Get the REAL Story® on the New Tax Credit
The Get the REAL Story® campaign has updated www.REALstoryNJ.com with a new countdown clock and widget to reflect the recent tax credit extension and expansion set to expire April 30, 2010. Prospective buyers and REALTORS® can continue to use these resources as well as access all the details on the new tax credit amendment, including income limits and eligibility requirements on to www.REALstoryNJ.com/Home-Buyer-Tax-Credit. Stay tuned to www.REALstoryNJ.com for more useful tools and critical updates.
It's a Brand New Day for Home Buyers
On Friday, November 6, 2009, President Obama signed HR 3548 or "The Worker, Homeownership, and Business Assistance Act of 2009," a bill that extends unemployment benefits and includes an amendment to also extend and expand the federal tax credit. The New Jersey Association of REALTORS® (NJAR®) anticipates that the newly signed legislation will help maintain the recent momentum seen in the New Jersey real estate market and spur the state's economy as a whole. The legislation will extend the $8,000 first-time home buyer tax credit past its original November 30 deadline, and it will now be available through April 30, 2010. Additionally, existing homeowners who have lived in their homes for at least five consecutive years out of the last eight will be eligible for a credit that can total $6,500. For further details on the new tax credit amendment, including income limits and additional eligibility requirements, visit
www.REALstoryNJ.com/Home-Buyer-Tax-Credit and read
NJAR®'s press release.
Flood Insurance Extended Until December
Congress extended authority for the
National Flood Insurance Program (NFIP) through December 18, 2009 while House and Senate committees continue to work toward comprehensive program reform. Without an extension, property owners could not obtain a mortgage loan in more than 10,000 communities across the United States.
The NATIONAL ASSOCIATION OF REALTORS® (NAR) will continue to work to extend the program until Congress takes up a long-term reauthorization and reform measure.
For more information on the NFIP, visit
the Natural Disaster webpage on
www.REALTOR.org.
DoD Homeowners Assistance Program for Active Military Released
Last week, the Department of Defense and Army Corps of Engineers published the final rules for the Homeowners Assistance Program (HAP), as it applies to Members of the Armed Forces permanently reassigned during the mortgage crisis. The American Recovery and Reinvestment Act (ARRA), passed in February, provided new relief for active duty military personnel who have been permanently relocated, and face or have faced a loss on the sale of their home. The program applies to those who purchased their property before July 1, 2006, and whose reassignment was ordered at least 50 miles away, between February 1, 2006 and September 20, 2012. The property has to have served as the primary residence, and the recipient must not have received HAP aid previously. For full information and an application, visit the DoD HAP website.
NAR Family Green Guide
Available
The NATIONAL ASSOCIATION OF REALTORS®
(NAR) has recently released the
2009 Family Guide to Going Green, which
offers tips for children and parents. The
guide includes helpful information on ways to
offset the pollution that comes from your family
car, and simple things children can do to
contribute in their bedrooms and at school.
Details on the return on your greening
investment are also featured. For more
information, visit our
Green Homes webpage.
Craigslist.org Listing Scams
NJAR® has been sporadically contacted by members regarding the improper use of Craigslist (www.craigslist.org). Some users are posting false advertisements featuring REALTOR® rental and sale listings as a scam targeting consumers, urging them to send funds to a party that is not in any way associated with the rental listing. NJAR® Executive Vice President Jarrod C. Grasso, RCE, sent a letter to New Jersey Attorney General Anne Milgram to urge a resolution to the matter.
If you are the listing agent on a property that has fallen victim to such a posting, it is strongly recommended that you contact the New Jersey Real Estate Commission (REC) as well as the administrators of Craigslist. You may also report the problem to the Internet Crime Complaint Center at
www.ic3.gov.
NJ Housing Mortgage Finance Agency Offers Cash Advance for
First-time Buyer Costs
The New Jersey Housing Mortgage Finance Agency (NJHMFA) is offering cash payments of up to $5,000 for qualified first-time home buyers to help defray closing costs or satisfy down payment requirements and help new buyers to get into the housing market.
The loan, offered as part of NJHMFA's "Prefund" program, would function like a cash advance against the $8,000 tax credit being offered to first-time buyers who purchase a home between April 8 and December 1 of this year. In its simplest terms, purchasers would be provided with the payment as a loan and would be required to repay the advance when they receive their federal tax credit.
The cash advance is available to first-time home buyers who:
- Arrange their financing through the NJHMFA. (Obtain a list of participating lenders by calling (800) NJ HOUSE)
- Are qualified for the tax credit offered as a part of the federal stimulus program
- Pledge to apply the proceeds of their tax credit to repay the cash
View the full details of the NJHMFA's First-Time Home Buyers Tax Credit Loan Program (TCLP).
NJAR® Encourages Consumers to Explore Short Sales as an Alternative to Foreclosure
There are key advantages to pursuing a short sale over a foreclosure. In today's unsteady economy, many homeowners experiencing financial difficulty have turned to a short sale as a means of avoiding a foreclosure. In many cases, sellers who cannot keep up with their mortgage payments strike a deal with their lender to sell the home and payoff less than the total amount due on the loan. In some cases, the lender forgives the outstanding debt.
Check out NJAR®'s new Short Sale and Foreclosure Resources webpage to find out more and to learn about government programs aimed to assist consumers facing these difficult situations.
