Homeowners filing for the home buyer tax credit are not allowed to use electronic filing and must file hard copies due to special documentation requirements.
Earlier this year, the Internal Revenue Service (IRS) deployed new home buyer tax credit forms and instructions requiring forms that will force taxpayers to file on paper, rather than electronically.
The new home buyer tax credit filing rules are to ward off a repeat of 90,000 taxpayers who fraudulently claimed the credit, according to the U.S. Treasury.
Under the new and expanded home buyer tax credit rule , the credit is worth up to $8,000 for first-time home buyers and up to $6,500 for qualifying existing home buyers, in both cases, who buy a primary residence or have one built.
The tax credit is refundable. A credit that is larger than the taxes owed is returned to the taxpayer in the form of a refund.
The home can cost no more than $800,000 and qualifying income is limited to a maximum of $125,000 for single taxpayers and $225,000 for joint taxpayers.
Get the full scoop online from the IRS' "First-Time Homebuyer Credit" page online.
All taxpayers (first time and move up buyers) seeking a credit or refund, must use the new IRS Form 5405 "First-Time Homebuyer Credit and Repayment of the Credit" (Taxpayers must pay back the credit if they sell the home within three years). The instructions, which teach taxpayers what documents are required, are available on IRS FORM i5405.
In addition to Form 5405, also include at least one of the following documents:
• A copy of the HUD-1, Settlement Statement, showing all parties' names and signatures, property address, sales price, and date of purchase.
• For mobile home buyers who don't get a settlement statement, a copy of the executed retail sales contract showing all parties' names and signatures, property address, purchase price and date of purchase.
• For new home buyers who don't get a settlement statement, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.
Existing home owners applying for the $6,500 maximum tax credit must additionally prove they lived in their old home for the required period.
To do so, options are:
• File IRS Form 1098, "Mortgage Interest Statement." IRS Form i1098 offers the instructions.
• Also, supply mortgage interest statements or property tax records or homeowner's insurance records.
Again, because some of the documents required are not standard tax forms, taxpayers seeking the credit cannot file electronically.
They can, however, use off-the-shelf tax software or the IRS Free File online software to prepare returns, but they must still print out the return and mail it in with the required documents.
In addition to accuracy and compliance, the only other way to speed up any refund is to request, with the return, that the home buyer tax credit refund be deposited directly into a bank account.
Sunday, February 28, 2010
Friday, February 26, 2010
Tuesday, February 23, 2010
The Obama administration has released detailed guidance of a new Home Affordable Foreclosure Alternative program that features cash incentives for borrowers, servicers and investors for executing short sales or deeds-in-lieu of foreclosure. For the complete article, email rickyhaynes@gmail.com, Ricky Haynes, 423-635-7304. Homes for sale in Chattanooga, TN
Thursday, February 18, 2010
Wednesday, February 17, 2010
My circle of buyers is a very successful buyer program. I am able to get advance notice on most foreclosures and REO's. I put 4 under contract last month. They may forget what I said, but they will never forget how I made them feel! Ricky Haynes 423-635-7304 . Chattanooga, TN homes for sale. www.LivingChattanooga.com
Tuesday, February 16, 2010
FLipping works in any market! For years, hot-shot speculators made huge profits flipping condos in Florida and Vegas before they were even constructed. All the while, the naysayers in the ivory towers of Wall Street and academia warned of a "housing bubble" that was sure to burst as all bubbles do. When Fed chairman Alan Greenspan said that national real estate market was "frothy," the writing was really on the wall, and anyone with half a brain could see that we were in for a "cooling" of the housing market, at best. And yet still, speculators continued to profit, and the real estate bull market marched on...
But the bulls aren't marching now. Greenspan handed his matador's cape to the new Fed chairman, Ben Bernanke, who continued the policy of interest rate hikes designed to deflate housing. No longer accelerating at a break-neck pace, home prices flattened like a pancake in many markets, and new the condo speculators who got in late are in for a world of hurt.
Clearly, the housing "boom" is over in many parts of the Country. But contrary to the media hype, this is great news for flippers!
Flipping vs. Speculating
It should be made clear that there is a difference between flipping and speculating. While speculators may be a sub-set of flippers, they are, at best, the amateurs of the real estate investing family. Flippers who have consistent success are more conservative and have a fundamental approach to real estate investing. While it may not be as exciting as speculating, the rewards of more conservative flipping are nearly as generous, and they are paired with far less risk.
