This is a clarion call for home buyers, home sellers, real estate agents and anyone who wants action NOW. Everyone is being hurt because we are all affected by the crisis in housing. I feel bad, don’t you?
Now is the time for all good men (ladies also) to come to the aid of their country! Is that too dramatic? I don’t think so. I can still remember May 1977 when my Internet leads dropped by 90% from the previous month. Well, that was just over two years ago. This whole thing has been horrible for America, horrible for all of us.
Congress has taken baby steps (I know, some of you may think that they shouldn’t even have taken these steps) to rejuvenate our industry via a $7,500 First Time Home Buyer credit (repayment required), then an $8,000 first time home buyer tax credit (no repayment required).
Then there was the hope of providing the tax credit and allowing it to be used as part of the required down payment. States and private parties were trying to get into the act of providing the $8,000 in advance. Then the IRS killed the whole thing with their requirements that the rebate only go to the actual person due the rebate.
WHAT A ROLLER COASTER RIDE!Disneyland in a Haunted House!
What a roller coaster ride this has been. Hopes rise and are dashed, maybe, leaving a trail of questions in every one’s mind.
Below is a quote from the Washington Housing Finance Commission website. Posted on 06/11/2009.And it is terminal, as regards a cash advance from the State and possibly any third party who may have been putting together programs to advance the tax credit to the first time home buyer (I did come across one entrepreneur who had devised such a plan- now a dead plan).
The latest status report on the $8,000 looks like this, today. FHA still requires 3.5% down payment. If you can get an advance it cannot be used to defray the need for 3.5% down. It can of course be used as an additional down payment or to pay closing costs (possibly even to buy down your interest rate). Freddie and Fannie will undoubtedly follow FHA’s position.
Just an opinion….. I can certainly understand the issues of many people about requiring a minimum down payment and not using the $8,000 as an advance applicable to the required down payment. Don’t want to step into that NO MONEY DOWN pile again. The real problem would seem, to me, how do we solve the housing crisis. How long does it take most of Seattle’s first time home buyers to save the 3.5% for a down payment? It takes me some time, how about you?
Minimum down payments can be factored into the qualification criteria and mortgage interest rate. There are ways to account for the risk involved with a minimum down payment and delinquency rates.
While DC fiddles, the country burns. Have you seen what is happening to interest rates lately? Up significantly. This means an additional hardship on Seattle’s first time home buyers and buyers in general. So you have down payment issues slowing the market and affordability (which is actually at a all time low, I hear, Seattle Housing affordability, $8,000 first time homebuyer tax credit, low interest rates- The perfect storm? coming together in an untimely scenario.
In my mind, it seems an odd way to solve the biggest crisis we have ever seen.
Thank you for visiting the WSHFC website for information regarding the $8,000 First-Time Homebuyer Tax Credit.
The Commission previously noted it was involved in discussions with the IRS and other interested parties concerning the development of a Tax Credit bridge loan program.
To guarantee repayment of a Tax Credit bridge loan the Commission requested the IRS approve an advance assignment of the tax credit refund. If approved, the homebuyers $8,000 tax credit refund would be directly deposited into a state-owned account or mailed directly to the loan servicer for immediate payoff of the Tax Credit bridge loan.
On June 2, 2009 the IRS formally declined this request citing long-standing regulations that require refunds be paid only to the person or persons filing the tax return. Due to financial risks associated with the Tax Credit bridge loan program and because the Commission already offers numerousdown payment assistance programs, the Commission has discontinued the development of an additional Tax Credit Bridge Loan program.
The Commission offers statewide down payment assistance programs for first-time homebuyers needing assistance with a down payment and/or closing costs. For information about House Key Plus down payment assistance (up to $10,000 in assistance) and the Commission’s other programs, please visit the Commission’sdown payment assistance page or contact a Commission-trained loan officer to ask about getting pre-approved for the House Key First mortgage loan with down payment assistance.”
FHA announces: First-Time Home Buyers can now get $8,000 short term loans!
It is finally official. In an effort to boost the battered housing market the Federal Housing Administration this morning announced that it has released details of their plan to allow home buyers access to the $8,000 First Time Home Buyer tax credit. Gov’t allows short-term loans for tax credit - News Wires - CNBC.com
Borrowers will still have to come up with the FHA’s required 3.5 percent down payment, unless they work through a state or local housing program. But officials say the money can still be used for closing costs or a larger down payment.
