FHA Upfront Mortgage Insurance Premium Increase April 5th, 2010
March 8, 2010 by Victoria Stankard · Leave a Comment
It has never been a better time to buy a home with so many exceptional values on the market, government tax credits and historically low interest rates. However, there are some changes headed our way that will have an affect on these favorable conditions.
Top heavy home inventory is shrinking more and more each day as buyers take advantage of low home prices. The First-time Homebuyer Credit is also set to expire on April 30th 2010. Last, but not least, for those looking to buy their first home with an FHA backed loan, premiums on FHA upfront mortgage insurance will soon be going up.
According to Mortgage letter 2010-2 issued by the U.S. Department of Housing and Urban Development on January 21, 2010, there 
will be an increase in upfront premiums for FHA mortgage insurance for case numbers assigned on or after April 5th, 2010. The Federal Housing Authority is the only government agency that runs on its own self-generated income and that costs taxpayers nothing. The program is funded by insuring home loans and charging borrowers who qualify for an FHA loan, upfront mortgage insurance (MIP).
FHA loans are great for first-time buyers because they only require 3.5% of the price of the home as a down payment instead of the standard 20%, which is often hard to come up with. FHA mortgage insurance provides lenders with protection in case a homeowner defaults on their loan and guarantees they will pay a claim to the lender in the event of a default. Loans must meet certain requirements established by FHA in order to qualify for insurance.
As of April 5th, FHA insured loans for home purchases and non-streamline refinances will increase from 1.75% of the base loan amount to 2.25. An increase of .5% may not seem like a lot, but during these tough times, every cent counts! A refinance of an FHA underlying mortgage will increase from 1.5% to 2.25%.
Charlotte NC Real Estate Homes For Sale
If you are considering purchasing a home in Charlotte NC, now’s the time to get the ball rolling and save money. The FHA upfront mortgage insurance premium increase goes into effect 25 days before the “in contract” deadline for the First-time Homebuyer Credit hits.
Leigh Brown is the leading real estate broker in the Charlotte metro area. Over the years, Leigh has helped many first- time home buyers find great deals on Charlotte NC real estate homes for sale. She will walk you through the home buying process every step of the way!
You can reach Leigh by filling out her online contact form or give her a call at (704) 688-5005, or (866) 440-7136 toll free.
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How You Can Prevent Delays in the Mortgage Loan Modification Process
March 5, 2010 by Victoria Stankard · Leave a Comment
A mortgage loan modification is when the lender reworks the terms of your existing home loan to make the monthly payments more affordable. Lenders will lower the interest rate, extend the terms of the loan, reduce the principal (although rare) or a combination of any of the above to get the payment down.
A mortgage loan modification may tarnish your credit a bit, but it’s a whole lot better than losing your home and dealing with the ensuing fallout of a foreclosure. However, as more and more financially distressed homeowners seek out loan modifications to avoid foreclosure, not all lenders have the staff or where-with-all to handle the load.
Consequently, loan modifications can drag out for months. On average it takes approximately 40 to 50 hours of ‘grunt work’ and ‘wait time’ to get through the mortgage loan modification process from start to completion and a lot of that time is spent listening to ‘muzac’ while on hold with your lender!
Avoiding Mortgage Loan Modification Delays
Here are a few things to keep in mind that can expedite the loan modification process: 
When making initial contact with your lender over the phone, be prudent about disclosing your economic condition. Be honest and don’t embellish or understate you financial situation. It’s best to get the application and paperwork from your lender and ’submit everything in writing.’ Next, insist that your lender produce the original note (with your signature) that proves you actually owe them the loan.
Everything should be recorded and kept in a file including all transactions, any receipts for those transactions and all conversations with your lender. Keeping good records and making copies of original documents will help avoid any unnecessary delays in the loan modification process.
Most lenders have their own proprietary financial forms. However, if you take the time to prepare your personal financial statement ahead of time, you’ll have all the information ready for your lender. Lack of preparation on your part can slow down the loan modification process if your lender has to spend time calling you for missing information.
Worksheet Information
The information you will need to be provide in a worksheet should include:
- Current income including ‘other income’ such as child support, welfare etc.
