Talk about waiting ‘til the last minute! We’ve been hearing promises for months that it would soon be possible for first time buyers to use the $8,000 as their down payment. Unfortunately, they’ve been mostly empty promises, until now! I know of two local lenders who are offering this Golden Ticket to owning your first home, but you must close by Nov 30, which is only a few weeks away! Harder still, is finding a home that can close that quickly because so many are short sales!
If you or someone you know may qualify, contact one of the agencies below immediately to get pre-approved. If you are able to take advantage of this great opportunity, contact me right away so that I can help you close on a house in time!
http://www.suncoastfcu.org/Default.aspx?tabid=440
http://www.hometown-lenders-llc.com/
Even college students could greatly benefit from purchasing a condo close to school. For the money that would otherwise be paid and gone to either a dorm or an apartment, that money could instead become an investment for that student’s future. Why throw the money away, never to be seen again, when you could purchase a property, claim a tax credit for the purchase, then benefit from double the equity with 4-5 years? Most students usually have roommates, so that money could go toward the expense of holding the property as well. Investment in real estate is the best way to combat the economic fall-out.
Retirees are another group who can use the real estate market to help offset losses from other investments. Prices are so low that the money saved from buying now can go a long way in helping to even out losses.
This is a great time to buy!
Friday, October 23, 2009
Fall 2009 Tampa Real Estate Update
Thankfully, the market is continuing to improve! Prices are still low, but they’ve stopped falling and more and more houses are going to contract every day! There are many great loan options and interest rates remain low! People who want to use an FHA loan only need 3.5% down and a new great option for that was just passed! See “Use the $8K Tax Credit Toward Your Down Payment” below.
Another great opportunity is the USDA loan which allows for over 100% financing in certain areas most affected by this crisis where it’s believed that the equity growth will be steep upon recovery. One of the places where these loans are available is in Pasco County where buyers get the advantage of newer homes, lower prices and lower taxes as well.
Florida existing home sales:
(month-to-previous-year comparison) UP 28%
Florida existing condo sales:
(month-to-previous-year comparison) UP 45%
Use the $8K Tax Credit Toward Your Down Payment or finance 102%!!
Talk about waiting ‘til the last minute! We’ve been hearing promises for months that it would soon be possible for first time buyers to use the $8,000 as their down payment. Unfortunately, they’ve been mostly empty promises, until now! I know of two local lenders who are offering this Golden Ticket to owning your first home, but you must close by Nov 30, which is only a few weeks away! Harder still, is finding a home that can close that quickly because so many are short sales!
If you or someone you know may qualify, contact one of the agencies below immediately to get pre-approved. If you are able to take advantage of this great opportunity, contact me right away so that I can help you close on a house in time!
http://www.suncoastfcu.org/Default.aspx?tabid=440
http://www.hometown-lenders-llc.com/
Even college students could greatly benefit from purchasing a condo close to school. For the money that would otherwise be paid and gone to either a dorm or an apartment, that money could instead become an investment for that student’s future. Why throw the money away, never to be seen again, when you could purchase a property, claim a tax credit for the purchase, then benefit from double the equity with 4-5 years? Most students usually have roommates, so that money could go toward the expense of holding the property as well. Investment in real estate is the best way to combat the economic fall-out.
Retirees are another group who can use the real estate market to help offset losses from other investments. Prices are so low that the money saved from buying now can go a long way in helping to even out losses.
This is a great time to buy!
Another great opportunity is the USDA loan which allows for over 100% financing in certain areas most affected by this crisis where it’s believed that the equity growth will be steep upon recovery. One of the places where these loans are available is in Pasco County where buyers get the advantage of newer homes, lower prices and lower taxes as well.
Florida existing home sales:
(month-to-previous-year comparison) UP 28%
Florida existing condo sales:
(month-to-previous-year comparison) UP 45%
Use the $8K Tax Credit Toward Your Down Payment or finance 102%!!