So, what does that mean to Seattle and Puget Sound home buyers? The tax credit has been available to first time home buyers for some time now. Unfortunately it is difficult for a lot of home buyers to come up with the down payment. That fact has been a great impediment to actually kick starting the Seattle housing market. It has been a roller coaster ride getting to this point (see Seattle home buyers: Use your $8,000 Tax Credit for a Home Down Payment.)
Under new guidelines $2,500 buys you an FHA financed home, TODAY!
I have a large database of people who use my website www.thesoundteam.com for their home search and as a resource center for their Seattle real estate and investment information. Today I crafted what I think is an excellent email and decided that it was worthy of sharing with you. So, take a moment and read the below information packed email. Then get in touch with me.
By the way “The Government is Giving Away FREE Money!” They really want all of us to do our part!
Use Your $8,000 Tax Credit For A Home Down Payment
Have you seen that FHA made the $8,000 tax credit available for a down payment, UP FRONT! Then reversed itself yesterday. An up and down situation totally. This is a First Time Home Buyer Program. The Tax Rebate Program has only a limited window of opportunity and is designed to help us all do something positive which can affect the overall economy, you and your neighbors.
Home Buyers need to know:
Take a look at how I think and work my business with your welfare in mind at these two flyers:
Home Seller’s benefit from this program, but do they know it?
Sadly we all have to face reality, and that would be a healthy thing for you to do. Take a look at this presentation and get in touch with me to discuss how we can market your home.
Help a friend! They will Thank You for it!
Please note: You may not be in the market at this time, no problem, however you may know someone who is in the market and they would greatly appreciate the opportunity provided by this program!
Here’s a thought… Post this email at your workplace! Pass it on to your database of friends!
Here is the solution for your DOWN PAYMENT
I am a registered agent with a company which makes $7,850 available to you immediately for your down payment. Here are some of the major points:
1. You have to qualify for a home and work with an approved lender such as my son, Tyler Todhunter at 206-786-9244. Give him a call and get Pre-Approved under this program.
2. You must work with an approved real estate agent and of course, I am approved under this program.
3. You must be registered with us and the provider in order to take advantage of this down payment provider program.
4. There are other details, but they are minor and will be discussed when we talk with each other.
* Increased inventory means more home choices for you.
Well, that was an information packed email! Do ourselves a favor and contact me for an interpretation of this information and how it impacts your specific situation.
Do me the favor of letting your friends and co-workers have access to this information. I truly believe that they will appreciate it as they sit in their new home!
I await your call or email and thank you for your time and consideration. Yours Sincerely,
Dick Todhunter
Sound Realty Northwest
(206) 898-3776
President Obama’s Making Home Affordable Program: Do you qualify?
This blog is based on the assumption that you do not qualify for Making Home Affordable program.
There are really two parts to the home mess we find ourselves in currently. And this is having a detrimental effect on the housing market of the Greater Seattle real estate market.
First, you may qualify for the Making Home Affordable Program and can obtain a mortgage modification. Would that make sense for you? Mortgage modifications will be the subject of an upcoming blog, not covered here.
Please note that before looking into a mortgage modification you might want to talk with a mortgage loan officer, I recommend my son Tyler Todhunter and his associates at Axia Funding Group, Tukwila.
You will want to exercise all of your options as soon as possible, before your credit is injured to the point of removing viable choices.
Second, if there is no modification possibility available for there is still the possibility of a Short Sale, which is the subject of this blog.
At this point it may be down to how can you move on with your life and limit the impact of losing your home to a Short Sale rather than having a Foreclosure on your credit report.
There is much more to a Short Sale than appears below and your lender will undoubtedly have it’s own set of compliance plans. Please contact your lender.
If you have questions about either a mortgage modification or Short Sale, feel free to get in touch with me, Dick Todhunter, at 206-898-3776. I am not an attorney or tax person (who you may want to contact) but do have a modicum of experience. And talk is FREE!
Please note that much of the information for this blog was excerpted from a lenders website and should serve as an example for how to think about your lender. You need to find out your lenders policy and procedures, phone and fax numbers, etc. My own experience with dealing with lenders is listed first followed by the dry stuff that the lender puts out.
If you are considering a Short Sale alternative, consider taking that action as soon as possible. On market times may be longer than you thought and your time may be getting short. You should find a real estate agent who is familiar with the Short Sale process.
There is always the question about Seller liabilities on sale or modification. The below should answer many of your questions, please consult an attorney or tax consultant, whatever is appropriate.
