10101 Myrtlewood Circle, Palm Beach Gardens, Florida 33418

This successful short sale recently closed at Fiore in Palm Beach Gardens. The seller’s had two loans and needed to move closer to work.  It is tough, if not impossible, to get a condo loan in many condo associations in Palm Beach County, and Fiore is no exception.  Cash only is the name of game right now and that is helping to drive down the prices on many units. Cash buyers are definitely in the drivers seat for condos, but watch out for those rising HOA dues.

I get asked all the time about the 1st Time Homebuyer Credit in Palm Beach County, so below is a link to an IRS publication on the subject. The combination of this credit and low interest rates can make buying a property attractive to many buyers out there.

http://rsar.net/uploaded/documents/Pub%204819-Info%20-%201st%20Time%20HomeBuyer’s%20Credit.pdf

By STEPHEN OHLEMACHER, Associated Press Writer

WASHINGTON – Buying a home is about to get cheaper for a whole new crop of homebuyers — $6,500 cheaper.

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the Senate voted Wednesday to extend and expand the tax credit to include many buyers who already own homes. The House is scheduled to vote on the bill Thursday.

Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn’t owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.

“This is probably the last extension,” said Sen. Johnny Isakson, R-Ga., a former real estate executive who championed the credits.

The homebuyers tax credit is one of two tax breaks totaling more than $21 billion that the Senate included in a bill extending unemployment benefits for those without a job for more than a year. The other would let companies now losing money recoup taxes they paid on profits earned in the previous five years.

“We are still in a world of economic hurt, and Congress must continue to act boldly and creatively,” said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee. “With the right mix of tax breaks and investments we will get through this recession and get folks working again.”

The real estate industry has been pushing to extend and expand the housing tax credit. About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.

Extending and expanding the tax credit for homebuyers is projected to cost the government about $10.8 billion in lost taxes. While the measure passed the Senate by a 98-0 vote, Sen. Kit Bond, R-Mo., questioned its efficiency in stimulating home sales.

“For the vast majority of cases, the homebuyer tax credit amounted to a free gift since it did not affect their decision to purchase a home,” Bond said. “And for the small minority of buyers whose decision was directly caused by the credit, this raises the question of whether we are subsidizing buyers who may not have been able to afford buying a home in the first place.”

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.

Expanding the tax credit for money-losing companies is projected to cost $10.4 billion.

The business tax break would allow money-losing companies to use current losses to offset taxable profits earned in the previous five years, giving them refunds of taxes paid in those years. Under current law, businesses with annual gross receipts of more than $15 million can claim losses back only two years.

The tax break would help industries suffering losses in 2008 or 2009, including retailers, homebuilders and newspapers. Congress included a scaled-back version of the tax break — for companies with revenues of $15 million or less — in the economic recovery package enacted in February. The new tax break would be available to companies of any size, providing a quick source of cash.

The U.S Chamber of Commerce has been a big backer of the tax break for money-losing companies.

“It frees up capital that they can use to maintain jobs and potentially even hire new people as the economy returns,” said Caroline Harris, senior tax counsel for the U.S. Chamber of Commerce.

The tax breaks would be paid for largely by delaying a tax break for multinational companies that pay foreign taxes. It was passed in 2004 and originally was to have taken effect this year, but would now be delayed until 2018.

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The bill is H.R. 3548.

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On the Net:

Congress: http://thomas.loc.gov

Happy Foreclosure Buyers

I took this picture at the closing table of the happy couple. They had just signed the papers on a great fixer upper home in The Acreage in Palm Beach County…on over an acre of land. They paid just under $152,000 plus received 3% of the sales price to help with closing costs.  The home needs a little touch up work before move in, but nothing major.  The backyard has a pond as well…full of happy frogs.

Pond

Outstanding video on who qualifies for the new $8000 home-buyer tax credit from the Federal Government.  The $8000 tax credit is a fantastic incentive for short sale and foreclosure home buyers.  Also, it’s not only 1st time home-buyers that qualify….

December Short Sale Deal Of The Month

This lovely short sale property in Loxahatchee, FL…just outside of West Palm Beach…went under contract in one week and took only 15 days longer then an average non short sale to close.  It is a newer, flawlessly clean home with 3 bedrooms on an acre lot.  All the new buyers had to do was move their furniture in. 

These type of short sale homes are very good opportunities for FHA buyers to get great deals without having to compete against the multi offer foreclosure crowd on bank owned properties.

The seller’s needed to move out of the area for work.

Short Sale Deal Of The Month - Loxahatchee, FL 33470

Interior Living Area

What a Short Sale Kitchen Looks Like