The biggest difference between flipping and speculating is that flipping works in any market, whereas speculating only works in certain places at certain times. Las Vegas from 2002 to 2004 was a great time and place to be a speculator, but if you were still in the market in 2006, chances are you got burned by more than the hot desert sun. Basically, speculating often works on the "greater fool" thesis - that you can always find a greater fool than yourself to take a property off your hands in the expectation that he will be able to find yet a greater fool. Eventually, someone is left holding the bag and that's when the party is over.
Flipping, by contrast, relies on fundamentals. The idea is not to catch a shooting star in a rapidly appreciating market. Rather, the plan is to find undervalued properties, rehab them, present them in an attractive manner, and sell them for a reasonable profit. Not only is a rising market not a requirement of flipping success, it may even be a mild detriment! After all, it is a bit harder to find bargain properties in booming areas. Sure, it can still be done, but the point is that even falling markets are prime for flipping since the holding period is often too short for the value of the property to decline beyond the deep discount at which it is purchased. Assuming that you add value through rehabbing, you almost can't lose!
Exit Strategies - Always Have a Plan B
While speculators often rely on the "greater fool" strategy, flippers tend to have one of two exit plans: 1) Quickly flip the title to another investor, or 2) Rehab and sell the property at the retail level. While the lion's share of the profits go to the retailer, a quick wholesale deal can free up your cash (and energy) for the next deal. But what if neither strategy works? What if the market really crashes and the buyers disappear? Is all lost? Of course not!
For complex economic reasons, the rental property market does not always correlate with the housing market. In fact, they are often countercyclical. Although most flippers aren't terribly interested in being landlords, generating rental income from a botched deal is a solid backup plan. Better yet, you can usually refinance the property after rehabbing it to get all of your money out. From that point forward, the bulk of your rental income will be pure profit, and when the market improves, you can make the sale. Even better, you can offer your tenants a lease with an option to buy, which is attractive to many young families looking for their first home.
The media portrays real estate flippers as the investment world's answer to Wild West gunslingers, but in reality, nothing could be further from the truth. Compare the "worst case" rental income scenario of real estate flipping with the "worst case" Enron scenario of stock market investing. There really is no comparison! If you take a fundamental approach to real estate rehabbing and flipping, your risk is limited and your profits are virtually limitless. It really is the best of all worlds.
If you are an investor and want advance notice of the best properties, call me. Ricky Haynes 423-635-7304 for Chattanooga Homes For Sale.
But the bulls aren't marching now. Greenspan handed his matador's cape to the new Fed chairman, Ben Bernanke, who continued the policy of interest rate hikes designed to deflate housing. No longer accelerating at a break-neck pace, home prices flattened like a pancake in many markets, and new the condo speculators who got in late are in for a world of hurt.
Clearly, the housing "boom" is over in many parts of the Country. But contrary to the media hype, this is great news for flippers!
Flipping vs. Speculating
It should be made clear that there is a difference between flipping and speculating. While speculators may be a sub-set of flippers, they are, at best, the amateurs of the real estate investing family. Flippers who have consistent success are more conservative and have a fundamental approach to real estate investing. While it may not be as exciting as speculating, the rewards of more conservative flipping are nearly as generous, and they are paired with far less risk.
The biggest difference between flipping and speculating is that flipping works in any market, whereas speculating only works in certain places at certain times. Las Vegas from 2002 to 2004 was a great time and place to be a speculator, but if you were still in the market in 2006, chances are you got burned by more than the hot desert sun. Basically, speculating often works on the "greater fool" thesis - that you can always find a greater fool than yourself to take a property off your hands in the expectation that he will be able to find yet a greater fool. Eventually, someone is left holding the bag and that's when the party is over.
Flipping, by contrast, relies on fundamentals. The idea is not to catch a shooting star in a rapidly appreciating market. Rather, the plan is to find undervalued properties, rehab them, present them in an attractive manner, and sell them for a reasonable profit. Not only is a rising market not a requirement of flipping success, it may even be a mild detriment! After all, it is a bit harder to find bargain properties in booming areas. Sure, it can still be done, but the point is that even falling markets are prime for flipping since the holding period is often too short for the value of the property to decline beyond the deep discount at which it is purchased. Assuming that you add value through rehabbing, you almost can't lose!
Exit Strategies - Always Have a Plan B
While speculators often rely on the "greater fool" strategy, flippers tend to have one of two exit plans: 1) Quickly flip the title to another investor, or 2) Rehab and sell the property at the retail level. While the lion's share of the profits go to the retailer, a quick wholesale deal can free up your cash (and energy) for the next deal. But what if neither strategy works? What if the market really crashes and the buyers disappear? Is all lost? Of course not!
