IRS Warns Taxpayers to Beware of First-Time Homebuyer Credit Fraud

WASHINGTON — The Internal Revenue Service today announced its first successful prosecution related to fraud involving the first-time homebuyer credit and warned taxpayers to beware of this type of scheme.

On Thursday July 23, 2009, a Jacksonville, Fla.-tax preparer, James Otto Price III, pled guilty to falsely claiming the first-time homebuyer credit on a client’s federal tax return. Price faces the possibility of up to three years in jail, a fine of as much as $250,000, or both.

for the full story on the IRS credit fraud

New Truth In Lending Rules can cause a 3 day delay for closing

New Truth In Lending Rules for Mortgages
Here are the new rules for TIL (truth in lending) forms for all mortgages applied for after July 30th, 2009.

• The “early” TIL disclosures must be delivered or placed in the mail not later than 3 business days after the creditor receives the consumer's written application, and at least 7 business days before consummation of the transaction. This is a new “waiting period.”

“business days” do not include Saturday or Sunday. Similar to attorney review.

• If the annual percentage rate (“APR”) on the disclosure becomes inaccurate, by increasing or decreasing changes by more than 1/8 (.125%), the creditor must now make corrected disclosures to the consumer with a revised APR. The consumer must receive the corrected disclosures no later than 3 business days before consummation.

What does this mean?

If any of the fees change on the final settlement statement to a great extent compared to the GFE (good faith estimate) that was signed by the borrower at time of application (increase OR decrease in fees), a new TIL(truth in lending) disclosure will have to be generated and you have to wait 3 more days before you can close.

So a lender can’t have a higher or lower rate by more than .125% at closing AND the lender fees can’t go up or down by more than a couple of hundred bucks or you will have to wait another 3 days. Lender credits of any significant amount will cause a 3-day delay, even if it benefits the buyer.

for more highlights on this new rule

Are We There Yet? Have we reached bottom?

"How's the market"? Are we there yet? That is the question that I get asked the most. In Rumson, the price ranges that are currently selling the most are $500,000 - $600,000 and over $2M Homes and under $3million and anything over $3 million is still taking longer. The luxury market always takes longer in any market.

The Average sold price in Monmouth County is $471,501 with 105 days on the market.
for more statistical information you can go to my website www.monmouthmarketwatch.com

Rates remain low, inventory is still high, so plenty of choices, and with some very motivated sellers It is a GREAT time to buy.

For first time buyers or if you have not owned a home for the past three years the $8000 credit is good until December 1st, 2009. Use it.
The second most asked questions - "Have we hit bottom"? “When will we hit bottom?”

"I don't know', and guess what neither does anyone else!!.
I do sense the buyer confidence is on the rise and that we appear to be leveling off. This does not mean that prices will suddenly go back up, as with any cycle it takes a long time for the cycle to complete.

Therefore, my advice to the seller who is thinking of waiting- you might have to wait for several years just to get back to where we were 2 years ago.

For the buyer, I advise moving ahead at this time before mortgage rates move upward and change the affordability factor. Smart sellers have been moving with the market, pricing correctly the first time and selling quickly, freeing up equity to invest in other real estate.

Selecting a realtor is not like choosing a flavor of ice cream. Please consider the size of the transaction before deciding to place the responsibility upon a friend or acquaintance to represent you. In additon to intelligence and knowledge, look for integrity and ethics. Some agents do less transactions but with better results.

Even a good agent is only as good as their client allows them to be. In some cases the client ignores good advice and ends up selling for less later on. In some instances it may not be what the client wants to hear, but it is only when one has factual honest information the client can make informed decisions.

