Joseph Whitley Real Estate

Follow this link to the announcement from FHA/HUD:

http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

Short Sale

• Credit is effected for 2-4 years.
• Currently, the IRS does not charge taxes on the short fall.
• You are in control of the sale.
• Free rent until the property is sold.

Foreclosure

• Credit is effected for 7-10 years.
• You will be taxed on the short fall and receive a 1099.

Example: If you owe $450,000 and the house sells for $250,000, the short fall is $200,000.  The $200,000 is considered income by the IRS, so therefore, you will be taxed on that income.

There are guidelines that must be met to qualify for a short sale.

Please consult both your Real Estate Professional and Tax Professional.

If you decide to go the short sale route, be sure your Real Estate Professional has short sale experience.  That agent can make or brake a deal.

This is great information.  Please read.

“The Federal Housing Administration will raise the minimum down payment for its least credit-worthy borrowers, agency announced Tuesday.

Borrowers with credit-rating scores below 580 will be required to put down at least 10 percent. Those with a credit score above 580 will be able to continue to put down only 3.5 percent. The changes are intended to shore up the agency’s finances.

The FHA also will increase its upfront mortgage insurance premium from 1.75 percent to 2.25 percent. The agency is expected to seek congressional approval to raise annual mortgage insurance premiums, paid by borrowers over the life of the loan, above the current 0.55 percent maximum. The amount it will seek has yet been announced.”

Source: Reuters News, Corbett B. Daly (01/19/2010)

Required if you are purchasing a home…

• …between the 91 – 180 day after the seller acquired the property.
• …where the purchase price is equal to/more than 100% of the purchase price paid by the seller when they acquired the property.

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-48ml.pdf

Note to All:  The homeowner is not to pay for the second appraisal per FHA Guidlines.

Preparing your home:

1. Strap the water heater to the wall.  You can pickup a strapping kit and 2×4′s at Lowe’s for under $35, or you can have a licensed professional install it for you for $75 to $150.
2. Install flexible copper pipping on the water inlet and outlet on the top of the water heater to prevent flooding.
3. If you own an older home, it may not be anchored to the foundation.  Please consult a licensed professional for inspections and estimates and local building codes.
4. Weak cripple walls should be reinforced with plywood.Please consult a licensed professional for inspections and estimates and local building codes.
5. Un-reinforced masonry should be inspected and repaired by licensed professionals.

Please keep in mind that being proactive in repairs is so much cheaper than being reactive to damage caused an earthquake.