Jan
A great new year full of changes … 2010!
Reflecting is what we typically do when the year rolls over. But we also look ahead and decide what we would like to change in the coming year. Ouch! There is a dirty little word. C H A N G E… it makes a lot of us very uncomfortable and yet is “life’s blood” to a whole other sector of the population. If you have trouble with it I would recommend a short read entitled Who Moved My Cheese by Dr Spenser Johnson. It’s cheap, interesting and the #1 book on change. You can read it in less than an hour!
Some changes for Real Estate in 2010 are here! How about a few of the obvious GOOD ones to get us rolling on the right track? FHA has made what I think are some very positive changes to their underwriting guidelines. These changes allow homeowners who had to “short sell” their home to be able to purchase a replacement home at a lower price using an FHA loan!
Borrowers are considered eligible for a new FHA-insured mortgage if
• They were current on their mortgage and other installment debts at the time of the short sale of their previously owned property, and
• The proceeds from the short sale serve as payment in full. Reference 4155.1 4.C.2.l.
Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence simply to
• take advantage of declining market conditions, and
• purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.
Considering the current interest rates (high 4’s!) and the opportunity for Sellers to scale down into a smaller more affordable home with only 3.5% down, I would call this a very positive change!
More exciting and positive change relates to the Federal Tax Credit for purchasing a home. Last November the credit was not only extended but “CHANGED” to include existing homeowners who sell their home and purchase another home. The Current Owners Tax Credit applies to those who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. These Buyers are eligible for a refund of up to $6500! First Time Buyers up to $8000! Combine this news with the new FHA guidelines above and you just might find a reason that helps you to make a big CHANGE of address in 2010!
The only negative side as I see it is that time is running out! There are deadlines set on all of these tax programs and lender incentives. The Tax credits are timing out in April. You must be in contract by April 30th of this year and close escrow on the home by June 30, 2010 in order to receive the credit. So hurry up and get on board with the Changes!