Congress Giving Homebuyers a $6,500 Tax Break

By STEPHEN OHLEMACHER (AP)

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 could vote on the bill as early as 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.

The bill is H.R. 3548.
On the Net:
Congress: http://thomas.loc.gov

Short Sale Plan will Help Families

A major joint venture for Short Sales was announced late Tuesday (Oct. 20). RE/MAX International issued this press release:

Real Estate Leaders Unite to Reduce Foreclosures New Short Sale Strategy Designed to Help Homeowners Avoid Foreclosure

RE/MAX International of Denver, Colorado and HEART Financial Services of Northbrook, Illinois have agreed to work together to help homeowners avoid foreclosure. The real estate franchisor and loan modification leaders have created a unique pre-foreclosure or "Short Sale" strategy that will make it easier for families to sell their homes and avoid the trauma of a foreclosure.

"It's unfortunate that the Short Sale process has been so difficult to navigate in this marketplace," says Dave Liniger, Chairman and Co-Founder of RE/MAX International. "We've been working hard to promote streamlined Short Sales to provide both significant benefits to lenders, and a welcomed opportunity for homeowners to get a fresh start."

At-risk homeowners who do not qualify for a loan modification will now have a viable alternative, and will not be forced into foreclosure. Lenders that offer loan modifications to their at-risk borrowers will be invited to participate in this new Short Sale program.

Trained customer service representatives will provide detailed Short Sale information to all homeowners who cannot obtain a loan modification or do not wish to retain their property. If a homeowner believes that a Short Sale might be appropriate, they are directed to a secure Internet website where they can obtain more information, and select a real estate agent in their community who has received comprehensive training on the Short Sale process. RE/MAX has designed this unique online database to assist homeowners with Short Sale information and easy agent referrals.

"It's been our experience that many homeowners aren't even aware that Short Sales are a reasonable alternative to foreclosure," says Jerry Alt, President and Chief Executive Officer of HEART Financial Services. "Each month we speak with thousands of homeowners who can't qualify for or don't want a loan modification. For the most part, when we refer them back to the servicer for a potential Short Sale, we lose the opportunity to help the borrower while we have them on the phone. Now, we can offer these homeowners some hope and a more efficient process to list and sell their home."

The number of homeowners who could rely upon a Short Sale may be in the millions. According to realtytrac.com, July, August and September had the highest foreclosure numbers on record and some analysts say there is a "shadow" inventory of foreclosed properties as high as 7 million, which could start hitting the market in a few months. Out of all the applications reviewed for a loan modification, less than 50% are successful. And a high percentage of successful loan modifications eventually re-default.

"We have been talking to numerous industry leaders, legislators and Administration officials trying to draw attention to the Short Sale situation," says Liniger. "It's just not possible for the housing market to recover fully until the inventory of foreclosed properties is significantly reduced, and Short Sales offers one practical way to help do this."

There are over 11,000 real estate agents in the United States who have received the Certified Distressed Property Expert (CDPE) professional designation. Over 60% of those are affiliated with RE/MAX. In addition, the National Association of REALTORS also offers a similar Short Sale, Foreclosure and REO (SFR) designation. Agents who have received special Short Sale training like these designations could be selected to participate in this new Short Sale program.

Short Sales can occur when a lender agrees to accept a sales price for a home that is lower than what the homeowner owes on the mortgage. The Short Sale transaction is more complicated than the average real estate sale and consumers are urged to deal with agents who have specific training in the process.

HEART Financial Services will begin offering the newly developed Short Sale process to the loan modification applicants of their clients within the next few weeks.

# # #

About HEART Financial ServicesHEART Financial Services, LLC is headquartered in Northbrook, Illinois and has over 200 professional customer service representatives and loss mitigation negotiators dedicated to assisting mortgage borrowers. Since mid-2008 HEART Financial has worked with over 800,000 consumer mortgage borrowers and has achieved closing rates in excess of 40%. No fees are charged to the consumer for working out a suitable plan for home retention. As one of the largest loan modification facilitators in the country, HEART Financial has a proven record of reaching the problematic "no contact" borrowers before a decision to foreclose has been made and achieves higher resolution rates than industry averages. HEART Financial is dedicated to developing successful outreach programs for our servicing clients to engage their customers in a meaningful manner to work out a suitable solution to avoid foreclosure.

What You Need to Know About Short Sales
September 29th, 2009 ·
If it seems like short sales have suddenly exploded in the real estate arena, it’s not your imagination.

Once considered relatively rare, short sales have become a common phenomenon in the past 18 months, thanks in large part to the banking and mortgage crisis.
To find out if you can benefit from a short sale, here’s some helpful information about the practice.
What Is a Short Sale?
Short sales occur when the bank and seller agree to a purchase price for real estate that is less than the original mortgage amount and does not cover the entire cost of the existing debt obligation.
Who Benefits?
Depending upon how the deal is structured, everyone can benefit from a short sale.
The seller benefits from the ability to save his or her credit rating and avoid bankruptcy or face a mountain of debt, the buyer benefits from acquiring a property at below market price, and the lender benefits from a sure sale that reduces the risk of a property going to auction or of having to foot the bill for foreclosure and additional expenses.
Considerations and Consequences
Short sales are not without consequences, so take time to carefully weigh all options before making a decision. Sellers need to carefully review the terms prior to signing a final contract.
Some lenders expect the seller to make up the difference between the selling price and the full amount of the original mortgage.
Buyers should also proceed with caution, as many properties have additional liens, deferred maintenance, back taxes or other expensive fees that become the obligation of the buyer.
Additionally, short sales may require substantial time before obtaining final approval, which can make it difficult to lock in favorable rates or result in the loss of other prospective properties.

