Home buyers may get three more months — until Sept. 1 — to close on purchases they made prior to May 1 and still qualify for the federal tax credits.

Senate Majority Leader Harry Reid, a Nevada Democrat, introduced the proposal as an amendment to a bill that would extend jobless benefits through November. Reid represents the state with the highest foreclosure rate.

The National Association of REALTORS® has been lobbying for the extension because buyers whose purchases are delayed by slow-moving short sales and financial transactions will lose out.

“Time is of the essence,” said Lucien Salvant, NAR managing director. “It’s important for Congress to get this done, because there’s whole bunch of loans that aren’t going to close on time.”

Source: Associated Press, Alan Zibel (06/10/2010)

This may be great news for many buyers in the Bennington VT real estate market.

The Internal Revenue Service has clarified which documentation taxpayers need to submit to claim the first-time and move-up homebuyer tax credit.

While the IRS is still requiring the filing of Form 5405, it is not demanding that all parties’ signatures be on the HUD-1 settlement document in areas where requiring both the buyer and the seller to sign the document isn’t common.

The IRS clarification says: “In areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is completed and valid according to local law. … The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return.”

For repeat buyers, the IRS is seeking documentation that home buyers have lived in the previous property for a consecutive five of the past eight years. Proof can include property tax records, home owner insurance records, or mortgage interest statements.

Source: Washington Post (02/20/2010)

Bennington VT, First Time Buyers, Buying

According to the Chinese calendar, 2010 is the Year of the Tiger. But in real estate, 2010 may come to be known as the “Year of the First-Time Home Buyer.”

Mark Zandi, chief economist at Moody’s Economy.com, says there will be 1.84 million homes sold to first-time home buyers in 2010, compared with 1.73 million in 2009.

These buyers will invariably make some mistakes that they will come to regret a few years down the road, some experts say, including failing to use a real estate professional to help them manage the transaction.

Real estate professionals have the time and the knowledge to sift through thousands of listings, creating market analyses to judge pricing and other key features, points out Ray Boss Jr., a practitioner with RE/MAX Realty Group in Maryland.

“I would want someone who is going to look out for my interests first and foremost,” says Boss. “Someone who knows the contracts, who has experience negotiating, and who can walk me through the entire process smoothly — step by step — and make sure I get the house that’s right for me.”

Source: U.S. News & World Report, Kimberly Castro (02/18/2010)

In the Bennington VT Real Estate market, we have over 240 homes for sale.  Many of these homes are priced right for first time buyers.  Give Troy Richardson a call today at 802-447-3210 for information on these affordable homes.

Mortgage interest is deductible on your tax return. And you may be able to deduct the points you paid – check your 1098 statement from your lender for the amount. To be deductible, loan points must meet certain requirements, including but not limited to:

• The loan is for your main home
• The charge for points are within normal rates for your area.
• The amount is listed on the settlement statement as charged points.
• You report your income and deduct expenses in the year received or paid (cash accounting method).

For more information on deducting points from your tax return, go to www.irs.gov. For your Bennington, Vermont real estate needs, contact Troy Richardson at RE/MAX Maple Leaf Realty!

According to a British newspaper, a new 450-house development in the community of Farnsborough has instituted a “no pet” policy as a way to protect wildlife. The development is near a 32-mile stretch of heathland that is protected by the European Union Birds Directive. The directive requires area communities to protect, maintain and restore habitats.

So far, Bennington, Vermont has no communities that have a ban on pets as part of their homeowner guidelines. Pet owners are encouraged to call Troy Richardson to find the perfect Bennington real estate to call your home!

Bank of America and JPMorgan Chase & Co. both said their failure to help more borrowers stemmed from the fact that many home owners fail to complete mortgage-relief paperwork.

Jack Schakett, Bank of America’s credit loss mitigation strategies executive, cited “ineffective communications with customers, shortcomings in document maintenance, misunderstandings about program requirements, and the inability to comply by some borrowers.”

Likewise, JPMorgan Chase said only 4,300 home owners have completed the paperwork, although 16,000 have been approved.

“We are facing challenges with borrowers completing documentation or making trial plan payments as agreed,” Molly Sheehan, JPMorgan Chase’s executive in charge of housing policy, said in written testimony.

Source: Associated Press, Alan Zibel (12/07/2009)

We have certainly seen a number of buyers take avantage of the First Time Home Buyer credit that expires on November 30 in the Bennington VT real estate market.

The new legislation recently passed includes a First Time Home Buyer credit and a Repeat Buyer credit.

Of course, this causes those looking in the Bennington Vt real estate market to ask questions, and I can’t blame them, becuase it can all seem so confusing.

Here is an example of a question that was received by a local Mortgage Officer, who sent it along to educate us all:

We have certainly seen a little up-tick in activity over the past few weeks in the Bennington VT real estate market.  This article from the National Association of Realtors gives a more macro view of the national real estate market.

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Driven by the home buyer tax credit, existing-home sales showed another big gain in October with a strong uptrend established over the past seven months, according to the NATIONAL ASSOCIATION OF REALTORS®. At the same time, inventories have continued to decline.

Existing-home sales—including single-family, townhomes, condominiums and co-ops—surged 10.1 percent to a seasonally adjusted annual rate of 6.10 million units in October from a downwardly revised pace of 5.54 million in September, and are 23.5 percent above the 4.94 million-unit level in October 2008. Sales activity is at the highest pace since February 2007 when it hit 6.55 million.

Tax Credit Fuels Surge (more…)

Confused about the Home Buyer Tax Credit?  You’re not alone.  Here is a video to help explain it further.  This is important information for you to have if you’re looking for a home in the Bennington Vt real estate market.

Home Buyer Tax Credit Explained

Home sales are up around the country, according to the latest survey by the National Association of Realtors®. Sales of existing homes, including single family homes and condos, increased 11.4% in the third quarter. And it could be the extended tax credit had something to do with it.

 The $8000 credit will continue to be in effect until June 2010. Homebuyers must sign contracts before April 30 and close by June 30. And there’s more good news: single buyers can earn up to $125,000 (married couples can earn $225,000) and still qualify.

“Extending and expanding the tax credit to more buyers through the middle of next year is the right medicine,” said Charles McMillan, president of the NAR. “Congress understands the impact of housing on the economy, so consumers who aren’t able to complete a transaction before the end of this month now have a second chance.”

Call Troy Richardson to start looking for your new Bennington, Vermont real estate!