Here's what you need to do to get the Home Buyer Tax Credit:
1. Close on your home purchase between November 7, 2009 and April 30, 2010 or have a binding written purchase agreement in place by April 30, 2010 with a closing date of no later than June 30, 2010.
2. Decide whether to:
a. Apply the credit to your 2009 tax return filed on or before April 15, 2010
or file an amended return; or
b. Apply the tax credit on your 2010 return, filed on or before April 15, 2011.
c. Attach a copy of your HUD-1 settlement statement.
If you are shopping for a new home and anticipating entering into a purchase agreement please be aware of the April 30th deadline.
Tuesday, April 20, 2010
Friday, April 16, 2010
Wednesday, April 14, 2010
Nebraska Bankruptcy Court Voids Bank's Liens Because of Disqualified Notary
A somewhat surprising, yet costly ruling was recently issued by the United States Bankruptcy Court for the District of Nebraska.
On March 15, 2010 the Nebraska Bankruptcy Court voided 2 deeds of trust, collectively in the amount of $7,500,000.00.
In this case 2 separate deeds of trust, one for $7,745,000.00, later reduced by modification to $6,000,000.00 and a second for $1,000,000.00 were signed by two separate individuals as members of Borrower, a Nebraska limited liability company. Each deed of trust and the modification were notarized by an individual who was the brother-in-law of one of the members.
The Bankruptcy Court found, that as brother-in-law, the notary was disqualified from notarizing the signature of the member who was related to the notary. The Court cited Neb. Rev. State. Section 64-105.01 which provides that “a notary public is disqualified from performing a notarial act as authorized by Charter 64, articles 1 and 2, if the notary is a spouse, ancestor, descendant, or sibling of the principal, including in-law, step, or half relatives.
It is not known whether this case has been or will be appealed, but a valuable lesson was learned the hard way and a reminder that you always need to be wary of ever notarizing a relatives signature. The results, as in this case could be significant.
On March 15, 2010 the Nebraska Bankruptcy Court voided 2 deeds of trust, collectively in the amount of $7,500,000.00.
In this case 2 separate deeds of trust, one for $7,745,000.00, later reduced by modification to $6,000,000.00 and a second for $1,000,000.00 were signed by two separate individuals as members of Borrower, a Nebraska limited liability company. Each deed of trust and the modification were notarized by an individual who was the brother-in-law of one of the members.
The Bankruptcy Court found, that as brother-in-law, the notary was disqualified from notarizing the signature of the member who was related to the notary. The Court cited Neb. Rev. State. Section 64-105.01 which provides that “a notary public is disqualified from performing a notarial act as authorized by Charter 64, articles 1 and 2, if the notary is a spouse, ancestor, descendant, or sibling of the principal, including in-law, step, or half relatives.
It is not known whether this case has been or will be appealed, but a valuable lesson was learned the hard way and a reminder that you always need to be wary of ever notarizing a relatives signature. The results, as in this case could be significant.
Thursday, April 8, 2010
How to Handle Transfer Taxes on the New GFE and HUD-1
HUD representatives recently indicated how real estate transfer taxes should be disclosed on the new GFE and their answer caught some lenders and settlement services providers by surprise.
In those jurisdictions, where seller by custom and practice or by contract, pays a portion or all of the transfer taxes, those taxes need to be disclosed in Box 8 of the new GFE and then place that amount in the buyer's column on line 1203 of the HUD-1, with an appropriate credit on line 204 to the buyer (to reflect the portion paid by the seller) and a debit on line 504 against the seller for that amount.
Good news is, Nebraska is not one of these jurisdictions. In Nebraska, the obligation to pay transfer taxes is placed on the seller by state statute, specifically Section 76-901.
HUD says you DO NOT need to disclose the transfer taxes on the GFE in those states where it is seller's statutory obligation to pay transfer taxes.
Bottom line, in Nebraska the lender need not disclose transfer taxes on the GFE. If you are in any other state, you need to determine how your state treats payment of transfer taxes.
In those jurisdictions, where seller by custom and practice or by contract, pays a portion or all of the transfer taxes, those taxes need to be disclosed in Box 8 of the new GFE and then place that amount in the buyer's column on line 1203 of the HUD-1, with an appropriate credit on line 204 to the buyer (to reflect the portion paid by the seller) and a debit on line 504 against the seller for that amount.
Good news is, Nebraska is not one of these jurisdictions. In Nebraska, the obligation to pay transfer taxes is placed on the seller by state statute, specifically Section 76-901.
HUD says you DO NOT need to disclose the transfer taxes on the GFE in those states where it is seller's statutory obligation to pay transfer taxes.
Bottom line, in Nebraska the lender need not disclose transfer taxes on the GFE. If you are in any other state, you need to determine how your state treats payment of transfer taxes.
Tuesday, April 6, 2010
Home Sales Rise in February
According to The New York Times, the housing market showed a rare sign of strength in February. Pending home sales were up 8.2 percent over the previous month.
Economists attributed the increase to the approaching expiration of the government tax credit and an influx of foreclosed homes, which are traditionally offered at bargain prices.
Economists went on to say "they believe sales will slowly pick up and move decisively higher in 2011.
For more on this article go to nytimes.com
Economists attributed the increase to the approaching expiration of the government tax credit and an influx of foreclosed homes, which are traditionally offered at bargain prices.
Economists went on to say "they believe sales will slowly pick up and move decisively higher in 2011.
For more on this article go to nytimes.com
Monday, April 5, 2010
According to CNN Money, The new Home Affordable Foreclosure Alternatives program provides for borrowers to earn a $3,000.00 " relocation incentive" and servicers will get $1,500.00 for handling a short sale.
Investors who own the mortgage note will get $2,000.00 in exchange for sharing proceeds of the short sale with second lien holders. Second lien holders will then receive $6,000.00 for releasing their claims.
This should all help to reduce the time it takes to execute a sale which is currently averaging 88 days.
Investors who own the mortgage note will get $2,000.00 in exchange for sharing proceeds of the short sale with second lien holders. Second lien holders will then receive $6,000.00 for releasing their claims.
This should all help to reduce the time it takes to execute a sale which is currently averaging 88 days.
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