Short Sales Surpass Foreclosures as Banks Agree to Deals
http://www.linkedin.com/news?actionBar=&articleID=5597971529292841048&ids=djsSdjcMe3gRc3sNe3cPdPARdiMUd30Nd3wOej8VczkNdPATejkRb38RdPkNc3oOe38NdPoSdPsVdjkIczoOczoRcjkTcjgNe30OdzARdiMVdzsMc3cTdP8NczcPe34UejkR&aag=true&freq=weekly&trk=eml-tod2-b-pub-3&ut=2euLHVmLfSylc1
Click on link or post in browser.
Sunday, April 22, 2012
Fannie and Freddie Set Timeline Requirements for Short Sales
Fannie
and Freddie Set Timeline Requirements for Short Sales
http://www.dsnews.com/articles/fannie-and-freddie-set-timeline-requirements-for-short-sales-2012-04-17?utm_source=twitterfeed&utm_medium=twitter
Click on the above or cut and paste into your browser for the full text.
Provided courtesy of Linkedin TODAY
http://www.dsnews.com/articles/fannie-and-freddie-set-timeline-requirements-for-short-sales-2012-04-17?utm_source=twitterfeed&utm_medium=twitter
Click on the above or cut and paste into your browser for the full text.
Provided courtesy of Linkedin TODAY
Monday, April 16, 2012
Foreclosure activity hits lowest level since Q4 2007
Paste in your browser if can't open the link:
http://lowes.inman.com/newsletter/2012/04/16/news/184855
Lot of great information - long article.
http://lowes.inman.com/newsletter/2012/04/16/news/184855
Lot of great information - long article.
Friday, April 13, 2012
Some homeowners better off not taking home office deduction
DAILY REAL ESTATE NEWS April 13, 2012
Misconceptions about 2 common real estate tax breaks
Some homeowners better off not taking home office deduction
By Tom Kelly Inman News®
Share This
One of the biggest financial advantages of owning a home is the mortgage interest deduction, but the amount many taxpayers submit is often greater than the allowed limit.
And, while home offices have become more popular because of convenience and the downturn in the economy, many homeowners may be better off not taking the deduction because of the depreciation recapture upon sale.
Both the mortgage interest and home office topics need to be double-checked before the April 17 deadline. Why April 17 this year instead of April 15? According to the Internal Revenue Service, taxpayers will have until Tuesday, April 17, to file their 2011 tax returns and pay any tax due because April 15 falls on a Sunday.
In addition, Emancipation Day, a holiday observed in Washington, D.C., falls this year on Monday, April 16. According to federal law, Washington, D.C., holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have two extra days to file this year.
Taxpayers requesting an extension will have until Oct. 15 to file their 2012 tax returns. Remember that an extension of time to file is not an extension of time to pay. You will owe interest on any past-due tax and you may be subject to a late-payment penalty if timely payment is not made.
In a recent column, we discussed the benchmark for the mortgage interest deduction is set at acquisition debt, which is the amount of debt in place when the home is acquired. For example, if you buy a $200,000 home with a $50,000 down payment, your acquisition debt is $150,000.
Many consumers stay in their homes for years, accumulate appreciation and then refinance to put a child through school, mom into a nursing home or attend a much anticipated family reunion. The new debt on the refinance will qualify as home acquisition debt only up to the amount of the balance of the old mortgage principal just before the refinancing.
For example, let's assume your home is now worth $300,000 and you need to take cash out for college tuition. The balance of your loan before you refinance is $135,000 and you take $100,000 "cash back" for a new loan balance of $235,000.
However, the maximum allowable mortgage interest deduction remains $135,000 -- the acquisition debt, not the bigger number from the refinance.
Another popular deduction that is often taken yet needs additional consideration is the home office deduction. It's relatively easy for taxpayers to deduct the cost of a home office. To qualify for a deduction, the space must be used exclusively and on a regular basis for either the entire business or its administrative and management activities.
If you are an employee, additional rules apply for claiming the home office deduction. For example, the regular and exclusive business use must be "for the convenience of your employer."
