U.S. homebuyers are less likely to purchase a foreclosed property today than they were a year ago, according to a recent survey by Trulia & Realty Trac. Some 45% of U.S. homebuyers say they are at least somewhat likely to purchase a foreclosure today, compared with 55% who said that same a year ago.
Only 1% of homeowners who carry a mortgage say walking away from their home would be their first option if they are unable to pay it, while 59% say they would not consider walking away no matter how much their mortgage was underwater. More than 2/3 of homeowners, (69%), say modifying their loan terms would be their first choice if they aren’t able to pay their mortgage.
The survey also finds that fewer homeowners have a negative view toward foreclosure properties this year, (78%), compared with last year 85%. Homeowners who believe there are negative aspects to purchasing a foreclosed home say they are most concerned that there will be hidden costs, 68%, that the process is risky 49%, and that the home could lose value, 35%.
Today’s market holds tremendous opportunities for first-time buyers and the REALTORS® dedicated to assisting them in their first home purchase. Housing affordability is at historic highs in many areas as low mortgage rates, government tax credits, and lower home prices have continued to make the goal of homeownership within reach for every California household−but they can’t do it alone. They need you, the California REALTOR® , with the skills and market knowledge to navigate through this often difficult process of buying a home. While these transactions do take a little more effort and preparation on the part of the REALTOR® and the home buyer, there is no greater reward than getting that family into their first home.
The CALIFORNIA ASSOCIATION OF REALTORS® continues to be a strong advocate for programs that will assist home buyers in these difficult economic times. We have developed this guide as an introduction to the programs currently available to potential California home buyers from federal, state, and local agencies. Because these programs do evolve over time, always contact the relevant agency to verify program availability and eligibility before you begin. If working with first-time home buyers is your calling, you will need to invest in learning about the various programs that are offered in your community.
With this guide, you’ll learn the basics of working with these programs and some practical tips to help you avoid the common pitfalls.
2010 C.A.R. Financing Guide for California Home Buyers
from CAR’s website
The U.S. House of Representatives today voted 403 to 12 to extend and expand the home buyer tax credit. The bill passed the U.S. Senate late yesterday and now will go to President Obama for his signature, where it is expected to be signed this week.
The tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to receive a tax credit of up to $8,000, while existing homeowners will receive a credit of up to $6,500. Existing homeowners will be eligible for the $6,500 if they have lived in their current residences for at least five years. The bill also will increase the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000.
Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit, provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.
information from and w/permission from C.A.R.
Brian Ripp, CRS, GRI, Broker – your Bay Area Realtor
www.BrianRipp.com serving Fremont, Newark, Union City & surrounding communities. Real Estate & Property Management.
