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"The Weekend Wrap Up"
Presented by Jason Wheeler
I am committed to putting out valuable content that professionals and home buyers can use. There were some pretty big news stories this week in the Real Estate Financing world and I thought I would share them with you a bit early instead of at the end of the week!
Great News for home buyers! Despite declining home sales for the entire first quarter of 2010 The CA house has decided to extend the home buyer tax credits. The Governor is set to sign the bill today in Fresno CA.
New California First Time Home Buyer Tax Credit Highlights
- $200 million in funds available on a first come, first serve basis – could help over 20,000 home buyers
- New homes for any taxpayer and new/existing homes for first time home buyers
- “Qualified principal residence” means a single-family residence, whether detached or attached, that is purchased to be the principal residence of the taxpayer, is eligible for the homeowner’s exemption under Section 218, and has either never been occupied or is purchased by a first-time home buyer.
- $10,000 tax credit or 5% of purchase price (whichever is lower)
- Credit given in 3 payments to a taxpayer’s personal income tax returns over 3 year period
Bank Of America to Reduce Principal for Distress Home Owners
Bank of America, the nation’s largest mortgage lender, on Wednesday announced a program to offer homeowners who owe significantly more than their homes are worth the opportunity to have their loan balances reduced.
I’ve done some personal research on this program and from what I heard on the news today it’s a very interesting. If a homeowner owes more than 120% of the value of their home but wants to keep it, B of A essentially forgives interest temporarily. (Another way to look at it is they set the interest rate at -0-.)
Then they set a payment they think the homeowner can afford, and 100% of the payment goes to principal reduction until…
The balance of the loan drops down to the then-current value of the home. Then interest kicks in again, presumably at the original terms, although I don’t know that for sure.
Note that B of A doesn’t give up any principal, but rather gives up interest — but only for a fairly short time.
Financing Trends
Here we are wrapping up Friday 3/25/2010. Mortgage rates are still extremely low. Some of the niche programs for first time buyers and tax credits are still available.
You can look at weekly rate trends Here | Popular Funding Programs
If you have financing questions, or want to learn more about what we are doing as Real Estate Investors? Or if you are looking for new income or lending sources… Don’t hesitate to get in touch with me anytime! Right now we have access to over 300 non traditional lenders looking to give you money for your real estate deal.
Real Estate Investor Events This Week!
Investor Forum in Bay Area CA RSVP Here!
This is your opportunity to learn from pros that are making local deals. If you would like to get started and work with a team of professional real estate investors you absolutely deserve to receive the information that we will be sharing this evening!
If you would like to network and learn with people who are truly creating success with Real Estate Investing in today’s market you don’t want to miss this.
Connect with Jason Online!
Until Next time Here is to your success! Jason Wheeler 925-285-2172
With all this talk about Mortgage Modifications all over the United States why aren’t we seeing more success stories? The plain fact is that Mortgage Modification flat out do not work. Less than 1% of the applications are actually made permanent. So is there any solution to this problem?