MOnmouth County Market Statistics

In The Northeast sales have increased by 13.% as compared to last year same time fram Jan thru June 11.6% however the sales price has declined 11.1% this year compared to last years decline of 10.5%
What this means is that the market is moving. People are buying and selling when the property is price to market!
here is a brief overview of inventory in the folowing towns single family only Jan 09 to June 09:

50 Oak Place Fair Haven NJ For Sale

A Salute To America and It's Heros

gloria benaroch | 732-245-4031 50 Oak Place, Fair Haven, NJ River Oaks Fair Haven, park setting 3BR/2.5BA Single Family House offered at $699,000 Year Built 1950 Sq Footage 1,698 Bedrooms 3 Bathrooms 2 full, 1 partial Floors 1 Parking 2 Car garage Lot Size 10,001 sqft HOA/Maint $0 per month see additional photos below ADDITIONAL PHOTOS Front Rocking Chair Front Porch Master Bedroom kitchen w/ granite family room/office/den park like bakyard Contact info: gloria benaroch 732-245-4031 For sale by agent/broker Equal Opportunity Housing Posted: Jul 1, 2009, 4:38pm PDT

Speak Out Against Taxes on Real Estate: Demand Full Restoration of Property Tax Deduction

Earlier this spring, the New Jersey Association of REALTORS (NJAR) notified you of Governor Jon Corzine's budget plan calling for a one-year suspension for all non-senior households earning more than $150,000 to deduct property taxes from their state tax filings. In a high-cost state like ours, imposing this income threshold could mean that a husband and wife working as a police officer and school teacher may not qualify for the deduction. Recognizing the harmful impact this plan would have on working class homeowners, NJAR is, once again, asking that you take action against this proposal.



As budget negotiations are drawing to a close, it’s crucial to send Trenton one last message that you oppose even the partial elimination of the property tax deduction. Given current economic conditions, this is the worst possible time to propose any legislation that undermines the basic foundation of homeownership. The partial elimination of the property tax deduction is just a third of the triple whammy for homeowners under this budget plan. All non-senior taxpayers are slated to lose their property tax rebates. Additionally, educational and municipal aid, which is used to offset property taxes, is either being frozen or cut. These proposed policies will certainly lead to higher property taxes.



As you know, the state budget process can be extremely turbulent. In the past, lawmakers have proposed tax increases at the last minute to avoid public scrutiny. Speak out against any eleventh hour attempt by lawmakers to raise or impose new taxes on the real estate industry or property owners. Let legislators know that we will be opposed to any effort by them to hike taxes on real estate. Encourage REALTORS, clients, family and friends to send a letter to their lawmakers through the NJAR Action Center.
6k5m7ncjz4

DoD Publishes Help for Military Families Selling Due to Transfer

DoD Publishes Help for Military Families Selling Due to Transfer
The American Recovery and Reinvestment Act (ARRA) expanded the Department of Defense's (DoD) authority to help active duty families who are having to sell their homes at a loss due to a permanent change of station (PCS). Last week, DoD published the guidance on this new program. Families with homes purchased prior to July 1, 2006 located where the market area is experiencing a decline of at least 10 percent can receive up to 90 percent reimbursement on the loss of the sale of their home based on the previous fair market value. This is increased to 95 percent for Wounded Warriors and Surviving Spouses. For full guidance on the Housing Assistance Program, visit the program website.

You can NOT use the tax credit as a down payment

DON'T BE FOOLED!!!! AS OF TODAY you can NOT use the tax credit for a down payment

Yes there has been a lot of discussion about this topic but it is NOT an option currently. Those statements were made by the SECRETARY of HUD yesterday and a HUD/FHA letter was published on the website Monday night.

BUT……..the new DIRECTOR of HUD pulled that Mortgagee letter this morning and is no longer even available on the HUD website.

Here is the link to all Mortgagee Letters:

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/

Notice ML 09-15 has been pulled.

This theoretical program is now off the table

Making Home Affordable Allows Modification of Second Mortgages

Making Home Affordable Allows Modification of Second Mortgages
On April 28, 2009, the Treasury Department announced expansion of the Making Home Affordable Program to help reduce payments on second mortgages. The Obama Administration took this action because as many as 50 percent of all at-risk borrowers have second mortgages and without modifying them the borrowers remain at a higher risk of default. Under the Second Lien Program, if the servicer initiates a Home Affordable Modification on the first mortgage, participating servicers will automatically reduce payment on the second lien in accordance with complex, but uniform, program criteria. As an alternative, servicers may extinguish the second lien in exchange for receiving a lump sum payment. For more details, read the Treasury Department's press release.