- Total assets including bank accounts (checking and savings), investments, real estate, IRAs, 401(k), stocks, bonds, etc.
- Total liabilities such as your monthly bills, any tax liens, existing loans and/or medical expenses.
You’ll want to keep good records of all supporting documents, including bills and receipts, with your financial statement in case you are required to back up your statement with proof.
Waiting to find out if you’ve been approved for a loan modification can seem like an eternity. But, if you do your part, your chances of achieving a positive outcome, in the time you need it to happen, will greatly improve.
Charlotte NC Avoid Foreclosure Expert
Leigh Brown is a Certified Distressed Property Expert® (CDPE) and the leading avoid foreclosure expert in the Charlotte metro area.
If you or someone you care about is facing possible foreclosure on their home or investment property, you owe it to yourself to enlist the expertise of Certified Distressed Property Expert® Leigh Brown.
With Leigh Brown on your team, you have the most qualified avoid foreclosure help available! Leigh can be reached by filling out her online contact form , or give her a call at (704) 688-5005 or toll free at (866) 440-7136.
Leigh Brown can help!
Sources:
RealtyTimes
Trulia
First-Time Homebuyer Tax Credit – Only Two Months Left
March 3, 2010 by Victoria Stankard · 1 Comment
With home prices and interest rates at all time lows and only two months left before the First Time Homebuyer Tax Credit expires, many folks are taking action and looking to buy a home. The $8,000 tax credit, extended and expanded to include current homeowners in 2009, expires on April 30th, 2010.
Qualifying for the Tax Credit
In order to qualify for the credit, homeowners must be under contract on a home by April 30th, 2010 and close on the home by June 30th, 2010.
Current homeowners who have signed a contract to buy a home, on or before April 30th, qualify for a dollar-for-dollar deduction on their taxes, equaling 10% of the home up to $6,500. First time home buyers (who haven’t owned a home within the last three years), can get up to $8000 tax credit. Married couples must both qualify as a first time buyer to get the tax credit.
To claim the tax credit, you will need send (no electronic fillings allowed) the IRS Form 5405 and a copy of the HUD-1 settlement statement. To find out more about First-Time Homebuyer Credit filing requirements, visit IRS.Gov.
Crunch Time
Those looking to buy a home must act quickly if they want to take advantage of the tax credit. However, there are still many homes available and time to get it all done before the April 30th cut off date if you act quickly.
According to the National Association of Realtors (NAR), on average, home buyers spend about 12 weeks looking for a home, which means that if you haven’t already started serious home shopping, you’ll have to step up the pace if you want to meet the tax credit deadline.
Know the Market You’re Looking to Purchase in.
Even with incredibly low interest rates and home prices, some buyers question whether they should wait and see if home prices drop further. It’s true that in some areas, home prices may continue to fall, but they are no longer ‘plummeting’ in most markets across the country. According to Patrick Newport of HIS Global, “It’s a good time to buy, but it’s still a really difficult market.”
Now more than ever, you need to know the market you’re looking to purchase in. Start by checking to see if inventory levels are high and increasing at Trulia and if foreclosure filings are on the rise at realtytrac. Even with the tax credit incentive, it may be more prudent to wait until the area you want to buy in is showing a clear indication of stabilization.
Charlotte NC Real Estate Homes For Sale
If you’re in the market to buy a home in Charlotte NC and take advantage of the First-Time Homebuyer Tax Credit before the April 30th cut-off date, Leigh Brown can help. Leigh is the leading real estate broker in the Charlotte metro area and has helped many first time home buyers find the perfect home in the right neighborhood for their lifestyle, budget and needs.
You can reach Leigh by filling out her online contact form or give her a call at (704) 688-5005, or toll free at (866) 440-7136.
Sources:
Baltimore Sun
CNN Money
Red, White and Blue Press
The Oracle of Omaha’s U.S. Housing Market Predictions
March 1, 2010 by Victoria Stankard · Leave a Comment
Warren Buffett, known as the ‘Oracle of Omaha’ - billionaire, businessman, philanthropist and one of the most successful investors in the world – predicts that the U.S. residential real estate market down-slide will show signs of recovery by 2011.