A home office deduction is comprised mainly of depreciation, utilities and insurance. For example, if a home has 2,500 square feet and the detached garage now deemed "the office" is 250 square feet, then 10 percent of the utilities and insurance are deductible.
The actual office depreciation is 10 percent of what would be a depreciation deduction if the entire home were being depreciated for tax purposes. (Depreciation is not allowed on a typical principal residence, so the square footage allotted to "residence" would not qualify.) Supplies and other expenses directly related to the home office are fully deductible.
However, all these benefits do come at a price. The tax law originally stated that if you sell your home at a gain, any depreciation for a home office will have to be "recaptured." That means that any profit on the business portion is taxable as capital gain.
On Dec. 23, 2002, the IRS issued new regulations concerning gain on home sales. As long as the home office was in the same structure and not separated from the home, only the depreciation taken for the home office after May 6, 1997, is subject to tax.
Still, that depreciation recapture amount could be a lot more than you expect. It may be worthwhile to simply work from home and not deem the space a "home office."
Tom Kelly's new e-book, "Bargains Beyond the Border: Get Past the Blood and Drugs: Mexico's Lower Cost of Living Can Avert a Tearful Retirement," is available online at Apple's iBookstore, Amazon.com, Sony's Reader Store, Barnes & Noble, Kobo, Diesel eBook Store, and Google Editions.
Contact Tom Kelly:
Email
Letter to the Editor
Copyright 2012 Tom Kelly
Misconceptions about 2 common real estate tax breaks
Some homeowners better off not taking home office deduction
By Tom Kelly Inman News®
Share This
One of the biggest financial advantages of owning a home is the mortgage interest deduction, but the amount many taxpayers submit is often greater than the allowed limit.
And, while home offices have become more popular because of convenience and the downturn in the economy, many homeowners may be better off not taking the deduction because of the depreciation recapture upon sale.
Both the mortgage interest and home office topics need to be double-checked before the April 17 deadline. Why April 17 this year instead of April 15? According to the Internal Revenue Service, taxpayers will have until Tuesday, April 17, to file their 2011 tax returns and pay any tax due because April 15 falls on a Sunday.
In addition, Emancipation Day, a holiday observed in Washington, D.C., falls this year on Monday, April 16. According to federal law, Washington, D.C., holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have two extra days to file this year.
Taxpayers requesting an extension will have until Oct. 15 to file their 2012 tax returns. Remember that an extension of time to file is not an extension of time to pay. You will owe interest on any past-due tax and you may be subject to a late-payment penalty if timely payment is not made.
In a recent column, we discussed the benchmark for the mortgage interest deduction is set at acquisition debt, which is the amount of debt in place when the home is acquired. For example, if you buy a $200,000 home with a $50,000 down payment, your acquisition debt is $150,000.
Many consumers stay in their homes for years, accumulate appreciation and then refinance to put a child through school, mom into a nursing home or attend a much anticipated family reunion. The new debt on the refinance will qualify as home acquisition debt only up to the amount of the balance of the old mortgage principal just before the refinancing.
For example, let's assume your home is now worth $300,000 and you need to take cash out for college tuition. The balance of your loan before you refinance is $135,000 and you take $100,000 "cash back" for a new loan balance of $235,000.
However, the maximum allowable mortgage interest deduction remains $135,000 -- the acquisition debt, not the bigger number from the refinance.
Another popular deduction that is often taken yet needs additional consideration is the home office deduction. It's relatively easy for taxpayers to deduct the cost of a home office. To qualify for a deduction, the space must be used exclusively and on a regular basis for either the entire business or its administrative and management activities.
If you are an employee, additional rules apply for claiming the home office deduction. For example, the regular and exclusive business use must be "for the convenience of your employer."
A home office deduction is comprised mainly of depreciation, utilities and insurance. For example, if a home has 2,500 square feet and the detached garage now deemed "the office" is 250 square feet, then 10 percent of the utilities and insurance are deductible.
The actual office depreciation is 10 percent of what would be a depreciation deduction if the entire home were being depreciated for tax purposes. (Depreciation is not allowed on a typical principal residence, so the square footage allotted to "residence" would not qualify.) Supplies and other expenses directly related to the home office are fully deductible.
