The $8,000 First Time Home Buyer Tax Credit got better. Now you can take the credit from your 2008 taxes instead of waiting to file your 2009 tax return in 2010.

The $8,000 tax credit from the federal government is a great incentive to buy a home these days. It has had a very positive effect on the home sales market as more buyers are looking to take advantage of this free help from Uncle Sam.

To reiterate, the credit is a gift from HUD to help first time home buyers with the down payment and closing costs for FHA insured homes. To qualify, the buyer must not have owned a home in the last three years and must buy and close on the home by December 31, 2009. To access the money now instead of waiting for 2010 he/she would need to file an amended 2008 return. While this is better than waiting for next year it will still take time to file and receive the money from IRS.

HUD went one step further and allowed FHA lenders to provide the buyer with a bridge loan in the amount of the credit until a return can be filed and collected on.

This incentive from our government is one that should be taken as soon as possible. We have helped many young families and single first time home buyers take advantage of this credit but there is no guarantee it will be around forever.

Already we are hearing a rumor HUD is considering rescinding the credit.

Too many homes for sale on the street. Are any boarded up? Always keep an eye on the other houses near the one that you may purchase. They will tell you a lot about your possible future investment.

• Outdoor maintenance is often very telling of what is going on “underneath”. If the home you are looking at has straggly foundation plants or broken gutters, what else could be wrong?
• Foundation damage is always a major consideration. Check for proper grading and cracks bigger than 1/3 of an inch. Many times this can mean major structural issues.
• Strong odors outside and inside almost always indicate something “bad”. Investigate further.
• Be on the lookout for flickering lights and always check face plates for heat. This could mean faulty wiring.
• Windows with fog or water in between double-paned windows can signify trouble lurking.
• Stains and/or saggy walls usually indicate water damage, mildew or mold. An inspector must check for leaks and mold.
• Keep your eyes peeled during your tour for pests and rodents. Seeing evidence at this early stage is never a positive sign.

An alternative is houses that are being sold on a short sale. Due to the nature of this type of sale the owner is motivated to keep the house in great condition. You can often find a true bargain and a gem to boot in this situation.

Canton and Plymouth, Michigan home buyers recently learned the $7,500 tax credit can now be a tax free gift and is extended to other buyers as well as first timers.

Originally the bill was passed last summer, as a part of the Housing Recovery Act, to encourage first-time home buyers to purchase homes within a certain amount of time, hoping to boost the housing market. That legislation required that the $7,500  tax credit be repaid over 15 years, making it more of a no-interest loan. The stimulus bill now under consideration would make that tax credit a true credit that doesn’t need to be repaid at all! Additionally the rules for  who qualifies have been greatly relaxed.

The news is spreading fast among the Canton, MI home buying community. The combination of this money incentive and great house values from short sale houses is prompting people to spring into action!

To be eligible, buyers cannot have owned a home for the past three years, and the new home has to be used as a primary residence. The credit slowly phases out if income rises above $75,000 for singles and $150,000 for couples. It disappears entirely at $95,000 for singles and $170,000 for couples. To apply for this credit, you must claim in on your 2009 tax return. It is that easy! As long as buyers do not sell for at least 36 months, they keep the $7,500. The credit is also refundable, meaning if your total tax bill came to $4,000 you can still qualify for a full $7,500 refund!

Timing is also critical. The current proposed bill requires that you must have purchased the home between April 9, 2008 and July 21, 2009. Newer proposals have that date stretch out to August 2009. The point is take advantage of this gift before you forget about it and it disappears!

The Bittinger Team is optimistic that the Stimulus

 Bill and other financial incentives are creating

the best home buying opportunities in months.

The Bittinger Team

When Trust and Experience Matter!

(734)-459-2600

 

Canton and Plymouth home sellers and buyers are finding that it is much harder to obtain a mortgage today than it was just last year or even just last summer. These days having the owner of the property hold a second or even finance the whole sale on a Land Contract is becoming as popular as it was years ago. The obvious benefit to the home buyer is the fact they can finance the house without the usual hoops to jump through. Additionally it is often much easier to deal with an owner than a bank and the cost to finance is much lower. So what are the benefits to the homeowner? First and foremost you get the house sold! Other benefits to consider with Owner Financing is the steady income you will receive from the mortgage payments. Right now with all of the market volatility that we are experiencing, this could be your one steady interest earner - in some cases up to 7% or more! This is a guaranteed return as long as the buyer continues to make their payments. If you don’t need the proceeds from the sale of your home immediately, seller financing can be a great investment.  You might also consider partial seller financing. Most buyers will have a cap on their loan allowance, and as the seller you can consider financing the rest at a higher interest rate than normal. Keep in mind that as the seller you would not have to hold on to this mortgage forever, as it can be sold on a secondary market. Although the benefits to both sides are many the pitfalls can also be numerous. The Bittinger Team has the experience necessary to guide you through this lucrative way of selling your home. Call us today for answers!

