Westlake Village Real Estate Blog

From Trulia today comes this excellent piece on short-sales.

5 New Short Sale Myths – Busted!

There’s still a chance! The California Franchise Tax Board (FTB) has received first-time homebuyer applications for the CA tax credit totaling more than the $100 million allocated. Since many applications were found to be duplicates, revisions or invalid applications, the FTB has announced that it will accept at least 28,000 applications to insure the allocation is exhausted. New applications will be processed subject to the availability of remaining tax credits, as the allocation still cannot exceed $100 million. As of July 6 applications totaled 23,680 and were averaging 3,000 per week. FTB will update website FTB.CA.gov daily.

Congress has passed a bill extending the Homebuyer Tax Credit closing deadline to September 30, 2010. The extension applies only to transactions that had ratified contracts in place as of April 30, 2010, and have not yet closed. There will be no gap between June 30 and the date the President signs the bill into law.

Additionally, Congress has extended the National Flood Insurance Program (NFIP) through September 30th. The bill is retroactive and will cover the lapse period from June 1, 2010, to the date the law is enacted.

Thousands of REALTORS® wrote letters and e-mails to Congress in support of both bills, heeding a Call to Action from the National Association of REALTORS®.

• Federal Homebuyer Tax Credit extension is not final. he Senate’s amendment to extend the closing deadline from June 30 to Sept 30 has not been approved by the House. No discussion in the House has taken place and no vote is currently scheduled.

• CA State FTHB Tax Credit will be fully allocated by next week. As of June 22 applications totaled $91,404,000. The state will stop accepting applications at $100,000,000.

• CA Housing Finance Agency allocated $699.6 million from federal TARP “Hardest Hit Fund” to implement a plan that includes earned principal forgiveness, funds to address loan arrearages, mortgage payment subsidies to unemployed families and funds to help families find housing after short-sales. CalHFA expects programs to be fully implemented by fall.

This information was provided by Brownie Stanisch, of Prospect Mortgage (bronwyn.stanisch@prospectmtg.com.)

The 2010 California tax credit for first-time homebuyers (FTHB) that began with escrows closing on or after May 1, 2010, has already allocated $25,473,000 of the $100 million allotment. The FTHB tax credit is equal to the lesser of 5% of the purchase price or $10,000 and must be applied in equal amounts over 3 tax years (max $3,333 per year).

To qualify, (1) buyers cannot have owned a principal residence in the last 3 years; a married couple is disqualified if either has owned a principal residence within the 3-year period, (2) buyers must be over 18 and not related to the seller, (3) buyers must reside in the property for at least 2 years following the purchase. There are no income limits or purchase price limits. To apply for the tax credit a 2010 Application form 3549-A (see attachment to this email) must be completed by seller (or escrow) and buyer. Signed application, along with a copy of the final settlement statement (buyer’s HUD1), must be faxed to FTB within 14 days of closing (one minute late and you are disqualified).

For more info visit CA FTB website 2010 CA Tax Credit for New Home / First-Time Buyer. My thanks once again to Brownie Stanisch, of Prospect Mortgage, for providing this information.

If you would like to receive reports for your area on a regular basis, please send me your e-mail address and geographic area of interest. This information is part of a bi-weekly report offered through Ewing and Associates Sotheby’s International Realty.

If you would like to receive reports for your area on a regular basis, please send me your e-mail address and geographic area of interest. This information is part of a bi-weekly report offered through Ewing and Associates Sotheby’s International Realty.

If you would like to receive reports for your area on a regular basis, please send me your e-mail address and geographic area of interest. This information is offered on our company website: Ewing and Associates Sotheby’s International Realty.

End of Home Buyer Tax Credit Unlikely to Deter Most Real Estate Buyers | RISMedia“>Prudential Real Estate Survey