Talk about waiting ‘til the last minute! We’ve been hearing promises for months that it would soon be possible for first time buyers to use the $8,000 as their down payment. Unfortunately, they’ve been mostly empty promises, until now! I know of two local lenders who are offering this Golden Ticket to owning your first home, but you must close by Nov 30, which is only a few weeks away! Harder still, is finding a home that can close that quickly because so many are short sales!
If you or someone you know may qualify, contact one of the agencies below immediately to get pre-approved. If you are able to take advantage of this great opportunity, contact me right away so that I can help you close on a house in time!
http://www.suncoastfcu.org/Default.aspx?tabid=440
http://www.hometown-lenders-llc.com/
Even college students could greatly benefit from purchasing a condo close to school. For the money that would otherwise be paid and gone to either a dorm or an apartment, that money could instead become an investment for that student’s future. Why throw the money away, never to be seen again, when you could purchase a property, claim a tax credit for the purchase, then benefit from double the equity with 4-5 years? Most students usually have roommates, so that money could go toward the expense of holding the property as well. Investment in real estate is the best way to combat the economic fall-out.
Retirees are another group who can use the real estate market to help offset losses from other investments. Prices are so low that the money saved from buying now can go a long way in helping to even out losses.
This is a great time to buy!
Will the $8,000 Tax Credit be Renewed?
That is the question many people are asking these days. The $8000 tax credit incentive passed last February is head and shoulders above its $7500 predecessor last year which was really only an interest-only loan that had to be paid back. This new tax credit is FREE MONEY- you keep it provided you qualify and live in the property. This great incentive combined with historically low prices has turned our local real estate market around! Our prices finally stopped declining and sales have gone up. It’s made such a big difference that many people have become increasingly concerned that upon its expiration on November 30 (just 5 weeks away), we’ll be facing a slow-down in sales.
In order to ward this off, many have been petitioning the government to extend the tax credit. One thing to consider with the early requests was that having a deadline gave people urgency and that urgency has lead to more sales and a stop in price declines. Many of us have been hoping that we’d see the credit renewed upon expiration. There’s been much speculation about fostering that sense of urgency by waiting until the last minute to extend the credit. Unfortunately, it’s become more complicated than that.
The chief concern right now seems to be the government’s challenge of estimating how much this will cost. Since most of these credits will not be claimed until tax time next year, it’s going to be difficult to determine exactly how many people will file. HUD Secretary Donovan cautions that a decision should not be rendered without a thorough examination of cost. This is understandable and it may lead to the decision being tabled for a while.
The other big concern is fraud. There have been 167 cases of confirmed criminal fraud so far and the IRS has begun examining over 107,000 cases that they consider questionable. If they do decide to extend the credit, they’ll have to decide how to best organize the process to prevent fraudulent activity.
So for now, the answer is a big fat…"we’ll see…"
In order to ward this off, many have been petitioning the government to extend the tax credit. One thing to consider with the early requests was that having a deadline gave people urgency and that urgency has lead to more sales and a stop in price declines. Many of us have been hoping that we’d see the credit renewed upon expiration. There’s been much speculation about fostering that sense of urgency by waiting until the last minute to extend the credit. Unfortunately, it’s become more complicated than that.
The chief concern right now seems to be the government’s challenge of estimating how much this will cost. Since most of these credits will not be claimed until tax time next year, it’s going to be difficult to determine exactly how many people will file. HUD Secretary Donovan cautions that a decision should not be rendered without a thorough examination of cost. This is understandable and it may lead to the decision being tabled for a while.
The other big concern is fraud. There have been 167 cases of confirmed criminal fraud so far and the IRS has begun examining over 107,000 cases that they consider questionable. If they do decide to extend the credit, they’ll have to decide how to best organize the process to prevent fraudulent activity.
So for now, the answer is a big fat…"we’ll see…"
Help! Foreclosures are Blighting Our Neighborhoods!
Many homeowners who are fortunate enough to stay in their homes are rightfully concerned with their neighborhood because of all the distressed properties around them! Unfortunately, it’s going to be a while before we’re able to ride out the storm of abandoned homes.