The Bittinger Team: When Trust and Experience Matter

Office: 734-459-2600

Great News! Fixed-rate mortgages are currently at a ten year low! Call us today and find out just how this can benefit you today!

More owner financing tips for buyers and sellers

Canton, Michigan home buyers and sellers are enjoying the excellent new reports which indicate the falling of interest rates, as well as learning other optimistic news about the Real Estate Market! 

Currently interest rates are declining for most fixed-rate mortgages, which are the most popular and make up nearly 75% of all mortgages. These types of mortgages are very commonly used by first time home buyers, as well as those who would like to know what their monthly budget of expenses will be.  They are also frequently used for home buyers who plan on keeping their homes for longer periods of time.  Fixed-rate mortgages seem to benefit buyers in today’s market because buyers are purchasing what they can afford. Many buyers have gotten into trouble with adjustable-rate mortgages because they are able to buy more expensive homes, and ultimately when their mortgage rate increases, they can get in over their head. Often times people in these situations end up in Foreclosure and their credit tarnished for an extended period of time. Fixed-rate mortgages are much safer, and with the decline in interest rates we are hopeful that the future of our economy will continue to grow steady, while our home values increase at the same time.

Here’s the great news: A 30-year fixed-rate mortgage averaged 5.47% for the week ending December 11, 2008, down from the prior week’s 5.53% average and 6.11% a year ago. The rate hasn’t been lower since March 25, 2004, when it averaged 5.40%. With the recent new reports of interest rates dropping to 4.91% as of December 16, 2008, we should be very optimistic that our housing market is on a path to recovery.

Another beneficial reason that right now is a great time to buy a home is due to the tax credit that will only be offered until July of 2009. First time home buyers can take advantage of up to $7,500 in tax credits.  But you must act fast to take advantage of this added incentive!

 Call The Bittinger Team today, and let us walk you through the necessary steps of buying and/or selling a home in today’s market.  We guarantee results.

 

THE BITTINGER TEAM : When Trust and Experience Matter

Office: (734) 459-2600, Email: Team@Bittinger.com

The Bittinger Team, Realtors with RE/MAX Classic in Canton, MI, stay ahead of the pack in this topsy turvy Real Estate market by proficiently helping ”distressed” homeowners avoid foreclosure by successfully  navigating them  through short sale procedures  with their lenders.

 

Due to declining values and other reasons, the Real Estate market has literally been turned upside down with homeowners owing more on their homes than what those homes are worth. These distressed homeowners are confronted with the agonizing decision of how they should proceed… Foreclosure or Short Sale?? 

 

It’s no surprise that the Foreclosure and Short Sale process has caused much confusion in the community with homeowners and even with Realtors and Real Estate attorneys.  “There is definitely more misinformation than information on this subject” states Kelly Adkins, Realtor with The Bittinger Team.

  

What is a Short Sale?

A “Short Sale” is a relatively new phrase to many homeowners, but this type of sale has been part of the real estate market for many years.

 

A homeowner is “short” when the homeowner owes an amount that when combined with closing costs and commission is higher than current market value.

 

A Short Sale occurs when a negotiation is entered into with the homeowner’s lender to accept less than the full balance of the loan at closing.  A buyer closes on the property and the property is “sold short”. 

 

With a successfully negotiated short sale the seller won’t get any money at closing, but they will avoid the emotional toll a foreclosure can cause.  In addition, the seller won’t have to come to closing with any money and their credit won’t be destroyed.

 

This sounds easy enough, however it is an involved process that takes time, patience, good communication skills, organization and professionalism.

 

Every Realtor Member of the Bittinger Team; Lee Bittinger, Noel Bittinger, Kelly Adkins, LeaAnn Malmin and Debbie Louiselle has become a CERTIFIED DISTRESSED PROPERTY EXPERT (CDPE).  This means they each understand the Short Sale and Foreclosure process thoroughly. They specialize in the sale of distressed properties and can assist both buyers and sellers.  They can quickly assess any situation and be able to suggest which strategy is best for a homeowner to avoid foreclosure. Each agent attended an intensive two-day seminar and countless webinars to earn this kind of designation.  They are 5 of only a handful of Realtors in the entire Detroit metropolitan area who hold this new designation.  “We’re educating ourselves constantly because things are changing so fast.” said Noel Bittinger.

