Dear David:
Thank you for contacting me with your support for extending the homebuyer tax credit. I welcome the opportunity to respond to you on this issue.
I agree with you that the current $8,000 tax credit for first time buyers has had a positive effect on the housing market this year. You will be pleased to know that I am a cosponsor of the Homebuyer Tax Credit Act of 2009, which would, in an effort to stimulate the nation's declining housing market, extend this credit and offer an increased $15,000 credit to all home purchases through 2010.
Like you, I believe that we must be aggressive in addressing the challenges in our housing market and I support providing tax credits for new homes. I agree with you, that stimulating the housing market is one of the best ways Congress can help accelerate the recovery of the economy. A tax credit for individuals to purchase new homes not only contributes to the real estate industry, but also stimulates the construction industry and creates jobs.
Please be assured that I will keep your specific thoughts in mind as we continue to discuss this issue in Congress. Thank you again for contacting me. If you have any further questions or concerns, please do not hesitate to let me know.
Sincerely,
Duncan Hunter
Member of Congress
Please visit my website at hunter.house.gov to sign up for my e-newsletter and receive electronic updates.
Thursday, October 22, 2009
Tuesday, October 20, 2009
Response from Senator Feinstein about tax credit
I filled out the form on NAR's website in order to send my represenatives my belief that the tax credit should be extended. Just got an emailed reply from Senator Feinstein. Here it is:
Dear Mr. Cummins:
Thank you for contacting me to express your support for expanding the first-time homebuyer tax credit. I appreciate the time you took to write and welcome the opportunity to respond. In July 2008, the Housing and Economic Recovery Act of 2008 (Public Law 110-289) provided first-time homebuyers with a tax credit, equivalent to an interest-free loan, worth up to $7,500. The tax credit applied to homes purchased between April 9, 2009 and July 1, 2009. As the housing situation worsened in the fall of 2008, additional action was taken to prevent further declines in home values. Congress included in the American Recovery and Reinvestment Act of 2009 (Public Law 111-5), a more robust first-time homebuyer tax credit. Specifically, the tax credit was increased to $8,000 for homes purchased in 2009 and will not have to be repaid. I understand your belief that the first-time homebuyer tax credit should be increased and expanded further. As you know, on June 10, 2009, Senator Johnny Isakson (R-GA) introduced the "Home Buyer Tax Credit Act of 2009" (S. 1230), which would increase the credit to up to $15,000, remove income eligibility limits, and expand it to include homebuyers purchasing homes other than their first. S. 1230 has been referred to the Senate Finance Committee, of which I am not a member. Please know that I will keep your support for this legislation in mind should it come before the full Senate. Once again, thank you for writing. If you have any additional questions or concerns, please do not hesitate to contact my Washington, D.C. office at (202) 224-3841. Best regards.
Sincerely yours,
Dianne Feinstein
United States Senator
Further information about my position on issues of concern to California and the Nation are available at my website http://feinstein.senate.gov/public/. You can also receive electronic e-mail updates by subscribing to my e-mail list at http://feinstein.senate.gov/public/index.cfm?FuseAction=ENewsletterSignup.Signup.
Dear Mr. Cummins:
Thank you for contacting me to express your support for expanding the first-time homebuyer tax credit. I appreciate the time you took to write and welcome the opportunity to respond. In July 2008, the Housing and Economic Recovery Act of 2008 (Public Law 110-289) provided first-time homebuyers with a tax credit, equivalent to an interest-free loan, worth up to $7,500. The tax credit applied to homes purchased between April 9, 2009 and July 1, 2009. As the housing situation worsened in the fall of 2008, additional action was taken to prevent further declines in home values. Congress included in the American Recovery and Reinvestment Act of 2009 (Public Law 111-5), a more robust first-time homebuyer tax credit. Specifically, the tax credit was increased to $8,000 for homes purchased in 2009 and will not have to be repaid. I understand your belief that the first-time homebuyer tax credit should be increased and expanded further. As you know, on June 10, 2009, Senator Johnny Isakson (R-GA) introduced the "Home Buyer Tax Credit Act of 2009" (S. 1230), which would increase the credit to up to $15,000, remove income eligibility limits, and expand it to include homebuyers purchasing homes other than their first. S. 1230 has been referred to the Senate Finance Committee, of which I am not a member. Please know that I will keep your support for this legislation in mind should it come before the full Senate. Once again, thank you for writing. If you have any additional questions or concerns, please do not hesitate to contact my Washington, D.C. office at (202) 224-3841. Best regards.
Sincerely yours,
Dianne Feinstein
United States Senator
Further information about my position on issues of concern to California and the Nation are available at my website http://feinstein.senate.gov/public/. You can also receive electronic e-mail updates by subscribing to my e-mail list at http://feinstein.senate.gov/public/index.cfm?FuseAction=ENewsletterSignup.Signup.
Saturday, October 17, 2009
$8000 tax credit extension?
Let me preface this with a quick disclaimer. I am not a tax professional and I am not giving tax advice here….