For complex economic reasons, the rental property market does not always correlate with the housing market. In fact, they are often countercyclical. Although most flippers aren't terribly interested in being landlords, generating rental income from a botched deal is a solid backup plan. Better yet, you can usually refinance the property after rehabbing it to get all of your money out. From that point forward, the bulk of your rental income will be pure profit, and when the market improves, you can make the sale. Even better, you can offer your tenants a lease with an option to buy, which is attractive to many young families looking for their first home.
The media portrays real estate flippers as the investment world's answer to Wild West gunslingers, but in reality, nothing could be further from the truth. Compare the "worst case" rental income scenario of real estate flipping with the "worst case" Enron scenario of stock market investing. There really is no comparison! If you take a fundamental approach to real estate rehabbing and flipping, your risk is limited and your profits are virtually limitless. It really is the best of all worlds.
If you are an investor and want advance notice of the best properties, call me. Ricky Haynes 423-635-7304 for Chattanooga Homes For Sale.
I have been ask many times: What is a short sale? Here is a very good start.
Negotiating a short sale with the lender is a difficult process, generally because it is a daunting task finding a bank officer who has the authority to accept a discount. You will have to call around to locate the lender’s “Loss Mitigation Department”. More than likely, each lender you deal with will have a separate name for this department, so be patient when calling. Much like getting your phone bill corrected, you can expect the process to involve a lot of waiting on hold and being bounced around an intricate maze of automated voice mail systems. Once you get in touch with the right person, then the negotiating begins.
From the lender’s perspective, a short sale saves many of the costs associated with the foreclosure process - attorney fee’s, the eviction process, delays from borrower bankruptcy, damage to the property, costs associated with resale, etc. In a short sale scenario, the lender gets the property back faster, so it is able to cut its losses. Your job as the investor is to convince the lender that it will fare better by accepting less money now.
The lender will want some information about the property, the borrower and the deal he has made with you. Specifically, the lender wants to know what the property is worth. The lender will generally hire a local real estate broker or appraiser to evaluate the property (called a broker’s price opinion or “BPO”). You can also submit your own appraisal or comparable sales information. In addition you will want to offer as much specific negative information about the property as possible. Also, include some relevant information about the neighborhood and the local economy if things are bad (copies of newspaper articles with “bad news” may help). A contract’s bid for repair estimates should also be submitted, which, of course, should be the highest bid you can obtain!
The lender will also ask for financial information about the borrower. Sort of a backwards loan application, the borrower must prove that he is broke and unable to afford the payments. The borrower must show that he has no other source of income or assets to repay the loan. This process may involve as much, if not more paperwork than an original mortgage application! The borrower should submit a “hardship letter”, which is basically a sob story about how much financial trouble the borrower is in. This may require a little literary creativity, and some help on your part. Don’t lie, just paint a picture that doesn’t look good.
Finally, the lender generally wants to see a written contract between you and the seller. The lender wants to make sure the seller isn’t walking away with any cash from the deal. Generally, the contract must be written so that the buyer pays all costs associated with the transaction, so that the “net cash” to the seller is the exact amount of the short pay to the lender. A preliminary HUD-1 settlement statement is often requested, which can be difficult, since many title and escrow companies simple won’t prepare one in advance of closing. You can prepare your own HUD-1, and simply write “preliminary” on the top.
Don’t be surprised if your first short sale bid is rejected. Lenders aren’t emotionally attached to their properties, so they aren’t as likely to give you steal. Many short sales fall through if the BPO comes in too high, which is often the case. You can’t pull the wool over a lender’s eyes – if the property isn’t is need of serious repair, it is unlikely you can convince the lender the property is worth a whole lot less than the appraised value.
The process of the short sale is not that complicated, but the success or failure of the deal depends upon how you present it to the lender. Many novice investors and realtors give up at short sales quickly because their first deal is rejected. Like any business, short sales takes practice to get good. Generally speaking, loss mitigators are pretty good at spotting an amateur investor. If you know what you are doing, the loss mitigators are more likely to make a deal with you.
If you are a investor or buyer interested in short sale or foreclosures. Call Ricky Haynes, 423-635-7304 for Homes for sale Chattanooga, TN.
Negotiating a short sale with the lender is a difficult process, generally because it is a daunting task finding a bank officer who has the authority to accept a discount. You will have to call around to locate the lender’s “Loss Mitigation Department”. More than likely, each lender you deal with will have a separate name for this department, so be patient when calling. Much like getting your phone bill corrected, you can expect the process to involve a lot of waiting on hold and being bounced around an intricate maze of automated voice mail systems. Once you get in touch with the right person, then the negotiating begins.