The OSS Races Are Here!

Ladies and Gentleman start your boat engines and get ready for the 2009 Offshore Super Series at Lake of the Ozarks. Racing starts at 12 noon on Saturday and Sunday. If you love power and speed then look no further, this is the weekend at Lake of the Ozarks for you! These are no ordinary boat races, these my friends, are the Nationals! Click here for all the details!


Something new for LOTO this year will be the addition of OSS Speed Runs. The Speed Runs will be similar to a drag, two boats running side by side in a contest for “Top Gun” bragging rights as the fastest boat in its class. The Speed Runs will be open to any Teams providing their boat conforms to the OSS Spec class rulebook.


So don't listen to those who've told you that the "season" is over at the Lake, we're just gettin' started! Pack your cooler and head out on the boat, and for you land lovers enjoy the races at Toad Cove or Shady Gators! Remember there's a no wake zone from the 5MM to the 10MM from 10 AM to 1/2 hour after the race on Saturday and Sunday.


As always, check out www.FranCampbell.com/blog for all of your Real Estate needs. After a great vacation at the Lake you'll want to fulfill your dream of being a home owner and we can help!

What to do at Lake of the Ozarks?

Are you scratching your head, wondering what there is to do this weekend at Lake of the Ozarks? Then look no further, because we've got the hot tips on events!

This weekend (Sept 11-13) Lake of the Ozarks Marine Dealers Fall In-Water Boat Show will be held at Captain Ron's, at the 34 1/2 MM. Get special values and take advantage of clearance prices on 2009 models of cruisers, runabouts, performance boats, pontoons, ski boats, personal watercraft, docks, lifts and all boating accessories. Click HERE for money saving admission coupons!

Sept. 11 is Hot Summer Nights! All makes and models of cars and trucks. Bagnell Dam Strip, Lake Ozark. http://www.cruise-hotsummernights.com/

Can't get enough of great cars? Sept 12-13 is the Westlake Street Machine Fall Follies Car Show held at the City Park Fairgrounds, Laurie, MO.

Sept. 12 is the 9th Annual Lake Area Fall Festival. There will be food, crafts, entertainment and more! This year's event will include the Lake's Got Talent Contest as well as the BowWow Contests. The festival will run from 9 a.m. until 5 p.m. Free shuttle parking will be available to the Osage Beach City Park east of the park on Highway 54 at Broken Arrow and west of the park on Highway 54 at First Back Centre at the Osage Beach Premium Outlet Mall. The Osage Beach City Park is located off of Hatchery Road near Osage Beach Elementary.

Sept. 13 is the 2nd Annual Blues & Bar-B-Que at the Elks Lodge, Osage Beach. 5:30-8:30 p.m. and the benefits go to Kids' Harbor Child Advocacy Center. The evening is sponsored by the Lake of the Ozarks Blues Society.

So if you are coming to town this weekend, you will find something fun to do for the WHOLE family. As always, please check out www.FranCampbell.com/blog for Lake Area Real Estate listings and let Fran Campbell Team help you find your dream home!

Holiday Safety Tips

Fran Campbell Team wants each of you to have a very safe and fun Labor Day weekend! Here are some great tips that all boaters, professional or novice, can appreciate.

1. By law, a lifejacket must be available for each person in the boat. Make sure passengers know where those jackets are in case of an emergency.


2. Know what each buoy marking means. Pay attention to the No Wake areas as many children and adults might be swimming in that area.


3. Be aware of your surroundings and drive to the right side of the channel or cove, just as you would on the road.


4. Have a plan mapped out in your head for emergencies before you go out on the water. The more prepared you are, the calmer you tend to be in those situations.


5. Don't drink and drive. Remember that we are all responsible not only for the lives of those on our boats, but the lives of everyone on the Lake.


6. The Water Patrol and the Coast Guard Auxiliary provide free inspections of boats. If you suspect a problem before getting in the water, call up these guys to give you the green light.


7. Designate one passenger to keep a close eye on water skiers and tubers riding on the back of your boat. Watersports should be conducted in a safe area.


8. Be considerate of others out on the water. Coves can get crowded at times and tension can easily arise.


9. Check the weather ahead of time so you can stay ahead of any storms or strong wind that might be coming to the area.


10. When overtaking smaller vessels, be courteous and try to allow as much room as possible at a reasonable speed.

We're looking forward to the great Holiday weekend with many visitors. As always, please check out www.FranCampbell.com/blog for Lake Area Real Estate Listings!

Vacation News - August 28-Sept 10, 2009.

Luxury Real Estate, Luxury Goods - A Peek into the Future

An excerpt from Unique Global Estates-

1980s….Simplicity is elegance….evolves into 2009: Frugal is the New Black….

I believe there is a cross over in these two statements. Consumers are spending, but their purchases are well researched and they are “shopping with their brains not their wallets” as was the case before the economic crisis hit. We are seeing this throughout the real estate industry. Location and price have never been as important.

The new consumer knows how to drill the Internet to take advantage of the opportunity to compare prices, research comparables for amenities and familiarize themselves with the location and it’s history. Then, when satisfied that they are educated and informed, and feel that they are getting a “good deal” on pricing, they will get off the fence and make an offer to purchase.

We also see that there is a trend leading to successful sales when the list price is low and creates a ‘feeding frenzy” of offers…. This indicates the consumers mindset, a “need to know” what the market will bear in these uncertain times of valuation.

As mentioned previously, we are in uncharted waters and there will be a re-set in the luxury real estate market. Luxury will always be luxury….just at prices the market will determine going forward.