As we near the November 30 deadline for the $8000 tax credit the looming question as to whether it will be extended is, well looming. With the possibility of an extension is also the idea of an "expansion" that would open it to buyers beyond the "first time" buyer. It seems that everyone wants their name on the bill that will extend the credit and so there are plenty out there trying. Both Obama and Congress are talking about it as the deadline approaches.
It has made a difference in our market. The feeding frenzy that started in about July/August I believe was due to the fact this deadline was driving buyers out. This assumption is based purely on the simple fact that every call, since mid-summer, I have received from a new buyer wanting to be pre-qualified for a home loan mentioned, "I need to buy before Nov 30" or "I want that tax credit". It's driving buyers to get in the game. And why not? Where else are you going to pick up a quick $8000? Most of these first time home buyers are used to getting a little a tax refund at the end of the year but this is a significant amount of money. The buyers I know plan to use the money to fix the house up, (as many of these foreclosures, need a little work) or they plan to replace their savings. Imagine you buy something for $300,000.00. Going FHA, you put down 3.5% ($10,500) of your hard earned money. Now imagine by using that money to buy a house you could potentially put 75% of it back in the bank? It's a great incentive to buy…now. Truth be told if you're not in escrow by this weekend your chances to get that credit are getting slim. So will they extend it? The house has unanimously passed an extension that would give buyers who served overseas in the military a 6 month extension, (measure H.R. 3590). It still needs to go to the senate. And the National Association of Realtors, (NAR) testified last Wednesday to the US House of Small Business Committee that an extension was critical in reducing the amount of inventory the housing market currently has. They also are suggesting an expansion on the tax credit. They even posted a video on You Tube.
NAR's website also has a quote from House Speaker Pelosi (D-CA), on October 8th, where she said, "Yes, there is under consideration whether we extend the first time homeowners credit. And the question is, would that be just first time homeowners or would you open it up to other purchasers of homes?"
The California Association of Realtors, (CAR) put out this "call to action" on their website: "The federal tax credit for first-time homebuyers is set to expire November 30, 2009. Since its inception earlier this year, the tax credit has brought 1.2 million new buyers into the market nationwide, according to NAR. In California, nearly 40 percent of first-time homebuyers reported they would not have purchased a home without the tax credit, according to a C.A.R. survey."
The website further explains CAR's views and gives you step by step instructions on how to contact your congressional representative.
So, while the Feds are going to keep us on the edge of our seats possibly right up to end, there are things you can do to help the cause. If you believe the tax credit should be extended check out the CAR or NAR websites to see how you can help.Get more information about the current 2009 tax credit from NAR here. And, you can get more information about buying a home or getting pre-approved by emailing me at davejcummins@gmail.com. You can also get daily updates by becoming a fan here on FaceBook too
As we near the November 30 deadline for the $8000 tax credit the looming question as to whether it will be extended is, well looming. With the possibility of an extension is also the idea of an "expansion" that would open it to buyers beyond the "first time" buyer. It seems that everyone wants their name on the bill that will extend the credit and so there are plenty out there trying. Both Obama and Congress are talking about it as the deadline approaches.
It has made a difference in our market. The feeding frenzy that started in about July/August I believe was due to the fact this deadline was driving buyers out. This assumption is based purely on the simple fact that every call, since mid-summer, I have received from a new buyer wanting to be pre-qualified for a home loan mentioned, "I need to buy before Nov 30" or "I want that tax credit". It's driving buyers to get in the game. And why not? Where else are you going to pick up a quick $8000? Most of these first time home buyers are used to getting a little a tax refund at the end of the year but this is a significant amount of money. The buyers I know plan to use the money to fix the house up, (as many of these foreclosures, need a little work) or they plan to replace their savings. Imagine you buy something for $300,000.00. Going FHA, you put down 3.5% ($10,500) of your hard earned money. Now imagine by using that money to buy a house you could potentially put 75% of it back in the bank? It's a great incentive to buy…now. Truth be told if you're not in escrow by this weekend your chances to get that credit are getting slim. So will they extend it? The house has unanimously passed an extension that would give buyers who served overseas in the military a 6 month extension, (measure H.R. 3590). It still needs to go to the senate. And the National Association of Realtors, (NAR) testified last Wednesday to the US House of Small Business Committee that an extension was critical in reducing the amount of inventory the housing market currently has. They also are suggesting an expansion on the tax credit. They even posted a video on You Tube.
NAR's website also has a quote from House Speaker Pelosi (D-CA), on October 8th, where she said, "Yes, there is under consideration whether we extend the first time homeowners credit. And the question is, would that be just first time homeowners or would you open it up to other purchasers of homes?"
The California Association of Realtors, (CAR) put out this "call to action" on their website: "The federal tax credit for first-time homebuyers is set to expire November 30, 2009. Since its inception earlier this year, the tax credit has brought 1.2 million new buyers into the market nationwide, according to NAR. In California, nearly 40 percent of first-time homebuyers reported they would not have purchased a home without the tax credit, according to a C.A.R. survey."
The website further explains CAR's views and gives you step by step instructions on how to contact your congressional representative.
