List Price: $540,000.00
Full Baths: 5
MLS ID: 255422
RISMEDIA, May 20, 2009-Nationwide housing affordability jumped 10 percentage points during the first quarter of 2009 to its highest level since the series began 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). The HOI showed that 72.5% of all new and existing homes sold in the first quarter of 2009 were affordable to families earning the national median income of $64,000, up from 62.4% during the previous quarter and up from 53.8% during the first quarter of 2008.
I don’t think this surprises anyone. I know that with the lower prices currently, housing is a lot more affordable for a lot more people. I know many people who were getting priced-out of the market in recent years and now they are back in the market.
The NATIONAL ASSOCIATION OF REALTORS® (NAR) today announced that the Obama Administration has added new incentives and uniform procedures for short sales under its new Foreclosure Alternatives Program (FAP), part of the administration’s Making Homes Affordable plan. Loan servicers may consider short sales or deeds-in-lieu of foreclosure for borrowers who do not qualify to have their loans modified on a permanent basis under the Making Home Affordable Loan Modification Program.
• Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the Home Affordable Modification program, but don’t qualify for a modification or do not successfully complete the three-month trial period. Before proceeding with a foreclosure, servicers must determine if a short sale is appropriate.
• Incentives include: $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure; $1,500 for borrowers/homeowners to help with relocation expenses; and up to $1,000 toward the cost of paying junior lien holders to release their liens (one dollar from the government for every $2 paid by the investors to the second lien holders).
• The program will include streamlined and standardized documents, including a Short Sale
Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use
of the short sale option.
• Servicers will independently establish both property value and minimum acceptable net return, in accordance with investor requirements. The price may be determined based on an appraisal or
one or more broker price opinions (BPOs), issued no more than 120 days before the date of the
short sale agreement.
• In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to
market and sell the property, or up to one year, depending on market conditions. Property must be listed with a licensed real estate professional with experience in the neighborhood. No foreclosure may take place during the marketing period (at least 90 days) specified in the Short Sale Agreement.
• The Short Sale Agreement must specify the reasonable and customary real estate commissions
and costs that may be deducted from the sales price. The servicer must agree not to negotiate a
lower commission after an offer has been received.
• Servicers may not charge fees to borrowers/homeowners for participating in the FAP.
• The program is in effect through 2012.
• Servicers have the option to require the borrower/homeowner to agree to deed the property to the servicer in exchange for a release from the debt if the property does not sell within the time allowed in the Short Sale Agreement (plus any extensions).
A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid.
For home purchases after January 1, 2009 and before December 1, 2009, many taxpayers are eligible for the credit. Some of the highlights are:
- Maximum credit allowed is $8000
- Purchasers who utilize revenue bond financing can use the credit
- No repayment for purchases between January 1 and December 1, 2009
- If the home is sold within 3 years of the purchase, the entire amount of the credit is recaptured with the sale. This applies only to homes purchased in 2009.
- The program terminates December 1, 2009
- Still available for first time buyers only. Three year rule continues to apply.
- Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.