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SHORT SALES AND TAX CREDITS
SHORT SALES
A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the current debtor. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrower. Keep in mind that a short sale can take anywhere from a month to 6+ months to close. However if you are patient you will be impressed with the deals to be had. Contact us for a list of the documentation you will need in order to proceed with a short sale.
$6500 TAX CREDIT
The House and Senate passed an extension that would allow people who have owned their homes for at least five years to buy a new home and get up to $6,500 off their tax bill.First-time homebuyers still qualify for up to $8,000 in tax credits; those who have owned their homes at least five years qualify for up to $6,500 in credits. Purchases must be secured by April 30, 2010 and closings finalized by June 30. Single taxpayers with an adjusted gross income under $125,000 (under $225,000 for joint filers) are eligible for the credits full benefits. Those with incomes up to $145,000 (single) or $245,000 (joint) may receive partial credits.
Homes worth $800,000 and under are eligible for the program.
$8000 TAX CREDIT
The $8,000 credit was scheduled to lapse on Dec. 1 but will now be in effect through the end of June. Homebuyers must sign a contract before April 30 and close by June 30. The income limits were also raised: Single buyers can now earn up to $125,000 and still get the full credit while a married couple can earn $225,000.
The bill also made more homeowners eligible to claim the credit on their taxes. First-time buyers -- those who have not owned a home in the past three years -- still qualify for an $8,000 rebate.
Short Sale Coordinator