Metrowest Massachusetts 1st Time Home Buyer Tax Credit

The American Recovery and Investment act has been modified as of February 2009.

The new 1st time buyer stimulus package has been changed to give a home buyer a tax credit of up to $8000 for the purchase of a home.

The chart above gives a complete summary of the key points of the in the American Recovery and Investment Act.


Some of the most frequently asked questions on this new stimulus package can be found at The National Association of Home Builders website under the frequently asked questions about home buyers tax credit.


Frankly this is the best resource on the 1st time home buyer tax credit I have seen. The questions answered at the site include the following.

1. Who is eligible to claim the tax credit?
2. What is the definition of a first-time home buyer?
   
3. How is the amount of the tax credit determined?
   
4. Are there any income limits for claiming the tax credit?
   
5. What is "modified adjusted gross income"?
   
6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
   
7. Can you give me an example of how the partial tax credit is determined?
   
8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
   
9. How do I claim the tax credit? Do I need to complete a form or application?
   
10. What types of homes will qualify for the tax credit?
    
11. I read that the tax credit is "refundable." What does that mean?
    
12. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
    
13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
    
14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
    
15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
    
16. I am not a U.S. citizen. Can I claim the tax credit?
    
17. Is a tax credit the same as a tax deduction?
    
18. I bought a home in 2008. Do I qualify for this credit?
    
19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
20. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
21. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
    

If you have been thinking about buying a home in the Metrowest Massachusetts area now my be the time. Interest rates are near historic lows, home values in many locations have dropped by as much as 25% from the peak, and the tax credit is only around till the end of the year. $8000 is not chump change for most looking to buy their 1st home.

Want to work with a top Realtor? Visit my website at Metrowest Mass Real Estate or my blog at Westboro Real Estate.

Selling Your Metrowest Massachusetts Home

As a Realtor covering Metrowest Massachusetts Real Estate for the last twenty three years, it is my job to educate my clients on how they can get the maximum return out of selling their homes. This is a really simple video that explains some of the common pitfalls of selling a home and how you can avoid them.

In addition to the video I have left some links to articles I have written that explain in detail how you can increase the chances you will have a successful and timely home sale.

Topics include pricing your home properly, picking the right Realtor, staging your home, and a wealth of information about how to go about marketing your home for maximum exposure online.



I hope you enjoy reading these articles as much as I enjoyed writing them!

Why Your Metrowest Massachusetts Home Expired

Selling Your Home In A Buyers Market

Selling Your Home Does Not Have To Be A Mystery

Social Marketing Blogging Short Sales and The Seller I Never Met

Top Ten Mistakes to Avoid Selling Your Massachusetts Home

___________________________________________________________________
About the Author: The above Real Estate information on Selling your Metrowest Massachusetts home was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356.
For Metrowest Massachusetts Real Estate and homes see Metrowest Mass Realtor. Want to have MLS access to beat other buyers to your dream home? Sign up with no obligation at my MLS Property Finder Site.
I service the following towns in Metrowest Massachusetts: Hopkinton, Milford, Upton, Southboro, Westboro, Ashland, Holliston, Mendon, Hopedale, Medway, Grafton, Northbridge, Franklin, Uxbridge, and Framingham MA.
Click here to view Bill Gassett's Real Estate profile.

Subscribe in a reader
SUBSCRIBE TO MY METROWEST HOMES BLOG via email.
Building lasting relationships by helping people move in and out of Metrowest Massachusetts for the last 23 years.

Good Local Real Estate News Ahead?

The Real Estate market here in Metrowest Massachusetts has been in a slump for a good 3 plus years. The peak in the Real Estate market was in the Spring of 2005. Since then things have been marked by declining home values, extended market times, short sales, foreclosures, and in many areas a rise in housing inventory. Not a lot of fun if you need to sell your home here in Massachusetts.

Is it possible this could all be a distant memory in the near future? According to a news story in Banker and Tradesman it may be. The article suggests that the worst housing market market in the United States since the Great Depression may be nearing an end.

The strongest indicator that the market may be changing is the fact that the pace at which housing values have been dropping has slowed. There are also certain pockets in the US where home values have actually already started to increase.

“Anybody who tells you they know when the housing market will bottom is delusional, but anybody who denies there are some positives out there that could make the housing market bottom fairly soon is equally delusional,” said Karl Case, the co-developer of a widely watched gauge of the housing industry and an economics professor at Wellesley College in Massachusetts.

The Standard & Poor's S&P/Case-Shiller home price indices, which case co-developed, has shown a slow down in the downward trend in home prices in recent months.

There is also other data that has shown signs that we could be in for a recovery sooner rather than later.

New housing starts fell to 975,000 in April from a peak of 2.27 million in January of 2006. In the past 35 years, the three other times that housing starts fell from more than 2 million to under 1 million, housing market activity rebounded within a quarter.

One of the states to watch is California which has been battered by foreclosures. The California Real Estate market has taken quite a hit. In fact prices have dropped so much in California that the cost of a mortgage and taxes is the same as rent in many locales. If California starts to recover it is a good bet that the rest of the country will follow suite shortly thereafter if history is any indicator.

