The Senate just voted 98-0 to pass the Tax Credit

The Senate just voted 98-0 to pass the Tax Credit [within the
Unemployment Bill].
It now goes to the House.
Expect Democratic leadership to place the bill
on a fast track for passage on Thursday.
It could get to the President on Friday.

Stay tuned for more details....

No decision yet on homebuyer credit - Obama official

President Obama's housing secretary tells a Senate committee that the administration wants to see cost data before backing any extension of the credit.

NEW YORK (CNNMoney.com) -- While momentum is building on Capitol Hill to extend the $8,000 first-time homebuyer credit, President Obama's housing secretary said Tuesday the administration has not decided whether to support its expansion.
Housing Secretary Shaun Donovan told the Senate Banking Committee that the administration wanted more time to better assess the cost of the credit, which expires on Nov. 30.

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City of Grand Rapids announces Home Buyer's Assistance Program!

This is a great program for people buying in specific areas of Grand Rapids. A qualified buyer can get up to $5,000.00 interest free with no payments toward their down payment, closing costs and pre-paids. There are incomelimits!!! Also the city does a complete inspection of the property. If there is ANY evidence of lead base paint that is not properly contained, the house has to have a completed Lead Abatement. Give me a call with any further questions...

Bank of America Revises Short Sale Policy

Bank of America, one of the country’s largest mortgage lenders, says it is loosening its policies on short sales in response to the U.S. Treasury Department’s announcement last week that it would increase incentives for lenders to work out short sale deals.The government’s plan is a boon to banks, says David Sunline, BofA’s real estate management executive, because it provides guidance when there are multiple liens, a potentially litigious issue for lenders. In the past, the bank followed Fannie Mae’s policy of giving second lien holders about 10 percent of the second mortgage balance in a short sale. Now when it holds the second lien, BofA will accept 5 percent of the net proceeds of the short sale, Sunline says. When it is the first lien holder, it will offer 5 percent to the holder of the second lien.Sunline says home owners considering short sales should contact the bank within five days of getting an offer on the home and expect its cooperation as long as the offer is within the range of other sales in the area and the borrower can demonstrate financial hardship.

I'm thinking more banks should follow this lead...

Use the $8000 Tax Credit for your Down Payment!

That's right! FHA has just announced a new use of the first time tax credit!!

HUD Secretary Shuan Donovan announced at the National Association of Realtor Summit that FHA will allow the first time home buyer credit (Up to $8000) to be used for down payment at closing. According to Donovan, the FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table. More details will be coming but check with your lenders...this is what our economy and industry need so we can give our buyers some more positive information. Stay tuned for more info....

$15,000 Tax Credit for Buying a Home

The Senate voted last night to award anybody buying a home this year a tax credit worth up to $15,000 in hopes of jump-starting the sagging housing market.

The homebuyer tax credit offered by GOP Sen. Johnny Isakson would apply to any home purchased as a main residence and would cost taxpayers $19 billion. Senators approved it by a voice vote, adding the idea to President Barack Obama’s economic recovery bill. Isakson patterned his plan after adecades-old idea he says helped lift the economy out of recession in 1975.

People could claim the credit on their 2008 tax returns and it would apply to any home purchased for one year after the recovery plan becomes law.
Democrats readily agreed to the proposal, although it may be changed or even deleted as the stimulus measure makes its way through Congress over the next 10 days or so.

Contact your CPA for more details on how this could effect you.

Fed Action Creates Best Interest Rates in 50 Years, Realtors® Report

The National Association of Realtors® applauds the actions of the Federal Reserve Board in lowering interest rates for home buyers and homeowners who need to refinance. This will significantly impact housing sales, home valuations, and the nation’s overall economy.
The Federal Reserve is purchasing large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets.
“NAR has been aggressively calling for mortgage rate reductions, and the Fed’s action to slash interest rates, coupled with the actions by the Federal Housing Finance Agency and the Department of the Treasury, has driven down interest rates to make the dream of homeownership once again attainable for thousands of Americans,” said NAR President Charles McMillan.
Mortgage rates, which had averaged 6.3 percent in the third quarter, have recently fallen into the 4 percent range in some parts of the country. “That is the lowest rate in nearly 50 years and will bring buyers back to the market,” McMillan said. “We are pleased that the government heard our message and responded to our call for action.”
NAR has estimated that a one percentage point decrease in mortgage rates will increase home sales by more than 500,000 homes. “To boost the economy, it is critical to stem the rising tide of foreclosures and boost home buyer confidence in the housing market.” McMillan said. “Lower interest rates coupled with increased foreclosure mitigation are the key ingredients to stabilizing the housing market and preserving communities and homeownership.”
NAR continues to call on the federal government to maintain the higher loan limits passed in the economic stimulus bill earlier this year and to expand the $7,500 tax credit for first-time home buyers to all buyers and to eliminate the credit repayment requirement. “Together, all of these actions will stimulate and stabilize the housing market and begin an overall economic recovery,” McMillan said.