Homeowners who walk away from their homes and default on their mortgages even though they can afford to make payments without trying alternatives to foreclosure may find they are unable to get a Fannie Mae backed loan for 7 years.
Some homeowners in neighborhoods affected by high rates of distressed homes are opting to strategically “walk away” from their homes due to the falling values.
Senate Majority Leader, Harry Reid, wants to extend the time limit for homebuyers to qualify for the $8,000 tax credit to September 30th. Current terms required the buyer to complete a purchase by June 30th.
The $8,000 tax credit boosted sales this past Spring. First time homebuyers were limited to an $8,000 tax credit while current homeowners were limited to $6,500 tax credit.
The proposal is presented as an amendment to a bill that would extend jobless benefits through the end of November. The Senate is expected to take up the amendment next week. For current information about current market trends and homebuyer programs visit: www.RealEstateExpertsofFlorida.com
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Rates on 30 year fixed mortgages fell to the lowest rate this year at $4.72%.
The average rate on a 15-year fixed-rate mortgage hit 4.17 %, the lowest on records dating back to August 1991.
This news has not stimulated the mortgage application rate. According to the Mortgage Bankers Association, the rate was down 35% from last month.
Recent legislation and dramatic moves by Fannie Mae and Freddie Mac could help relieve the condo crisis and help failing condo associations.
Since 2006, the value of condos in parts of Florida has decreased by half. Investors and their tenants have walked away from units and stopped paying association dues. This has crippled associations and resulted in poor maintenance and repair schedules and decreased values further.
Until recent changes in lending restrictions by Fannie Mae a
Different real estate investing strategies have radically different impacts on tax returns.
Those who buy and hold property for over one year benefit from qualifying the income from rentals as passive income. Depreciation and many maintenance expenses qualify as deductions against any rental income. When property held for a year or more is sold, the gains are taxed as long term capital gains at a tax rate of 15% (at least for now). Consult your tax advisor for current law and expected change
The Case-Schiller Home Prices Index showed another positive jump for the eight straight month in January. The seasonally adjusted prices increased by .4% for the 10 city index and .3% on the 20 city index. Both showed a decline on the unadjusted indexes due in part to the bad weather in many parts of the country.
Florida, like other judicial foreclosure states, is experiencing a serious backlog of cases and needs additional funds in order to clear the log-jammed court dockets. The Florida Courts Administration has asked the legislature for an extra $9.6 million in order to hire more case managers and judges in order to clear the current glut of lis pendens and final judgment cases in foreclosures.
First American CoreLogic has estimated that even in the healthier markets that are now beginning to heal from the steep price drops of the last three years, homeowners currently with underwater mortgages will continue to have mortgages that exceed value until late 2015.
Neil Barofsky, special inspector general for the Troubled Assets Relief Program (TARP), admitted that far fewer homeowners will receive assistance under the HAMP program and other government efforts to ease foreclosure than originally estimated. Barofsky estimates that only 1.5 million to 2 million homeowners will be helped as opposed to the 4 million originally expected to receive foreclosure help from the government. Barofsky does not believe offering modifications is a meaningful goal of the foreclosure program, since so few have actually been helped and many who have received modifications are redefaulting. Herbert M. Allison, assistant Treasury secretary for financial stability said the program should be measured not just by the number of permanent modifications made, but also by the assistance given to provide Deed in Lieu of Foreclosure and Short Sale assistance. Obviously, the enhancements to the HAMP program announced on March 26 are an indication that new strategies and incentives are needed if millions of people are going to be helped to avoid foreclosure. Bob Massey
Reflecting the extreme sensitivity of the issue, explanations, retrenchments, and denials are being voiced in response to an RMD story earlier this week about HUD’s intent – or not – to foreclose on seniors whose properties have gone into “technical” or other default.
“There will be some policy forthcoming on foreclosures and defaults, intended to be preventative,” according to Meg Burns, director, FHA Office of Single Family Program Development, speaking with RMD prior to leaving for a Central
As part of an agreement with state attorneys general to settle charges over high-risk loans made by Countrywide, Bank of America will begin writing down loan balances for homeowners that meet eligibility criteria.
Appraisers and Real Estate Agents are presently fighting it out about whether the Brokers Price Opinion is sufficiently fair and accurate compared to a full blown appraisal to be used as a Lender's primary tool in valuing a Short Sale or a Loan Modification.
Using $555 million in Recovery Act funds, the Department of Defense has expanded a program that can reimburse employees up to 90 percent of the price they paid for a primary residence to avoid a loss when they go to sell.
Just a few years ago, foreclosure, pre-foreclosures, loan modification, work-out plan, forbearance, deed in lieu, deficiency judgment, short sale were uncommon words almost never used in everyday conversation.
The program is for homestead properties in foreclosure and must be run by a proven nonprofit group and the lenders will pick up the tab of $750 cost. This third party will help the homeowner exchange financial information with the lender's representative to determine if options such as a loan modification is doable. With the inclusion of a Supreme Court certified mediator in the program it is hoped that a homeowner might get a loan modification through mediation. However, the fact is that ma