Foreclosures are a lengthy process. In average markets, they take about 5 months, but now that we’ve got over 5 times more foreclosures than average, they can easily take a year or longer. In fact, Florida leads the nation in foreclosures, and the Greater Tampa area has more than its share. Unfortunately, this is going to be part of our reality for a while.
Another kink is that since there is such a high volume of foreclosures, the banks are sticking to their prices. Very few homes are being sold at courthouse these days for several reasons; chief among them: 1) foreclosure sale prices are too close to average sale prices, 2) many homes have other liens that prospective buyers would have to clear. So what happens to many of these properties these days is that banks then hand them off to property management companies for rentals. This is also a lengthy process involving financial analysis, bid for repairs, completion of repairs and the rental process. To give you an idea of how long this often takes, my husband works on these properties as a contractor. We’re seeing properties sit unoccupied for sometimes as long as a year and a half! Things are turning around, but it’s a slow process and made much slower by foreclosures.
This is an excellent argument for short sales. Though short sales can take a long time, they are often occupied for a good part of that time. These days, if priced well and handled diligently, the whole process should take 6-9 months from the time of listing, which is a far cry from 18 months. I’ve worked very successfully on short sales for 2 ½ years now and though they are taxing, the benefits are evident. Making the decision to short sale is not an easy one if you can manage your payments. That needs to be deliberated very carefully. For some people, it’s better to take the loss now in order to have the opportunity to turn yourself around financially. For others, hanging in is not comfortable, but it’s manageable and they love their home. However, if you or someone you know cannot make payments, then a short sale is the best alternative. It is better for your credit than a foreclosure and it’s also much better for your neighbors and your community.
Suggestions for homes in your neighborhood that are already abandoned would be: park your car in the driveway so that it doesn’t appear abandoned and speak to your home owners association about having the front lawn cut. These two small steps can help discourage vandalism and keep up the exterior appearance until a management company steps in for the lender. One last thing that I remind myself in the midst of the negative, is to be thankful for the home I’m in. Those of us who still own may be discouraged that we have lowered property values, but we should never forget that we are blessed.
Foreclosures are a lengthy process. In average markets, they take about 5 months, but now that we’ve got over 5 times more foreclosures than average, they can easily take a year or longer. In fact, Florida leads the nation in foreclosures, and the Greater Tampa area has more than its share. Unfortunately, this is going to be part of our reality for a while.
Another kink is that since there is such a high volume of foreclosures, the banks are sticking to their prices. Very few homes are being sold at courthouse these days for several reasons; chief among them: 1) foreclosure sale prices are too close to average sale prices, 2) many homes have other liens that prospective buyers would have to clear. So what happens to many of these properties these days is that banks then hand them off to property management companies for rentals. This is also a lengthy process involving financial analysis, bid for repairs, completion of repairs and the rental process. To give you an idea of how long this often takes, my husband works on these properties as a contractor. We’re seeing properties sit unoccupied for sometimes as long as a year and a half! Things are turning around, but it’s a slow process and made much slower by foreclosures.
This is an excellent argument for short sales. Though short sales can take a long time, they are often occupied for a good part of that time. These days, if priced well and handled diligently, the whole process should take 6-9 months from the time of listing, which is a far cry from 18 months. I’ve worked very successfully on short sales for 2 ½ years now and though they are taxing, the benefits are evident. Making the decision to short sale is not an easy one if you can manage your payments. That needs to be deliberated very carefully. For some people, it’s better to take the loss now in order to have the opportunity to turn yourself around financially. For others, hanging in is not comfortable, but it’s manageable and they love their home. However, if you or someone you know cannot make payments, then a short sale is the best alternative. It is better for your credit than a foreclosure and it’s also much better for your neighbors and your community.
Suggestions for homes in your neighborhood that are already abandoned would be: park your car in the driveway so that it doesn’t appear abandoned and speak to your home owners association about having the front lawn cut. These two small steps can help discourage vandalism and keep up the exterior appearance until a management company steps in for the lender. One last thing that I remind myself in the midst of the negative, is to be thankful for the home I’m in. Those of us who still own may be discouraged that we have lowered property values, but we should never forget that we are blessed.
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