From the lender’s perspective, a short sale saves many of the costs associated with the foreclosure process - attorney fee’s, the eviction process, delays from borrower bankruptcy, damage to the property, costs associated with resale, etc. In a short sale scenario, the lender gets the property back faster, so it is able to cut its losses. Your job as the investor is to convince the lender that it will fare better by accepting less money now.
The lender will want some information about the property, the borrower and the deal he has made with you. Specifically, the lender wants to know what the property is worth. The lender will generally hire a local real estate broker or appraiser to evaluate the property (called a broker’s price opinion or “BPO”). You can also submit your own appraisal or comparable sales information. In addition you will want to offer as much specific negative information about the property as possible. Also, include some relevant information about the neighborhood and the local economy if things are bad (copies of newspaper articles with “bad news” may help). A contract’s bid for repair estimates should also be submitted, which, of course, should be the highest bid you can obtain!
The lender will also ask for financial information about the borrower. Sort of a backwards loan application, the borrower must prove that he is broke and unable to afford the payments. The borrower must show that he has no other source of income or assets to repay the loan. This process may involve as much, if not more paperwork than an original mortgage application! The borrower should submit a “hardship letter”, which is basically a sob story about how much financial trouble the borrower is in. This may require a little literary creativity, and some help on your part. Don’t lie, just paint a picture that doesn’t look good.
Finally, the lender generally wants to see a written contract between you and the seller. The lender wants to make sure the seller isn’t walking away with any cash from the deal. Generally, the contract must be written so that the buyer pays all costs associated with the transaction, so that the “net cash” to the seller is the exact amount of the short pay to the lender. A preliminary HUD-1 settlement statement is often requested, which can be difficult, since many title and escrow companies simple won’t prepare one in advance of closing. You can prepare your own HUD-1, and simply write “preliminary” on the top.
Don’t be surprised if your first short sale bid is rejected. Lenders aren’t emotionally attached to their properties, so they aren’t as likely to give you steal. Many short sales fall through if the BPO comes in too high, which is often the case. You can’t pull the wool over a lender’s eyes – if the property isn’t is need of serious repair, it is unlikely you can convince the lender the property is worth a whole lot less than the appraised value.
The process of the short sale is not that complicated, but the success or failure of the deal depends upon how you present it to the lender. Many novice investors and realtors give up at short sales quickly because their first deal is rejected. Like any business, short sales takes practice to get good. Generally speaking, loss mitigators are pretty good at spotting an amateur investor. If you know what you are doing, the loss mitigators are more likely to make a deal with you.
If you are a investor or buyer interested in short sale or foreclosures. Call Ricky Haynes, 423-635-7304 for Homes for sale Chattanooga, TN.
CHATTANOOGA, TN – February 11, 2010 – The local real estate market continues on its “road
to recovery”, according to data released by the Multiple Listing Service (MLS) of the
Chattanooga Association of REALTORS®. In the fourth three month period of the year just
ended, the Southeast Tennessee and Northwest Georgia area saw the sale of 1,527 residential
units, a 19.8% increase over the same quarter’s sales in 2008, but a drop of 6.5% over the July
through September sales of 2009. However REALTORS® are not greatly troubled by that
aspect, since the summer months are among the strongest sales periods for buyers.
Median price figures for the period witnessed a decrease to $128,500 – a drop of 4.8% from the
4th Quarter of 2008 and a statistically negligible decline of 1.2% from the previous quarter. While
a positive sign, in terms of affordability, the price drop is often interpreted by some authorities as
a sign of a continuing sluggish economic outlook. However, the index indicating the number of
days on the market has remained remarkably consistent – from 120 a year ago to 120 in the 4th
Quarter of 2009 – and only 5 days less than the 3rd Quarter. Ricky Haynes, Remax Properties. Homes for sale Chattanooga, TN. 423-635-7304
to recovery”, according to data released by the Multiple Listing Service (MLS) of the
Chattanooga Association of REALTORS®. In the fourth three month period of the year just
ended, the Southeast Tennessee and Northwest Georgia area saw the sale of 1,527 residential
units, a 19.8% increase over the same quarter’s sales in 2008, but a drop of 6.5% over the July
through September sales of 2009. However REALTORS® are not greatly troubled by that
aspect, since the summer months are among the strongest sales periods for buyers.