While I am the furthest thing from a pessimist and always look to see the bright side of things, it is hard to imagine the Massachusetts Real Estate market recovering in the next 6 months. Unfortunately here in Metrowest Massachusetts we have just started to see more short sales and foreclosures. This will have a further impact on home prices.

There are other factors in place as well that will prevent the Real Estate market here from all of sudden just turning around and heading back up. These factors include:

1.) More people leaving Massachusetts than being transferred in.

2.) A much tighter mortgage market.

3.) Sky high energy costs. (Certainly makes people more conservative).

4.) Inventory levels in some communities that are higher than six months.

I don't pretend to have a crystal ball but logic and the fact that I see what is going on the Real Estate market everyday leads me to come to this conclusion.

So for now if you are thinking of selling your home make sure you price it properly and work with a Realtor that will create an online presence for your home. These two factors will go a long way in determining how successful your are.

Short Sale Scammers We Buy Houses

Have you ever seen the signs posted on telephone poles in the Metrowest area that says something to the effect "We buy houses". The headline usually reads do you need to sell your home quick? Are you in financial trouble? Do you need cash fast?

These companies are almost always looking to buy your home at 50 cents on the dollar. They are not going to give you anywhere close to the fair market value of your home!

Well there is a new twist to this predatory business that you really need to be on the look out for. There is a group in the Metrowest area that has been preying on people who call them to sell their home.

The Real Estate market in Massachusetts has been on the down turn for the last three plus years. Most recently there have been more and more short sales coming on the market. A short sale occurs when the value of the property is less than the mortgage balance and the lender agrees to let the home close for less than the mortgage balance owed. (Click the link for a complete explanation).

So here is what I just ran into. A client of mine who lives in Milford Massachusetts had gotten herself into financial difficulty and was having trouble making her mortgage payments. I had actually spoken to her about doing a Short sale but she did not act on my advice. She ended up seeing one of those We Buy Houses signs and decided to call them. What a mistake!

These people had her sign an agreement that locks her into being involved with them for a year.
To make a long story short these people had her sign an option contract. They then proceeded to act on their OWN behalf to submit a short sale offer to the bank.

The value of this property is in the low 200's. These predators submitted an offer to the bank for $131,000!!!. You can probably already see this picture very clearly. God knows if they get the bank to accept an offer like that the home will be right back on the market and these people will have put some good money in their pocket.

The bank did not except their offer but this story continues to get worse. The owner never signed a listing agreement with these people but now her house is on the market and listed with an affiliate of this company!

The home was listed for $240,000 in the Greater Boston multiple listing service. The owner discovered the home was listed and questioned these people and they said - why do you care you need to sell the home anyway. The owner never authorized this company to sell the home. She did not sign a listing contract. Her expectation was they would be buying it.

A few weeks later the property was reduced to $225,000 with out the owners consent! No price reduction signed. Nothing...not even a verbal request for a reduction. It was just reduced period.

One of the terms of the agreement that the home owner signed says " I have agreed to sell the property to the buyer and am now bound by the terms and conditions described in this agreement. I further understand that can not continue to market the property to any other party, except as provided herein.

So as it stands this home owner is locked into an agreement whereby this entity does not care for what the home sells for and is working on their own behalf to get the home as cheap as possible for their own benefit. It makes me sick!!!

The listing company who is affiliated with these people has it in MLS has 2 pictures. The Real Estate company sure looks like they are going to be giving it their best effort (laughs).

Sounds like the attorney general would like to hear about this. I have told this woman to contact her attorney immediately.

This is the perfect example of why you should have an attorney look over important Real Estate documents. The fine print and terms of this agreement have completely locked the seller into a terrible situation.

Another short sale situation that has become quite common lately is short sale investor fraud. If you need to do a Massachusetts short sale I would encourage you to read this article. The last thing you want to have happen to you is be involved in a short sale scam where you end up in foreclosure. There are lots of people preying on others misfortune! Don't get caught with your pants down.

I would encourage you to read a few articles I have written about short sales. The 1st link is a complete overview of numerous short sale articles that cover everything you need to know about completing a successful short sale transaction.
Massachusetts short sales

Avoiding foreclosure through a short sale
Short sales and deed in lieu of foreclosure

If you are listing your home as a short sale in Metrowest Massachusetts make sure you hire a Realtor who has knowledge of short sales and has the experience to get the job done. I am doing successful short sale packages . I work with a local attorney who has success getting short sale approval. Call me at 508-435-5356 to find out more about Metrowest Massachusetts Short Sales. You will get honest advice from someone who cares.

I cover Real Estate Sales in the following towns: Hopkinton, Milford, Ashland, Holliston, Westboro, Southboro, Medway, Upton, Mendon, Bellingham,Northboro, Shrewsbury, Natick, Framingham, Grafton, Douglas, Northbridge, Hopedale, and Uxbridge.

Visit my website at Metrowest Massachusetts Short Sales.