Extension of time to close and get tax credit

The Senate on Wednesday voted to give homebuyers more time to settle on their contracts and take advantage of a popular tax credit.

The law extends the closing deadline to September 30 for buyers who met the April 30 deadline to have a signed contract.

The current deadline requires those buyers to close the transaction by June 30 to receive the $8,000 tax credit for first-time homebuyers. Reid offered the measure as an amendment to a bill that would extend some popular business tax breaks and extend unemployment insurance benefits for jobless workers.

http://www.realtor.org/press_room/news_releases/2010/07/tax_flood_credits

http://www.thomas.gov/cgi-bin/bdquery/D?d111:1:./temp/~bd8c0J:@@@D&summ2=m&/home/LegislativeData.php

Short Sale Assistance for Military Personnel

The recently passed Federal stimulus bill (The American Recovery and Reinvestment Act of 2009) provides assistance to military members who are permanently reassigned during the current housing crisis. A military member qualifies if s/he:

1. Was relocated more than 50 miles away;
2. Purchased the property before 7/1/06;
3. Sold the property between 7/1/06 and 9/30/12;
4. Occupied the property as his or her primary residence; and
5. Has not previously received these benefits.

The program allows the military member to recover 95% of the loss incurred by being forced to move if a sale has already taken place. If a sale has not occurred, then the government can acquire title to the property by paying off the balance of the mortgage or paying the owner up to 90% of the home's previously appraised value.

To apply for the benefit military members must complete a DD Form 1607, Application for Homeowners Assistance Program.

More information is available at www.militaryfinancenetwork.com

Obama's Loan Modification Plan in Michigan

http://www.freep.com/article/20090305/NEWS06/903050383/Will+mortgage+plan+be+any+help+in+Michigan?

New federal legislation is beginning to come on line, but it's uncertain how much help this initial program will be. Most of my clients would not qualify for the program because they owe more than 105% of the value of the home.