Median price figures for the period witnessed a decrease to $128,500 – a drop of 4.8% from the
4th Quarter of 2008 and a statistically negligible decline of 1.2% from the previous quarter. While
a positive sign, in terms of affordability, the price drop is often interpreted by some authorities as
a sign of a continuing sluggish economic outlook. However, the index indicating the number of
days on the market has remained remarkably consistent – from 120 a year ago to 120 in the 4th
Quarter of 2009 – and only 5 days less than the 3rd Quarter. Ricky Haynes, Remax Properties. Homes for sale Chattanooga, TN. 423-635-7304
Monday, February 15, 2010
Good news on the real estate market outlook. One of the most accurate forecasters of housing value movements has just signaled something potentially important: For the first time in a year, according to the national PMI index, “overall risk has decreased” in the 384 metropolitan markets covered by the survey. Chattanooga, TN homes for sale have been on an upward swing, but home values have remained low. Ricky Haynes 423-635-7304 , rickyhaynes@gmail.com
Friday, February 12, 2010
Thursday, February 11, 2010
If you are in a position to buy a home or invest in property, you've come to the right place. For a list of the best deals in town and advanced notice on foreclosures/REO properties and short sales simply email or call me. If you are interested in Homes For Sale in Chattanooga, TN. Ricky Haynes 423-635-7304. rickyhaynes@gmail.com , www.livingchattanooga.com
Wednesday, February 10, 2010
GET EMAIL ALERTS WHEN NEW LISTINGS ARE ENTERED INTO THE Chattanooga MLS! Email me the following information:
1. Areas/Cities you are interested in
2. Minimum bedrooms/bathrooms
3. Maximum purchase price
I will enter your search criteria into the Chattanooga Multiple Listing Service (MLS).
You will receive an email with all properties currently for sale that meet your criteria.
View multiple pictures and map each property.
Save the properties you are interested in and delete the rest.
Request additional information on a property at anytime.
You will then receive automatic emails when new listings are entered into the MLS.
NOTICE WE DID NOT ASK FOR YOUR PHONE NUMBER?
YOU CONTACT US WHEN YOU'RE READY TO PREVIEW ANY PROPERTIES
Chattanooga, TN homes for sale
Call or email me now :
rickyhaynes@gmail.com
423-635-7304
your Chattanooga, TN real estate source REMAX Properties - 6111 Shallowford Rd - 894.2900
1. Areas/Cities you are interested in
2. Minimum bedrooms/bathrooms
3. Maximum purchase price
I will enter your search criteria into the Chattanooga Multiple Listing Service (MLS).
You will receive an email with all properties currently for sale that meet your criteria.
View multiple pictures and map each property.
Save the properties you are interested in and delete the rest.
Request additional information on a property at anytime.
You will then receive automatic emails when new listings are entered into the MLS.
NOTICE WE DID NOT ASK FOR YOUR PHONE NUMBER?
YOU CONTACT US WHEN YOU'RE READY TO PREVIEW ANY PROPERTIES
Chattanooga, TN homes for sale
Call or email me now :
rickyhaynes@gmail.com
423-635-7304
your Chattanooga, TN real estate source REMAX Properties - 6111 Shallowford Rd - 894.2900
Sunday, February 7, 2010
GET EMAIL ALERTS WHEN NEW LISTINGS ARE ENTERED INTO THE MLS! Email me the following information:
1. Areas/Cities you are interested in
2. Minimum bedrooms/bathrooms
3. Maximum purchase price
I will enter your search criteria into the Chattanooga Multiple Listing Service (MLS).
You will receive an email with all properties currently for sale that meet your criteria.
View multiple pictures and map each property.
Save the properties you are interested in and delete the rest.
Request additional information on a property at anytime.
You will then receive automatic emails when new listings are entered into the MLS.
NOTICE WE DID NOT ASK FOR YOUR PHONE NUMBER?
YOU CONTACT US WHEN YOU'RE READY TO PREVIEW ANY PROPERTIES
Call or email me now :
rickyhaynes@gmail.com
423-635-7304
your Chattanooga, TN real estate source
1. Areas/Cities you are interested in
2. Minimum bedrooms/bathrooms
3. Maximum purchase price
I will enter your search criteria into the Chattanooga Multiple Listing Service (MLS).
You will receive an email with all properties currently for sale that meet your criteria.
View multiple pictures and map each property.
Save the properties you are interested in and delete the rest.
Request additional information on a property at anytime.
You will then receive automatic emails when new listings are entered into the MLS.
NOTICE WE DID NOT ASK FOR YOUR PHONE NUMBER?
YOU CONTACT US WHEN YOU'RE READY TO PREVIEW ANY PROPERTIES
Call or email me now :
rickyhaynes@gmail.com
423-635-7304
your Chattanooga, TN real estate source
Some critical changes are coming concerning FHA loans. These take place April 5th. If you are currently searching for a home in Chattanooga, TN, you need to be one of my buyers. Call to find out important changes that affect you. Ricky Haynes 423-635-7304 , your source for real estate in Chattanooga.
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