Stimulus Package Homebuyer Credit

How REALTORS are helping

When the current administration’s first stimulus proposal appeared, it looked much different than it does today. The National Association of REALTORS lobbied for several improvements that are vital to providing the best results for homeowners. NAR asked for loan limit increases to be raised in high cost areas beyond 2008. Loan limits for these areas have now been set at $729,750 for FHA, Fannie Mae, and Freddie Mac products through 2009.
The Association also asked for the original $7,500 tax credit for first time homebuyers to be higher and to be a true credit with no repayment requirement. The credit is now $8,000 with no payback unless the home is sold within 3 years of the date of purchase. This credit applies only to homes purchased during 2009. If any credit amount remains unused, the unused portion will be refunded as a check to the purchaser. This credit is available to those with a gross adjusted income of no more than $75,000 for singles or $150,000 if filing jointly. The credit applies to any single-family residence, including co-ops, condominiums and townhomes that will be used as a principal residence.
I will tackle the refinancing aspects of the package in the next issue. For more information check out some of these helpful websites:

http://www.car.org/governmentalaffairs/federal/hrlmp/

http://www.makinghomeaffordable.gov

Black Gold

Among organic gardeners the term black gold does not refer to hitting an oil strike but the earthy result of composting. Utilizing kitchen scraps, tree trimmings, grass clippings, and other natural debris to create a compost heap is a useful and green way to keep your trash load low and save money on fertilizer. Any fruit or vegetable waste in it's raw state can go in the compost. You do not want to add cooked items or anything with grease or oil in it. Egg shells and coffee grounds are other excellent additions and if you use unbleached coffee filters, those can be added too. A good compost heap has a balance of wet and dry materials. If the pile is too dry it will not break down quickly and too wet a pile can be a bit smelly. But even so, all piles will eventually break down , sooner or later, and become beautiful, crumbly black compost. Compost is perfect for top dressing lawns, gardens, and potted plants. You can make compost tea for watering indoor plants by wrapping compost in cheesecloth and soaking it in a bucket of water. Compost improves the soil and strengthens plants, making them resistant to pest and disease. You can go on the web and find plans for building a simple bin out of wire and stakes or wood or you can go on your local home store website and order one out of recycled plastic that keeps smells contained and critters at bay. Don't forget to aerate or stir your compost to accelerate breakdown and moisten it if it becomes dry. And if you're feeling really ambitious, you can purchase special red worms that will eat your kitchen scraps and produce the finest compost you have ever seen. Composting is one small step in the greening of the planet.

I'm a cash buyer

"I'm a cash buyer". This is a phrase every real estate agent hears at least once a year. It seems in this current economy some of us are hearing it a little more often. In the past, a dutiful agent explained to the Buyer that it doesn't matter to the Seller if they are a cash buyer if the other Buyers are qualified and pre- approved for a loan. The Seller always receives cash at the end of the transaction. A low offer is not considered any better if it is presented in the form of cash. That said, times have changed. The amount of deals falling out of escrow due to failure to procure financing is substantial. Can a Seller place a monetary value on a guarantee of funds on deposit? And consider, haven't you had the experience of losing a deal before closing because the Buyer lost his job? Cash Buyer? No problem! My conclusion is that in the present state of the market perhaps Cash is King.