However, all these benefits do come at a price. The tax law originally stated that if you sell your home at a gain, any depreciation for a home office will have to be "recaptured." That means that any profit on the business portion is taxable as capital gain.
On Dec. 23, 2002, the IRS issued new regulations concerning gain on home sales. As long as the home office was in the same structure and not separated from the home, only the depreciation taken for the home office after May 6, 1997, is subject to tax.
Still, that depreciation recapture amount could be a lot more than you expect. It may be worthwhile to simply work from home and not deem the space a "home office."
Tom Kelly's new e-book, "Bargains Beyond the Border: Get Past the Blood and Drugs: Mexico's Lower Cost of Living Can Avert a Tearful Retirement," is available online at Apple's iBookstore, Amazon.com, Sony's Reader Store, Barnes & Noble, Kobo, Diesel eBook Store, and Google Editions.
Contact Tom Kelly:
Letter to the Editor
Copyright 2012 Tom Kelly
Monday, April 2, 2012
WE HAVE ADDED NEW SEARCHES TO OUR WEBSITE
Our website at wwww.denismarque.com contains 2 great searches:
Resale - a search of all active listing in Metro Phoenix.
New - a just added search of all New Homes in 3 counties in/around Phoenix including 90+ New Home Builders and 390+ Subdivisions.
Give it a try!! No obligation - we won't bother you!
Resale - a search of all active listing in Metro Phoenix.
New - a just added search of all New Homes in 3 counties in/around Phoenix including 90+ New Home Builders and 390+ Subdivisions.
Give it a try!! No obligation - we won't bother you!
Pressure on mortgage rates eases
Fed chairman says unemployment remains a concern By Inman News®
Share This
After climbing for two weeks in a row, mortgage rates reversed course this week, with rates on 30-year fixed-rate loans again below 4 percent after Federal Reserve Chairman Ben Bernanke voiced worries about persistently high unemployment.
Freddie Mac's Primary Mortgage Market Survey showed rates on 30-year fixed-rate mortgages averaged 3.99 percent with an average 0.7 point for the week ending March 29, down from 4.08 percent last week and 4.86 percent a year ago. Rates on 30-year fixed-rate mortgages hit an all-time low in records dating to 1971 of 3.87 percent during the first three weeks of February.
Rates on 15-year fixed-rate mortgages, a popular refinancing option, averaged 3.23 percent with an average 0.8 point, down from 3.3 percent last week and 4.09 percent a year ago. Rates on 15-year loans hit a low in records dating to 1991 of 3.13 percent during the week ending March 8.
For 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans, rates averaged 2.9 percent, with an average 0.8 point, down from 2.96 percent last week and 3.7 percent a year ago. The five-year ARM hit a low in records dating to 2005 of 2.8 percent the week of Feb. 23.
Rates on 1-year Treasury-indexed ARMs averaged 2.78 percent with an average 0.6 point, down from 2.84 percent last week and 3.26 percent a year ago. Rates on one-year ARMs hit an all-time low in records dating to 1984 of 2.72 percent during the week ending March 1.
Looking back a week, a separate survey by the Mortgage Bankers Association showed demand for purchase loans during the week ending March 23 was up a seasonally adjusted 3.3 percent from the week before. The MBA survey showed demand for purchase loans was up 1 percent from a year ago.
Requests to refinance existing mortgages were down for the sixth week in a row, to a level 24.2 percent lower than a peak seen in February, 2012. Requests to refinance still accounted for 71.9 percent of all mortgage applications, but that's the lowest share since July 2011.
Freddie Mac's chief economist, Frank Nothaft, attributed the decline in mortgage rates to weaker housing economic indicators.
The Standard & Poor's/Case Shiller 20-City Composite home price index slid in January to its lowest reading in about a decade, Nothaft said in a statement. "In addition, new-home sales declined 0.5 percent in February, below the market consensus of an increase, and pending existing home sales also declined for the month."
Mortgage rates are determined largely by investor demand for mortgage-backed securities (MBS) guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae.
During the downturn, the government helped keep mortgage rates low by buying more than $1 trillion in MBS. The government's "quantitative easing" programs -- which also included purchases of Treasury bonds -- added to the demand for MBS and similar investments, pushing up their price, and reducing their yields.
