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Gulf Breeze, FL Real Estate Blog

Saturday, 19 June 2010

Homebuyers Most Likely Will Get Until September 30 to Close For Tax Credit

The Senate on Wednesday approved a plan to give homebuyers an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring. The house measure and the Senate measure now have to be combined into one bill so it isn't QUITE official yet but is expected to be soon.

The move by Senate Majority Leader Harry Reid would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

The proposal, approved by a 60-37 vote, would only allow people who already have signed contracts to finish at the later date. About 180,000 homebuyers who already signed purchase contract would otherwise miss the deadline.

Reid, D-Nev., added the proposal to a bill extending jobless benefits through the end of November. Nevada has the nation's highest foreclosure rate, and Reid is facing a tough re-election campaign.

The National Association of Realtors has been pushing hard in Congress for the extension. Mortgage lenders, the trade group says, have been swamped with borrowers trying to get approved by the end of the month. Many potential borrowers are unlikely to make the deadline. On top of this, many potential recipients of this credit are under contract to purchase short-sale properties and the final approvals of these sales have to come from the lender holding the current owner's mortgage and they, too, are backlogged in getting these approvals and there is concern that this would cause people to lose this credit, as well.

"If Congress fails to act promptly, then prospective homebuyers might not get the benefit of the homebuyer tax credit, even though they have completed contracts," the Realtors said a a letter to lawmakers.

First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.

The $140 million cost of the measure would be financed by denying businesses the ability to deduct from their taxes punitive damages paid when losing lawsuits or judgments.

POSTED BY: Nancy Grogan AT 03:23 pm | Permalink | E-mail this

Thursday, 17 June 2010

Home needs TLC - FHA has a special loan for improvements

Thinking of buying a short sale or foreclosure? Gulf Breeze, Pensacola, Navarre, Pensacola Beach and the surrounding areas are full of opportunities. Many of these homes could use a little attention. That is why they are such a good deal! Don't let a little updating keep you from buying what could be that perfect home. Read about the FHA repair program.

What is a streamline 203k mortgage? HUD has developed

an FHA insured mortgage, called the “Streamline (K)” Limited

Repair Program that permits homebuyers to finance an

additional $35,000 into their mortgage to improve or upgrade

their home before move-in. With this product, homebuyers

can quickly and easily tap into cash to pay for property

repairs or improvements, such as those identified by a home

inspector or FHA appraiser.

Is the Section 203(k) program restricted to single-family

dwellings? No. The program can be used for one-to-four unit

dwellings.

What is the minimum amount of rehabilitation required

for a non-streamlined Section 203(k) mortgage? There is

a minimum $5,000 requirement for the eligible improvements

on the existing structure on the property. Minor or cosmetic

repairs by themselves are unacceptable; however, they may be

added to the minimum requirement.

What eligible improvements are acceptable under the

$5,000 minimum requirement?

• Structural alterations and reconstruction

• Changes for improved functions and modernization (e.g.,

remodeled bathrooms and kitchens)

• Elimination of health and safety hazards (lead-based paint

problems on homes built prior to 1978, etc)

• Changes for aesthetic appeal and elimination of

obsolescence

• Reconditioning or replacement of plumbing, heating, air

conditioning and electrical systems

• Installation of well and/or septic system

• Roofing, gutters and downspouts

• Flooring, tiling and carpeting

• Energy conservation improvements

• Major landscape work and site improvement

• Improvements for accessibility for a disabled person

Is there a time period on the rehabilitation construction

period? The work must begin within 30 days of execution of

the Agreement. The work must not cease prior to completion

for more than 30 consecutive days. The work is to be

completed within the time period shown in the Agreement

(not to exceed six months).

Is a contractor required to do the work? No. However,

if the borrower wants to do any work or be the general

contractor, they must be qualified to do the work, and do it in

a timely manner.

POSTED BY: Nancy Grogan AT 08:53 am | Permalink | E-mail this

Wednesday, 16 June 2010

Citi Bank Suspends Foreclosures in the Gulf Coast Area

Homeowners in the Gulf of Mexico Region

Three-Month Suspension Effective June 17 through September 17

Business Wire

NEW YORK -- June 16, 2010

Citi Chief Executive Officer Vikram Pandit today announced a foreclosure suspension program for CitiMortgage-owned mortgages in coastal areas hard-hit by the oil spill in the Gulf of Mexico. The aim of this program is to allow distressed homeowners to remain in their homes during these uncertain times as the Gulf communities respond to the oil spill and its economic repercussions.

During the three-month suspension, effective June 17 through September 17, 2010, borrowers with first mortgage loans owned by CitiMortgage and who meet certain other criteria will not be subject to foreclosure sales or foreclosure notifications. While CitiMortgage does not own all of the loans it services, the company hopes to help as many borrowers as possible with this initiative.

Vikram Pandit, Chief Executive Officer of Citi said, "By putting CitiMortgage foreclosures on hold, we aim to ease the burden on residents of the Gulf states so they can concentrate on the most urgent matters facing them. In the midst of this crisis, we will continue to explore ways to help people avoid foreclosure so they and their families can remain in their homes and have one less thing to worry about."

"We hope that with this suspension we can help ease some of the financial stress for our customers in the affected Gulf region," said Sanjiv Das, President and Chief Executive Officer of CitiMortgage. "Many of them are facing financial hardship as a result of the spill, and we want to help support them during this very unsettling time," Mr. Das added.

