Archive for December, 2010
Beyond The Headlines
December 6th, 2010 categories: Buyer's Advice
The Wall Street Journal
Deficit plan wins backers
In February, the White House created the National Commission on Fiscal Responsibility and Reform to examine how the country spends money and collects taxes. The commission also was tasked with creating a proposal that would cut the federal budget deficit.
KEEP THIS IN MIND
• The deficit commission’s proposal was released to the public this week and calls for cutting the federal debt by $4 trillion through 2020 by upending many tax and spending policies.
• Among the proposed changes include a recommendation to reduce the mortgage interest deduction (MID) currently offered to homeowners as an incentive to own a home. The ability of homeowners to deduct the interest paid on mortgages is a powerful incentive for home ownership and has been one of the simplest provisions in the federal tax code for more than 80 years.
• The commission’s proposal would change the MID to a 12 percent non-refundable tax credit, with no credit offered for mortgages higher than $500,000 nor for interest on a second residence or home equity.
• The CALIFORNIA ASSOCIATION OF REALTORS® and the NATIONAL ASSOCIATION OF REALTORS® are strongly opposed to the proposed changes to MID and are working vigilantly to ensure elected officials are aware of the opposition and that implications of the proposal are understood.
• As the housing market continues to recover from the worst financial crisis in recent history, any change that reduces the ability of the market to heal is misguided and must be rejected. The proposal from the commission will negatively impact the housing market, further erode opportunities for homeownership across the country, and will contribute to further price declines and diminished equity for homeowners.
• Although the proposal has been made public, the full 18-member panel still must vote on the proposals before a formal recommendation can be issued to Congress and the White House. A vote is expected to take place Friday.
• Homeowners and home buyers are encouraged to call their member of congress and urge him or her to preserve the MID.
Read the full story:
http://online.wsj.com/article/SB10001424052748704594804575648503541856136.html?mod=djemalertNEWS
In Other News… The New York Times
F.H.A. rule changes for mortgage borrowers
Home buyers with sketchy credit who are unable to qualify for conventional mortgages may now find it more costly and difficult to obtain loans insured by the Federal Housing Administration.
Read the full story:
http://www.nytimes.com/2010/11/28/realestate/mortgages/28Mort.html?_r=1&ref=realestate
CNN Money Signs of a double dip? Home prices fall 2 percent
U.S. home prices fell 2 percent in the third quarter after having gained steadily since early 2009.
Read the full story:
http://money.cnn.com/2010/11/30/real_estate/CaseShiller_home_prices/index.htm?hpt=T2
Los Angeles Times
Freddie Mac suspends evictions for the holidays
Mortgage titan Freddie Mac said Wednesday that homeowners who have lost their homes to foreclosure will not be evicted from their properties over the holiday season.
Read the full story:
http://latimesblogs.latimes.com/money_co/2010/12/freddie-mac-suspends-evictions-for-the-holidays.html
The Wall Street Journal
Second-mortgage standoffs stand in way of short sales
Over the past year, real estate agents, lenders, and federal policy makers have pointed to short sales as one way to revive moribund housing markets while helping troubled borrowers avoid foreclosure. But for homeowners who took out second mortgages during the boom, getting a short sale approved is proving to be a nightmare.
Read the full story:
http://online.wsj.com/article/SB10001424052748704526504575634950022011416.html?mod=WSJ_RealEstate_LeftTopNews
Los Angeles Times
FTC clamps down on mortgage modification scammers
The Federal Trade Commission is cutting off the main fuel supply for mortgage modification scammers: Under new rules outlined Nov. 19, the agency plans to ban virtually all upfront payments, institute mandatory disclosure rules, and clamp new federal restrictions on lawyers who participate in mortgage modification schemes.
Read the full story:
http://www.latimes.com/business/realestate/la-fi-harney-20101128,0,6669805.story
Sacramento Bee
Signed contracts to buy homes up 10.4 pct. in Oct.
The number of people who signed contracts to buy homes jumped in October, marking the third gain since contract signings hit a decade low.
Read the full story:
http://www.sacbee.com/2010/12/02/3227752/signed-contracts-to-buy-homes.html
Los Angeles Times
Don’t pay a fee to enroll in a biweekly mortgage payment plan
Biweekly mortgage payment plans are back. But there can be drawbacks.
Read the full story:
http://www.latimes.com/business/la-fi-perfin-20101128,0,1249518.column
Los Angeles Times
Sales of foreclosed, distressed properties fall 25 percent in Q3
The foreclosure paperwork debacle and the expiration of federal tax credits for buyers appears to be having some effect on the sale of bank-owned properties and otherwise distressed homes.
Read the full story:
http://latimesblogs.latimes.com/money_co/2010/12/sales-of-us-foreclosed-and-distressed-properties-fall-25.html
What you should know about the market
• As winter approaches, homeowners may be looking for ways to cut energy bills. To assist with the cost of making energy-saving home improvements, the federal government is offering tax credits for qualified purchases. However, some of the credits expire Dec. 31, 2010.
• Homeowners can get a tax credit for installing certain wood or pellet stoves; energy-efficient furnaces, water heaters, and air-conditioning systems; insulated roofs, windows, and doors; and wall and ceiling insulation. The tax credit covers 30 percent of the purchase costs, up to $1,500. A full list of eligible purchases can be found at www.energystar.gov.
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