So, while the Feds are going to keep us on the edge of our seats possibly right up to end, there are things you can do to help the cause. If you believe the tax credit should be extended check out the CAR or NAR websites to see how you can help.Get more information about the current 2009 tax credit from NAR here. And, you can get more information about buying a home or getting pre-approved by emailing me at davejcummins@gmail.com. You can also get daily updates by becoming a fan here on FaceBook too
Friday, October 16, 2009
California Association of Realtors, (CAR) supports tax credit extension
Here's a post from C.A.R.'s facebook page:
The federal tax credit for first-time homebuyers is set to expire November 30, 2009. Since its inception earlier this year, the tax credit has brought 1.2 million new buyers into the market nationwide, according to NAR. In California, nearly 40 percent of first-time homebuyers reported they would not have purchased a home without the tax credit, according to a C.A.R. survey.
C.A.R. supports an extension of the federal tax credit through 2010 and to include all homebuyers—not just first-timers. Historically, housing has led the nation out of economic downturns, and can do so again.
As the expiration date for this successful program looms, it is imperative that all REALTORS® take action by contacting their congressperson and urging them to extend this vital home-buying incentive.
Call your congressional representative immediately!
1. Dial 1-800-961-3302.
2. Enter your NRDs i.d. to be directly connected to the office of your representative.
3. Ask your representative to vote for extending the first-time homebuyer tax credit.
see it here:
http://www.car.org/governmentalaffairs/federal/call4actiontaxcredit/
The federal tax credit for first-time homebuyers is set to expire November 30, 2009. Since its inception earlier this year, the tax credit has brought 1.2 million new buyers into the market nationwide, according to NAR. In California, nearly 40 percent of first-time homebuyers reported they would not have purchased a home without the tax credit, according to a C.A.R. survey.
C.A.R. supports an extension of the federal tax credit through 2010 and to include all homebuyers—not just first-timers. Historically, housing has led the nation out of economic downturns, and can do so again.
As the expiration date for this successful program looms, it is imperative that all REALTORS® take action by contacting their congressperson and urging them to extend this vital home-buying incentive.
Call your congressional representative immediately!
1. Dial 1-800-961-3302.
2. Enter your NRDs i.d. to be directly connected to the office of your representative.
3. Ask your representative to vote for extending the first-time homebuyer tax credit.
see it here:
http://www.car.org/governmentalaffairs/federal/call4actiontaxcredit/
Tuesday, October 6, 2009
Tuesday, September 22, 2009
Why do you need title insurance?
Title Insurance. It's a term we hear and see frequently -- we see reference to it in the Sunday real estate section, in advertisements and in conversations with real estate brokers. If you've purchased a home before, you're probably familiar with the benefits and procedures of title insurance. But if this is your first home, you may wonder, "Why do I need another insurance policy? It's just one more bill to pay."
The answer is simple: The purchase of a home is most likely one of the most expensive and important purchases you will ever make. You, and your mortgage lender, want to make sure that the property is indeed yours lock, stock and barrel and that no individual or government entity has any right, lien, claim to your property.
Title insurance companies are in business to make sure your rights and interests to the property are clear, that transfer of title takes place efficiently and correctly and that your interests as a homebuyer are protected to the maximum degree. Title insurance companies provide services to buyers, sellers, real estate developers, builders, mortgage lenders and others who have an interest in a real estate transfer. Title companies routinely issue two types of policies -- "owner's," which cover you, the homebuyer; and "lender's," which covers the bank, savings and loan or other lending institution over the life of the loan. Both are issued at the time of purchase for a modest, one-time premium.
Before issuing a policy, however, the title company performs an extensive search of relevant public records to determine if anyone other than you has an interest in the property. The search may be performed by title company personnel using either public records or more likely, information gathered, reorganized and indexed in the company's title "plant."
With such a thorough examination of records, any title problems usually can be found and cleared up prior to your purchase of the property. Once a title policy is issued, if for some reason any claim which is covered under your title policy is ever filed against your property, the title company will pay the legal fee involved in defense of your rights, as well as any covered loss arising from a valid claim. That protection, which is in effect as long as you or your heirs own the property, is yours for a one-time premium paid at the time of purchase.
The fact that title companies work to eliminate risks before they develop makes the title insurance decidedly different from other types of insurance you may have purchased. Most forms of insurance assume risks by providing financial protection through a pooling of risks for losses arising from an unforeseen event, say a fire, theft or accident. The purpose of title insurance, on the other hand, is to eliminate risks and prevent losses caused by defects in title that happened in the past. Risks are examined and mitigated before property changes hands.
This risk elimination has benefits to both you, the homebuyer, and the title company: it minimizes the chances adverse claims might be raised, and by so doing reduces the number of claims that have to be defended or satisfied. This keeps costs down for the title company and your title premiums low.
Buying a home is a big step emotionally and financially. With title insurance you are assured that any valid claim against your property will be borne by the title company, and that the odds of a claim being filed are slim indeed. Isn't sleeping well at night, knowing your home is yours, reason enough for title insurance?
This article was published by the California Land Title Association...and provided to me courtesy of Rosa Rhea of American Coast Title & Escrow, 8304 Clairemont Mesa Blvd. Suite 206, San Diego, CA, 92111, Office (858) 505-9985.
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