May 20th at 8:00 p.m. CDT

FREE Home Buyer Webinar:  Attend the webinar
Space is limited

Sean Zalmanoff USA Mortgage

Jeff Binsbacher ASHI Building Inspector

Rebecca Meier Continental Title Company

Brian Magill Expert, REALTORS

Beginning April 22, 2010, federal law will require that contractors performing renovation, repair and painting projects that disturb more than six square feet of paint in homes, child care facilities, and schools built before 1978 must be certified and trained to follow specific work practices to prevent lead contamination.

Protect your family and make sure you only hire a contractor who is in a Lead-Safe Certified Firm. Find a Lead-Safe Certified Firm near you.

Read about EPA’s requirements for renovation, repair and painting.

Read EPA’s pamphlet on renovation, repair and painting:

• Renovate Right: Important Lead Hazard Information for Families, Child Care Providers and Schools (PDF) (20 pp, 3.7MB)

1. Close on your home purchase between November 7, 2009 and April 30, 2010, or have a binding written contract in place by April 30, 2010 with a closing date no later than June 30, 2010.
2.  Decide whether to: 
   • apply the credit to your 2009 tax return, filed on or before April 15, 2010;
   •  file an amended 2009 return; or, 
   • apply the credit on your 2010 return, filed on or before April 15, 2011.
3. Attach documentation of purchase to your return.

Documentation of Purchase

Details concerning the precise documents required to confirm your purchase have not yet been released. When this information becomes available, we will include instructions and links to the appropriate forms.

When to Apply the Credit

Buyers purchasing homes on or before December 31, 2009 may claim the credit on their 2009 tax returns.

Buyers purchasing in 2010 will have the option to:

•  Claim the credit on their 2009 return, even if the purchase is completed after December 31, 2009;
•  File an amended return for 2009 if their purchase is completed after April 15, 2010; or,
•  Claim the credit on their 2010 tax returns.

If you, or your client, purchased a home between January 1, 2009 and November 6, 2009, please see: How to Get the 2009 First-Time Home Buyer Tax Credit.

Applying the Credit to Your 2009 Taxes

You will need to do three things to claim the credit on your 2009 tax return:

1. Fill out Form 5405 to determine the amount of your available credit;
2. Apply the credit when you file your 2009 tax return or file an amended return;
3. Attach documentation of purchase to your return or amended return.

Applying the Home Buyer Tax Credit to Your 2009 Tax Return

Bridge Loans: Using the Home Buyer Tax Credit Up-Front

Copyright NATIONAL ASSOCIATION of REALTORS® Reprinted with Permission

Home Sales Rise on Tax Credit, Favorable Market

St. Louis home sales soar 22 percent in March

Find out if you qualify and ACT NOW to take advantage of the tax credit.

Consumers are offered free counseling from well trained non-profit counselors as well as details on preventing foreclosure.

While being “underwater” on your home may not spell disaster for some, many face very difficult choices daily in order to pay their mortgage.  So who can blame parents for moving into an affordable apartment or combining households in order provide necessities for their children?

I can site case after case of these responsible families trying to sell their property so they could get out from under the mortgage.  The plan is to get into a home that is less expensive so they can live within their means.  So they listed their property, attempted to work out short sale arrangements with the bank, and competed with the other responsible families to market and sell their homes.  In nearly every case they held on as long as they could, many attempted short sales while others just finally threw up their hands and walked away.  This “responsible” household is now reported as a foreclosure statistic.

With a declining market, high unemployment and a poor economy measures need to be implemented in order to prevent more Americans from finding themselves in a similar situation.  It was reported last week that the HAMP (Home Affordable Modification program) participants is on the rise and growing.  We need to improve and expand this program.  Let’s make a real effort to help our fellow Americans and ease up on any new regulations that may have unintended consequences.  While this program may only provide payment reduction and no mortgage balance reduction, as the rate of foreclosure declines property values will increase.

Inman News offers this report.

The Mortgage Bankers Association Forecast.

There are at least 3 problems with waiting until the end of April to enter into a purchase contract.  There will be more competition in April for the best homes available at that time.  Secondly, the percentage of accepted contracts that successful close has dropped.  Lastly if you are in a position that you must close on the property (under contract in June) or you will potentially lose $8,000, your contingency negotiating leverage is lost.

These issues don’t address the stress of working on a deadline and the sacrifices made in order to meet it.   Real estate transactions are complex and involve many aspects including mortgages, insurance, inspections, disclosures and more.  By properly preparing and working on your own timeline it can be so easy that the hardest part is actually moving your belongings.

If you want to take advantage of the available tax credits act now to avoid the many potential pitfalls of buying in April.  Inventory is currently abundant, mortgage rates are low, and you won’t be in competition with those that are waiting until April to get started.