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By admin, November 7, 2009 2:04 pm

One of my acquaintances from college recently moved to Chicago and found a job at a local bank in the loan section. One of his initial duties was to address a loan modification. Chicago had a prosperous real estate sector until recently; so numerous homeowners could no longer afford their loan payments. One of my friend’s customers was bound seeking to decide between a loan modification and a short sale. He did not know the difference, so my friend had to fill in his client about the differences. Before the client could make a decision, he had to determine if he wanted to stay in his home or if he wanted to sell his home.

If he desired to sell his home, then he needed to seek short sale help. A short sale would assist him to protect his credit score and sell the home. The client would be best helped if he hired an attorney to help him with the short sale proceedings. The bank would proceed to meet with the attorney and negotiate a final sale cost. Once this step is finished and the client signed all of the paperwork, the client is acquitted of the debt. They do not have to concern about any debt or the bank suing for the remaining funds on the mortgage. The bank will look for a buyer for the house, but the former owner fronts no more problems with their prior home.

If the customer preferred to keep his home, then he would need to seek out a loan modification. A loan modification would adjust the loan to suit the payment capabilities of the borrower. In this case, the loan could be extended to a forty-year loan, or the loan payments could be reduced by the bank. There are variable ways for the bank to accomplish this. One recommendation by our President has been that banks trim monthly mortgage payments to 30 percent of a family’s monthly income. This makes the loan payments more realistic, so it is simpler for the client to pay off his mortgage. Through the aid of my friend at the bank, his first customer was able to go through a loan modification and he was able to abide in his home. He did look into short sale help, but the loan modification offered a stronger end result.

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By admin, November 2, 2009 11:11 pm

New homebuyers, whether you are buying a new or pre-owned property, you are eligible for a $8,000 homebuyer tax credit. This is a potent incentive for those who have been entertaining a dream of owning their own property for a long time. When you compound the homebuyer tax credit with the unprecedented costs you’ll get in this buyer’s real estate market, many people who never could afford their own home before are realizing the opportunities of their dreams.

Because the tax credit is open to 10% of the house’s value up to $8,000, the $8,000 homebuyer tax credit could basically save you much more on your taxes, depending on the size of your home. The homebuyer tax credit was a function of Obama’s stimulus plan that was directed towards dealing with the struggling housing market in an effort to get the economy to regain its footing and get currency flowing again.

Claiming the tax credit is simple. You just claim the purchase of the home and the credit on your tax return. The credit will be taken off any taxes you owe or tallied to your refund. If you’ve imagined owning your own home, there couldn’t be a better time. You won’t find this kind of tax incentive often, and combined with the current conditions in the housing market, it’s really a win win situation for first time homebuyers.

Stop renting. You might actually save money if you own property. With the savings from the $8,000 homebuyer tax credit, you could get a loan that has lower payments than what you pay for rent this month, but you won’t be throwing it away or investing in the college fund of your landlord’s children. Thanks to the homebuyer tax credit, you’ll be investing it in your own potential, owning a home that can be a serious asset. It’s a clean way to build credit and capital to make your way into the world.