Although the Federal Reserve discontinued its mortgage-backed securities purchases in March 2010, mortgage rates continued to fall as MBS remained popular with investors seeking a safe haven from turmoil in financial markets.
As the economic recovery picks up steam, mortgage rates and interest rates could rise if government-backed MBS and Treasury bonds fall out of favor with investors.
Real estate economists and analysts surveyed by the Urban Land Institute expect 10-year Treasurys to rise as the recovery picks up steam, from an average of 2.4 percent this year to 3.1 percent in 2013 and 3.8 percent in 2014.
Historically, mortgage rates have tracked 10-year Treasury yields fairly closely, so that forecast implies mortgage rates could rise 140 basis points, or 1.4 percentage points, in the next two years.
According to Euro Pacific Capital Inc. CEO Peter Schiff, the flight from bonds could be exacerbated by the government's massive holdings, which Schiff thinks have a distorting effect on the market.
Schiff -- whose views are more pessimistic than those of many investors and economists -- predicts a bubble in bond markets will lead to another economic crash in the next two to three years.
The root of the problem is similar to the problems faced by debtor nations in Europe, Schiff told Forbes this week: “We consume more than we produce and we borrow abroad, but we are never going to be able to pay them back."
Mortgage rates began their recent surge on March 13 after the Federal Reserve's open market committee announced that its members do not anticipate an expansion of existing quantitative easing programs.
The committee said the Fed will continue reinvesting principal payments from its MBS holdings into like investments, and rolling over maturing Treasury securities at auction. Signs of an economic recovery and a surge in the stock market may also have hurt demand for Treasurys and MBS.
Yields on Treasurys and MBS came back down this week after Federal Reserve Chairman Ben Bernanke said unemployment remains a worry and that the Fed remains prepared to boost the economy with "continued accommodative policies."
Much of the recent improvement in job markets is due to a slowdown in layoffs rather than increased hiring, Bernanke said Monday at an economics conference.
The private sector employs 5 million fewer workers than it did at its peak, and the workforce has grown in the meantime, he noted. The unemployment rate in February was 3 percentage point above its average over the 20 years before the recession.
Further improvements in the unemployment rate "will likely require a more-rapid expansion of production and demand from consumers and businesses, a process that can be supported by continued accommodative policies," Bernanke said.
The National Association of REALTORS®' chief economist, Lawrence Yun, stated that fears of rising mortgage rates could spur homebuyer demand. But if rates increase significantly, that would reduce buyers' purchasing power, Yun said.
Yun predicts rates on 30-year fixed-rate mortgages will soon be in the 4.3 to 4.6 percent range.
In their most recent forecast, economists at Fannie Mae said they expect 30-year fixed-rate loans to average 4.1 percent during the second half of 2012, and 4.3 percent in 2013.
Copyright 2012 Inman News
Share This
After climbing for two weeks in a row, mortgage rates reversed course this week, with rates on 30-year fixed-rate loans again below 4 percent after Federal Reserve Chairman Ben Bernanke voiced worries about persistently high unemployment.
Freddie Mac's Primary Mortgage Market Survey showed rates on 30-year fixed-rate mortgages averaged 3.99 percent with an average 0.7 point for the week ending March 29, down from 4.08 percent last week and 4.86 percent a year ago. Rates on 30-year fixed-rate mortgages hit an all-time low in records dating to 1971 of 3.87 percent during the first three weeks of February.
Rates on 15-year fixed-rate mortgages, a popular refinancing option, averaged 3.23 percent with an average 0.8 point, down from 3.3 percent last week and 4.09 percent a year ago. Rates on 15-year loans hit a low in records dating to 1991 of 3.13 percent during the week ending March 8.
For 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans, rates averaged 2.9 percent, with an average 0.8 point, down from 2.96 percent last week and 3.7 percent a year ago. The five-year ARM hit a low in records dating to 2005 of 2.8 percent the week of Feb. 23.
Rates on 1-year Treasury-indexed ARMs averaged 2.78 percent with an average 0.6 point, down from 2.84 percent last week and 3.26 percent a year ago. Rates on one-year ARMs hit an all-time low in records dating to 1984 of 2.72 percent during the week ending March 1.
