Beginning April 2010 New Alternatives to Foreclosure-Also, San Diego County Tax Credits for 1st Time Homebuyers
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Beginning April 5, 2010, a new Federal Program will launch to provide Alternatives to Foreclosure
As this challenging year comes to a close, many of us have been touched one way or the other by the economy. Whether the effects of the economy reduced our stock portfolios, devalued commercial or residential real estate, or induced the negative results of what now seems as unfair loans made to borrowers just a short time ago. Some have suffered horrendously from the effects of not having the cash flow to keep up with loans written when times were better and the anticipation that the economy would continue to grow. Consequently, and mostly because of these economic times, many homeowners faced a Short Sale or Foreclosure.
Now there may be alternatives to foreclosure. That’s right. The U.S. Department of the Treasury recently announced a brand new program called The Affordable Foreclosure Alternatives Program (HAFA). Essentially this program is designed to find alternatives to foreclosure for homeowners who are unable to successfully modify their distressed mortgage. It sounds simple enough but the HAFA program encourages Short Sales and deeds in lieu of foreclosure by these means:
- Allowing pre-approved short sale terms before a property is listed.
- Preventing service providers from attempting to reduce real estate commissions established in the listing agreement as a condition for short sale approval.
- Releasing borrowers from future liability for the debt; and,
- Providing financial incentives to borrowers, service providers, and investors.
There are eligibility rules so consulting with your Realtor will pave the way for a better understanding of how this program will work.
San Diego County Tax Credits for First Time Home Buyers…another program to help stimulate buyers in San Diego County.
With the aforementioned Foreclosure Alternatives Program, there is exciting new information concerning tax credits for First Time Home Buyers in San Diego County.
The county Department of Housing and Community Development has received an additional $15 million for a program which began earlier and now brings the total to $26 million available to reduce federal taxes for eligible homebuyers up to 20% of the annual interest paid on a mortgage loan. This is huge because essentially this means with a first time homebuyer paying less tax, simply put the buyer’s net earnings increase. Some think this could result in the buyer more easily qualifying for a home loan. But, like most government programs there are eligibility requirements:
- Income of less than $109,020 for a family of three or more.
- Income of not more than $94,800 for a family of two or fewer.
- Must be buyer’s primary residence, and only a single-family detached home, condo, town home, or manufactured home with foundation.
- Must be in an unincorporated area, OR in the cities of Carlsbad, Chula Vista, Coronado, El Cajon, Encinitas, Escondido, Imperial Beach, La Mesa, Lemon Grove, National City, Poway, San Marcos, Santee or Vista. Oceanside and the city of San Diego proper have their own programs.
A Exclusive Properties Realtor will quick-start the steps involved by facilitating the initial loan process with the company’s onsite lender-affiliate RPM Mortgage.
On behalf of TheChaseAdvantage.com team…have a great holiday. Hopefully existing homeowners and first time homebuyers will come to realize the potential of these two programs and contact a Realtor today.
