With the large reduction in prices of homes, many are wondering if now is the time to buy? My opinion is: depends.
If you are in a situation where you have a lot of pressure to purchase a home, it is possible to find deals. Problem is, the homes available in desirable neighborhoods at attractive prices tend to be short sales or foreclosures. Many people will not have the patience or flexibility buying a short sale will most likely require; the below market foreclosures the banks are trickling onto the market often have dozens of offers on them in days. Sometime investors come in with all cash offers putting buyers needing financing at a disadvantage. Many normal sellers still are adjusting expectations and are listing properties with the hope of selling at prices at levels seen during the bubble years. So if you need to buy now, and want to buy at a price you will not regret in a year or two, prepare to do some work finding short sales and foreclosures suitable for you and make multiple offers until one works out.
For those buyers that can wait for 6 months to 2 years, below are some articles that support the position that prices will continue to fall for the foreseeable future. No one knows the future, but after the reading the articles below, I believe that most buyers will be well severed by being patient and watching the market and using the time to save as big a down payment as possible.
FORECLOSURE ACTIVITY INCREASES 9 PERCENT IN FIRST QUARTER
4-7 — CA Foreclosures About to Soar…Again
Thursday, April 30, 2009
Thursday, April 9, 2009
Making Home Affordable
Don't give you precious money to an unscrupulous loan modification company. Instead, visit www.makinghomeaffordable.gov and learn about programs to help you get a loan modification, special refinancing programs and tools to help you find out if you are eligible for these programs.
Are You Eligible?
Please use the self-assessment tools provided on www.makinghomeaffordable.gov to see if you are among the 7 to 9 million homeowners who may be able to benefit from Making Home Affordable.
Refinancing
Many homeowners pay their mortgages on time but are not able to refinance to take advantage of today’s lower mortgage rates perhaps due to a decrease in the value of their home.
Loan Modification
Many homeowners are struggling to make their monthly mortgage payments perhaps because their interest rate has increased or they have less income.
Need urgent help? Contact the Homeowner’s HOPE™ Hotline: (888) 995-HOPE
Are You Eligible?
Please use the self-assessment tools provided on www.makinghomeaffordable.gov to see if you are among the 7 to 9 million homeowners who may be able to benefit from Making Home Affordable.
Refinancing
Many homeowners pay their mortgages on time but are not able to refinance to take advantage of today’s lower mortgage rates perhaps due to a decrease in the value of their home.
Loan Modification
Many homeowners are struggling to make their monthly mortgage payments perhaps because their interest rate has increased or they have less income.
Need urgent help? Contact the Homeowner’s HOPE™ Hotline: (888) 995-HOPE
Tuesday, April 7, 2009
C.A.R. launches mortgage protection plan for first-time home buyers
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today launched the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), for first-time home buyers.
Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit.
C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program, and estimates that as many as 3,000 families will benefit from the program this year.
To qualify for the Mortgage Protection Program, applicants must:
· Be a first-time home buyer – someone who has not owned a home in three or more years
· Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
· Use a California REALTOR® in the transaction
· Purchase the property in California
· Be a W-2 employee (cannot be self-employed)
To apply for the program, home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®.
Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit.
C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program, and estimates that as many as 3,000 families will benefit from the program this year.
To qualify for the Mortgage Protection Program, applicants must:
· Be a first-time home buyer – someone who has not owned a home in three or more years
· Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
· Use a California REALTOR® in the transaction
· Purchase the property in California
· Be a W-2 employee (cannot be self-employed)
To apply for the program, home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®.
Buy in 2009 and you can receive a tax credit up to $8,000!
Have questions about the tax credit? Here are some answers:
When do I need to purchase to qualify?
If you buy a home between Jan. 1 and Dec. 1 this year and close escrow during these dates, you will qualify for a tax credit up to $8,000 - as long as it is your primary residence and you meet the simple requirements.
How does the law define "first-time homebuyer"?
The law defines "first-time homebuyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
What are other requirements to qualify?
All U.S. citizens who file taxes are eligible to participate. An income limit of $75,000 a year for individuals and $150,000 a year for joint filers also applies.
How do I apply for the credit?
Taxpayers should use IRS Tax Form 5450 to claim the first-time homebuyer tax credit.
Does the credit have to be repaid?
No. Unlike a similar tax credit passed in 2008, this $8,000 tax credit does not have to be repaid to the IRS.
When do I need to purchase to qualify?
If you buy a home between Jan. 1 and Dec. 1 this year and close escrow during these dates, you will qualify for a tax credit up to $8,000 - as long as it is your primary residence and you meet the simple requirements.
How does the law define "first-time homebuyer"?
The law defines "first-time homebuyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
What are other requirements to qualify?
All U.S. citizens who file taxes are eligible to participate. An income limit of $75,000 a year for individuals and $150,000 a year for joint filers also applies.
How do I apply for the credit?
Taxpayers should use IRS Tax Form 5450 to claim the first-time homebuyer tax credit.
Does the credit have to be repaid?
No. Unlike a similar tax credit passed in 2008, this $8,000 tax credit does not have to be repaid to the IRS.
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