Looking back a week, a separate survey by the Mortgage Bankers Association showed demand for purchase loans during the week ending March 23 was up a seasonally adjusted 3.3 percent from the week before. The MBA survey showed demand for purchase loans was up 1 percent from a year ago.
Requests to refinance existing mortgages were down for the sixth week in a row, to a level 24.2 percent lower than a peak seen in February, 2012. Requests to refinance still accounted for 71.9 percent of all mortgage applications, but that's the lowest share since July 2011.
Freddie Mac's chief economist, Frank Nothaft, attributed the decline in mortgage rates to weaker housing economic indicators.
The Standard & Poor's/Case Shiller 20-City Composite home price index slid in January to its lowest reading in about a decade, Nothaft said in a statement. "In addition, new-home sales declined 0.5 percent in February, below the market consensus of an increase, and pending existing home sales also declined for the month."
Mortgage rates are determined largely by investor demand for mortgage-backed securities (MBS) guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae.
During the downturn, the government helped keep mortgage rates low by buying more than $1 trillion in MBS. The government's "quantitative easing" programs -- which also included purchases of Treasury bonds -- added to the demand for MBS and similar investments, pushing up their price, and reducing their yields.
Although the Federal Reserve discontinued its mortgage-backed securities purchases in March 2010, mortgage rates continued to fall as MBS remained popular with investors seeking a safe haven from turmoil in financial markets.
As the economic recovery picks up steam, mortgage rates and interest rates could rise if government-backed MBS and Treasury bonds fall out of favor with investors.
Real estate economists and analysts surveyed by the Urban Land Institute expect 10-year Treasurys to rise as the recovery picks up steam, from an average of 2.4 percent this year to 3.1 percent in 2013 and 3.8 percent in 2014.
Historically, mortgage rates have tracked 10-year Treasury yields fairly closely, so that forecast implies mortgage rates could rise 140 basis points, or 1.4 percentage points, in the next two years.
According to Euro Pacific Capital Inc. CEO Peter Schiff, the flight from bonds could be exacerbated by the government's massive holdings, which Schiff thinks have a distorting effect on the market.
Schiff -- whose views are more pessimistic than those of many investors and economists -- predicts a bubble in bond markets will lead to another economic crash in the next two to three years.
The root of the problem is similar to the problems faced by debtor nations in Europe, Schiff told Forbes this week: “We consume more than we produce and we borrow abroad, but we are never going to be able to pay them back."
Mortgage rates began their recent surge on March 13 after the Federal Reserve's open market committee announced that its members do not anticipate an expansion of existing quantitative easing programs.
The committee said the Fed will continue reinvesting principal payments from its MBS holdings into like investments, and rolling over maturing Treasury securities at auction. Signs of an economic recovery and a surge in the stock market may also have hurt demand for Treasurys and MBS.
Yields on Treasurys and MBS came back down this week after Federal Reserve Chairman Ben Bernanke said unemployment remains a worry and that the Fed remains prepared to boost the economy with "continued accommodative policies."
Much of the recent improvement in job markets is due to a slowdown in layoffs rather than increased hiring, Bernanke said Monday at an economics conference.
The private sector employs 5 million fewer workers than it did at its peak, and the workforce has grown in the meantime, he noted. The unemployment rate in February was 3 percentage point above its average over the 20 years before the recession.
Further improvements in the unemployment rate "will likely require a more-rapid expansion of production and demand from consumers and businesses, a process that can be supported by continued accommodative policies," Bernanke said.
The National Association of REALTORS®' chief economist, Lawrence Yun, stated that fears of rising mortgage rates could spur homebuyer demand. But if rates increase significantly, that would reduce buyers' purchasing power, Yun said.
Yun predicts rates on 30-year fixed-rate mortgages will soon be in the 4.3 to 4.6 percent range.
In their most recent forecast, economists at Fannie Mae said they expect 30-year fixed-rate loans to average 4.1 percent during the second half of 2012, and 4.3 percent in 2013.
Copyright 2012 Inman News
Subscribe to:
Posts (Atom)