TLC Casting Buyers and Sellers for Moving Up

TLC Casting Buyers and Sellers for Moving Up
Cable network, The Learning Channel (TLC), is currently casting for its hit series Moving Up, hosted by Doug Wilson. Producers are looking for buyers and sellers who are under contract and planning to move in June. Interested candidates must still occupy their current home. Buyers moving into a home that is already vacant are not eligible. Both residences must be within 45 minutes of Manhattan.

The series follows a chain of homeowners as they go through the renovation and/or redesign process in their new home. Moving Up offers the former homeowners the rare chance to visit their once beloved homes and see all of the new changes. Opinionated consumers who demonstrate compelling ideas to alter the house are preferred.

Contact Jodi Friedman at (212) 974-9050, ext. 125 or JFriedman@bbcnyproduction.com if you or someone you know would be a good fit for the show.

Northeast home sales drop 8 percent

Northeast home sales drop 8 percent, prices fall, in March, Realtors say
- The Star Ledger (4/23/2009)
"Prices have fallen 15 percent to 20 percent here since June 2006, and New Jersey real estate analyst Jeffrey Otteau said he expects the eventual damage to hit 24 percent. He said he expects prices to keep falling at a rate of 1 percent a month."
Click to Read Full Story

71% Think now is a good time to buy

GALLUP POLL: Americans See Buyers’ Market in Housing
Seventy-one percent think now is a good time to buy a house

by Dennis Jacobe, Chief Economist, Galluphttp://www.gallup.com/poll/117586/Americans-Buyers-Market-Housing.aspx

PRINCETON, NJ -- Plunging housing prices combined with historically low interest rates have persuaded 71% of Americans that now is a "good time" to buy a house -- up 18 percentage points from a year ago and the highest level of housing-purchase optimism in four years.

Asbury Park Considering New Parking Plan

Asbury Park Considering New Parking Plan

On April 22, 2009, the Asbury Park City Council will consider a parking plan prepared by the Asbury Park Parking Advisory Committee similar to a proposal considered but not enacted in 2008 in the Borough of Point Pleasant Beach.

This plan calls for a combination of meter and permit parking in the beachfront area. NJAR®, along with the Monmouth County Association of REALTORS® and South Monmouth Board of REALTORS®, oppose this proposal as it increases the cost to live in and visit Asbury Park.

Encore of First-Time Home Buyer Tax Credit Webinar – April 27

Encore of First-Time Home Buyer Tax Credit Webinar – April 27

Due to popular demand, NJAR® will be hosting a second free webinar for members and the public on Monday, April 27 at 2:00 p.m. titled Get the REAL StorySM on the First Time Home Buyer Tax Credit.

Linda Goold, director of federal tax programs for the NATIONAL ASSOCIATION OF REALTORS® (NAR), will discuss how home buyers can take advantage of the federal first-time home buyer tax credit, how it functions, and how purchasers can claim it. NJAR® will begin the webinar with information on the newly redesigned website, www.REALstoryNJ.com, along with details on the revamped Get the Real StorySM public education campaign focusing on the benefits of New Jersey's real estate market.

Reserve your space for the encore presentation of Get the REAL StorySM on the First Time Home Buyer Tax Credit today. The address for viewing the webinar will be http://njar.acrobat.com/tc042709.

Great News for Homeowners and Realtors Selling Houses in Oceanport...

