Attention Tangipahoa Homeowners

Tangipahoa Homeowners should know that the American Recovery and Reinvestment Act is providing help for delinquent and non-delinquent homeowners.  Last month, the Treasury Department announced its Making Home Affordable programs.  Making Home Affordable provides two options for homeowners, refinancing and loan modifications.  The programs are aimed at homeowners who are struggling to meet their mortgage obligations.  The Home Affordable Refinance program is for homeowners who have been making their mortgage payments on time but are struggling to do so.  The program allows qualifying homeowners to take advantage of today’s historically low fixed interest rates.  The program even allows homeowners who have seen a decline in values to participate.  Because the lender already has much of the homeowners’ information on file. the refinancing process should take less time and be less costly than conventional refinancing. 

The Home Affordable Refinance program is only available for home loans which are backed by Fannie Mae and Freddie Mac.  The Home Affordable Loan Modification program is aimed at the at-risk homeowner as well as homeowners currently in the foreclosure process.  Loan modifications may reduce loan payments to 31% of the homeowner’s gross monthly income.  Loan modification includes reduction of payments, loan balance forgiveness and extension of the loan up to 40 years.  The Home Affordable Loan Modification program has been designed to work in conjunction with the FHA Hope For Homeowners program as well.  To apply for the Home Affordable Refinance or Loan Modification programs, homeowners must qualify under the guidelines of the Making Home Affordable program.

Tangipahoa homeowners should be aware that there are scams afoot which charge you for services in seeking loan modifications.  Please do not be taken in by those who prey on others.  Free help is available at HomeownerHope.org for homeowners seeking a loan modification.  At this site, you will find a questionnaire which helps to determine what federal and/or local programs are available.  The site also provides a free checklist and call log to assist you when you contact your lender.  In addition you can sign up for a free newsletter which will keep you up-to-date on any changes to programs which may assist you.

The Making Home Affordable website offers a free online tool to determine your eligibility for both refinancing and loan modification options available to homeowners.  Any Tangipahoa homeowner that has experienced a job loss, a reduction in their income, foresees their house payment increasing or is struggling with their current mortgage payment would be wise to check out the Making Home Affordable Refinance program.  If you are a Tangipahoa “at-risk” homeowner or if you are behind in your mortgage, you should contact your lender regarding a loan modification.  Lenders are receiving incentive funds from the government when they help you modify your loan.

Yvonne Martin, Keller Williams Realty

Will a Tax Credit Help You?

Tax season is in full swing, which put me in mind of the Tax Credit being offered to first-time home buyers as part of the Economic Stimulus Plan.  This tax credit should not be confused with the Tax Credit of 2008.  The tax credit in the 2008 stimulus plan was for $7,500 and had to be repaid.  The new tax credit (American Recovery and Reinvestment Act of 2009) was increased to $8,000 with no repayment requirement.  However, if you sell the home within three years or if the home is no longer your principal residence within the same three years, the tax credit must be repaid.

The time frame to take advantage of the tax credit by first-time home buyers is limited.  The escrow must close between January 1, 2009 and November 30 2009.  The tax credit does have income restrictions.  There is a maximum income limit of $75,000 for single households and a $150,000 income limit for married couples.  However, if your income is higher than the limit, you may still qualify for a tax credit.  For those with an adjusted income over the limit, there is a phase out plan.  For example, if your adjusted income is $160,000, you could still qualify for an approximate tax credit of $4,000 (maximum).  The tax credit is not a full $8,000 but is based on the purchase price of the home.  First-time buyers can claim 10% of the home’s purchase price as their tax credit.

The tax credit may also be applied to your 2008 tax year.  First-time home buyers have the opportunity to determine which year’s tax filing (2008 or 2009) would be more advantageous to apply the tax credit.  An amended 2008 tax return can be filed when filing your 2009 taxes.  Please consult with a professional tax advisor to determine which year the tax credit will work for you.

The tax credit applies to any type of property, including multi-family dwellings which are owner occupied.  Remember, a first-time home buyer does not necessarily mean that you have never owned a home.  A first-time home buyer is defined as anyone who has not owned a home in the last three years.  If you are considering a home purchase this year, the tax credit being offered may help your 2009 (or 2008) tax filing.

Yvonne Martin, The Martin Team