 

In addition to holding the CDPE designation, they have sold over 75 homes on short sale just in the past 1.5 years.  It is invaluable to find a real estate agent who has the capability and knowledge to quickly sell your home in these devastating and heart-breaking situations.

 

“In today’s market, agents cannot simply place a for-sale sign in a front yard or hold a house open to sell a house” states Noel Bittinger.  “Currently there is an increasing need for skilled and knowledgeable agents to work with homeowners who are in over their heads and want to make a short sale to avoid foreclosure or even bankruptcy.  Unfortunately, many of the short sale transactions are being handled by untrained salespeople who are doing more harm than good because they are getting nowhere with the lenders.  When you are dealing with financial distress, it is a totally different procedure.  It is not longer about numbers, it is about saving lives.  The Bittinger Team has the tools, information and tactics needed to help a distressed homeowner understand their options as they face the threat of foreclosure.  Help means talking with lawyers and financial experts, and negotiating with the lenders who hold these troubled loans.” 

 

“This is a very difficult time for these homeowners; they need more consulting and hand holding than the average homeowner.  We help them understand the process and what their best options are.  They don’t know where else to turn.” states Noel Bittinger.

 

“What they most appreciate is that our conversations about their personal situation are kept very confidential, as this is a very humbling experience for many.” said Lee Bittinger.

 

“When every other homeowner who was contacting us to list their home was in an upside down situation, we realized that we better get ourselves educated thoroughly on this process to help these families keep their credit clean by avoiding foreclosure.” states Lee.

 

“Much of the time, I don’t feel like a Realtor,” Noel said.  “I feel more like a counselor and an accountant and an attorney all rolled into one.  There’s a whole lot of crying going on out there with these struggling owners.  They break your heart.”

 

To most agents a short sale is such a mysterious thing,” Lee says.  “Most of the Realtors don’t want to bother with them because they’ve heard so many horror stories.  They are basically afraid of them.”

 

A recent story, a Farmington Hills agent put an offer from a buyer and did not hear back from the bank for five months, tying up the deposit that long.  Ultimately, the bank foreclosed.  This was due to lack of proper follow up and incomplete paperwork. “It can take up to 60days for lenders to give final approval for a short sale”, Lee said.  “It requires a ton of paperwork and it can be very frustrating for both buyer and seller.”

 

Another story is about an attorney who advised a distressed homeowner to declare bankruptcy rather than to go through a short sale or a foreclosure.  “While bankruptcy may be a better option than foreclosure, it will still cause divesting damage to the homeowner’s credit report.  It will stay on for years and many times it can lead to foreclosure anyhow.   Upon analyzing this homeowner’s situation we determined that he is very qualified to do a short sale, yet his attorney actually told him that nobody should do a short sale.”  States Lee.

 

Not every homeowner can do a short sale.  Sellers must be able to demonstrate a financial hardship like job loss or mounting medical bills, etc.    

 

“Many times, all this counseling and help ends up in no sale. But it’s a wonderful feeling knowing you have helped one more family stay in their home” said Lee.

 

The Bittinger Team is reaching out to all local families in distress. Call them today!  They can quickly help get you on the right path to recovery for the future during these painful times.

 

 

The Bittinger Team

 

When Trust and Experience Matter

 

(734) 459-2600

 

 

Join the thousands of home buyers who are seeking great bargains on fantastic homes within the 6 counties of Southeastern Michigan! The Bittinger Team has recently partnered up with www.bestmichiganhouses.com to provide a valuable resource to the community. Join now! These deals will not be around forever!

 

Canton and Plymouth, Michigan Home Buyers: If you are interested in saving money on your energy bills please know that there are home builders out there that are making solar power a viable option for you. We represent several small custom builders that offer Solar Power as an option and can also retro-fit a current house with solar power.

A great example of a large builder that offers Solar Power as a standard option is Victoria Gardens by Shea Homes (a south and south western new home builder). Their pledge to achieve superior environmental performance as well as reducing the cost of home ownership is about to become a reality.  Each 3-kilowatt solar power system will lower the homeowner’s electric bills by up to sixty percent, and can result in a carbon footprint reduction of up to forty-eight percent.  Not only is this a wonderful savings for the homeowner but also allows them to remain energy independent when electricity rates increase.  In addition, this wonderful option yields environmental benefits for the entire community.  Each Shea Green Certified Homeowner will be able to track how much power their system is producing, as well as its environmental benefits, all through a Web-based remote monitoring system.  For more information about Shea solar powered homes please go to www.sheasuperiology.com/trilogy/ 

A few local builders are also talking about including solar power in their option mix. It may be a hard sell because buyers shy away from things they are not familiar with. The savings are impressive however and in these economic times when energy is becoming scarce now may be the right time to investigate this alternative to traditional energy sources.