CitiMortgage's Gulf region foreclosure suspension affects only those loans it owns in the region. Under the program, CitiMortgage will halt all foreclosure sales on first mortgage accounts in highly impacted coastal areas through September 16^th. In addition, evictions on real estate owned properties (REO) will cease during this time. CitiMortgage borrowers occupying residences in zip codes within approximately 25 miles of affected coastal areas will be eligible for the program.

Speaking for Citi's community-based consumer finance business, Mary McDowell, President and Chief Executive Officer of CitiFinancial North of America said, "CitiFinancial remains committed to working closely with customers, community leaders, business partners, the government and other stakeholders to address the national housing situation. We are also especially concerned about our customers in the Gulf region that are affected by the oil spill, and we want to do what we can to help them. Because we have an on-the-ground presence in the Gulf communities where we operate, we can work closely with customers individually to help provide solutions if they are having difficulty making their mortgage payments."

Citi has a number of programs in place to help homeowners in financial distress. Citi's existing Homeowner Assistance Program is a multi-faceted foreclosure prevention initiative that has helped more than 900,000 homeowners in their efforts to avoid potential foreclosure and remain in their homes since the housing crisis began in 2007. Citi currently makes strenuous attempts to establish contact with distressed borrowers and help them avoid foreclosure. The company does not initiate or complete a foreclosure sale on any eligible borrower when the following criteria are met: CitiMortgage owns the mortgage; the borrower is seeking to stay in the home, which is his or her primary residence; the borrower is working in good faith with Citi; and, the borrower has sufficient income for affordable mortgage payments.

Citi Foreclosure Prevention Efforts Continue to Lead the Industry

CitiMortgage is a committed participant and has been an industry leader in the federal Home Affordable Modification Program (HAMP).

Among the industry-leading programs and initiatives that Citi has put in place to help homeowners in distress are:

*?@Office of Homeownership Preservation (OHP) - Established in 2007, OHP

provide a range of support services that go beyond modification of a

mortgage loan, including an extensive partnership network with non-profit

organizations that offer legal assistance, counseling and translation

services to borrowers.

*?@Citi Homeowner Assistance Program (CHAP) - Launched in November 2008, CHAP

includes a series of initiatives designed to proactively help potential

at-risk borrowers remain current on their payments and ultimately in their

homes.

*?@Citi Unemployment Assist Program - Since March 2009, this CitiMortgage

program serves as a bridge to longer-term solutions for recently

unemployed borrowers with CitiMortgage-owned mortgages. The program lowers

monthly mortgage payments to an average of $500 for three months for most

eligible borrowers, a cost below the national average rent for a

one-bedroom residence, according to Citi Research.

*?@Citi Foreclosure Alternatives Program - In February 2010, CitiMortgage

launched this six-state pilot program for delinquent customers whose

mortgages are owned by CitiMortgage. The company will allow the borrower

to remain in their homes for six months and will also provide relocation

counseling and financial assistance in exchange for the deed to the

property at the end of six month period. The program is designed to help

borrowers who are unable or no longer wish to remain in their homes.

To see a comprehensive report about Citi's foreclosure prevention efforts, please go to:

To reach CitiMortgage's dedicated team of representatives assisting with the Gulf foreclosure suspension program, call 866-219-8155 beginning Friday, June 18th. CitiFinancial customers should contact their local CitiFinancial branch or the number listed on their monthly mortgage statement.

About Citi

Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries.

Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management.

Additional information may be found at

Photos/Multimedia?@Gallery Available:

Multimedia Available:

Contact:

Citi

Mark Rodgers, 212-559-1719

Shannon Bell, 212-793-6206

http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6330384www.citigroup.com or www.citi.com.http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6330384&lang=enhttp://www.citigroup.com/citi/fin/data/1q10_datareport.pdf?ieNocache=11

POSTED BY: Nancy Grogan AT 06:16 pm | Permalink | E-mail this

Monday, 14 June 2010

Oil Spill in Pensacola, Gulf Breeze, Pensacola Beach

Buyers have been asking a lot lately..."what will the oil spill do to housing?" You can't help but wonder. Everywhere you go, the top news is about the oil spill. What does this mean to people selling or buying property in Gulf Breeze, Pensacola, Navarre, Milton, Perdido or Pensacola Beach? For some, it is an opportunity.

For some sellers, it may mean disaster. So many people depend on our beaches for their life style. They may be fisherman, work for one of the resorts, they may be landlords and count on the summer rentals. This list can go on and on. And when jobs or lifestyles are in jeopardy, it trickles down to everyone. This effects us all.

So, what does this mean to sellers? Housing has already been heavily impacted by the housing crisis. Many homes were purchased during the boom and have already deflated heavily since the peak. It has been forecast that if the oil reaches our beaches homes may continue to decline.

If you live on the coast and selling your home, you may want to rethink your strategy. Be pro-active in your pricing. If you need to sell, stay ahead of the game. Homes are already in competition with short sales and foreclosures and more will be on the horizon. Homes that sell are the best priced, best location and the best dressed.

Great news for buyers....if you always dreamed of living on the beach - this is your chance! Run, don't walk! There are fantastic deals waiting for you. Interest rates are at a all time low. There are great selections, good values and tax incentives. Now is a great time to buy a home.

POSTED BY: Nancy Grogan AT 11:46 am | Permalink | E-mail this

Nancy Grogan, ABR, CDPE, CRS, GRI

Broker Associate

RE/MAX On The Coast
Nancy: 850-377-7578
Email Me!