realtor’s lives so much easier as we do not have to sit on the phone and want to yank our hair out trying to get a hold of someone, anyone at the bank (the one who owns the mortgage).

If you would like more information on how to offer on a short sale, email me at alma@lasvegaswebofhomes.com and I would love to answer your questions. 

Alma Gomez

Realtor

702-875-1756

Andrew Hoelzel
Senior Mortgage Consultant & REO/Foreclosure Expert
Residential Capital Mortgage
Direct: (702) 279-1801
Fax: (702) 968-5172
ahoelzel@rcmclv.com
www.ResidentialCapitalMortgage.com/andrew

First Time Homebuyer Tax Credit Extended inot 2010!!!

It’s official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.

In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

So Who Gets What?
The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.

Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Deadlines
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.

First-Time Homebuyer Tax Credit – Frequently Asked Questions
Here are answers to some commonly asked questions about the tax credit.

What is a tax credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.

What is the tax credit for first-time homebuyers (FTHBs)?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is eligible for the FTHB tax credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How do I claim the credit?
For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).

Can you claim the tax credit in advance of purchasing a property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.

Are there other restrictions to taking the credit?
Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.

You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
You do not use the home as your principal residence.
You sell your home before the end of the year.
You are a nonresident alien.
You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.
Can you buy a home from a step-relative and be eligible for the credit?
Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.

Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?
Yes.

Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?
No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.

If you have any questions that fall outside the situations here, give me a call and if you do not have an accountant to speak with, I can refer you to one.

Could this be true? You betcha!! Homes coming on the market are priced to sell and are all too often being bid up in price. Just today I submitted an offer for a home that is $37 a sq. ft. WOW!!  I’ll bet a dollar there will be a bidding war on the property. Even if the home sells for $50 a sq. ft. that is less than what it cost to build the home.

Inventory is moving super fast! Our office listed a property and the seller was worried it would take more than 3 months to sell.  Was he wrong, there was a bonafide offer on the table in less than 24 hours and in escrow in 2 days.

If you are serious about buying in Las Vegas, now is the time!!

Southern Highlands is an exciting new master-planned community in the southern foothills of the Las Vegas Valley. It features a wide range of homes, from the affordable to the exclusive, as well as offices, shops, schools, parks, and more. It further features the Robert Trent Jones-designed Southern Highlands Golf Club, which in just a few months has become one of the most renowned golf courses in the West.