These developments come at a very fortuitous time as just a few weeks ago our government signed the Emergency Economic Stabilization Act of 2008, which will allow for three things.  First, the Solar Investment Tax Credit will be extended for another eight years.  Secondly, it will lift the cap on the $2,000 allowance.  Thirdly, it will allow the credit to be put toward a homeowner’s alternative minimum tax.  In addition to these federal credits, home buyers may also be eligible for state or local credits or rebates.

If you have a solar power house why not leave a comment on this blog and let us get your story out to the public. How much did it cost over traditional systems? Did you get government financial help? Has the savings been worth It?

Many would like to know if such a decision would be right for them.

 Learn more about solar energy

Canton, Michigan home sellers facing foreclosure are being helped using little known short sale strategies developed by the Bittinger Team. All the members of The Bittinger Team have been trained in this specialty and have all achieved the CDPE (Certified Distressed Property Expert) designation which uniquely qualifies them to help families in this unfortunate situation.

 

This real estate market has caused unbearable stress and heartache for many local families. A distressed family often makes decisions based on emotion rather than logic and knowledge of the situation they are in.

 

All of our agents here at The Bittinger Team are here to help you in such distressed situations and ultimately help you fight off foreclosures. The extensive knowledge that we have obtained will greatly benefit the community in which we all live. While experiencing financial distress is extremely difficult for any family, the process of finding a valuable real estate professional compatible with your situation shouldn’t be. The Bittinger Team is committed to helping distressed families find better solutions for their future. With current conditions and our newly acquired CDPE designations, we have all of the essential tools at hand to ensure a lightning speed “Short Sale” allowing for zero balances on mortgages, while saving your credit at the same time. As your CDPE agent, we will explore every option with you and work towards a solid resolution. You have gone through enough, let us help!

• Unmanageable Debt
• Job Loss
• Medical Bills
• Serious Illness
• Incarceration
• Divorce
• Death
• Military Service
• Payment Increase and Mortgage Adjustments
• Relocation
• Reduced Income
• Insurance or Tax Increases  

 

While it may not seem like it now, there will come a time where your current financial troubles will pass. Let us fight for you and help you to avoid a devastating financial consequence so many people face today. With the help of The Bittinger Team, no stone will be left unturned!

• Make or purchase new pillows for your sofas and chairs. Textured fabrics in warm jewel tones will warm up your room. Adding a luxurious throw over your couch will provide a warming, comfortable feel to your home.

• Add new splashes of color and scent to your rooms by swapping out old candles. Replace the existing ones with great fall scents like pumpkin or apple spice, and try to stick to the warming fall colors if possible.  Don’t leave candles lit if you leave your home for a showing! 

• Modify your artwork and/or decor throughout your home. Vivid paintings and brighter accent colors will brighten up your rooms on dark, dull days.  This is very important when people are visualizing themselves living in your home this time of year.

• Change your bedding. Replace your summer duvet cover with a warm, cozy comforter, and place an extra woolly blanket at the foot of the bed. 

• Add area rugs to cold hardwood floors in the living room and bedrooms. 

• Buy some fancy bath towels and hang them just for showings. 

• A clean bathroom is a great selling feature. Be sure to keep your shower curtain and bathmat free of mold and mildew -buy new ones if necessary! Also, try adding a few more colorful candles or other cheerful objects to your bathroom and watch things liven up before your eyes!

• Add a new fall wreath to the front door, as well as a new "Welcome" doormat. 

• Place some seasonal plants around your home, as well as in the garden if you can. Adding real pumpkins and other seasonal vegetables of all sizes to both your front porch and inside decor will enhance the warmth of your home this fall. You may also want to add some hay for your pumpkins to perch upon outdoors. 

• It is important to rake the leaves and clean up your deck or patio regularly. Curb appeal for your home is just as important as the inside features your home has to offer. Be sure to throw your summer hanging baskets away. 

 

This blog was revamped from an original Active Rain blog post by RE/MAX’s Aboutowne Realty in Oakville, Ontario

When calling your lender, you should have the following information available:

There are a number of other great resources available to you online. For example, a very useful tool is having a full listing of HUD-Approved Housing Counseling Agencies in Michigan and valuable information supplied by HUD on what do to if you are unable to make your mortgage payment. The "Save the Dream" foundation in Michigan also supplies foreclosure resources and information from the State of Michigan.  

 

If you know of any other useful links, please feel free to leave them in the comments below.