Oceanport Approves New Sign Ordinance
After hearing concerns that the Borough of Oceanport did not allow the placement of open-house directional signs, REALTORS® from the Monmouth County Association of REALTORS® (MCAR) and NJAR® began working with the Mayor and Council in Oceanport to request a change in their sign ordinance.
On April 16, 2009, the Oceanport Borough Council approved an ordinance permitting the placement of two temporary, directional signs in the public right-of-way advertising an open house. In addition, as was the case under the previous ordinance, one temporary sign is allowed on the property being sold. Under the new ordinance, no sign can block a site triangle or have any attachments such as balloons that can obstruct a driver's view.
This is great new for homeowners and Realtors where the houses were more inland and not of the main road this way people driving by can find the house even if they did not see the ads

Correction Re Monmouth Tax Appeals

Please accept my apologies for stating incorrect information about Monmout County tax appeals. I read my tax card incorrectly and spoke to people who corrected me.
What I read was regarding tax revaluation. Some town in our county are being revalued and this applied to that.
I have deleted the post so there is no further confusion.
The tax appeal date deadline is every year no matter what April 1st.
I am sorry if I have caused any confusion , that was not my intent.

As an aside BEWARE of people telling you that they can get you a tax appeal or tax reduction now. I have been informed that there are people out there taking advantage of people.

Again my apologies.

Tax Credit for Ford Hybrids Begins Phase-Out

WASHINGTON — The tax credit for hybrid passenger automobiles and light trucks manufactured by Ford Motor Company has begun to phase out for purchases made after March 31, 2009.
Taxpayers may claim the full amount of the credit only on purchases made before April 1, 2009, because the total number of vehicles sold reached the 60,000 vehicle threshold in the last quarter of 2008. The cumulative sales of qualified Ford hybrid vehicles sold from the period of Jan. 1, 2006, to Dec. 31, 2008 is 66,157.
For vehicles purchased for use or lease on or after April 1, 2009, and on or before Sept. 30, 2009, the credit is 50 percent of the full amount. For vehicles purchased for use or lease on or after Oct. 1, 2009, and on or before March 31, 2010, the credit is 25 percent of the full amount. For vehicles purchased for use or lease on or after April 1, 2010, no credit is allowable.
The full credit amount for vehicle purchases made prior to April 1, 2009 is:
2005, 2006, 2007 Ford Escape 2WD, $2,600;
2008, 2009 Ford Escape 2WD, $3,000;
2005, 2006, 2007, 2009 Ford Escape 4WD, $1,950;
2008 Ford Escape 4WD, $2,200;
2010 Ford Fusion, $3,400;
2008, 2009 Mercury Mariner 2WD, $3,000;
2006, 2007, 2009 Mercury Mariner 4WD, $1,950;
2008 Mercury Mariner 4WD, $2,200;
2010 Mercury Milan, $3,400

Related link:
N-2009-37 - Phase-out of Credit for New Qualified Hybrid Motor Vehicles and New Advanced Lean Burn Technology Motor Vehicles

Fannie Mae Issues Guidelines for Loan Limits in High Cost Areas

Fannie Mae Issues Guidelines for Loan Limits in High Cost Areas
On March 20, 2009 Fannie Mae Issued Announcement 09-08, implementing the 2009 conforming loan limits for high cost areas (known as high-balance loans), like New Jersey. Through the American Recovery and Reinvestment Act of 2009 (ARRA), loan limits on mortgages secured by Fannie Mae were increased. Loan limits from Fannie Mae are limited to $417,000 to $729,750, depending on the county where the home is located and the loan program. The guidelines instituted in the announcement apply to loans delivered to Fannie Mae starting May 1, 2009.
Loan must be conventional, first-lien mortgages only.
One to four unit properties are eligible.
Loans must be fixed-rate or adjustable rate loans (no balloons).
Loans must meet loan-to-value (LTV) and minimum credit score requirements. For one unit properties with a fixed rate mortgage, the maximum LTV is 90 percent. The minimum credit score is 700 for LTVs above 75 percent and 660 for LTVs at or below 75 percent. For one unit properties with an adjustable rate mortgage, the maximum LTV is 75 percent and the minimum credit score is 680. For second homes and investment properties, the maximum LTV is 65 percent and the minimum credit score is 740. Other rules apply to other categories. See HUD's website for details on local loan limits and get more information regarding the Federal Housing Administration (FHA) on our FHA page.