Over the last ten years Buffett’s Berkshire Hathaway Inc. has steadily built up the nation’s second-largest real estate brokerage operation – Minneapolis-based HomeServices of America Inc., a subsidiary of Berkshire-controlled Mid-American Energy Holdings.
Buffett’s Annual Letter to Shareholders
Last week, in his annual letter to shareholders of his Berkshire Hathaway ‘Empire,’ Buffet predicted that “Within a year or so, residential housing problems should largely be behind us. Buffet went on to say that “Prices will remain far below ‘bubble’ levels, of course, but for every seller or lender hurt by this there will be a buyer who benefits.”
Demand and Supply
It’s estimated that one out of every five residential mortgage holders owes more on their mortgage than the value of their home. Add that to the rise in foreclosures that flooded a real estate market already drowning in unsold homes, which caused new construction to drop to all time lows. “High-value houses and those in certain localities where overbuilding was particularly egregious will take longer to recover,” wrote buffet.
Buffet is confident that we will see the residential housing market steadily shift upwards towards recovery by 2011. He predicts that it will take until then for the demand for homes to catch up with supply.
Charlotte NC Real Estate Homes For Sale
If you’re in the market to buy real estate in Charlotte, NC or looking to sell your existing home, you need Leigh Brown on your team! Leigh has been in the real estate industry for years and has a proven track record of success! As a Certified Distressed Property Expert® (CDPE) , Leigh has helped hundreds of clients, avoid foreclosure , navigate through the short sale process and buy and sell homes in Charlotte NC.
You can reach Leigh Brown by filling out her online contact form, or give her a call at (704) 688-5005, or toll free at (866) 440-7136. -
Leigh Brown can Help!
Article Sources:
CNN Money
Business Week
New Home Buyers Tax Credit – Only Paper Filings Allowed
February 25, 2010 by Victoria Stankard · 1 Comment
According to a federal audit released last October by the Treasury Inspector General for Tax Administration (TIGTA), nearly 90,000 taxpayers claimed the New Home Buyers Tax Credit, for which they were not entitled to. More than 1.2 million tax returns had claimed approximately $8.5 billion in the refundable tax credit.
Although the rules of the tax credit define a “first time home buyer” as one who has not owned a home in three years, it is estimated that the IRS allowed approximately $480 million dollars in tax credits to taxpayers that were not first time home buyers.
First Time Homebuyer Tax Credit rules stipulate that a home buyer must actually close escrow and provide proof thereof to apply for the credit. However, more than 19,000 taxpayers claimed approximately $140 million dollars in credits for homes that had not been purchased yet.
View the full TIGTA federal audit report, including the response from the IRS response.
In response to the federal audit, the Internal Revenue Service (IRS) has implemented new filing requirements for the New Home Buyers Tax Credit and taxpayers are no longer allowed to claim the credit electronically. The IRS has released a new form, IRS Form 5405 “First-Time Homebuyer Credit and Repayment of the Credit,” Instructions can be found on IRS Form i5405.
As a result of increased compliance checks by the IRS, failure to submit required documentation will slow down the issuance of any applicable refund.
For more information about First-Time Homebuyer Credit filing requirements, visit IRS.gov .
Charlotte NC Real Estate Homes for Sale
If you’re looking to buy a home in the Charlotte metro area, you need Leigh Brown on your team. Leigh is the leading real estate broker, avoid foreclosure and short sale expert in Charlotte NC. Leigh has years of experience in the real estate industry and has walked many first-time home buyers through the buying process.
You can reach Leigh by filling out her online contact form or giver her a call at (704) 688-5005 or toll free at (866) 440-7136.
Source(s):
AOL News
CNN Money
Treasury Inspector General for Tax Administration
IRS.gov
Leigh Brown, aka The Real Estate Diva, is a native of Concord NC in the Charlotte area. She grew up on a farm at the edge of Cabarrus County, still goes to the same church she grew up in (home of the world famous Mallard Creek Barbecue!), but has become a leader in area real estate through constant learning and continually upgrading technology to better serve buyer and seller clients. Leigh does indeed have a reputation as a barracuda-when it comes to protecting client interests. Her softer side is reserved for her husband and two kids who provide a constant source of joy-and entertainment
